Answer- 1

Marketing Strategies
A marketing strategy is a broad directional statement indicating how the
marketing objectives will be achieved. It provides the method for
accomplishing the objectives. While marketing objectives are specific,
quantifiable, and measurable, marketing strategies are descriptive.
Within your plan, the marketing strategies represent a first overview of
various marketing elements and how they will be utilized to achieve the
marketing objectives. The most commonly addressed strategy issues are as
follows, though you should consider what is most appropriate for your
particular situation:
1. Building the market versus stealing market share
2. National, regional, or local markets
3. Seasonality
4. Spending
5. Competition
6. Target market
7. Product8. Naming
8. Naming
9. Packaging
10. Pricing
11. Distribution/penetration or coverage
12. Personal selling/ service/ operations
13. Promotion/events
14. Advertising message
15. Advertising media
16. Internet media
17. Merchandising
18. Public relations
19. Marketing research and testing (R&T)

In my opinion 5 most lucrative options for increasing sales out of 19

different marketing strategies are -

1 Competitive Strategies
There is often need for a competitive strategy. The business review may reveal
that a single competitor is almost totally responsible for your company’s
decline in market share, a new competitor is entering the market, or a single
company or group of competitors may have preempted your unique
positioning in the marketplace. If this is the case, you will need to develop a
competitive marketing strategy in your marketing plan.

Competitive strategies vary depending upon the situation. Competitive

strategies sometimes use an anticategory strategy, establishing your company
as better than all competitors in the category. To achieve this, a company often
takes a common, consumer-perceived problem in the industry (such as lack of
customer service attention in retail or delayed flights in the airline business),
establishes the problem as inherent to the industry, and then tries to set itself
apart as better than the competition in this area of concern.
2 Target Market Strategies

Your target market section detailed primary and secondary target markets.
You must now discuss the emphasis you will place against the various target
markets and how you will market to them based on your marketing objectives,
which defined the purchase behavior you intend to gain from the target. For
example, you may decide to target the heavy user through the use of a specific
product in your product line that has proven appeal to heavy users or through
in-store changes that appeal to heavy users. You may target a secondary target
market only through in-store incentives or point-of-purchase promotional
techniques, saving all mass media expenditures for the primary target market.
Your company may have recently revised your primary target market to
include the heavy user who may have shopped your product only as a second
choice in the past. A target market strategy must reflect this change in target
market description. This strategy to primarily target the heavy user in all
marketing mix decisions affects all subsequent marketing strategies and
individual marketing mix tool plans.

3 Personal Selling/Service/Operation Strategies

You need to determine whether you want to address a structured personal

selling program through this marketing plan. You may want to address basic
elements of that sales program, including whether you will use sales
incentives; establish sales goals relative to pure dollar objectives, a particular
product, or target market emphasis in terms of calls made, etc.; and define a
sales methodology (e.g., soft sell versus hard sell). If you are a retailer, note
whether your subsequent selling plan should include specific sales ratios (e.g.,
develop sales ratio of purchasers versus walkers based upon history and future
expectations).
Like retailers, manufacturers also need to decide whether they are going to
establish specific sales ratios. If they choose to do so, a statement such as
“establish specific sales ratios (number of prospects that become customers) to
monitor the results of the sales force” should be included as a strategy in this
section.
4 Promotion/Event Strategies

Promotions should be channeled to meet specific needs and must be

incorporated into the overall marketing plan in a disciplined fashion. These
promotion strategies will set the areas of emphasis for the specific promotion
plan later in the marketing plan, providing direction for the promotional efforts
aimed at addressing specific marketing objectives. A retailer may have the
marketing objective of increasing the number of units per transaction from the
target market by 10 per. cent over the next twelve months. A marketing
strategy to achieve this would be to encourage multiple purchases through
promotional incentives. This strategy would then be expanded upon in the
promotion section of the marketing plan, but the fact that transaction increases
are going to come from multiple-purchase promotional incentives would have
been established up front.

5 Advertising Media Strategies

The strategies developed in this section should be consistent with the direction
established in the product, competitive, and spending marketing strategies.
The primary goal in establishing an overall media strategy is to provide
direction for the upcoming media plan and to establish geographic and product
spending emphasis. You may decide upon a strategy that varies media
spending by market or that spends more in markets with greater potential. You
may invest in new markets to establish awareness and generate trial. You may
consider developing a national media plan or developing both national and
local media plans in order to support a dual marketing strategy. You may also
address target market reach strategies by identifying how media will be
utilized to reach the primary and/ or secondary target market, influencers, etc.

