Q1. Explain the stages in the new product development process. Ans.

To create the next product in a companys product line a design team goes through product development process steps. Starting with a product idea, the team moves through several stages to generate all the details and documents needed to get the product built. A NEW product development (NPD) process goes through the same steps, however as this product has not been developed by the team before, new risks and uncertainties are introduced and often additional information is documented and shared with manufacturing. Basic new product development steps There are five basic steps in a new product development process: Concept, Ideation, Design, Test and Release. 1. Concept The concept step sets basic direction and boundaries for the entire development process by clarifying the type of product, the problem the product solves and the financial and technical goals to be achieved by the product. Ideation During the ideation step the team brainstorms to discover some of the many ways a product can solve the problem and meet internal goals. Ideas are evaluated and the most promising are selected for further investigation. Design Its in this step that the execution of the best way to create and constr uct the product happens. Engineering details are generated to flesh out the high level concepts from the ideation stage. Test Testing verifies if the product meets the original goals or if additional refinement is needed. Release Once testing has confirmed that the product solves the problem and will meet the company goals; it is ready to start the new product introduction (NPI) process and get the product built!

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New product development steps iterate as necessary The basic steps of the new product development process are listed above as stages that follow each other, but in reality the process is cyclical, not linear. Ideation, Design and Test steps are repeated over and over again, at varying depths of detail and on different subsystems, until the product design is complete.

The pace at which NPD cycles move can be fast with lots and lots of changes to parts, assemblies and BOMs. During design, companies often do not follow the form-fit-function (FFF) rules that get followed in production, but they will use revisions to take snap shots of a design at a moment in time. Teams typically establish new revisions when they want to create prototypes. At this point the design is temporarily frozen as models, drawings, specifications and BOMs get updated to the next revision. Keeping track of all the different changes made during these cycles can be difficult even if the design team is located within the same building. And if multiple people have access to editable documents (e.g. MS Word specs, MS Excel BOMs) changes made that were not agreed to by all necessary parties will cause misunderstandings.

Read-only PDFs can help this matter, but this fix is just a temporary solution for a larger problem. If a company doesnt have a common understanding around when revisions are created and by whom, and where they are stored, this lack of control can lead to confusion and chaos. Address NPD challenges with a little bit of process Once all the iteration, design and testing has been completed, its time to enter the release stage and get the product built. The release stage is also the beginning of the New Product Introduction (NPI) process where information is handed-off to manufacturing for ramp and product planning. With some revision control, spec and process work in the steps leading up to this point, the time and labor needed to generate the data manufacturing needs can be minimized. Heres how to tackle challenges during new product d evelopment stages: 1. Take snapshots of the design at major points during the process, like when releasing files for prototyping. Keep track of modifications of both part and BOM revisions so you wont have to second guess changes that occurred. Again, using Word or Excel alone to capture this information can be problematic whereas PDFs provide a solid reflection of the design at that point in time. Collect all the product documents, including all types of files, and organize them in an easy to navigate folder structure. This will free up time when you need to gather information to give to manufacturing; you wont have to dig through several different locations if documents are maintained in a centralized location. Be consistent with the naming conventions for all your files including manufacturers data sheets for offthe-shelf parts as well as internal CAD drawing files. Name files so that they can be easily associated with the right component or assembly within a product. With easily recognizable nomenclature youll be able to tell the associated part number and revision from the file name. Everyone will have an easier time knowing what information they have and wont have to open a lot of documents to find the right data.

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Q2. Explain the various types of retailers and wholesalers. Ans. There are 7 main types of retailers which can be defined by the size of their business and the way they in which they sell their products. The 7 main types of retailers are; 1. Department Store This type of retailer is often the most complex offering a wide range of products and can appear as a collection of smaller retail stores managed by one company. The department store retailers offer products at various pricing levels. This type of retailer adds high levels of customer service by adding convenience enabling a large variety of products to be purchased from one retailer. Supermarkets Generally this type of retailer concentrates in supplying a range of food and beverage products. However many have now diversified and supply products from the home, fashion and electrical products markets too. Supermarkets have significant buying power and therefore often retail goods at low prices. Warehouse retailers This type of retailer is usually situated in retail or Business Park and where premises rents are lower. This enables this type of retailer to stock, display and retail a large variety of good at very competitive prices.

