ASSIGNMENT

Course Code : MMPC-006

Course Title : Marketing Management

Assignment Code : MMPC-006/TMA/JULY/2023

Coverage : All Blocks

1. a) Define the term marketing. Discuss the scope and the changing role of marketing in the

current business environment.

Ans: Marketing refers to activities a company undertakes to promote the buying or selling of a product
or service. Marketing includes advertising, selling, and delivering products to consumers or other
businesses. Some marketing is done by affiliates on behalf of a company.

Professionals who work in a corporation's marketing and promotion departments seek to get the
attention of key potential audiences through advertising. Promotions are targeted to certain audiences
and may involve celebrity endorsements, catchy phrases or slogans, memorable packaging or graphic
designs, and overall media exposure.

Meaning of Marketing

Modern marketing has two different meanings in the minds of people who use the term.

One meaning of marketing conjures up the terms “selling, influencing, persuading” thought by many
people and is always viewed and discussed as a business activity. They mistakenly think of marketing
only as selling and promotion tasks, but only two of several marketing functions.

Unfortunately, the other meaning of marketing is weaker in the public mind; it is the concept of
sensitively “serving and satisfying human needs.”

Here, we shall accept the second meaning since a company’s success depends greatly on identifying
consumer needs, developing good products, and pricing, distributing, and promoting them effectively,
which this meaning focuses on.

Now the question that may come to your mind is why we have accepted the latter meaning. We are sure
that you will be able to get the answer automatically as we proceed with our discussion in this lesson.
Marketing is still misunderstood by many marketing professionals, even in the developed world. The
activities of marketing are obvious to everyone.

Some of the company functions, which are obviously marketing activities, include selling, market
research, advertising, etc. All of these have been around for a long.

Scope of Marketing

The definition of marketing stated earlier suggests that the scope of marketing is extensive. Marketing
involves determining needs and wants, demand, and producing products to satisfy them through
exchange processes.

Under the expanded marketing notion, individuals, social organizations, political parties, educational
institutions, charities, and many other organizations are engaged in marketing.

We will now look at the broad and business dimensions of marketing to understand what marketing
encompasses.

Role of Marketing:

Role of Marketing in Economic Development

The main purpose of markets and intermediaries is to make the exchange easier and allow greater
production, consumption, and other activities, including recreation.

An effective marketing system is necessary for economic development. Improved marketing may be the
key to growth in less-developed nations.

Without an effective marketing system, less developed nations may not escape the “vicious circle of
poverty.”

Many people in these nations can’t leave their subsistence way of life to produce for the market because
there are no buyers for what they produce. And there are no buyers because everyone else is producing
for their own needs.

As a result, distribution systems and intermediaries do not develop.

Breaking this vicious circle of poverty may require major changes in the typical marketing systems in less-
developed nations. Without an effective marketing system, people can’t leave their subsistence way of
life.
Marketing means delivering the goods and services that customers want and need. It means getting
products to them at the right time, in the right place, and at a price they’re willing to pay.

So, effective marketing is needed to link producers and consumers.

Marketing Role in Strategic Planning

Marketing plays an important role in strategic planning in the sense that consumers’ needs and the
company’s ability to satisfy them guide the company’s mission and objectives.

Most company strategic planning involves marketing variables such as market share, development, and
growth. In most cases, isolating strategic planning from marketing planning is very difficult.

Virtually, strategic planning is often referred to as strategic marketing planning. Marketing plays a key
role in the company’s strategic planning in several ways.

First, marketing provides a guiding philosophy- the marketing concept that suggests that company
strategy should revolve around serving important consumer groups’ needs.

Second, marketing provides inputs to strategic planners by identifying attractive market opportunities
and assessing the firm’s potential to take advantage of them.

Finally, within individual business units, marketing designs strategies for reaching the unit’s objectives.

Marketing and the Other Business Functions

Opinions vary about the role of marketing in a company. One view is that marketing bears equal
importance to any other function. Another view is that marketing is the most important of all the
functions of a company.

To quote Peter Drucker, “The business aims to create customers.” The marketing department defines its
mission, products, and markets and directs other functions performed to ensure customer satisfaction.

Astute marketers are inclined to put the customer at the center of the company. They believe that a
company must attract and hold customers to be successful.

Promises must be made to attract customers and can be retained by providing satisfaction. Marketing
offers the promise and ensures its delivery.

Marketing plays a coordinating role in helping ensure that all departments work together to ensure
consumer satisfaction.

Conflicts between departments regarding marketing issues can happen.

Business functions differ in their objectives and activities. Production is concerned with suppliers,
finance is interested in stockholders and sound investment, and marketing focuses on products, pricing,
promotion, and distribution.

