MBA 2nd Year - Assignment Assignment submitted in partial fulfillment of the requirements for the awards of the degree of Master of Business Administration of the Manonmaniam Sundaranar University.

DIRECTORATE OF DISTANCE AND CONTINUING EDUCATION MANONMANIAM SUNDARANAR UNIVERSITYTIRUNELVELI 627 012

DRC 21 : Functional Management I 1. Explain with examples, the types of retailers. 2. Describe the role of auditing in HR Functions. DRC 22 : Functional Management II 1. Elaborate the determinants of working capital. 2. Discuss the types of plain layout with suitable illustration. DRC 23 : Strategic Management 1. Elaborate the Strategic planning process. 2. Explain with the help of examples, the types of Grand Strategies. DRC 24 : Marketing Research 1. Marketing Research is a tool of management Comment. 2. Explain the application of marketing research. DRC 25 : Advertising and sales promotion 1. Narrate the problems and prospects of advertising. 2. Explain the techniques used for measuring advertisement performance. DRC 26 : International Marketing 1. Bring out the impact of Marketing intelligence on Export Oriented business. 2. Analyse the role of EXIM Bank in India. DRC 27 : Service Marketing 1. Bring out the 7Ps of services Marketing with suitable examples. 2. Briefly explain the marketing of hospitability services in India. DRM 28 : Entrepreneurship and Management of Small Business 1. Explain the role of Entrepreneurship in the economic development. 2. Critically evaluate the Public Distribution System (PDS) in Tamilnadu.

DRC 21 : Functional Management I 1. Explain with examples, the types of retailers1. Small -Scale retailers 2. These Amy is divided into:-(i) Street Stalls(ii) Stalls in Markets or Bazaars(iii) Co-operative Stores(iv) Independent Shops(v) Second-hand dealers(vi) Hawkers & Pedlars(i) Street Stalls-These are shops with very limited space as they are usually constructed on any available space on a busy street, They are usually of a permanent nature. They are owned by independent retailers or are small partnership firms.(ii) Stalls in Markets or Bazaars-These are small shops in specially constructed markets such as the Crawford Market of Bombay or the New Market of Calcutta. The space is limited.The great advantage of such a stall is that likely buyers are always passing by. Such stalls may be permanent or as in the case of weekly markets in villages, temporary. These are generally owned by the sole trader or by partnership firm.(iii) Co-operative Stores --These may be run on a small or large-scale basis. We shall deal with them later.(iv) Independent Retailers or Sole Traders-These include grocers, bakers, greengrocers, fishmongers, etc.; and those who deal in miscellaneous articles in universal demand; such as cloth shopkeepers, book-sellers, small stores stocking articles such as sticks, umbrellas, boots, shoes, hats, gloves, toys, etc.These private shopkeepers play in important part on the retail market. Through their display and salesmanship and personal contact with the customer they create a demand, which demand is met by selling in small quantities as required by the customers. They even grant credit to their customers and receive the amount by instalments. These small retail shopkeepers are popular, and carry on a good trade in spite of large organizations, such as department stores, competing against them because they are in a position to give personal and detailed attention to the wants of their customers, as they are personally acquainted with the customers of the locality. These retail shops have to meet intense competition in proprietary and branded articles belonging to producers and manufacturers.The retail shopkeeper frequently deals in perishable goods, and that is one other reason why he is anxious to see that his turnover is rapid, so that he may not suffer as loss through the stock getting stale.(v) Second-hand Dealers-These usually sell books, clothes, furniture, motor-cars, etc. and do very good business as they cater to the needs of the majority of people who cannot afford to buy new goods. These are owned by sole- traders or -partnership firms.(vi) Hawkers and Pedlars-They carry a very limited stock which they get from wholesalers or local retailers and move about from locality to locality. They are usually found on busy street corners. The goods they sell are generally of inferior quality and temptingly priced. As they are rarely found again in the same spot there is no question of any guarantee given or complaint made.The price is seldom fixed. Fruit, toys, pens, handkerchiefs, hair-pins, combs, etc. are the type of articles applied to a person who has a handcart or animal for transporting and displaying his goods, while a pedlar is one who carries the goods himself. The pedlar is usually on his own but hawkers sometimes work in partnership.2. Large-scale Retailers These may be divided into:-(i) Multiple or Chain Shops.(ii) One price shops.(iii) Co-operative Stores.(iv) Departmental Stores.(v) Mail Order Business.(vi) Self-service & Supermarkets.(vii) Auto market of the future.(i) Multiple of Chain Shops The multiple or chain shop system originally developed through the success of retail shopkeepers. A Shopkeepers opens one shop which, for example, becomes very successful, with the result that he opens a second shop, and with the success of the second opens a third, and so on; and thus with the increase of shops he naturally wants more capital which he obtains by converting his organization into a limited company.Manufacturer has also opened shops to sell their goods which could not be marketed otherwise. In a departmental store the main idea is to concentrate the whole business in one centre and then attempt to draw the customers to it, but under the multiple or chain shop arrangement sin attempt is made to approach as near the customer as possible by opening a large number of smaller shops in different localities under a manager in charge, and by directing the working of it through the central office or depot. Another departure from the department stores' practice is to specialize in a particular set of articles in which the firm has chosen to deal, instead of playing the part of universal providers.An advantage of this type of organization is that as these shops concentrate on a certain line of goods dealt in on large lines purchases can be made from manufacturers on the most advantageous terms. The multiple shop system is the manufacturer's answer to the increasing tendency of retailers who make either their purchases abroad, or who ignore certain factories in preference to others.If a manufacturer in one particular line, say, boots and shoes, wishes to put forward his own products on retail lines, he adopts the multiple shop system and opens shops all over the town, where the gods are offered for sale. Here, an attempt is made to introduce personality in the shop fronts and name boards by adopting one particular design and seeing that the same design of shop fronts and name boards as used in the case of every shop in every locality. By special arrangement with the landlords, the frontal windows are also altered to the pattern selected. Thus, the manufacturer is entirely independent both of the wholesale middleman as well as the retail shopkeeper a deals with the consumer direct. (ii) One Price Shops The one price shop varies from the hawker who sells cheap toys, pens, etc., all at the same price to the large centrally maned stores like Woolworths of England and America which has a store in nearly every city. In the case of a central organisation which runs a number of one price shops, the articles are bought at the centre on a large-scale and then distributed among its shops in various localities. In some cases the shops are permanent while in other cases a one price shop is opened temporarily in particular locality either to dispose of certain goods or to catch a particular market while the demand lasts. (iii) Co-operative Retail Stores Just as the chain as the chain stores and the department stores were set up to eliminate the profit of the middleman, so consumers have also set up their own stores in order to keep the middleman's profit to themselves. A co-operative society is formed in which members invest their capital with the main purpose of supplying goods and services to its members at a low price through its store.The members also get an interest on their capital. The store is managed by representatives of the members. Consumers' co-operatives are not suitable for consumers of very low income levels as they would not be able to provide the necessary capital, and consumers with high income levels are not interested in the economies which are possible by means of such stores. Thus these co-operatives are particularly suitable for consumers of the lower middle- class.Today there has been an increase in the opening of cooperative stores all over India such as the Sahakari Bhandar in offers them generally to the consumers at lower prices than those prevailing in other shops. In this sense they are rendering a good service.(iv) Departmental Stores Many small shops sell a variety of goods but when this is done on a large scale various departments are opened, each department selling different types of article. Thus a large departmental store is really a number of shops under the same management and under the same roof. Departmental Stores are generally owned by joint stock companies.Each department is treated as a separate unit under a separate manages but all being centrally controlled by the General Manager and a Board of Directors. There is also a staff Personal Manager to recruit and supervise the large staff necessary to run such a big organisation. (v) Mail-Order Business These are organizations which conduct their business through the mail and thus extend the scale of their operations by reaching out into a wider territory. The main problem of mail order business in India consists of the various languages prevailing in different parts of the country which makes it difficult for the mail order business to extend outside a small local area.They may thus have to concentrate on the major cities by conducting their business in English as operating in different languages in different areas might be expensive.(vi) Self-Service Stores and Supermarkets In the case of well-known goods sold in packages of convenient size with trademarks or trade names, there is really no need to get any advice or assistance from a salesman. Thus in Europe and America many retailers have cut down the expenses of employing a large staff by providing self-service. 2. Describe the role of auditing in HR Functions.Human Resource (HR) Audit is a comprehensive examination of organizations current HR policies, systems, and procedures to evaluate compliance with employment regulations and identify areas for improvement. A well-executed HR Audit will reveal gap areas that can potentially lead to costly legal disputes and governmental fines. It is advisable to conduct an HR audit once every year. Additionally, conducting an HR Audit after a significant change in the organization (such as reconstruction, expansion, or deduction in force), will help to identify the right practices and highlight functions in need of modification.Types of HR Audit Legal Compliance Audit: This audit ensures compliance with all applicable federal, state, and local laws and reviews whether the current HR policies and systems meet the legal requirements. Comparative Audit: This audit involves comparing the current procedures of the organization with other organizations in the market that have proved to be successful in practice, in order to gain a competitive advantage. Strategic Audit: This audit involves evaluating the SWOT (Strengths, Weakness, Opportunities and Threats) analysis of the HR processes to ensure that they are in alignment with the organizations strategic plan. Function-Specific: This audit focuses on specific functions in HR such as Training, Compensation and Recruitment and helps to measure their effectiveness in relation to long-term business goals.Objectives of the Human Resource Audit To review the performance of the Human Resource Department and its relative activities in order to assess the effectiveness on the implementation of the various policies to realize the Organizational goals. To identify the gaps, lapses, irregularities, short-comings, in the implementation of the Policies, procedures, practices, directives, of the Human Resource Department and to suggest remedial actions. To know the factors which are detrimental to the non-implementation or wrong implementation of the planned Programmes and activities. To suggest measures and corrective steps to rectify the mistakes, shortcomings if any, for future guidance, and advise for effective performance of the work of the Human Resource Department. v To evaluate the Personnel staff and employees with reference to the Performance Appraisal Reports and suggest suitable recommendations for improving the efficiency of the employees. To evaluate the job chart of the Human Resource Managers, Executives, Administrative Officers, Executive Officers, Recruitment Officers, whether they have implemented the directives and guidelines for effective Management of the Human resources in their respective Departments.Benefits of Human Resource AuditSeveral benefits associated with Human Resource audit are listed below. An audit reminds member of HR department and others its contribution, creating a more professional image of the department among manager and specialist. The audit helps clarify the departments role and leads to greater uniformity, especially in the geographically scattered and decentralized HR function of large organisations. Perhaps most important, it finds problems and ensures compliance with a variety of laws and strategic plans in an organization. Identifies the contribution of Human Resource department to the organization Improves the professional image of the Human Resource department. Encourages greater responsibility and professionalism among member of the Human Resource department. Clarifies the HR departments duties and responsibilities. Stimulates uniformity of HR policies and practices. Finds critical HR problems. Ensures timely compliance with legal requirements. Reduces human resource cost through more effective Human Resource procedure. Creates increased acceptance of needed change in the Human Resource department. Requires thorough review of Human Resourcedepartments information system.