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Speciality Retailers Specialising in specific industries or products, this type of retailer is able to offer the customer expert knowledge and a high level of service. They also add value by offering accessories and additional related products at the same outlet. E-tailer This type of retailer enables customers to shop on-line via the internet and buy products which are then delivered. This type of retailer is highly convenient and is able to supply a wider geographic customer base. E-tailers often have lower rent and overheads so offer very competitive pricing. Convenience Retailer Usually located in residential areas this type of retailer offers a limited range of products at premium prices due to the added value of convenience. Discount Retailer This type of retailer offers a variety of discounted products. They offer low prices on less fashionable branded products from a range of suppliers by reselling end of line and returned goods at discounted prices.

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There are 7 types of wholesalers; 1. Merchant Wholesalers These wholesale suppliers own and produce a product or service and resell their products to resellers, retailers, distributors and other wholesalers. If you can buy the products you require direct from the supplier you will usually be able to obtain the best prices and profit margins. General Wholesalers - Wholesalers that fall into this category will usually buy large quantities of products from one or more suppliers and will be intending to add value to them by reselling in smaller quantities to distributors, retailers and resellers. This type of wholesale supplier will often have multiple suppliers adding diversity to their product range and choice for their customers. This type of wholesaler may resell products from a number of different industries and in several different categories. Speciality Wholesalers - This type of wholesaler will resell products in a specific industry or product category, but may have products from multiple suppliers. Because specialty wholesalers specialize in a specific industry or product type they tend to have good product knowledge and good pricing. Specific Product Wholesalers - These are wholesalers who only supply 1 type of product for example footwear or computers. They may supply several brands but only within one product category. Manufacturers often use this type of wholesaler to distribute one or more of their products. Discount Wholesalers This type of wholesaler will supply significantly discounted stock. Generally the stock is discounted because the products are discontinued lines, returned goods or refurbished goods. Drop Ship Wholesalers - This type of wholesaler will complete the sale of a product but will have it dispatched from their supplier directly to their customer without actually handling the goods. On-line Wholesaler - Wholesalers who sell their products on-line offer discounted prices as they can reduce their overheads such as rent and rates of physical premises. This type of wholesaler is therefore able to add a lower percentage to their purchase price and still make margin.

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Q3. Describe the steps in business buying process. Ans. The business buying decision process involves eight distinct stages. At each stage, different decisionmakers may be involved, depending on the cost and strategic importance of the purchase. To navigate the buying decision process successfully, you need to provide the right type of information and ensure that your sales representatives are

contacting the right decision makers. You can also strengthen your position by offering customers advice and guidance at each stage a process known as consultative selling. Awareness The process begins when a company identifies a need for a purchase. It may want to replace an existing item, replenish stocks or buy a new product that is just available on the market. You can also stimulate a need that the company may not be aware of by advising them of issues and challenges that other companies in their industry face. The buying team next works with the requesting department to firm up on the requirement. Your sales team can provide advice and guidance at this stage by offering discussion papers or inviting decision makers to workshops or seminars on the topic. Specification When the buying team has agreed requirements, it prepares a detailed specification that sets out quantities, performance and technical requirements for a product. Your sales team can support this stage by advising the buying team on best practice or collaborating with the buying team to develop the specification. Buying teams then use the specification to search for potential suppliers. They may search the Internet to find products or companies that provide a match to their specification, so it is important that your website features keywords that match your customers product or service needs. Proposals When the buying team has identified potential suppliers, it asks for detailed proposals from the suppliers. The team may issue a formal document known as a request for proposal, or it may outline requirements and invite potential suppliers to make a presentation or submit a quotation. If the product or service has a precise specification, the buying team may simply ask for price quotations. If the product is more complex, it may ask for proposals on how a supplier would meet the need. Evaluation The buying team evaluates suppliers proposals against criteria such as price, performance and value for money. As well as evaluating the product, they assess the supplier on factors such as corporate reputation, financial stability, technical reputation and reliability. You can influence decisions at this stage by providing company information, case studies and independent reports that review your company and products. Order Before the buying team places an order with the chosen supplier, they negotiate price, discount, finance arrangements and payment terms, as well as confirming delivery dates and any other contractual matters. When the order is complete and delivered, the buying team may add a further stage by reviewing the performance of the product and the supplier. This stage may include imposition of penalty charges if the product fails to meet the agreed specification. Q4. Explain the product mix pricing strategies with examples. Ans. Note on Product mix pricing strategies The product mix is the collection of products and services that a company chooses to offer its market. When the product is a part of product-mix, there are five kinds of strategies involved