A company’s different functions must be carried out harmoniously to generate value for consumers.

But in reality, this is not always the case, and conflicts between the departments are rare.

The marketing department operates from the consumer’s standpoint. But to ensure consumer
satisfaction, it wants other departments to work in a way not considered comfortable.

Marketing activities can increase purchasing costs, disrupt production schedules, increase inventories,
and create budgetary problems. In practice, other departments may be unwilling to be subservient to
the marketing department.

Thus, marketing management can best support consumer satisfaction by working to understand the
company’s other departments.

Marketing managers must work closely with managers of other functions to develop a system of
functional plans. The different departments can work together to accomplish the company’s overall
strategic objectives.

b) Distinguish and discuss the concept of a market Vs. concept of segment. Explain their

relationship in planning for a suitable marketing strategy.

Ans: Market :

A market, or marketplace, is the group to which you sell. It could be an industry, profession, geographic
area or group of people. For example, if you have a pizzeria in a suburb, your market is the people who
eat pizza or dine out in your town and the towns that surround it. If you have a forensic consulting
company, your market is those involved in civil lawsuits and criminal cases.

Market Segments:

Within a market, you have different, unique groups of people who buy your product or service, points
out business-management solutions provider, Qualtrics.com. Market segments consist of consumers
related by gender, age, profession, location or other demographics. If you own a local pizzeria with a sit-
down restaurant and delivery, two key market segments might be families and college students.
Market segments for a forensic consulting company include trial lawyers, in-house counsel for
businesses and law enforcement agencies. If you own a paint store, your market segments include
consumers, contractors and interior designers.

Just because your customers have different characteristics doesn’t mean they are two market segments.
For example, if you own a gas station, you do not need to market your gas differently to women than you
do men or older consumers vs. teens.

2. a) Explain the nature and concept of a product. Discuss the criteria on which products are

classified. Explain with suitable examples.

Ans:
b) What branding decisions you would consider if you agree that branding and packaging

play a vital role in today’s business environment. Explain with an example.

Ans: Branding:

If the explanation of branding was simple, there would not be so much ambiguity and dissonance
regarding the concept. Still, for the most part, a strong understanding of branding requires a decent
grasp of business, marketing, and even (human) relational basics. Branding is such a vast concept that a
correct definition that truly encompasses everything that it represents would not bring too much clarity
to the subject just by itself. But, for the sake of lowering the propagation of obsolete, incorrect, and
incomplete information about branding, we offer a more complete definition:
Branding is the perpetual process of identifying, creating, and managing the cumulative assets and
actions that shape the perception of a brand in stakeholders’ minds.

If you compare this definition to the official Cambridge definition, you can clearly see that the latter
(Cambridge) offers more surface-level information, giving a false sense of understanding to the reader.
This might be one of the reasons why most people think that definition is correct and choose it as the
foundation of their knowledge-building on the subject. In truth, basing your learning about branding on
a definition that reduces it to only one element (visual identity) makes every other branding-related
concept fall short when trying to connect the dots.

Our definition of branding, even if seemingly more ambiguous than the other, gives much more sense to
the concept when diving deeper into its meaning. Here is a rough breakdown:

1. Perpetual process

Branding is a perpetual process because it never stops. People, markets, and businesses are constantly
changing and the brand must evolve in order to keep pace.

2. Identify, create, manage

There is a structured process to branding, one where you must first identify who/what you want to be to
your stakeholders, create your brand strategy to position yourself accordingly, and then constantly
manage everything that influences your positioning.

3. Cumulative assets and actions

Your positioning must be translated into assets (e.g., visual identity, content, products, ads) and actions
(e.g., services, customer support, human relations, experiences) that project it into your stakeholders’
minds, slowly building up that perception.

4. Perception of a brand

Also known as reputation. This is the association that an individual (customer or not) has in their mind
regarding your brand. This perception is the result of the branding process (or lack thereof).

5. Stakeholders

Clients are not the only ones that build a perception of your brand in their minds. Stakeholders include
possible clients, existing customers, employees, shareholders, and business partners. Each one builds up
their own perception and interacts with the brand accordingly.

Why is branding important:

Branding is absolutely critical to a business because of the overall impact it makes on your company.
Branding can change how people perceive your brand, it can drive new business, and increase brand
value – but it can also do the opposite if done wrongly or not at all.

3. a) Define the terms advertising and sales promotions. Bring out the major differences

between these two key elements of promotion mix with suitable example.