DRC 22 : Functional Management II 1. Elaborate the determinants of working capital. A firm must have adequate working capital; it should be neither excessive nor inadequate. Schall and Haley have rightly said, Managing current assets require more attention than managing plant and equipment expenditure. Mismanagement of current assets can be costly.

It is therefore, essential that proper estimates of working capital requirements be made to run the business efficiently and profitably. There are several factors that determine the requirements of working capital. These determinants are briefly explained below:

(i) Nature of Business: The working capital requirements essentially depend on the nature of business undertaken. Public utility concerns like railways, electricity have limited need for working capital since most of their transactions are on cash basis and they do not require large inventories. On the other hand, trading and financial concerns have a very less investment in fixed assets but have a considerable need for working capital since they have to make substantial investment in current assets like inventories and debtors/receivables. Some manufacturing businesses like construction firms also have to invest substantially in working capital and a nominal amount in the fixed assets. In fact, the working capital needs of most of the manufacturing concerns fall between the two extreme requirements of trading concerns and public utilities. Such concerns are required to make appropriate investment in current assets depending upon the total assets structure and other relevant variables.

(ii) Scale of Operations: Generally, greater the size of the business unit, larger will be the working capital requirements. However, in certain cases, even a smaller concern may need for working capital due to high overhead charges, inefficient use of available resources etc.

(iii) Length of Production cycle: The manufacturing cycle begins with the purchase and use of raw materials and completes with the production of finished goods. Longer the manufacturing process, the higher will be the working capital requirements and vice-versa. An extended manufacturing time span means a greater deal of funds being tied-up in inventories.

iv) Rapidity of turnover: There is a high degree of correlation between the amount of working capital and the speed with which sales are effected. A company with a high rate of stock turnover will need lower amount of working capital as compared to a firm having a low rate of turnover. For instance, in case of jewellers, the turnover is quite slow. They have to maintain a high inventory of jewellery of different types, and keeping in mind that the movement of inventory too is slow, their working capital needs will definitely be high.

(v) Credit Policy: The credit policies maintained by the concern with its debtors and creditors have a significant influence on the working capital requirements. A company allowing liberal credits to its customers may have higher sales but will require more working capital when compared to a company which has an efficient debt collection policy with strict credit terms. This is so since in case of the former, a substantial amount of its funds will get tied up in its sundry debtors. Similarly, a company enjoying liberal credit terms from its suppliers will need lower amount of working capital when compared with a company with no access to such liberal credit facilities.

(vi) Business fluctuations: Most firms experience seasonal and cyclical fluctuations in the demand for their products and services. These business fluctuations affect the working capital requirements, especially the temporary working capital component. For instance, a boom in the economy will boost sales which in turn will necessitate an increase of the firms investment in inventories and book debts. Under boom, additional investment in fixed assets may be made by some firms to increase their productive capacity; this will definitely require additions of working capital.

(vii) Production Policy: A steady production policy will cause inventories to accumulate during the slack seasons, exposing the firm to increased inventory costs and risks. Such a policy will require higher working capital. The production schedule may also be adjusted by curtailing the production in the slack seasons and increasing it in the peak seasons.

(viii) Growth and expansion activities: It is difficult to precisely state the relationship between the growth in the volume of business and the growth in the working capital of the business. Generally, the working capital needs of the firm increase as it grows in terms of sales or fixed assets. In fact, for normal expansion in the volume of business, profit retention may suffice; however for fast growing concerns, larger amounts of working capital will be needed.

(ix) Earning capacity and Dividend policy: A firm with higher earning capacity may generate cash profits from operations and contribute to their working capital. Again, the firms policy to retain or distribute profits also has a bearing on working capital. Payment of dividend consumes cash resources and thus reduces the firms working capital to that extent.

(x) Price level changes: Generally, rising price levels require a firm to maintain a higher amount of working capital since the same level of current assets will now require increased investment. Of course, immediate revision in product prices can help companies to counter the rising price levels. However, the effects of rising prices will be different for different companies; some will face no working capital problem while the working capital problem of some may aggravate.

