Assignment IM Mid Term

7/31/2019 Assignment IM Mid Term

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Abdul Basit Shafqat Mid Term Assignment

Section G Id # 08u0711

ANS 1

Business vs Consumer Markets

The success of your marketing strategy involves gaining a comprehensive understanding of the

particular markets that you serve. These markets can either be consumer markets or business

markets. A simple method of identifying the difference between these two markets is to address

the following questions:

Who is buying the goods? Why is the purchase being made?

Business markets involve sales and purchases of goods and services to various businesses,

governments and market intermediaries to facilitate the finished product which is generally then

re-sold to an end user. In contrast, consumer markets involve the purchase and sale of goods and

services to consumers for their own use rather than for resale.

As there is a significant difference between these two markets, the marketing strategies adopted

to serve them also differ. These strategies need to be developed based on the needs, wants and

buying processes of the particular market.

Buying decisions for consumer markets can be complex for large purchases such as cars, houses

and holidays, where multiple family members such as husbands and wives, even children will be

involved to make a collective decision. However for smaller day to day products and services

there is usually a much more simple buying process where one person will be the decision maker

and there will be generally a low level relationship between the buyer and the seller, as in thecase of a supermarket purchase.

In business markets however, the buying process may involve a high amount of decision making

and will often have more than one individual involved in the buying process. For example, there

may be an engineer or technical person involved in the specification of the product or service and

a purchasing manager in charge of price negotiations. Sometimes in large buying decisions there


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can even be a team of people from different departments making the purchase decision

collectively.

The differences between financial and consumer market takes place on the following basis

Currency of denomination Ownership rights Term to maturity Degree of liquidity Income payments Tax treatment Credit ratingNew capital

Commercial enterprises have traditionally used securities as a means of raising new capital.

Securities may be an attractive option relative to bank loans depending on their pricing and

market demand for particular characteristics. Another disadvantage of bank loans as a source of

financing is that the bank may seek a measure of protection against default by the borrower via

extensive financial covenants.

Repackaging

In recent decades, securities have been issued to repackage existing assets. In a traditional

securitization, a financial institution may wish to remove assets from its balance sheet to achieve

regulatory capital efficiencies or to accelerate its receipt of cash flow from the original assets.

Alternatively, an intermediary may wish to make a profit by acquiring financial assets and

repackaging them in a way more attractive to investors. In other words, a basket of assets is

typically contributed or placed into a separate legal entity such as a trust or SPV, which

subsequently issues shares of equity interest to investors.

By type of holder

Investors in securities may be retail, i.e. members of the public investing other than by way of

business. The greatest part in terms of volume of investment is wholesale, i.e. by financial
http://en.wikipedia.org/wiki/Balance_sheethttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Wholesalehttp://en.wikipedia.org/wiki/Wholesalehttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Balance_sheet


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institutions acting on their own account, or on behalf of clients. Important investors

include investment banks, insurance companies, pension funds and other managed funds.

Social exchange

Social norms have been recognized as an important influence in long-term relational exchange

between firms. It is here argued that social norms are equally important in short-term discrete

exchange that takes place between firms and consumers. The norms of consumer exchange are,

however, of a different kind. To clarify the difference, a classification system is presented. Based

on the classification, the social norms of discrete consumer exchange are defined and a method

of quantifying these norms is proposed. This method should help in the ongoing effort to

understand how the social macro-environment influences individual behavior in dyadic

exchange.

Information exchange

Industrial market research is intended to provide objective market information used to reduce

uncertainty and make rational and effective marketing decisions to improve profitability.

Without obtaining and using recent market research information, companies run the risk of

making flawed planning decisions that can negatively impact their businesses.

