Fundamentals of Marketing (FOM) — Summer 2018

Definitions / terms / explanations / short questions based on concepts of theory/practical

What do meant by Core Competencies?

Define Segmenting, Targeting & Positioning.

Differentiate warranties and guarantees.

Define Integrated Marketing Communication.

Define Databases, Data Warehousing and data mining.

Distinguish between fad, trend and mega trend.

Define Marketing and Marketing Management.

Write a Short note on Customer-Perceived Value.

Explain the different methods of estimating current demands with the help of examples.

Explain Internal Records and Marketing Intelligence as a component of modern marketing information system.

Differentiate Consumer Markets and Industrial Markets.

How one company tries to differentiate their products with their competitors? Explain with examples.

Explain the procedure of setting price.

Explain new product development process with the help of example.

What are the steps in segmenting the market?

What do you understand by Vertical marketing system (VMS)? Discuss its various types with real life example(s).

Explain the roles of marketing channels.

What are the bases of segmenting business markets? Page 1 of

CASE STUDY: In July 2009, Maruti Suzuki India Limited (Maruti), a subsidiary of Japan based automobile major Suzuki Motors, launched a new ad campaign highlighting its Kseries engines. The ad campaign highlighted the technical improvement in the engines of certain select Maruti cars which simultaneously increased their power and their fuel efficiency. The television commercial (TVC) showed a race where a sprinter started running and finished first. Then, he went on to join a marathon and won that also. The sprinter continued running after finishing the marathon. The commercial then brought into focus the machine which kept the sprinter going - a Kseries engine. The ad campaign including the TV commercial was developed by Capital Advertising and also included print ads, outdoor campaigns, and internet ads Maruti was founded in 1981. The company has been the market leader in the passenger car industry in India. The liberalization of the Indian economy in 1991 allowed the entry of foreign automobile companies in the Indian passenger car market from the mid 1990s. To prevent the erosion of its market share by competitors, the company started a restructuring exercise in 2001. Along with restructuring, Maruti also adopted a new marketing strategy to help maintain its position as market leader. New products were launched with great fanfare to build the brand image of the company. Advertising campaigns included TVCs, print and radio ads, outdoor promotions, point of sale and mobile promotions. The company also organized different promotional events to attract prospective consumers. Maruti also offered special schemes for specific professional and income groups. Maruti's advertising strategy focused both on promoting its cars and on building up its corporate image. Maruti's campaigns emphasized different aspects of its cars, including fuel efficiency, space, looks, etc. It also advertised its widespread network and services. The ad campaign for the 'K' series engine was the first time that Maruti was advertising specifically a technological innovation that it had pioneered. This change in advertising strategy was probably because the company had decided to put the new 'K' series engines into all its existing and new products. To begin with, Maruti had the 'K' series engine only in its two new cars, A-Star and Ritz, and it had also announced that it would incorporate the new engine in the Zen EstiloMaruti's history can be traced back to the 1970s, when the Indian government decided to develop an affordable small car, named the 'people's car.' The car would target the middle class in India. In 1971, Maruti Limited was set up. However, in 1978, the company was liquidated. In the early 1980s, the small car project was brought back to life by the government. The government entered into a joint venture agreement with Suzuki. Since the late 1980s, Maruti had been the market leader in the passenger car industry in India. However, after the liberalization of the Indian economy in 1991, the Indian passenger car industry became extremely competitive. From the mid 1990s, foreign automobile companies started entering the Indian passenger car market. Maruti started losing market share as its competitors launched new models that proved very popular with Indian buyers. Between the financial years 1997-98 and 1999-2000, Maruti's market share declined from 83.1 percent to 60.8 percent. In an effort to fulfill its target of selling one million vehicles in the domestic market by the fiscal 2011-12, Maruti aimed to generate sales of 0.25 million cars annually from rural India.