(xi) Operating Efficiency: The operating efficiency of the firm relates to the optimum utilisation of resources at minimum costs. The use of working capital is improved and pace of the cash cycle is accelerated with operating efficiency. Better utilisation of resources improves profitability and thus, helps release pressure on the working capital.(xii) Other factors: There are several other factors that impact the working capital requirements of a firm. They include factors like, management ability, asset structure, credit availability etc.2. Discuss the types of plain layout with suitable illustration.(A) Product or Line Layout:Product or Line Layout is the arrangement of machines in a line (not always straight) or a sequence in which they would be used in the process of manufacture of the product. This type of layout is most appropriate in case of continuous type of industries where raw materials is fed at one end and taken out as finished product at the other end. For each type of product a separate line of production will have to be maintained.This type of layout is most suitable in case of metal extraction industry, chemical industry, soap manufacturing industry, sugar industry and electric industry. It should be noted that this method is most suitable in case of mass production industries.Following diagram clearly explains product layout:In the above diagram there are two products A and B for which separate lines of production have been maintained. Kimbaii and Kimbaii jr. have given a simple diagram to explain this type of layout in the book Principles of Industrial organisation.According to Shubin and Madeheim, product layout is suitable where:(i) large quantity of standardized products are produced;(ii) the standardized products are to be processed repetitively or continuously on the given production facilities;(iii) there must be sufficient volume of goods processed to keep the production line actively occupied,(iv) there should be greater interchangeability of the parts; and (v) to maintain good equipment balance each work station must employ machines or equipments of approximately equal capacities. Similarly to maintain good labour balance, each work station must require an equal amount of work to be performed.Advantages of Product Layout: (1) Removal of obstacles in production:Product layout ensures unrestricted and continuous production thereby minimising bottlenecks in the process of production, this is because work stoppages are minimum under this method.(2) Economies in material handling:Under this method there are direct channels for the flow of materials requiring lesser time which considerably eliminate back-tracking of materials. On account of this, cost of material handling is considerably reduced. This is greatly helpful in achieving desired quality of the end product.(3) Lesser manufacturing time:Under this method (as already pointed), backward and forward handling of materials is not involved, it leads to considerable saving in manufacturing time.(4) Lesser work in progress:On account of continuous uninterrupted mass production, there is lesser accumulation of work in progress or semi-finished goods.(5) Proper use of floor space:This method facilitates proper and optimum use of available floor space. This is due to non- accumulation of work in progress and overstocking of raw materials.(6) Economy in inspection:Inspection can be easily and conveniently undertaken under this method and any defect in production operations can be easily located in production operations. The need for inspection under this method is much less and can be confined at some crucial points only.(7) Lesser manufacturing cost:On account of lesser material handling, inspection costs and fullest utilisation of available space, production costs are considerably reduced under this method.(8) Lesser labour costs:Due to specialisation and simplification of operations and use of automatic simple machines, employment of unskilled and semi-skilled workers can carry on the work. The workers are required to carry routine tasks under this method. This leads to lesser labour costs.(9) Introduction of effective production control:Effective production control on account of simple operation of this method can be employed successfully. Production control refers to the adoption of measures to achieve production planning.Disadvantages of Product Layout: (1) Lesser flexibility:As work is carried in sequence and process arranged in a line, it is very difficult to make adjustments in production of operations. Sometimes, certain changes under this method become very costly and impractical. On account of this drawback, this method is not suitable in the production of goods which are subject to quick style and design changes.(2) Large investment:Under this method, machines are not arranged in accordance with functions as such similar type of machines and equipment is fixed at various lines of production. This leads to unavoidable machinery duplication resulting in idle capacity and large capital investment on the part of the entrepreneur.(3) Higher overhead charges:Higher capital investment leads to higher overheads (fixed overheads) under this method. This leads to excessive financial burden.(4) Interruption due to breakdown:If one machine in the sequence stops on account of breakdown, other machines cannot operate and work will be stopped. The work stoppage may also take place on account of irregular supply of material, poor production scheduling and employee absenteeism etc.(5) Difficulties in expanding production:Production cannot be expanded beyond certain limits under this method.(6) Lack of specialisation in supervision:Supervision of different production jobs becomes difficult under this method as there is absence of specialised supervision as the work is carried on in one line having different processes and not on the basis of different departments for different specialised jobs. Under this method a supervisor is supposed to have detailed knowledge of all the machines and processes which leads to absence of specialisation in the process of supervision.(7) Under-utilisation of machines:As has already been pointed out, separate set of one type of machines is fixed at different lines of production. Usually, these machines are not properly and fully utilised and there remains idle capacity in the form of under utilised equipment.(B) Functional or Process Layout: It is just the reverse of product layout. There is a functional division of work under this method. For example, lathes are fixed in one department and welding activities are carried in another department of the factory. The salient features of this type of layout are based on Frederick W. Taylors concept of functional organisation.This method is generally adopted for producing different varieties of unlike products. This is particularly adopted tor job order industries like engineering, ship building and printing etc. The following diagram shows that raw material travels through various process or departments from lathes passing through mills, grinders, drills, welding, inspection, finishing, and assembly and to finished product.Advantages of Process Layout:(1) Maximum utilisation of machines:This method ensures fuller and effective utilisation of machines and consequently investment in equipment and machines becomes economical.(2) Greater flexibility:Changes in the sequence of machines and operations can be made without much difficulty. This is because the machines are arranged in different departments in accordance with the nature of functions performed by them.(3) Scope for expansion:Production can be increased by installing additional machines without much difficulty.(4) Specialisation:As has already been pointed out that under this method, specialised machines are used for performing different production operations. This leads to specialisation.(5) Effective utilisation of workers:Specialised workers are appointed to carry different type of work in different departments. This leads to effective and efficient use of their talent and capabilities.(6) More effective supervision:As the machines are arranged on the basis of functions, performed by them, the specialised and effective supervision is ensured by the specialised knowledge of supervisors. Each supervisor can perform his task of supervision effectively as he has to supervise limited number machines operating in his department.(7) Lesser work stoppages:Unlike the product method, if a machine fails, it does not lead to complete work stoppage and production schedules are not seriously affected. Due to breakdown in one machine, the work can be easily transferred to the other machines.Disadvantages of Process Layout: (1) Coverage of more floor area:Under this method, more floor space is needed for the same quantum of work as compared to product layout.(2) Higher cost of material handling:Material moves from one department to another under this method, leading to the higher cost of material handling. The mechanical devices of material handling cannot be conveniently employed under this method on account of functional division of work. Material has to be carried by applying other methods from one department to another, resulting into higher cost of material handling.(3) Higher labour costs:As there is functional division of work, specialised workers are to be appointed in different departments for carrying specialised operations. The appointment of skilled worker leads to higher labour costs.(4) Longer production time:Production takes longer time for completion under this method and this leads to higher inventories of work-in-progress.(5) Difficulties in production, planning and control:Due to large variety of products and increased size of the plant, there are practical difficulties in bringing about proper coordination among various areas (departments) and processes of production. The process of production, planning and control becomes more complex and costly.(6) Increased inspection costs:Under this type of layout more supervisors are needed and work is to be checked after every operation which makes the process of supervision costlier.(C) Layout by Stationary Material: This type of layout is undertaken for the manufacture of large parts and assemblies. In this case, material remains fixed or stationary at one place, men and equipment are taken to the site of material. This is suitable in case of ship building, locomotives and heavy machinery industries etc.Advantages:(a) Economies in transformation:As the work is carried at one place and material is not taken from one place to another, this leads to savings in transformation costs.(b) Different jobs with same layout:Different projects can be undertaken with the help of same layout.(c) Production in accordance with specifications:The jobs can be performed in accordance with the specifications given by the customers.(d) Scope for flexibility:It provides maximum flexibility for various changes in production processes and designs of the products.Disadvantages:(a) Immobility of material:As material is fixed at one place, this leads to certain difficulties in arranging specialised workers, machines and equipment for the job.(b) Large investment:This method is time consuming and costlier as compared to first two methods.(c) Unsuitable for small products:This method is not suitable for producing and assembling small products in large quantities. In actual practice, it has been observed that a judicious combination of three types viz., product, process and stationary material layout is undertaken by different organisations. This is done with the view to enjoy the advantages of all the methods.