Ans: 2

Yes price decrease is an effective strategy especially when the demand for the industrial

product is falling because the decrease in price may cause increase in demand by the

consumers in the long run and can provide benefits to the consumers at the end. through this

there are chances of generating large amount of revenue and profitability for both the firm

itself and the consumers as well, on the other side the demand situation should also be

analyzed as well because when there is no demand for a particular industrial product in themarket then the firm cannot make use of the current inventory for the production and

manufacturing, when the demand will increase then the inventory will be used in the

production process and the needs of the consumers can be met efficiently.
http://en.wikipedia.org/wiki/Investment_bankhttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Pension_fundhttp://en.wikipedia.org/wiki/Pension_fundhttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Investment_bank


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Ans: 3

For a company to survive in todays highly flooded markets a company must, at least

temporarily, achieve a competitive advantage. There are many ways for a firm to achieve thisadvantage and two generic ones are: price leadership and differentiation. Price leadership is

simply when a company keeps prices below those of his competitors. Differentiation occurs

when a company creates a distinctive position in the market through product functionality,

service, or quality.

If either of these two management strategies are chosen to be implemented by a company, value

chain analysis can help the firm focus its plan and thus achieve a competitive advantage. There

are two components of value chain analysis: the industry value chain and the companys internal

value chain. The industry value chain includes all of the value-creating activities within the

whole industry, beginning with the basic raw material and finishing with the delivery of the

product. The internal value chain of a company includes all the value creating activities within

that specific firm.

The Industry Value Chain

The value chain of an industry starts with the raw material manufacturer and finishes with the

delivery of the final product to the customer. The key to analyzing the industry value chain is to

comprehend and use the advantage of a companys comparative strength within the industry.

All industries begin with a raw material and end with a sale to a customer. There are many links

within this process. There are upstream links and downstream links. Each separate link stands

for an independent, economically viable segment of the industry. To establish which links in the

industry value chain are separate, assess these two questions:

1. Is there a market for the output of this link in the industry value chain, or can a market

price be determined objectively?

2. Are there any companies that produce and sell only within this link of the chain?


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If the answer is yes to either of these questions, then the industry under consideration may be a

separate link in the industry value chain. Then, after the industry value chain is determined, a

company should examine the relative strength of its position, in any separate link, in the industry

value chain. A companys position within the industry link can be found by using a myriad o f

measurements, including industry margins, return on assets, benchmarking, and capital

budgeting. When a company then finds where it has deficiencies in relative industry strength, it

can go back to the internal value chain activities to improve its standing with its competitors and

then gain a competitive advantage.

ANS 4.

I am focusing on agricultural industry and therefore the promotional activities for my selection

will not be so much standardized, the structure of the station wagon would be quite simple, there

would be use of C.N.G fitted station wagons, with simple structure, the price would be kept very

low, the point of difference will be the usage of managing the whole process efficiently by

managing all the major factors and by keeping the benefits for both the consumer and the buyer

in mind.

Ans 5

The purchasing orientation can help the supplier through the following ways to create and

deliver value to the customer by the following process.

1. UNDERSTANDING PURCHASING ORIENTATIONPurchasing is the process of acquiring resources and capabilities for the firm from outside

providers.


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Purchasing orientation is the philosophy that guides managers who make purchasing-related

decisions and delineates their domain and span of influence.

Its important for the industry (business) know that all business buyers (or industrial customers)

do not have the same purchasing orientation, or overall purchasing philosophy, which guides

them through their buying decisions.

Business buyers can choose one of three purchasing orientations Buying, Procurement, or

Supply Chain Management.

The central pursuits of the buying orientation are:

Obtaining the best deal - obtaining the best deal in terms of price, quality, and availabilityfrom suppliers

Maximizing power over suppliers - utilizing commoditization to turn off the productspoints of differentiation and utilizing multisourcing.;

Obtaining the best deal - obtaining the best deal in terms of price, quality, and availabilityfrom suppliers

Maximizing power over suppliers - utilizing commoditization to turn off the productspoints of differentiation and utilizing multisourcing,

2. UNDERSTANDING THE PURCHASE DECISION PROCESSOnce business market managers know the customer firms purchasing process, they are in a far

better position to develop marketing strategies, sales presentations, and promotional efforts that

can successfully inform and influence purchasing decisions.

i. Understanding Customer Requirements and Preferencesii. Converge on Customer Requirementsiii. Map Customer Activity and Value Cycles


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ANS 6

The organizations can improve the understanding of the business markets through the following

process.

A business does not operate in a vacuum. It has to act and react to what happens outside the

factory and office walls. These factors that happen outside the business are known as external

factors or influences. These will affect the main internal functions of the business and possibly

the objectives of the business and its strategies.

The main factor that affects most business is the degree of competition how fiercely otherbusinesses compete with the products that another business makes.

The other factors that can affect the business are:

Social Legal Economic Political. Technological Ethical

Markets are changing all the time. It does depend on the type of product the business produces,

however a business needs to react or lose customers.

Some of the main reasons why markets change rapidly:

Customers develop new needs and wants. New competitors enter a market. New technologies mean that new products can be made.


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Ans 7

The business managers can define their target market and the competition on the following basis.

CORPORATE-LEVEL STRATEGY

Corporate-level strategies address the entire strategic scope of the enterprise. This is the

"big picture" view of the organization and includes deciding in which product or service

markets to compete and in which geographic regions to operate.

GROWTH STRATEGIES

Growth strategies are designed to expand an organization's performance, usually as

measured by sales, profits, product mix, market coverage, market share, or other

accounting and market-based variables.

RETRENCHMENT STRATEGIES

Retrenchment strategies involve a reduction in the scope of a corporation's activities,

which also generally necessitates a reduction in number of employees, sale of assets

associated with discontinued product or service lines, possible restructuring of debt

through bankruptcy proceedings, and in the most extreme cases, liquidation of the firm.

BUSINESS-LEVEL STRATEGIES

Business-level strategies are similar to corporate-strategies in that they focus on overall

performance. In contrast to corporate-level strategy, however, they focus on only one


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rather than a portfolio of businesses. Business units represent individual entities

oriented toward a particular industry, product, or market.

FUNCTIONAL-LEVEL STRATEGIES.

Functional-level strategies are concerned with coordinating the functional areas of the

organization (marketing, finance, human resources, production, research and

development, etc.) so that each functional area upholds and contributes to individual

business-level strategies and the overall corporate-level strategy

Ans 8

In commercial organization purchasing the decision is influenced by different people which

include the production people, engineers, purchasing agents and the middle and upper

management. The purpose of the purchases in commercial enterprise is for different uses which

consist of industrial distributors and dealers, Original equipment manufacturers and users. It is

fully dependant on the nature of the business you are dealing with: it basically consists of several

factors like the size of the business, population and technical complexities. Techniques such as

materials requirement planning, supplier rating systems which include economic order quantity

and value analysis are commonly used in industrial markets.

Ans 10

PTA URGES MOC

This articles is basically about the livestock that how it I important for the economy and the

industrial sector to meet the needs of the end customers, however on the other side after

agriculture, live stock is the mean of generating the large amount of revenue for the country, the

issue of live stock smuggling is also there, most of the live stock is exported through illegal

means , which is harming the economy of Pakistan , the government should devise a policy to

save live stock industry because this is the industry through which most of the revenue is


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generated, on the other side if we look the country is passing through the flood situation and

already most of the live stock suffered in this as well. PTA has raised the issue of protecting the

live stock, now its up to the government to take measures to stop and prevent smuggling.

Barclays launches junior account

Every organization in todays world wants to remain competitive, and this competency can be

achieved through various techniques and methods, so Barclays has made itself more

commercialized by creating a depth in its target market by offering junior account for the

children under 18 along with various benefits for the children this thing or act while make the

banking industry more successful and customer orientated , the children will learn the saving

habits and this thing will provide long term benefits to them.

EMIRATES

International relations in todays world have become very much crucial, the globalization is

spreading very fast due to which huge changes are taking place, Pakistan is already going

through a situation of un certainty and in this situation emirates have increased their flights to

Pakistan, this will not only provide benefit to the air line industry but will also provide an

opportunity for the foreign industries to make investment in our country and will increase the

exports of Pakistan thus bringing a shining future for ourselves.

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