Answer Sheet – Marketing Management – EMBA 1st Semester Dec-2014 Student: Shafeeque A Magami
Course: One Year Executive MBA
Register No: N14NOV/959
Answer-1: Explain Pricing Policy.
The policy by which a company determines the wholesale and retail prices for its products or services. Pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others. Automated systems require more setup and maintenance but may prevent pricing errors. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. Thus pricing is very important in marketing. Product cost, demand for the product and competition are the three major factors affecting pricing decision. When data about factors are collected, before fixing up the product price by adopting an appropriate pricing method, the existing pricing policy must be reviewed and updated taking into consideration, the changed business environment, if any.
The existing pricing policy is to be periodically reviewed and updated in relation to other policies like selling methods, advertising policy and production policy and programme. For example, it may be necessary to reduce the product price to enable fuller utilization of plant capacity, more quickly. One of the reasons for not utilizing the installed capacity fully may be the existing imbalance in the installed production facilities. Such an imbalance may be due to the reason that the capacity of different equipment of a plant does not much. In such cases, the following alternatives are available to the manufacturing organization to rectify the imbalance in the existing production facilities: To sub-contract part production which is restricting the production. To install balancing equipments with higher output potential. To introduce shift working.
If there is consistent imbalance in the production facilities, entire plant can be replaced by installing new automatic plant. Idle equipment may be sold so that entire attention can be diverted to fully utilized equipments. In all such cases, production will increase and the increased volume of production may be sold by a suitable reduction in product price. There can be many such cases of changing business environment which may affect short-term and long term objectives.
Answer-4: Explain the procedure in Marketing Planning.
The marketing planning process involves both the development of objectives and specifications for how they will be accomplished. There are five basic steps in the process in this process. Determination of Organizational Objective
The basic objectives, or goals, of the organization are the starting point for marketing planning. They serve as the foundation from which marketing objectives and plans are built. These objectives provide direction for all phases of the organization and serve as standards in evaluating performance. Soundly conceived goals should be S.M.A.R.T – specific, measurable, attainable, realistic and time-specific. Assessing Organizational Resources
Planning strategies are influenced by a number of factors both within and outside the organization. Organizational resources include capabilities in production, marketing, finance, technology, and personnel. By evaluating these resources, organizations can pinpoint their strengths and weaknesses. Strengths help organizations set objectives, develop plans for meeting objectives, and take advantage of marketing opportunities. Resource weaknesses, on the other hand, may inhibit an organization from taking advantage of marketing opportunities. Evaluating Risks and Opportunities
Environmental factors – competitive, political, legal, economic, technological and social – also influence marketing...
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