1. Product Line pricing: Strategy of setting the price for entire product line. Marketer differentiates the price according to the range of products, i.e. suppose the company is having three products in low, middle and high end segment and prices the three products say at Rs 10 Rs 20 and Rs 30 respectively. The three levels of differentiation create three price points in the mind of consumer. The task of marketer is to establish the perceived quality among the three segments. If the customers do not find much difference between the three brands, he/she may opt for low end products. 2. Optional Product pricing: this strategy is used to set the price of optional or accessory products along with a main product. Organizations separate these products from main product so that customer should not perceive products are costly. Once the customer comes to the show room, organization explains the advantages of buying these accessory products. 3. Captive product pricing: Setting a price for a product that must be used along with a main product. For example, Gillette sells low priced razors but make money on the replacement cartridges. 4. By-product pricing: It is determining the price for by-products in order to make the main products price more attractive. For example, L.T. Overseas, manufacturers of Dawaat basmati rice, found that processing of rice results in two by-products i.e. rice husk and rice brain oil. If the company sells husk and brain oil to other consumers, then company is adopting by-product pricing. 5. Product bundle pricing: It is offering companies several products together as a bundle at the reduced price. This strategy helps companies to generate more volume, get rid of the unused products and attract the price conscious consumer. This also helps in locking the customer from purchasing the competitors products. For example, Anchor toothpaste and brush are offered together at lower prices. Brand development Company can develop the brand on the basis of product category and brand name. Some of the different strategies adopted by companies to develop the brands are as follows: 1. Line extension: Company uses its well known brand name to introduce additional items in a given product category such as new forms, flavours, ingredients or package sizes. For example, Karnataka Milk Federation, uses its top brand name Nandini, to introduce new items like toned milk, full cream milk , curd and milk powder. It is less risky and requires fewer investments to introduce the product. In the above example Nandini used the extension to meet the excess capacity that it has. The milk procurement was more than the demand from the customer. Hence it started producing the milk powder. But all the products introduced need not to be successful in the market. In case of KMF, Nandini ice creams didnt click in the market. Another risk of line extension is brand cannibalization, i.e. companys brand/items compete with each other. 2. Brand extension: A strategy in which company uses one of its familiar brand names for new product categorys items. For example, United Breweries (UB) Limited group used its flagship brand Kingfisher to different categories. Kingfisher was originally a beer brand extended to airlines. Brand extension gives instant recognition to the brand. In the above example, people required very little time to know Kingfisher airline brand, because parent brand was very well known. Brand extension may hurt the parent brand reputation in the market if it fails.

3. Multi brands: The technique of introducing the product or items in existing product category with a new brand name. For example, Hindustan Unilever uses different brand names for their home and personal care category. The above example shows us that HUL have Breeze, Dove, Liril, Lux, Lifebuoy and Pears in the bath soap segment itself. It helps the company to come out with new features in the product or product category. Organizations adopt this strategy to avoid brand cannibalization in the given category. The major disadvantage of this strategy is that none of the brands will enjoy major market share and result in lesser profitability. 4. New brands: The strategy indicates coming out with new brands for new category products. In this strategy, company believes that existing brands cannot be extended to the new category. The new brand strategy requires huge resources to build it. The new category, if it already has some brands of other companies, investment requirement will go up. For example, Hindustan Unilever launched Pure-It in the water purifier category. The category and brand are new to the company. Q5. Advertisement is a media which conveys message about the product. It is important to understand different types of advertisement to attract the attention of the people to a product and service. Find out the various forms of advertisement. Ans. Advertising provides a direct line of communication to your existing and prospective customers about your product or service. The purpose of advertising is to: Make customers aware of your product or service; Convince customers that your company's product or service is right for their needs; Create a desire for your product or service; Enhance the image of your company; Announce new products or services; Reinforce salespeople's messages; Make customers take the next step (ask for more information, request a sample, place an order, and so on); and Draw customers to your business.

Your advertising goals should be established in your business plan. For example, you may want to obtain a certain percentage of growth in sales, generate more inquiries for sales, or build in-store traffic. The desired result can simply be increasing name recognition or modifying the image you're projecting. Objectives vary depending on the industry and market you're in. All products and businesses go through three stages, with different advertising goals for each one. 1. The start-up business. You're new in the market and need to establish your identity. Your company needs high levels of promotion and publicity to grab consumers' attention. 2. The growing business. Once your identity is established, you need to differentiate yourself from your competition and convince buyers that yours is the service or product to try. 3. The established business. The purpose at this point is to remind consumers why they should continue buying from you. No matter which stage your business is in, advertising follows four steps, according to the industry mnemonic, "AIDA: Awareness, Interest, Desire, Action." Your job is to make prospective customers aware that your product or service exists, pique their interest in what your product or service can do for them, make them want to try your product or service, and finally take action, by asking for more information or actually buying the product.