DRC 23 : Strategic Management 1. Elaborate the Strategic planning process. In today's highly competitive business environment, budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper. The firm must engage in strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track. A simplified view of the strategic planning process is shown by the following diagram: The Strategic Planning ProcessMission &Objectives

EnvironmentalScanning

StrategyFormulation

StrategyImplementation

Evaluation& Control

Mission and ObjectivesThe mission statement describes the company's business vision, including the unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future opportunities.Guided by the business vision, the firm's leaders can define measurable financial and strategic objectives. Financial objectives involve measures such as sales targets and earnings growth. Strategic objectives are related to the firm's business position, and may include measures such as market share and reputation.Environmental ScanThe environmental scan includes the following components: Internal analysis of the firm Analysis of the firm's industry (task environment) External macroenvironment (PEST analysis)The internal analysis can identify the firm's strengths and weaknesses and the external analysis reveals opportunities and threats. A profile of the strengths, weaknesses, opportunities, and threats is generated by means of a SWOT analysisAn industry analysis can be performed using a framework developed by Michael Porter known as Porter's five forces. This framework evaluates entry barriers, suppliers, customers, substitute products, and industry rivalry.Strategy FormulationGiven the information from the environmental scan, the firm should match its strengths to the opportunities that it has identified, while addressing its weaknesses and external threats.To attain superior profitability, the firm seeks to develop a competitive advantage over its rivals. A competitive advantage can be based on cost or differentiation. Michael Porter identified three industry-independent generic strategies from which the firm can choose.Strategy ImplementationThe selected strategy is implemented by means of programs, budgets, and procedures. Implementation involves organization of the firm's resources and motivation of the staff to achieve objectives.The way in which the strategy is implemented can have a significant impact on whether it will be successful. In a large company, those who implement the strategy likely will be different people from those who formulated it. For this reason, care must be taken to communicate the strategy and the reasoning behind it. Otherwise, the implementation might not succeed if the strategy is misunderstood or if lower-level managers resist its implementation because they do not understand why the particular strategy was selected.Evaluation & ControlThe implementation of the strategy must be monitored and adjustments made as needed.Evaluation and control consists of the following steps:1. Define parameters to be measured2. Define target values for those parameters3. Perform measurements4. Compare measured results to the pre-defined standard5. Make necessary changes2. Explain with the help of examples, the types of Grand Strategies.Grand strategies are a means to get to your ends growth, profitability, etc. The more time that you spend researching and learning about your environment, your market and your business, the more clearly these come into focus for you. While there is always some uncertainty and some risk with any business decision, a strategic decision with the proper homework done is a pretty clear cut one.The major Grand Strategies are:

Concentrated GrowthIn this strategy, a firm directs it resources to the profitable growth of a dominant product, in a dominant market, with a dominant technology

Market DevelopmentThis strategy consists of marketing present products, often with only cosmetic modifications, to customers in related market areas by adding channels of distribution or by changing the content of advertising or promotion

Product DevelopmentThis strategy involves the substantial modification of existing products or the creation of new, but related, products that can be marketed to current customers through established channels

Horizontal Integration In this term strategy there is growth through the acquisition of one or more similar firms operating at the same stage of the production-marketing chain. Such acquisitions eliminate competitors and provide the acquiring firm with access to new markets

Vertical IntegrationA companys aim in this strategy is to acquire firms that supply it with inputs (such as raw materials) or are customers for its outputs (such as warehouses for finished products). When supplying firms are acquired, it is called Backward Vertical Integration. When output firms are acquired, it is called Forward Vertical Integration.

Concentric DiversificationThis strategy involves the acquisition of businesses that are related to the acquiring firm in terms of technology, markets, or products. With this strategy, the selected new businesses possess a high degree of compatibility with the firms current businesses.

Conglomerate DiversificationIn this strategy, a firm, particularly a very large one, plans acquire a business because it represents the most promising investment opportunity available. The principal concern of the acquiring firm is the profit pattern of the venture, rather than creating product-market synergy with existing businesses

TurnaroundThis is a strategy used by a firm that is in trouble. Its managers believe that the firm can survive and eventually recover if a concerted effort is made over a period of a few years to fortify its distinctive competences. There are two basic forms 0f retrenchment: Cost Reduction and Asset Reduction

DivestitureThis strategy involves the sale of a firm or a major component of a firm.

LiquidationIn this strategy, the firm typically is sold in parts, only occasionally as a wholebut for its tangible asset value and not as a going concern.

Examples of Grand Strategies in Businesses Grand strategies are major, overarching strategies that shape the course of a business. Unlike tactics, they are focused on the long-term goals of the business. Running your own business means pondering grand strategies involving everything from product development to liquidation. Different strategies will, of course, fit different situations, so it is best to be familiar with a few different approaches. Market GrowthMarket growth is a low-risk strategy compared to other, more encompassing, strategies. Instead of investing in research and development to create new product offerings, the market-growth strategy focuses on growing the market for a current product. An example of this is an electronics company that develops markets for an existing stereo system instead of developing a new system. To develop new markets it may be necessary to sell stereos in other markets as time passes, such as in foreign countries that are less technologically developed.

Product DevelopmentProduct development is essentially the opposite of market development. While market development focuses on exploitation, product development focuses on exploration. This involves investing heavily in research and development in order to create new and innovative product offerings. For example, a food manufacturer may invest heavily in research into healthier foods that can be marketed to the general public, or a car manufacture may develop safer or more fuel-efficient cars through investments in research. These advances give firms an advantage over the competition. TurnaroundThe turnaround strategy is used when a firm is experiencing profit stagnation, decline or other serious problems. It is an attempt to change the firm's strategy in the hopes of reversing its fortunes. In order to turn a firm around, managers will often change the direction of the firm. For example, a print newspaper might make the switch to online publication in order to adapt to the changing market.

LiquidationLiquidation is the grand strategy of last resort. When a firm cannot successfully turn itself around and there are no interested buyers, there is no choice but to liquidate the firm. Liquidating the firm involves selling off all its assets, including physical assets such as factories and merchandise, as well as intellectual assets, like brands and patents. The goal of a liquidation strategy is to recoup as much money for the ownership as possible, before shuttering the business.

DRC 24 : Marketing Research 1. Marketing Research is a tool of management Comment.One definition of marketing states: "Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual (customer) and organizational objectives". The concept of marketing as a business philosophy defines marketing as a process that is intended to find, satisfy and retain customers while business makes a profit. But central to all these definitions is the role of the customer and his relationship to the product (i.e. whether he considers the product or service to meet a need or want).Therefore, market research is imperative for a company to know what type of products or services would be profitable to introduce in the market. Also with respect to its existing products in the market, good market research enables a company to know if it has been able to satisfy customer needs and whether any changes need to be made in the packaging, delivery or the product itself. This enables a company to formulate a viable marketing plan or measure the success of its existing plan.Market Research Is An Essential Management ToolMarket research consists of a plan that charts how relevant data is to be collected and analyzed so that the results are useful and relevant for making marketing decisions. Once the research and the related analysis are complete, the results are communicated to management. This provides management with in-depth information regarding crucial factors that have an impact on the target market and existing marketing mix. Market research allows management to make the changes necessary for better results through adopting a proactive approach.Types Of Market ResearchMarket research consists of two separate types of research that can be categorized as secondary and primary research. Secondary research consists of collecting already published data to create a "company database" that may serve to perform situation analysis. It helps to identify the company's competitors, perform a strategy for benchmarking and also determine the segments the company should target in view of factors such as demographics, population, usage rate, life style and behavioral patterns.Primary research serves to provide information through monitoring sales levels and measuring effectiveness of existing business practices like service quality and tools for communication being used by the company. It carefully follows competitor plans to gather information on market competition. Both primary and secondary researches are essential to fulfill the company's objectives.Data Collection MethodsData collection methods for marketing research are divided into quantitative and qualitative methods. Quantitative studies use mathematical analysis, which can disclose differences that are statistically significant. The sample size used is quite large.Qualitative methods are used to provide a base for quantitative research and help in quantitative research design development. They target problem defining, generating hypotheses and identifying determinants. They consist of one to one interviews to probe for personal opinions, beliefs and values and serve to uncover hidden issues. The sample size in this method is small.The fact is that you can't have a successful company without having the right data about customers, products and the market in general. Market research is an essential management tool for a viable business plan enabling any company to survive and thrive in today's fiercely competitive market conditions.2. Explain the application of marketing research.Applications of marketing research can be divided into two broad areas:

1. Strategic2. Tactical

Among the strategic areas, marketing research applications would be demand forecasting,sales forecasting, segmentation studies, identification of target markets for a given product, and positioning strategies identification.