Ans: Sales promotion

While advertising presents a reason to buy a product, sales promotion offers a short-term incentive to
purchase. Sales promotions often attract brand switchers (those who are not loyal to a specific brand)
who are looking primarily for low price and good value. Thus, especially in markets where brands are
highly similar, sales promotions can cause a short-term increase in sales but little permanent gain in
market share. Alternatively, in markets where brands are quite dissimilar, sales promotions can alter
market shares more permanently. The use of promotions rose considerably during the late 20th century.
This was due to a number of factors within companies, including an increased sophistication in sales
promotion techniques and greater pressure to increase sales. Several market factors also fostered this
increase, including a rise in the number of brands (especially similar ones) and a decrease in the
efficiency of traditional advertising due to increasingly fractionated consumer markets.

Definition of 'Advertising': Advertising is a means of communication with the users of any product or
service. Rather, advertisements are also the messages paid for by those who send them and are
intended to inform or influence people who receive them.

Sales Promotion: And if we talk about the word promotion that drives from the Latin word ‘Promoter’
means “to move forward” or to push forward. Basically, sales and promotion are two different words and
sales promotion is the combination of these two words.

Advertising Sales Promotion Defined

Advertising positions a product or service against that of competitors to convey a brand message to
consumers and to enhance its value in the consumer's eyes. A television commercial for a brand new
automobile emphasizing the car's new features and styling is an example of advertising.

Advertising is a paid, non-personal sales communication usually directed at a large number of potential
buyers.

Types of advertising include:

Informative Advertising: Advertising approach intended to build initial demand for a good or service in
the introductory phase of the product life cycle.

Persuasive Advertising: Used in the growth and maturity stages of the product life cycle to improve the
competitive status of a product, institution or concept.

Comparative Advertising: Persuasive advertising approach in which direct comparisons are made with
competing goods or services.

Reminder-Oriented Advertising: Method used in the late maturity or decline states of the product life
cycle that seeks to reinforce previous promotional activity by keeping the name of the good or service in
front of the public.

The following are some of the most popular forms of advertising media:

Newspapers: Can be costly so you want to reach the exact audience that will buy your product or
service. Avoid using small print if possible. You may be able to place an ad in the more affordable weekly
papers where you can run your ad by zip code.

Television and Radio: Are typically expensive. The most popular stations are typically expensive. Be sure
to know your target audience and study the media kits to determine if the station reaches that audience.

Direct Mail: Can be either generated by you individually or can be a part of a co-op program such as Val-
Pak.

Magazines and Trade Journals: Many have space available regionally.

Outdoor Advertising: Including Billboards and Transit Ads or buses, cabs.

Yellow Pages: This is possibly the first type of advertising you should purchase. A large ad is not
necessary, a listing is sufficient to let your potential customer know you are a valid company, not a fly by
night.

The downfall with Yellow Page advertising is that it takes the customer directly to your competition!
Have a listing but be careful promoting it.

Internet, Website Or Banner Advertising

Some lower cost advertising opportunities include co-op advertising programs where there is a cost
sharing arrangement between the manufacturer and the retailer, cable TV advertising, and targeted
direct mail postcards.

You must track the effectiveness of your advertising efforts. You can use a special reference code on your
advertisements or ask each contact how they heard about you.

Now that you have a basic understanding of the ins and outs of advertising, so let’s talk about the sales
promotions in detail.
b) Explain the term distribution and distribution management. Discuss the various types

of direct and indirect channels that you are familiar, with examples.

Ans: Distribution means to spread the product throughout the marketplace such that a large number
of people can buy it. Distribution involves doing the following things: 1. A good transport system to take
the goods into different geographical areas.

Distribution management refers to the process of overseeing the movement of goods from supplier or
manufacturer to point of sale. It is an overarching term that refers to numerous activities and processes
such as packaging, inventory, warehousing, supply chain, and logistics.

Distribution management is an important part of the business cycle for distributors and wholesalers. The
profit margins of businesses depend on how quickly they can turn over their goods. The more they sell,
the more they earn, which means a better future for the business. Having a successful distribution
management system is also important for businesses to remain competitive and to keep customers
happy.

Distribution management manages the supply chain for a firm, from vendors and suppliers to
manufacturer to point of sale, including packaging, inventory, warehousing, and logistics.

Adopting a distribution management strategy is important for a company's financial success and
corporate longevity.

Distribution management helps keep things organized and keeps customers satisfied.

Understanding Distribution Management

Distribution management is critical to a company's ability to successfully attract customers and operate
profitably. Executing it successfully requires effective management of the entire distribution process. The
larger a corporation, or the greater the number of supply points a company has, the more it will need to
rely on automation to effectively manage the distribution process.

Modern distribution management encompasses more than just moving products from point A to point B.
It also involves gathering and sharing relevant information that can be used to identify key opportunities
for growth and competitiveness in the market. Most progressive companies now use their distribution
forces to obtain market intelligence which is vital in assessing their competitive position.