When developing an advertising campaign, complete the following four-step procedure: 1. Define your market. Determine who your target market is (those customers most likely to buy your product or service). One magazine that's fun to read, interesting and helpful in this regard is American Demographics. 2. Establish your budget. Know what you can afford to spend to reach your target audience. 3. Plan which media you'll use. Figure out what are the best ways to reach your prospective customers with your message. 4. Create an advertising strategy. Choose the most effective message and visuals for your advertising campaign. The advertising objectives largely determine which of two basic types of advertising to use; product or institutional. Institutional advertising tries to develop goodwill for a company rather than to sell a specific product. Its objective is to improve the advertiser's image, reputation, and relations with the various groups the company deals with. This includes not only end-users and distributors, but also suppliers, shareholders, employees, and the general public. Institutional advertising focuses on the name and prestige of a company. Institutional advertising is sometimes used by large companies with several divisions to link the divisions in customers' minds. It is also used to link a companys other products to the reputation of a market -leading product. Product advertising tries to sell a product. It may be aimed at the end user or at potential representatives and distributors. Product advertising may be further classified as pioneering, competitive, and reminder advertising.

Pioneering advertising tries to develop primary demand, that is demand for a product category rather than a specific brand. It's needed i the early stages of the adoption process to inform potential customers about a new product. The first company to introduce a new technology to its industry doesn't have to worry about a competitive product since they alone have the technology. They have to sell th industry on the advantages of the new technology itself. Pioneering advertising is usually done in the early stage of the product life cyc by the company which introduces an innovation.

Competitive advertising tries to develop selective de mand; demand for a specific manufacturers product rather than a product category An innovating company is usually forced into competitive advertising as the product life cycle moves along. After pioneering technolog is accepted and most manufacturers are supplying competing products, the innovator is forced to sell the advantages of his specific desi over that of the competition. This is usually the situation in a mature market. Reminder advertising tries to keep the product's name before the public. It is useful when the product has achieved market domination. Here, the advertiser may use "soft-sell" ads that just mention or show the name as a reminder. Reminder advertising may be thought of maintenance for a product with the leadership position in the market.

Q6. Explain the forms of customer relationship and the reasons behind losing customer by organization. Ans. Customer relationship management (CRM) is a model for managing a companys interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support. Marketing CRM systems for marketing track and measure campaigns over multiple channels, such as email, search, social media, telephone and direct mail. These systems track clicks, responses, leads and deals. Customer service and support

CRM systems can be used to create, assign and manage requests made by customers, such as call center software which helps direct customers to agents. CRM software can also be used to identify and reward loyal customers over a period of time. Appointments CRM systems can automatically suggest suitable appointment times to customers via e-mail or the web. These can then be synchronized with the representative or agent's calendar. Small business For small businesses a CRM system may simply consist of a contact manager system which integrates emails, documents, jobs, faxes, and scheduling for individual accounts. CRM systems available for specific markets (legal, finance) frequently focus on event management and relationship tracking as opposed to financial return on investment (ROI). Social media CRM often makes use of social media to build up customer relationships. Some CRM systems integrate social media sites like Twitter, LinkedIn and Face book to track and communicate with customers sharing their opinions and experiences with a company, products and services. Enterprise Feedback Management software platforms such as Confirmit, Medallia, and Satmetrix combine internal survey data with trends identified through social media to allow businesses to make more accurate decisions on which products to supply. Non-profit and membership-based Systems for non-profit and membership-based organizations help track constituents, fund-raising, demographics, membership levels, membership directories, volunteering and communication with individual. Customer-centric relationship management (CCRM) CCRM is a style of customer relationship management that focuses on customer preferences, instead of customer leverage. This is a nascent sub-discipline of traditional customer relationship management, to take advantage of changes in communications technology. A CRM system becoming more customer-centric means being able to manage critical relationships more effectively and being positioned to offer new and expanded services. Customer centric organizations help customers make better decisions and drive profitability. CCRM adds value by engaging customers in individual, interactive relationships.