The marketing planning process

Stage 1: Research and planning

Understanding customer and the marketing environment, looking for opportunities
for growth

Stage 2: Developing your marketing strategy

Identifying objectives and choosing the right path to exploit any opportunities
highlighted in the research stage

Stage 3: Determining actions and controls

Implementing the strategy and tracking success
 The marketing planning process is summarised in the diagram on next page.

Stage 1:
Research
& planning

 Statement
of your current
situation
and scope of
the plan
 Research
into potential /
current customers
 Examining
the marketing

environment
 Identifying opportunities for growth

Stage 2: Marketing strategy

This section includes the following elements:

 Development of mission statement

 Statement of objectives
 Strategy and tactics to accomplish the objectives

Stage 3: Actions, measurement and controls

How will you monitor progress? Who will do which jobs? When will each element be
completed? How will you adjust the plan? What will be the budget? This section
discusses action plans, controls, measurements and reporting.

Answer-3-
Material Resources Planning -I

Material requirements planning (MRP) has become a centerpiece for all manufacturing
systems. The key to successful production and operations management in a manufacturing
company is the balancing of requirements and capacities.
By having the product available when it is wanted. In production management, we do this by
knowing in advance what our requirements are now and in future and planning ahead to have
the capacity available.

Planning for material needs

In recent years material requirements planning systems have replaced reactive inventory
systems in
many organizations. Managers using reactive systems ask, “What should I do now?,”
Whereas
managers using planning systems look ahead and ask., “What will I be needing in the future?
How
much and when?”
Improved customer service and other advantages come at a cost, however. They require a
system for
accurate inventory and product buildup information. They also require a realistic master
production
schedule (MPS) to specify when various quantities of end items will be completed.

Demand dependency

Demand dependency is an important consideration in choosing between reactive and

planning
systems. Demand dependency is the degree to which the demand for some item is associated
with the
demand for another item. With independent demand, demand for one item is unrelated to the
demand
for others. In the dependent demand situation, if we know the demand for one item, we can
deduce
the demand for one or more related items.

MRP OBJCTIVES AND METHODS

MRP provides the following:

1. Inventory reduction: MRP determines how many of a component are needed and when, in
order to meet the master schedule.
2. Reduction in production and delivery lead times: MRP identifies materials and components
quantities, timings, availabilities, and procurement and production actions required to meet
delivery dealings.
3. Realistic commitments: Realistic delivery promises can enhance customer satisfaction. By
using MRP, production can give marketing timely information about likely delivery times to
prospective customers.
4. Increased efficiency: MRP provides close coordination among various work centers as
products progress through them.
Components of MRP

KEEPING MRP CURRENT IN A CHANGING ENVIRONMENT

MRP is not state; it is responsive to new job orders from customers and current shop
conditions, as well as changes anticipated for the future.

1. Pegging: The process of tracing through the MRP records and all levels in the product
structure to identify how changes in the records of one component will affect the records of
other components.
2. Cycle counting: Counting on-hand inventories at regular intervals to verify inventory
quantities shown in the MRP
3. Regenerative method: A procedure, used at regular intervals, to update the MRP by
completely reprocessing the entire set of information and recreating the entire MRP
4. Time fence: A designated length of time that must pass without changing the MPS, to
stabilize the MRP system; afterward, the MPS is allowed to change.

LOT SIZING

The MRP system generates planned order releases, which trigger purchase orders for outside
suppliers or work orders for internal component production.
1. Lot-for-lot ordering: A lot sizing policy in which order quantity equals net requirements
for
the period.
2. Part-period method: A lot sizing policy in which order quantity varies according to a
comparison of holding versus ordering costs.

Enterprise Resource Planning

Enterprise Resource Planning could be described as a number of tools that are used to
integrated the various processes of a company or organization. Almost all ERP solutions will
utilized interconnected databases, and it has become one of the most popular information
systems available on the market today. There are a large number of potential uses for this
technology. Enterprise Resource Planning is comprised of a number of activities that support
module program software. This software is responsible in assisting companies in the process
of managing a number of different operations within their organization. An example of some
of these operations would be finance of manufacturing. Companies that specialize in selling
ERP systems are trying to combine more modules in their merchandise so that they can help
their clients better integrate their processes. Some of the systems which are being combined
with this technology are data warehousing tools and sales [Link] the Internet has
become an important tool for businesses around the world, ERP vendoirs are working harder
to offer technologies that fully utilize the capabilities of the Internet. Combining the Internet
with ERP tools will allow companies to use their products in a mobile manner, and mobile
computing will become much more advanced. There are three primary modules that make up
an important part of Enterprise Resource Planning, and these three modules are logistics,
accounting, and human resources. These modules are important because they will allow
companies to become more proficient in the areas of production and order processing.
However, ERP is much more powerful than this. It is a number of processes that are
connected to numerous modules. It can allow a company or organization to become better
organized. The reason for this is because ERP promotes integration rather than
compartmentalization. The type of database that is commonly used with these systems is the
relational database. Overall, ERP could be described as being a single form of data. The users
will gain access to the database in order to gain important information that is related to
human resources or financing. A number of people have described ERP as being the new
generation of MRP. However, the capabilities of this technology extend beyond anything that
was ever conceived with MRP.

Suggession

In my opinion, MRP is the best option

Answer- 4-

Definition of DIS

A reporting system comprising reports, updates, and information systems feeds that
articulate the requirements of the theater distribution system to the strategic and
operational resources assigned responsibility for support to the theater. It portrays
the interface of the physical, financial, information and communications networks for
gaining visibility of the theater distribution system and communicates control
activities necessary for optimizing capacity of the system. It depicts, and is
continually updated to reflect changes in, infrastructure, support relationships, and
customer locations to all elements of the distribution system (strategic, operational,
and tactical).

Distribution of products constitutes an important element of marketing mix of a firm.

After development of the product, the entrepreneur has to decide channels or routes
through which the product will flow from the factory to the potential customers. He has a
number of alternatives available to him. The entrepreneur may choose to distribute
theproduct directly to customers without using any intermediaries. Alternatively, he mayuse
one or more middlemen including wholesalers, selling agents, and [Link] firms have
their zonal or regional authorized agents or dealers spread over the entire country. The
dealers, in turn, work with distributors and retailers. On the other hand,small firms cannot
afford to have zonal offices, but are devising their own ways of doing business. They also
receive regular orders for goods. Entry may be difficult for the smallfirms.
It has been observed that many authorized dealers of known brands also stock other
unknown or new brands of goods. They also insist on the customer buying the lesserknown
brand because of higher margin of profit. The small entrepreneur, with fewer overheads and
low labour costs along with better planning and management, may be able to earn good
profits.
MEANING OF CHANNELS OF DISTRIBUTION
A channel of distribution or trade channel is the path or route along which goods move
from producers to ultimate consumers. It is a distribution network through which a
producer puts his products in the hands of actual users. A trade or marketing channel
consists of the producer, consumers or users and the various middlemen who intervene
between the two. The channel serves as a connecting link between the producer and
consumers. By bridging the gap between the point of production and the point of
consumption, a channel creates time, place and possession utilities. A channel of
distribution represents three types of flows:
a. Goods flow from producer to consumers;
b. Cash flow from consumers to producer as payment for goods; and
c. Marketing information flows in both directions, from producers to consumers in the
form of information on new products, new uses of existing products, etc. The flow of
information from consumers to producers is the feedback of the wants, suggestions,
complaints, etc.

KINDS OF DISTRIBUTION CHANNELS

Every small-scale entrepreneur requires a channel that can distribute his product to the
right customers at the right time and at the right cost. It consists of all the middlemen
which participate in the distribution of goods and which serve as a link between the
manufacturer and the consumer.

Channels of Distribution

1. Manufacturer _ Customer:
This is also known as direct selling because no
middlemen are involved. A producer may sell directly through his own retail stores,
forexample, Bata. This is the simplest and the shortest channel. It is fast and economical.
Small producers and producers of perishable commodities also sell directly to the
localconsumers. Big firms adopt direct selling in order to cut distribution cost and because
they have sufficient facilities to sell directly to the consumers. The producer or
theentrepreneur himself performs all the marketing activities.

2. Manufacturer _ Retailer _ Customer:

This is one stage distribution channel having one middleman, i.e., retailer. In this channel,
the producer sells to big retailerslike departmental stores and chain stores who in turn sell to
customer. This channel isvery popular in the distribution of consumer durables such as
refrigerators, T V sets,washing machines, typewriters, etc. This channel of distribution is very
popular these days because of emergence of departmental stores, super markets and other big
retail stores. The retailers purchase in large quantities from the producer and perform certain
marketing activities in order to sell the product to the ultimate consumers.

3. Manufacturer _ Wholesaler _ Retailer _ Customer:

This is the traditional
channel of distribution. There are two middlemen in this channel of distribution,
namely,wholesaler and retailer. This channel is most suitable for the products with
widelyscattered market. It is used in the distribution of consumer products like groceries,
drugs,cosmetics, etc. It is quite suitable for small scale producers whose product line is
narrowand who require the expert services and promotional support of wholesalers.

CHOICE OF CHANNEL OF DISTRIBUTION

While selecting a distribution channel, the entrepreneur should compare the costs, sales
volume and profits expected from alternative channels of distribution. In order to select the
right channel for distributing his product, a small-scale manufacturer should keep inmind the
following considerations:

1. Market Considerations:
The nature of the market is a key factor influencing the
choice of channels of distribution. The following features of the market should be
considered to determine the channels:
a. Consumer or industrial market:
If the product is meant for industrial users, the channel of distribution will be a short one.
This is because industrial users buy in a large quantityand the producer can easily establish a
direct contact with them. But in case for goods meant for consumers, retailers may have to be
included in the channels of distribution.
b. Number and location of buyers:
When the number of potential customers is small or
the market is geographically located in a limited area, direct selling is easy and
economical. In case of large number of customers, use of wholesalers and retailers
becomes necessary.
c. Size of order:
Direct selling is convenient and economical where customers place
order in big lots as in case of industrial goods. But where the product is sold in small
quantities, middlemen are used to distribute such products. A manufacturer may use
different channels for different types of buyers. He may sell directly to big retail stores and
may use wholesalers to sell to small retailers.
d. Customers buying habits:
The customer buying habits like the time he is willing to
spend, the desire for credit, the preference of personal attention and one stop shopping
significantly affect the choice of distribution channels.

2. Product Considerations:
The type and nature of the product influence the number
and type of middlemen to be chosen for distributing the product. The important factors with
respect to the product are as follows:
a. Unit value:
Products of low unit value and common use are generally sold through
middlemen, as they cannot bear the cost of direct selling. On the other hand, expensive
consumer goods and industrial products are sold directly by the producers.

b. Perishability:
Perishable products like vegetables, fruits and bakery items have
relatively short channels, as they cannot withstand repeated handling. Goods, which are
subject to frequent changes in fashion and style, are generally distributed through short
channels, as the producer has to maintain close and continuous touch with the market.
c. Bulk and weight:
Heavy and bulky products are distributed directly to minimize
handling costs. Coal, bricks, stones, etc., are some examples.
d. Standardisation:
Custom-made and non-standardised products usually pass through
short channels due to the need for direct contact between the producer and the consumers.
Standardized and mass-made goods can be distributed through middlemen.

e. Technical nature:
Industrial products requiring demonstration, installation and
aftersale service are often sold directly. The consumer products of technical nature are
generally sold through retailers.
3. Middlemen Considerations:
The cost and efficiency of distribution depend largely
upon the nature and type of middlemen as given in the following factors:
a. Availability:
When middlemen as desired are not available, an entrepreneur may have
to establish his own distribution network. Non-availability of middlemen may arise when
they are handling competitive products, as they do not like to handle more brands.
b. Attitudes:
Middlemen who do not like a firm’s marketing policies may refuse to
handle its products. For instance, some wholesalers and retailers demand sole selling
rights or a guarantee against fall in prices.
c. Services:
Use of those middlemen is profitable who provide financing, storage,
promotion and aftersale services.
d. Sale Potential:
An entrepreneur generally prefers a dealer who offers the greatest
potential volume of sales.
e. Costs:
Choice of a channel should be made after comparing the costs of distribution
through alternative channels.
After deciding the number of middlemen, an entrepreneur has to select the particular
dealers through whom he will distribute his products.

Answer-5-

Performance Appraisal
People differ in their abilities and their aptitudes. There is always some
difference between the quality and quantity of the same work on the
same job being done by two different people. Performance appraisals of
Employees are necessary to understand each employee’s abilities,
competencies and relative merit and worth for the organization.
Performance appraisal rates the employees in terms of their performance.

Performance appraisal is necessary to measure the performance of the

employees and the organization to check the progress towards the
desired goals and aims.