There are basically two types of distribution: commercial distribution (commonly known as sales
distribution) and physical distribution (better known as logistics). Distribution involves diverse functions
such as customer service, shipping, warehousing, inventory control, private trucking-fleet operations,
packaging, receiving, materials handling, along with plant, warehouse, store location planning, and the
integration of information

1. Direct – The consumer buys the product from you online, in a store, at a trade show or by mail order.

2. Indirect – The consumer buys your product from a wholesaler, retailer, dealership or some other
intermediary.

The pros and cons of direct distribution

There are several advantages to going direct, especially when you’re just beginning and your market is
easily covered. By interacting with your customers directly, you retain a lot of control over your product
and its performance.

Direct distribution allows you to:

collect valuable data on customer buying habits

distinguish yourself from the competition

respond to product performance and customer feedback

get your products to consumers faster

avoid sharing profits with a third-party distributor

build relationships with your customers

Despite the positives, direct distribution also has some potential drawbacks.
One of the biggest challenges is the sizeable costs that can come with direct distribution. For example,
you may need to purchase trucks, hire drivers and rent storage space. You may also find it harder to
reach potential customers without the network an established distributor provides.

The pros and cons of indirect distribution

Going through external sales channels has its own benefits. Indirect distribution allows you to:

share shipping and storage costs

make it easier for customers to find your products

benefit from your third-party’s experience, infrastructure and salesforce

avoid the complexity of managing distribution logistics

The main challenge with indirect distribution is the distance it puts between you and your customers. By
adding an intermediary, you are also increasing the amount of time it takes for your product to reach the
buyer.

It’s also harder to establish brand loyalty when you are not interacting directly with your customer. Still,
it is a good way of bringing your product to market without burdening yourself with the start-up costs of
establishing your own distribution channels.

If you decide to go the indirect route, it’s important to clearly define the terms of your agreement with
your partner from the beginning. You should agree on roles and responsibilities, training and customer
support, reporting and performance monitoring, among other issues.

4. a) Distinguish product marketing from marketing of services. Explain the various

characteristics of services which make them different from tangible goods.

The service sector is growing rapidly worldwide. Majority of developed and developing countries
experience the development of many service industries, which participate significantly in the national
economies.

P. Kotler suggested that ”service is an activity or benefit that one party can offer to another that is
essentially intangible and does not result in the ownership of anything. Its production may or may not be
tied to a physical product”.

There are four characteristics of service: Intangibility, Inseparability, Variability, and Perishability (Kotler
and Keller, 2007).

As service's nature is intangibility, therefore manufacturing and service delivery is more complex than a
product.
Inseparability is a significant characteristic that distinguishes a service from a product according to the
simultaneous production and consumption.

Due to the service's variability, it's difficult to be controlled, because it greatly relies on the service's
provider, moreover when, where and how it's provided.

Perishability is one of the major characteristics of service, that it can't be stored for later use or sale (No
inventory).

In order to deliver the overall service offer to a target market, the marketing mix elements should be
coherent, coordinated, integrated and consistent with each other to produce the synergistic effect of
them. (Lovelock, 2001).

The main objective of service marketers is to create and provide service that satisfies consumer needs
and expectations, therefore achieving organizational goals. Consequently, marketers should work on
understanding how people make their buying decisions and what determines their satisfaction during
the service consumption stages: pre-purchase, service encounter, and post-encounter.

To gain a competitive advantage in the global market, successful organization should adopt the
marketing strategy (overall cost leadership / differentiation / focus) that is based on the marketing
concept which holds that the key to achieving company’s organizational goals is being more effective
than competitors in creating, delivering, and communicating superior customer value to target
customers, and therefore ensuring profits through customer satisfaction.

The positioning of services is even more important than the positioning of goods because services tend
to be intangible, so differentiation becomes a key issue in making the service distinctive in the
perception of the customer's mind. Positioning is concerned with the identification, development, and
communication of the attributes which a service company intends to use to make its market offering
recognizable and superior to the competing services.

A customer-focused organization requires improving service quality as a critical element of

differentiation. It's related to the long-term evaluation of the service performance and is crucial to
customer satisfaction which is the difference between perception and expectation, moreover, customer
satisfaction will become a key factor for business success in the future.

In order to develop long-term relationships, it is necessary to build customer involvement, commitment,

and trust. In service companies focused on building loyalty, customer service plays an important role in
their marketing strategies and is an essential element in creating service quality and customer
satisfaction.
b) Discuss the major types of digital marketing techniques that are being used by firm’s

to enhance their visibility and business growth.

Ans: