Roll #________

Lahore Leads University

Department of Management Sciences

BBA Mid-Term Examination Summar 2020

Paper: Marketing Management
Total Marks: 30 Time: 24 Hours

Note: Don’t copy and paste. Marking will be based on original work.

Several scholars have found that companies that embrace the marketing concept achieve superior
performance. This was first demonstrated by companies practicing a reactive market orienta
tion-understanding and meeting customers' expressed needs. Some critics say this means
companies develop only very basic innovations. Narver and his colleagues argue that more
advanced, high-level innovation is possible if the focus is on customers' latent
needs. Narver calls this a proactive marketing orientation. Companies such as 3M, Hewlett
Packard, and Motorola have made a practice of researching latent needs through a "probe-and-
learn" process. Companies that practice both a reactive and a proactive marketing orientation are
implementing a total market orientation and are likely to be the most successful.
Without question, the trends and forces defining the 21st century are leading business firms to a
new set of beliefs and practices. Today's best marketers recognize the need to have a more com-
plete, cohesive approach that goes beyond traditional applications of the marketing concept.
In the light of above text answer the short questions.

Q. No. 1. Define the following terms, (10)

a. Holistic Marketing
b. Michael E. Porter’s generic strategies (Cost leadership, Differentiation and Focus)
c. Marketplace, Marketspace and Metamarket

LOAN BRIGHT
At the Web site of Loan Bright, an online mortgage company, potential homebuyers can get a
personalized list of lenders and available terms. At first Loan Bright made its money by selling
the homebuyer data to high-end mortgage lenders, including Wells Fargo, Bank of America, and
Chase Manhattan Mortgages. These firms turned the data into leads for their sales teams. But
worrisome internal issues arose. For one thing, Loan Bright had to please every one of its big
clients, yet each was becoming tougher to satisfy, eating up time and resources. The company's
top managers gathered to analyze the market and Loan Bright's strengths and weaknesses. They
decided that instead of serving a few choice clients, they would shift down-market to serve many
more individual loan officers, who responded to the company's Google ads and only wanted to
buy a few leads. The switch required revamping the way Loan Bright salespeople brought in new
business, including using a one-page contract instead of the old 12-page contract and creating a
separate customer service department. Read this text and reply question no.2. Make sure it’s just
a reference.

Q. No. 2. Explain the strategic planning process briefly? (7)

Answer.
It's an online lender selling short-term consumer loans, which is called
installment loans. So although Bright Lending advertises its choices as
an alternative to payday loans, the loans have rather large APRs. The
biggest distinction between Bright Lending and the payday loan is that
for Bright Lending, you can have up to 10 months to repay the debt,
rather than the next payday. Here's the catch: while you're supposed to
get ample flexibility to repay the loan, the average amount of the loan is
theoretically much greater than the standard payday loan.
Potential for fast funding
If you need capital fast, you’re possibly searching for easy financing
solutions. You will apply for a loan online with Light Lending. If
accepted, you can obtain your loan via electronic direct deposit to your
bank account on the next business day.
Very high rates
While a Bright Lending loan that allow you access to fast cash, you
should realize that you will pay for this convenience in the form of
incredibly high APRs. The investor pays triple-digit APRs, which
ensures you’re going to spend a lot more than you've previously lent.
Bright Lending claims it pays APRs between 500 percent and 800
percent, but the cost details on its platform are approximations so it's
impossible to tell just how much you're going to have to spend before
you qualify for a loan. Evaluate the risk of such a loan closely before
determining whether to consider it.
No prepayment penalties
Since Bright Lending personal loans have large APRs, it's a smart idea
to pay back your loan as early as possible. The business will not impose
a prepayment tax, meaning you can settle the loan before time without
incurring an additional fee.
Low loan maximums
Bright Personal loans are designed to fund fairly minor emergencies.
The debt varies from $300 to $1,000.
A closer look at Bright Lending loans
 No credit checks: Bright Lending does not carry out background
reviews with three main consumer credit bureaus Experian,
Equifax and TransUnion. Yet alternate providers and credit
reporting agencies can use it to check the records, which may be
seen as a soft survey.
 Discounts for automatic payments: by signing up for automatic
payments, you will get a discount of around 50 percentage points
from the APR loan.
 Late payment charges: When the bill is five days late, Bright
Lending will owe you a fee equivalent to 10% of the amount due.
There is also an underpayment of $30 in support.