Performance Appraisal System from lower to Upper level

PROCESS OF PERFORMANCE APPRAISAL
Performance appraisal comprises the following steps:
Select performance factors (based on job description) to be evaluated and set the standards to
be
achieved
• Set the performance review period
• Measure actual performance
• Compare performance with set standards and rate it with a suitable scale
• Communicate the rating to the appraise
• Use the performance appraisal for the desired purpose
PERFORMANCE CRITERIA
In order to be effective, the criteria for performance appraisal should be genuinely related to
success/failure in the job and should be amenable to objective judgement. It should also be
easy for
the appraisers to administer and appear just and relevant to the employees, and strike a fair
balance
between sensitivity to the needs of the present job and applicability to the organization.
The earlier concept of merit rating has yielded place to performance appraisal. In the merit
rating
system, merit was based upon personality traits such as leadership, ability to get along with
others,
decisiveness, creativity, industry, judgement, initiative and drive. It was difficult to apply this
system
reliably since it demanded too much on the quality of personal relationships rather than
employees’
performance. Personality measurement is somewhat dangerous because we usually like to
qualify.
The focus earlier was on ‘what he is’. In performance appraisal, the focus is shifted to ‘how
he
perform’ in work-oriented activities such as job knowledge, accuracy, clarity, analytical
mind, ability
to carry on operations to their logical ends. Performance appraisal is thus, competence,
contribution
and commitment and not chance, chemistry and convenience. Merit rating was generally used
for
blue-collared jobs whereas performance appraisal is more comprehensive and can be used for
all
categories-workers, supervisors, and managers.
Management by objective (MBO) is an example of performance-based appraisal approach
that
involves setting objectives and comparing performance against those objectives. Objectives
give
greater freedom to both management and the employees on deciding how performance is to
be
measured. They also have greater motivational effect since the standards are discussed and
agreed upon both by the management and the employees.
Rating by superiors. In this system, supervisors appraise the performance of subordinates
without
involving the latter. This method is most commonly used in government organizations.
However, it
suffers from the prejudiced approach and the ability of the superiors. The validity of the
system can
be improved by basing it on performance. The various methods which are used under this
system
are:
• Ranking Method
• Paired Comparison Method
• Graphic Rating Scales Method
• Forced Choice List Method
• Critical Incidence Method
• Forced Distribution Method
Feedback on appraisal information. In this system, the appraisee is informed abut his
strong and
weak points, and afforded an opportunity to defend himself in terms of constraints or
weaknesses.
This system leads to greater satisfaction and higher work performance due to participative
approach.
Meyer suggested that the goal of the appraisal should be to improve the future performance
of
subordinates and, therefore, suggested that performance appraisal should be made a
continuous
process rather than once-a-year’ feature.
Field review technique. In this technique, the appraiser goes to the field (e.g. shop floor) and
obtain
the information about work performance of the employee by way of questioning the said
individual,
his peer group, and his superiors. The information received about ‘how he is performing’
helps the
appraiser in defining the profile of the employee.

360° APPRAISAL SYSTEM/FEEDBACK

This is defined as the systemic collection and feedback of performance data on an individual
or
group, derived from a number of the stakeholders in their performance. It is done in a
systematic way
via questionnaires or interviews. This formalizes people’s judgements coming from natural
interactions they have with each other. There is both a collection and a feedback process.
Data are
gathered and fed back to the individual participant in a way designed to promote
understanding,
acceptance and ultimately changed behaviour

Standard for Professionals: Pigors and Myers32 have recommended a scheme where
performance goal setting is done by mutual discussion between the superior and subordinate.
This is recommended for engineers, managers, scientists and other technical and professional
[Link] Formats are recommended by them.

Professionals (exempt salaried employees) of a large manufacturing firm

Sales Personnel in Retail Establishment
Executives in Retail Establishment
Standard for other Employees: In general job description and job specification will form
the basis
of fixing performance standard. It should be fixed in specific terms. In case of MBO and Goal
setting
theories, individual tasks are specified in clear terms. Wherever it is possible such method
can be
done as discussed earlier. However, such clear cut definition of task may be possible in
certain
production and marketing jobs by may not be practicable in areas of finance, clerical and
personnel.
However in latter cases desirable aspects like number of audit objections, bills pending,
disputes,
absentees, accidents, number of grievances etc. may serve as indicators, based on which
criteria can
be redefined for each.

METHODS OF PERFORMANCE APPRAISAL

With the evolution and development of the appraisal system, a number of methods or
techniques ofperformance appraisal have been developed.

Traditional Methods

Graphic Rating Scales

Graphic rating scales compare individual performance to an absolute
standard. In this method, judgments about performance are recorded on a scale. This is the
oldest and widely used technique. This method is also known as linear rating scale or simple
rating scale. The appraisers are supplied with printed forms, one for each employee. These
forms contain a number of objectives, behaviour and trait-based qualities and characters to be
rated like quality and volume of work, job knowledge, dependability, initiative, attitude etc.
in the case of workers and analytical ability, creative ability, initiative ability, initiative,
leadership qualities, emotional stability in the case of managerial personnel. These forms
contain rating of scales.
Ranking Method
Under this method, the employees are ranked from best to worst on some characteristics. The
rater first finds the employee with the highest performance and the employees with the lowest
performance in that particular job category and rates the former as the best and the latter as
the
poorest. Then the rater selects the next highest and next lowest and so on until he rates all the
employees in that group.