In the second area of tactical applications, we would have applications such as producttesting, pricing research, advertising research, promotional research, distribution and logistics related research. In other words, it would include research related to all the Ps of marketing:

how much to price the product, how to distribute it, whether to package it in one way or another, what time to offer a service, consumer satisfaction with respect to the different elements of the marketing mix (product, price, promotion, distribution), and so on. In general, we would find more tactical applications than strategic applications because these areas can be fine-tuned more easily, based on the marketing research findings. Obviously, strategic changes are likely to be fewer than tactical changes. Therefore, the need for information would be in proportion to the frequency of changes.

The following list is a snapshot of the kind of studies that have actually been done in India.1. A study of consumer buying habits for detergentsfrequency, pack size, effect of promotions, brand loyalty and so forth.2. To find out the potential demand for ready-to-eat chapatis in Mumbai city.3. To determine which of the three proposed ingredientstulsi, coconut oil or neem, the consumer would like to have in a toilet soap4. To find out what factors would affect the sales of Flue Gas Desulphurisation equipment (industrial pollution control equipment)5. To find out the effectiveness of the advertising campaign for a car brand

Marketing research is the gathering, recording, and analyzing of data that relates to a specific problem in marketing products or services. While this definition implies a systematic approach to marketing, marketing research is often performed as a reaction to a problem that occurs. Marketing research efforts, therefore, often are undertaken for specific projects that have set beginning and ending points. Market and Economic AnalysisMarket analysis involves analyzing market-segment factors to determine the market potential of a given product or service. The marketing researcher gathers data and analyzes the factors that affect possible sales in a given market segment. The economic analysis is also used by marketing research departments to determine: How actively a company should market in a given market segment How much money it should invest in marketing to that segment How much it may have to produce to fulfill the needs of the market segment Economic analysis often involves economic forecasting, which analyzes and attempts to forecast developing market trends and demands. Product ResearchMarketing research departments conduct product research for a variety of reasons, including: Measuring potential acceptance of new products Finding improvements or additions for existing products Making changes or improvements in product packaging Determining acceptability of a product over a competitor's productWhen a new product is being developed, marketing research departments will often use product concept testing to see how customers might react to the new product. Typically, before a business invests in the development of a prototype for a new or improved product, it will have its marketing researchers verbally describe or visually depict the prospective product to a group of potential customers in the target market.Once a product has been accepted during the concept-testing stage, the business may move on to develop a prototype of the product. The marketing research department may then conduct product use tests, in which potential customersbe they industrial users or consumersare given the new or modified product to try. Consumers may be given a new type of hot breakfast cereal to try at home so that the marketing researcher can test the product use among families; industries may be given a new type of telephone system to test in their offices so that the marketing researcher can receive management's evaluation of the system and see how the new product works in a field test site. After product concept and product use tests are completed, businesses may decide to use market tests before they go full-throttle into the marketplace with their products. These market tests allow the business tp see how the product is accepted in various market segments before it is rolled out to the mass market, and before the business invests in a full-blown release of the product. While test marketing is viable for producers of products that do not involve millions of dollars in production costs for production facilities, it may be cost-prohibitive for businesses producing large, expensive goods. Soap detergent is easily test-marketed for a relatively inexpensive price tag; the cost of test marketing jet airplanes, on the other hand, is not cheap. Pricing Research Marketing research can be used to evaluate the acceptability of product or service prices in the marketplace. While businesses must price their products to make enough money to cover production and operating costs, often the formula they use for achieving a given profit margin causes them to price their products or services above or below acceptable market levels. Pricing research activities conducted by marketing researchers to determine buyers' perception of price and quality factors in a given product can be used to determine acceptable price levels that will allow businesses to achieve desired profits and gain market share. Marketing research can help to determine acceptable price levels. Because of the competitive marketplace, however, businesses frequently do not have the time to conduct an elaborate pricing research study; therefore, they often enter the marketplace without conducting one. Advertising ResearchAdvertising can be a costly endeavor for businesses. To determine the potential effect their advertising might have on a target audience, businesses often conduct research into the content, the media, and the effectiveness of advertisements before they invest heavily in the advertising campaign. Content research measures how the desired content comes across to an audience sample (a limited number of people). If the advertisement is pretested, a sample audience may be asked questions after being shown a television commercial or after viewing a layout of a print advertisement. If the advertisements are tested after they have appeared in various media, customers may be asked what they remember about the particular advertisements and how they reacted to them. By pretesting and post testing customers, marketing researchers can determine whether the desired message is getting across in a positive manner.Media research involves finding the best mix of media with which to hit a target audience. Marketing researchers may evaluate market studies of various media outlets (e.g., A. C. Nielsen for electronic media, or W. R. Simmons and Company for print media). By researching the media, marketing researchers can determine how best to allocate marketing dollars to hit the desired market.To perform advertising effectiveness research, businesses must state what marketing objectives they hope to accomplish with their advertising efforts before they roll out the advertising campaign. Marketing research must be done prior to the advertising campaign so as to have something to measure the results of the advertising against. If a business is trying to increase customer awareness of one of its more overlooked products, then it must determine, before the advertising campaign begins, how well-known that product actually is so that the business will be able to measure how well advertising increases awareness.Sales Research When a marketing research department conducts a sales analysis, it studies customer records and other available data to determine where marketing opportunities lie among potential target markets. Selling research, on the other hand, analyzes the approach used by the person selling the product or service to determine whether the sales presentation is effectively piquing the interest of customers and allowing them to understand the product. The selling research can determine: The kinds of collateral materials (e.g., brochures, charts, lists) that work best to sell the product The percentage of sales that are closed in a sales call Other aspects of the selling process that show what methods have been most effective with the target market

DRC 25 : Advertising and sales promotion 1. Narrate the problems and prospects of advertising. Challenges and Prospects in AdvertisingIn advertising one has a diverse range of jobs to choose from, to suit ones inclination, talent and personality. The choice of working in an organization that manufactures certain goods or provides certain services, to look after the advertising of these goods or services would demand a particular kind of skills and interests. One can choose to work in an organization that creates advertising and distributes advertisements through different media. In such an organization there is a wide variety of jobs calling for different types of skills and creativity.To make matters easier, one has to start with simple definitions. The manufacturer or provider of goods and services would be referred to at this stage as the advertiser or, may be, the marketing organization. The organization providing advertising services is the advertising agency. And advertising itself is the communication link between the product or service and the consumer. The media of course would include newspapers and magazines, radio, television, posters and everything that can be used to inform the customer about a product or service. Another expression that we shall be using at that stage is the market. After all, all goods and services are brought and sold in the market not necessarily only a market or a fair, but also shops or retail outlets as they are called. In advertising we talk of the markets to mean really the consumers. The producer of goods or services markets its products and hence is referred to as a marketing organization. There are job opportunities in these areas in the field of advertising and advertising-related services. There is more. Today one can set up ones own shop specializing in one particular area of advertising or advertising-related activity. This would call for a combination of many talents and different types of creativity.Advertising in the sense of a communication link between a buyer and a seller or a producer and a consumer is really as old as civilization itself. As we know it today, its beginnings go back to more than 200 years. As an organized profession, advertising is relatively young. During the last two decades, and particularly since the beginning of the nineties, it has reached a fairly high level of maturity and sophistication comparable with the standards seen in the advanced industrialized countries. Not only has its progress been very fast in the last few years, its character has also undergone a radical change.This is due to a number of factors. First, the communication revolution has set in motion a process of homogenization of consumer aspirations and value systems. This has also homogenized the very pattern and form of communication between the advertiser and the consumer. A more or less universal language of advertising is emerging, even though conditioned and modified by local usage and expressions, which are often a medley of western and Indian words, images, concepts and music. The communication explosion has invaded the home with its message of consumption-orientation. Multi-channeled television, through its entertainment programmes and advertising, has generated an awareness of entirely new concepts of living and with these, a desire for a whole range of consumer durables and non-durables, which had not been thought of earlier.Secondly, to meet the growing consumer aspirations and value systems, particularly in terms of lifestyles, new products and services are coming in the market. These are meeting new needs, generated by new ways of living. This is leading to tremendous and even fierce competition among manufacturers of these products or providers of new services. This is because, although the Indian population is massive, the actual number of consumers of advertised goods or services is relatively small. Different manufacturing, marketing or services organizations are offering the same products. Thus the consumer has a wider choice. Sometimes two different products or services might meet similar needs. For example, the consumer can choose between two cola drinks manufactured by different companies. It is in this context that in advertising and marketing one talks of brand names, brands or branded products. With the same product being manufactured by different manufacturers, each company has its own name for its product. Thus one brand of sunflower oil competes against another brand. If you come to services, a number of banks today offer you mutual funds as do insurance companies. Here too the consumer has a choice and every mutual fund is trying to sell to the same consumer. Here is a challenge that people in the advertising profession face every day how to win over a consumer for one brand against another and retain loyalty to the same brand, sale after sale?Thirdly, such diversification of products or services and the expansion of the market have been possible because of the opening up and liberalization of the economy. There is now very or no restriction on the goods and services to be provided. Lower tax on personal incomes has increased the disposable surplus in the hands of the expanding middle class for discretionary purchases to meet the aspirations for better living. The liberal entry of foreign manufacturers and the reduction in import restrictions have made many new products and services more easily available than before. The hire-purchase system, bank finance and credit cards are accelerating this process of consumption-orientation in a section of the population. Advertising intervenes at every stage of this process of a desire being transformed into a purchase, of a concept of a product or service being transformed into a sale.Advertising has now become part of everyday life. Today advertising influences every days purchase decision, consciously or subconsciously. Young people, the main target of advertising, speak the language of advertising, sing advertising jingles, dress according to the fashions set by role models and stereotypes in advertising. Advertising, in turn, picks up the language and the behavior pattern of the consumer, particularly the youth. Many talented young people seek a career in advertising, not mere job.This environment and wider choice of goods or services also mean increasing consciousness of quality and price among the consumers. The competition thus becomes concerned with sensitivity to consumer expectations and even the environmental conditions and processes of purchase decisions. It is here that communication has to intervene. It is this wider dimension of advertising today that offers unprecedented challenges and makes stringent demands on creativity, imagination and innovative approaches from every person in the advertising profession, whatever be his or her specific job in the communication link between the product or service and the consumer. It should be obvious from this discussion that advertising today is an integral part of the socio-economic and the cultural system, too. It is linked to the distribution aspect of the economic system. By creating demands, which might not have existed before, advertising helps determine the types of goods or services to be offered and their quantum. Hence, advertising can even influence the allocation of resources in different sectors of the economy. What is more, advertising today has even become the communication link between political parties and the electorate. It also plays a role in mobilizing public opinion and even action on social and ideological issues, such as environment protection or prevention of AIDS.No wonder, the annual average rate of growth of advertising is much higher than that of the economy. It is obvious that the opening up of the economy, which had begun very haltingly in the mid-seventies, gathered some momentum in the mid-eighties and has now acquired considerably more speed from the beginning of the current decade, has contributed significantly to the current boom in advertising. It is this situation which is opening up wide and diverse opportunities in the profession.Surely, when marketing organizations spend large amount of money year after year on advertising, they would expect the most effective returns in terms of the quality of sales. It is true, as we shall see later, that advertising is only one component of a whole diverse range of activities that combine to effect a sale of product or service. Nevertheless, it is possible to measure today the effectiveness of advertising as an information and persuasion link between a product or service and the consumer. It is not merely a question of a number of competing brands. There is also the problem of proliferating media, through which advertisements reach the consumer. Here again is a challenge to the creativity and innovativeness of an advertising professional how to choose between radio and television, between one television channel and another, between the electronic media and the newspapers or different periodicals. The point is that, considering the problems faced, the money available is always limited. 2. Explain the techniques used for measuring advertisement performance.Whether you are trying to measure immediate response ads or attitude advertising, the better you plan, the more accurate your results will be. You must not only determine what you expect your advertising to do, but also find ways to determine if clients have seen or heard the ad.Testing immediate response adsThe following devices can help you weigh the results of your immediate response advertisements:Use couponsUsually, redeemed coupons represent sales of the product. Ask yourself whether enough sales were made to pay for the ad. Date the coupon so you can determine the number of sales for the first, second, and third weeks that you placed the ad.In your radio or television ads, you can have listeners create their own coupons. For example, ask them to redeem their hand-drawn coupon for a free offer sample.Use coupons for direct mail advertisingCode the coupon in some manner so that you can easily measure the response. You can even use bar codes containing detailed demographic information.Hide offers in the adA hidden offer can allow you to track how many clients saw or heard the ad because they'll have to mention something in person, on the phone or in writing. For example, in the middle of an ad, include a statement that will allow the customer to receive a free sample, great discount or something similar upon request or by saying a magic word. Results should be checked over a period of one-week to between six and twelve months since people may not immediately react to this type of ad.Compare similar adsPrepare two ads (only slightly different according to the variable you'd like to test) and run them on the same day. Identify the adsin the message or with a coded couponso you can tell them apart. Ask customers to bring in the coupon or to use a special phrase. Run two broadcast ads at different times or on different stations on the same day with different discount phrases. Ask a newspaper to give you a split runthat is, to print ad A in part of its press run and ad B in the rest of the run. Count the responses to each ad to see which scenario is most effective. Comparing similar ads is also effective in other media such as on the Internet.Promote a particular itemIf the ad is about a bargain or limited-time offer, you can consider that sales for the following four weeks came from that ad. You may need to judge how many sales came not from the ad, but from in-store displays or were encouraged by your sales associates.Check your business' trafficAn important function of advertising is to build client traffic that also results in customers buying items that are not advertised. For example, a customer who are attracted to a store by an ad for a blouse may also buy a handbag. Some may buy the bag in addition to the blouse, and other may just buy the blouse. You could hire students to interview customers as they leave the store to determine which advertised items they bought, what other items they bought and what they shopped for but did not buy. Website traffic works in a similar way.Testing attitude (or image-building) advertisingCompare advertising and sales recordsThe individual ads are building blocks, so to speak, which make up your advertising over a season. The problem is trying to measure each ad and the effects of all of the ads taken together.When advertising is spread out over seasons, to measure its effectiveness, you need to keep records. Your aim is to compare records of ads and sales for an extended time-period. Keep a record by date of all forms of advertising, record their cost, keep a copy of each ad, and break the file down into monthly, quarterly, or semi-annual blocks. By recording the sales of the advertised items on the copy of each ad or in a log, you can make comparisons.One approach is to make weekly comparisons. For example, if you run an ad each week, compare each week's sales with sales from the previous week as well as with the sales of the same week a year ago. You will, of course, be measuring the momentum of all of your ads as well as the results of a single ad. After time, you will probably be able to estimate how much of the results are due to the individual ad and how much to the momentum of all your advertising. You may then make changes in specific details of the ad to increase response.When comparing sales increases over another period, keep in mind that some situations may have been unusual. For example, your experience may be that rain on the day an ad appears reduces its pulling power by 50%. Similarly, advertising response will also be affected if your customers work in a factory that is out on strike.What factors should I take into account when comparing advertising results?Divide ads into at least two classes: high-response ads and low-response ads, then look for differences between the two classes. You should then be able to determine the combination of factors that work best for your business and products.TimingThe time the ad was broadcast or run may be responsible for a particular response level. However, other factors may be as influential as time, though in radio, time is often crucial. On the Internet, targeting the right audience may be the most crucial factor.The tone or look of the messageConsider the message and how well it was expressed. If you used slogans, did they help make the point? For print and Internet, consider the effects of images, type size, white space, colour, and ad location. In broadcast, consider whether or not the voice of the person doing the ad or the music used may have had an effect. Check the effect of the length of broadcast ads. Did you get the best results with 10-second, 30-second, or 60-second ads?MediaNo business should count on finding a magic formula. There is no single formula that will ensure high response ads every time. Advertising changes. Therefore, you should watch the ads of others to see what changes are occurring. These days, it is especially important to note the changes in media used. The Internet and personal electronic devices have revolutionized the way you can reach consumers and target clients. Continue to analyze your own ads, make small changes occasionally, and note any variations in response.FeedbackListen to what people say about your ads. In doing so, try to discover the mental framework within which any comment about your ad was made. Then try to find points that reinforce believability and a feeling that your product fulfills some customer wish or need.However, you should not be misled by what people say. An ad can cause a great deal of comment and bring in practically no sales. An ad may be so beautiful or clever that, as far as the customer is concerned, the sales message is lost. An ad can spread like wildfire and become viral with electronic devicesit doesn't mean the ad is affecting your bottom line.Measure the results of my Internet advertisingBusiness websites have become an importantif not essentialtool for marketing one's goods and services. Similarly, placing ads on the Internet is becoming an increasingly effective way to promote a product or service since it targets people that are already interested in what you have to offer.You can measure the effectiveness of your Internet advertising by counting how many people have come to your website through each ad (your ads may vary by type and size, as well as by message, image, or layout). Let's call these channels by which a customer came to your site. Name each channel in a way that you can distinguish it from another, by inserting the variable component (colour scheme, image, placement, etc.).For more information on the uses of the Internet for business, and in particular, marketing on the internet, consult the following documents. Online marketingOnline marketing techniques like social networking, emailing and blogging are useful and involve little to no direct costs. Website analytics and performance managementDo you want to know how effective your website is? Find out how visitors reach your website, what they do there, and how often they visit. Developing your websiteLearn how to create a website so you can attract more customers to your business.

DRC 26 : International Marketing 1. Bring out the impact of Marketing intelligence on Export Oriented business. The role of market intelligence in export strategy Understanding the forces and trends of food and beverage international markets is essential for firms that intend to successfully compete in those markets. It is also relevant for other export stakeholders, including policy makers, trade support institutions and government officials to understand the dynamics of the markets in which exporters participate to enhance the effectiveness of their support. Export-oriented firms need to scan global and regional markets for product and market diversification opportunities, to define a desired, feasible positioning, and to identify potential clients, among others. Their managers and analysts need to efficiently access and use relevant market information as well as to develop the skills needed to perform the necessary analyses. Thus, conducting market research becomes an indispensable business tool for all stakeholders involved in export strategy development. Research can help, among others, with:

Identifying prospective export markets and high-opportunity segments Understanding consumer behavior and how a product can fulfill or create a need Identifying the best market entry strategy and product introduction tactics Getting insights into competitors strategies, operations, strengths and weaknesses Finding out the key success factors to play and win in that specific market

Market intelligence is a key step in export strategy making

Conducting market intelligence is more than just collecting statistics and information. No research can be valid until it is analyzed and transformed into relevant insights to assist managers make informed decisions based on facts. That analysis, together with the managers intuition will create the basis of the market entry strategy and further export planning. As the chart below shows, the analysis of export markets constitutes a significant early stage within the export strategy development process Developing an Approach to Market Intelligence In the next pages we dive into the methodological aspects of conducting market intelligence. Hence, we present two frameworks that the reader can then adapt or adopt in its full structure. First, we clarify research concepts to then propose a market research process and plan. Second, we focus on research within the export planning process and look at the different research subjects of interest for analyzing a market as well as some sources and practical hints.

Achieving Excellence in Market Intelligence After making the case of the importance of conducting market intelligence to enhance export strategy development, it is of importance to managers and analysts to understand how to capitalize from that effort for the longer term. Thus, the need arises to developing effective and efficient market intelligence competences at an organizational level, so the expertise and process can be optimized and transformed into a systematic approach that perfects over time.

Six Keys to Developing Excellence in Market Intelligence

Make it a systematic, continuous process with scheduled monitoring, updating and evaluation activities Allocate the necessary resources (individuals, budget, technology) if sound results are expected Keep dynamic, regularly-updated databases that can be shared among all stakeholders in the organization Stick to research and analysis plans and objectives Develop mechanisms to continuously share relevant knowledge, facts and insights with other involved areas in the organization Communicate at an organization-level the importance of collaborative market intelligence and information sharing efforts

Designing and implementing the necessary systems to improve an organizations market intelligence capabilities will depend on factors such as size, needs and resources available. Yet, it is importantto consider all the elements that will strengthen market intelligence efforts so managers can make a conscious assessment of how to best organize their research activities. In the chart below, we show a conceptual model to structure them. 2. Analyse the role of EXIM Bank in India.Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament THE EXPORT-IMPORT BANK OF INDIA ACT, 1981 for providing financial assistance to exporters and importers, and for functioning as the principal financial institution for co-ordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the countrys international trade and for matters connected therewith or incidental thereto.

Exim Bank has two broad business streams: one, the traditional export finance typical of export credit agencies around the world and two, financing of export oriented units (export capability creation), which are non-traditional for export credit agencies. Since inception, Exim Bank has been the principal financial institution in the country for financing project exports and exports on deferred credit terms. As per Memorandum PEM (MEMORANDUM OF INSTRUCTIONS ON PROJECT EXPORTS AND SERVICE EXPORTS) of Reserve Bank of India, the following constitute project exports:i. Supply of goods / equipment on deferred payment termsii. Civil construction contractsiii. Industrial turnkey projectsiv. Consultancy / services contracts

Exim Bank extends funded and non-funded facilities for overseas turnkey projects, civil construction contracts, technical and consultancy service contracts as well as supplies. Turnkey Projects are those which involve supply of equipment along with related services, like design, detailed engineering, civil construction, erection and commissioning of plants and power transmission & distribution Construction Projects involve civil works, steel structural works, as well as associated supply of construction material and equipment for various infrastructure projects. Technical and Consultancy Service contracts, involving provision of know-how, skills, personnel and training are categorised as consultancy projects. Typical examples of services contracts are: project implementation services, management contracts, supervision of erection of plants, CAD/ CAM solutions in software exports, finance and accounting systems. Supplies: Supply contracts involve primarily export of capital goods and industrial manufactures. Typical examples of supply contracts are: supply of stainless steel slabs and ferro-chrome manufacturing equipments, diesel generators, pumps and compressors. In addition to project exports, Exim Bank also extends fund-based and non-fund-based facilities to deemed export contracts as defined in Foreign Trade Policy of GOI, e.g., secured under funding from Multilateral Funding Agencies like the World Bank, Asian Development Bank, etc.; contracts secured under International Competitive Bidding; contracts under which payments are received in foreign currency.

Exim Bank offers the following Export Credit facilities, which can be availed of by Indian companies, commercial banks and overseas entities.

For Indian Companies executing contracts overseas

Pre-shipment credit

Exim Bank's Pre-shipment Credit facility, in Indian Rupees and foreign currency, provides access to finance at the manufacturing stage - enabling exporters to purchase raw materials and other inputs.

Pre-shipment credits are usually extended by exporters commercial banks for period upto 180 days. Exim Bank extends pre-shipment / post-shipment credit either directly or in participation with commercial banks. In order to offer one-stop banking products to export clients, the Bank has also been offering short-term pre / post shipment credit either directly or through exporters bankers. Exim Bank may consider extending pre-shipment credit and post-shipment credit for periods exceeding 180 days, on case-to-case basis and subject to the merits of the case.

Supplier's Credit

This facility enables Indian exporters to extend term credit to importers (overseas) of eligible goods at the post-shipment stage.

Post-shipment Suppliers Credit can be extended to Indian exporters upto the extent of the deferred credit portion of the export contract, either in Rupees or in Foreign currency. The period of deferred credit and moratorium will generally depend on the nature of goods [List A and List B of Memorandum PEM] or nature of projects, as per guidelines contained in the Memorandum PEM of RBI.

For Project Exporters

Export Project Cash-Flow Deficit Financing Programme [EPCDF]Indian project exporters (including those under Deemed Exports category) incur expenditure in rupee or foreign currency while executing contracts i.e. costs of mobilisation/acquisition of materials, personnel and equipment etc. Exim Bank's facility helps them meet these expenses for -

a) Project Export Contracts; b) contracts in India categorized as Deemed Exports in the Foreign Trade Policy of India.

Capital Equipment Finance Programme (CEFP)Capital Equipment Finance Programme [CEFP] has been conceived to cater to capital expenditure for procurement of capital equipment to be utilized across multiple contracts. CEFP provides direct access to Exim Banks finance for eligible Indian companies for procurement of indigenous and imported capital equipment for executing overseas projects / deemed export projects.

For Exporters of Consultancy and Technological ServicesExim Bank offers a special credit facility to Indian exporters of consultancy and technology services, so that they can, in turn, extend term credit to overseas importers.

Guarantee FacilitiesIndian companies can avail of guarantee facilities of different types to furnish requisite guarantees to facilitate execution of export contracts (including deemed export contracts) and import transactions.

Eligibility: Indian project exporters securing overseas or deemed export contracts.

For Overseas Entities

Buyer's CreditOverseas buyers can avail of Buyer's Credit from Exim Bank, for import of eligible goods from India on deferred payment terms. As per Memorandum PEM guidelines, RBI has authorised Exim Bank to extend overseas buyers credits upto USD 20 mn for project exports without seeking approval of RBI.

The facility enables exporters/contractors to expand abroad and into non-traditional markets. It also enables exporters/contractors to be competitive when bidding or negotiating for overseas jobs.

Benefits to Foreign Customers Enables overseas buyers to obtain medium-and long-term financing Competitive interest rate against host country's high cost of borrowing.

Buyers Credit under NEIABuyers Credit NEIA is a unique financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters and serves as an effective market entry tool to traditional as well as new markets in developing countries, which need deferred credit on medium or long-term basis.

Under this facility, Exim Bank facilitates project exports from India by way of extending credit to overseas sovereign governments and government owned entities for import of Indian goods and services from India on deferred credit terms. Exim Bank will obtain credit insurance cover under NEIA through ECGC. NEIA is a trust set up by the Ministry of Commerce and administered by Export Credit & Guarantee Corporation of India (ECGC).Facility is available for project exports requiring medium or long term deferred credit.

Overseas Investment Finance Programme

Exim Bank encourages Indian companies to invest abroad for, inter alia, setting up manufacturing units and for acquiring overseas companies to get access to the foreign market, technology, raw materal, brand, IPR etc. For financing such overseas investments, Exim Bank provides:

a)Term loans to Indian companies upto 80% of their equity investment in overseas JV/ WOS.b)Term loans to Indian companies towards upto 80% of loan extended by them to the overseas JV/ WOS.c)Term loans to overseas JV/ WOS towards part financing(i)capital expenditure towards acquisition of assets,(ii)working capital,(iii)equity investment in another company,(iv)acquisition of brands/ patents/ rights/ other IPR,(v)acquisition of another company,(vi)any other activity that would otherwise be eligible for finance from Exim Bank had it been an Indian entity. d)Guarantee facility to the overseas JV/ WOS for raising term loan/ working capital.

Finance for Corporates

Research & Development Finance for Export Oriented Units:

Exim Bank encourages Indian exporters to invest more in their R&D spending in order to develop new products/processes/ IPRs for enhancing export capabilities. Considering the need to bridge the funding gap of Indian exporters in R&D space, the Bank has a dedicated R&D Financing Programme. Under the said Programme, financing for R&D can be extended to any export oriented company/ SPV promoted by companies, irrespective of the nature of industry. The financing covers both capital and revenue expenditure including inter alia:

Land and building, civil works for housing eligible R&D activities; Equipments, tools, computer hardware/ software, miscellaneous fixed assets used in eligible R&D activities; Acquisition of technology from India or overseas at the proof of concept or design stage, which will be used to develop new product/ process. Salaries of R&D personnel, support staff during the R&D project phase including training costs; Cost of regulatory approvals, filing and maintenance of patent registration; Product documentation and allied costs during the R&D project phase. Costs of materials, surveys, technology demonstration studies and field trial Any other costs to enhance R&D capability. Lending Programme for Export Oriented Units:Exim Bank provides term loans to export oriented Indian companies to finance various capital expenditures including certain soft expenditures in order to improve their export capability and to enhance their international competitiveness. Loans/Guarantees are extended for the following purposes: Expansion, modernization, upgradation or diversification projects including acquisition of equipment, technology etc.; export marketing; export product development; setting up of Software Technology Parks;

Multilateral Funded Projects Overseas (MFPO)The Bank provides a package of information and support services to Indian companies to help improve their prospects for securing business in projects funded by the World Bank, Asian Development Bank, African Development Bank, and European Bank for Reconstruction and Development.

Exim Bank as a ConsultantThe Banks experience in evolving as an institution supporting international trade and investment, in addition to functioning as an export credit agency in a developing country context, is of particular relevance in other developing countries. The Bank has been sharing its experience and expertise by undertaking consultancy assignments. Exim Bank also shares its experience and expertise through provision of on-site exchange of personnel programmes aimed at providing a first-hands experience to the employees of its institutional partners.

Institutional LinkagesThe Bank has fostered a network of alliances and institutional linkages with multilateral agencies, export credit agencies, banks and financial institutions, trade promotion bodies, and investment promotion boards to help create an enabling environment for supporting trade and investment. The Global Network of Exim Banks and Development Finance Institutions (G-NEXID) was set up in Geneva in March 2006 through the Banks initiative, under the auspices of UNCTAD. With the active support of a number of other Exim Banks and Development Finance Institutions from various developing countries, the network has endeavoured to foster enhanced South-South trade and investment cooperation. Observer Status in UNCTAD underscores support for the Forum.

Award for ExcellenceThe Bank, in association with CII, has instituted an Annual Award for Business Excellence for best Total Quality Management (TQM) practices adopted by an Indian company. The Award is based on the European Foundation for Quality Management (EFQM) model.DRC 27 : Service Marketing 1. Bring out the 7Ps of services Marketing with suitable examples. The service marketing mix consists of 7 Ps .Simply said, the service marketing mix assumes the service as a product itself. However it adds 3 more Ps which are required for optimum service delivery. The product marketing mix consists of the 4 Ps which are Product, Pricing, Promotions and Placement. These are discussed in my article on product marketing mix the 4 Ps. The extended service marketing mix places 3 further Ps which include People, Process and Physical evidence. All of these factors are necessary for optimum service delivery. Let us discuss the same in further detail. Product The product in service marketing mix is intangible in nature. Like physical products such as a soap or a detergent, service products cannot be measured. Tourism industry or the education industry can be an excellent example. At the same time service products are heterogenous, perishable and cannot be owned. The service product thus has to be designed with care. Generally service blue printing is done to define the service product. For example a restaurant blue print will be prepared before establishing a restaurant business. This service blue print defines exactly how the product (in this case the restaurant) is going to be. Place Place in case of services determine where is the service product going to be located. The best place to open up a petrol pump is on the highway or in the city. A place where there is minimum traffic is a wrong location to start a petrol pump. Similarly a software company will be better placed in a business hub with a lot of companies nearby rather than being placed in a town or rural area. Promotion Promotions have become a critical factor in the service marketing mix. Services are easy to be duplicated and hence it is generally the brand which sets a service apart from its counterpart. You will find a lot of banks and telecom companies promoting themselves rigorously. Why is that? It is because competition in this service sector is generally high and promotions is necessary to survive. Thus banks, IT companies, and dotcoms place themselves above the rest by advertising or p