Hewlett-Packard is beginning to outpace Dell in terms of customer perceived value. Dell rode to
success by offering low-priced computers, logistical efficiency, and after-sales service. Dell's
maniacal focus on low costs has been a key ingredient to that business model success. When the
company shifted its customer-service call centers to India and the Philippines to cut costs,
understaffed call centers led to frequent 30-minute waits for customers. Almost half the calls
required at least one transfer. To discourage customer calls, Dell even removed its toll-free
service number from its Web site. With customer satisfaction slipping and competitors
matching its product quality and prices and offering improved service, Dell's market share and
stock price both declined sharply. Dell ended up hiring more North American call center
employees. "The team was managing cost instead of managing service and quality," Michael
Dell confesses. In contrast, Hewlett-Packard is aggressively pursuing a solutions approach based
on strengthening its channel partner relationships. Don Ritchie, CEO of Sequel Data Systems, an
exclusive HP partner, says he sees no threat from Dell as he continues to deliver enterprise
solutions in concert with HP and says, "One of the easiest sales Sequel has is to go
into an account that has been serviced by Dell.

Q. No. 3. Discuss customer perceived value and its determinants in detail with suitable
examples? (7)

COMPANY RESPONSE TO CUSTOMER EMPOWERMENT

Often seen as the flag bearer for marketing best practices, P&G's chairman A, G, Lafley created
shockwaves for marketers with his Association of National Advertiser's speech in October 2006.
"The power is with the consumer," proclaimed Lalley, and "marketers and retailers are
scrambling to keep up with her. Consumers are beginning in a very real sense to own our brands
and participate in their creation. We need to learn to let go." In support of his contention, Lafley
pointed out how a teenager had created an animated spot for Pringles snacks that was posted on
YouTube; how Pantene, the hair care products company, had created a campaign that
encouraged women to cut their hair and donate the clippings to make wigs for cancer patients;
and how sales of Cover Girl Outlast lipstick increased 25% after the firm put mirrored ads in
women's restrooms asking, "Is your lipstick still on?" and ran targeted five-second TV ads with
the same theme.
Other marketers have begun to advocate a "bottom-up" grassroots approach to marketing, rather
than the more traditional "top down" approach where the marketers feel they are calling the
shots. Burger King has launched edgy campaigns on consumer-friendly new media such as
YouTube, MySpace, video games, and iPods.
Allowing the customer to take charge just makes sense for a brand whose slogan is "Have It
Your Way" and whose main rival, McDonald's, already owns the more staid family market.
To provide a little more control, Yahoo! engages in "participation marketing" by tapping
consumers who already like a particular brand, rather than just casting awide net. For example, to
create a new music video, Yahoo! Music asked fans of the singer Shakira to contribute video
clips of themselves performing her song "Hips Don't Lie," which then provided the visual
content. Reflecting the company philosophy, Yahoo! CMO Cammie Dunaway noted, "Content is
no longer something you push out; content is an invitation to engage with your brand."
Even the 2007 Super Bowl, the most expensive media event on the planet, had two homemade
consumer commercials. To capitalize on the buzz of user-generated content, both Frito-Lay and
Chevrolet created ad contests, with the winners receiving prizes and gelling their ads aired
during the game telecast. Perhaps the most compelling example of the new brand world comes
from master marketer Nike. As part of its Joga Bonito (Portuguese for "play beautiful") World
Cup Sponsorship, Nike spent $100 million on a multilayered campaign. The centerpiece,
however, was Joga.com, a social networking Web site available in 140 countries. One million
members blogged, downloaded videos, created fan communities for their favorite players or
teams, and expressed their passions on bulletin-board-type debates, Nike CEO Mark Parker sums
up the new marketing equation well, "A strong relationship is created when someone joins a
Nike community or invites Nike into their community." Read this text as a reference and answer
question no. 4.

Q. No. 4. State Customer Relationship Management process. (6)

Q1
A) Businesses can opt to use a comprehensive marketing method because they are highly
persuaded that all elements of their marketing campaign are interrelated. The creation of
marketing systems such as the marketing mix, the design of marketing strategies and the
execution of marketing processes are not distinct company roles within a integrated
marketing framework. Alternatively, the corporation takes strategic plans and executes
strategies focused on the attainment of a specific corporate goal.