Các câu hỏi bài tập marketing

Các câu hỏi bài tập marketing

1. Explain various concepts of marketing with suitable examples.
2. Explain market segmentation with suitable examples.
3. “PLC as a tool for marketing strategy" justify.
4. Explain process of selecting the final price.
5. “Advertising forces people to buy goods that they do not want" Elucidate.
6. Explain the process of integrated Marketing communication.
7. Explain “direct marketing" and its applicability with examples.

CONTENT

1. ANSWER TO QUESTION 2: Explain various concepts of marketing with
suitable examples.

1. Production Concept
Those companies who believe in this philosophy think that if the goods/services are
cheap and they can be made available at many places, there cannot be any problem
regarding sale.
Keeping in mind the same philosophy these companies put in all their marketing efforts
in reducing the cost of production and strengthening their distribution system. In order to
reduce the cost of production and to bring it down to the minimum level, these companies
indulge in large scale production.
This helps them in effecting the economics of the large scale production. Consequently,
the cost of production per unit is reduced.

The utility of this philosophy is apparent only when demand exceeds supply. Its greatest
drawback is that it is not always necessary that the customer every time purchases the
cheap and easily available goods or services.

2. Product Concept

Those companies who believe in this philosophy are of the opinion that if the quality of
goods or services is of good standard, the customers can be easily attracted. The basis of
this thinking is that the customers get attracted towards the products of good quality. On
the basis of this philosophy or idea these companies direct their marketing efforts to
increasing the quality of their product.

It is a firm belief of the followers of the product concept that the customers get attracted
to the products of good quality. This is not the absolute truth because it is not the only
basis of buying goods.

The customers do take care of the price of the products, its availability, etc. A good
quality product and high price can upset the budget of a customer. Therefore, it can be
said that only the quality of the product is not the only way to the success of marketing.

3. Selling Concept

Those companies who believe in this concept think that leaving alone the customers will
not help. Instead there is a need to attract the customers towards them. They think that
goods are not bought but they have to be sold.

The basis of this thinking is that the customers can be attracted. Keeping in view this
concept these companies concentrate their marketing efforts towards educating and
attracting the customers. In such a case their main thinking is ‘selling what you have’.

This concept offers the idea that by repeated efforts one can sell-anything to the
customers. This may be right for some time, but you cannot do it for a long-time. If you
succeed in enticing the customer once, he cannot be won over every time.

On the contrary, he will work for damaging your reputation. Therefore, it can be asserted

that this philosophy offers only a short-term advantage and is not for long-term gains.

4. Marketing Concept

Those companies who believe in this concept are of the opinion that success can be
achieved only through consumer satisfaction. The basis of this thinking is that only those
goods/service should be made available which the consumers want or desire and not the
things which you can do.

In other words, they do not sell what they can make but they make what they can sell.
Keeping in mind this idea, these companies direct their marketing efforts to achieve
consumer satisfaction.

In short, it can be said that it is a modern concept and by adopting it profit can be earned
on a long-term basis. The drawback of this concept is that no attention is paid to social
welfare.

5. Societal Marketing Concept

This concept stresses not only the customer satisfaction but also gives importance to
Consumer Welfare/Societal Welfare. This concept is almost a step further than the
marketing concept. Under this concept, it is believed that mere satisfaction of the
consumers would not help and the welfare of the whole society has to be kept in mind.

For example, if a company produces a vehicle which consumes less petrol but spreads
pollution, it will result in only consumer satisfaction and not the social welfare.

Primarily two elements are included under social welfare-high-level of human life and
pollution free atmosphere. Therefore, the companies believing in this concept direct all
their marketing efforts towards the achievement of consumer satisfaction and social

welfare.

In short, it can be said that this is the latest concept of marketing. The companies
adopting this concept can achieve long-term profit.

2. ANSWER TO QUESTION 3. Explain market segmentation with suitable
examples.

Market segmentation is the process of identifying and analyzing subgroups of buyers in a
product-market with similar response characteristics (Cravens & Piercy, 2006, page 97).

A marketer can rarely satisfy everyone in a market. Rather than try to satisfy everyone,
marketers start with market segmentation and develop a market offering that is positioned
in the minds of the target market.

Market segments can be identified by examining demographic, psychographic, and
behavioral differences among buyers. The firm then decides which segments present the
greatest opportunity.

1. Geographic Segmentation

Geographic segmentation calls for dividing the market into different geographical units
such as nations, states, regions, counties, cities, or neighborhoods. The company can
operate in one or a few geographic areas or operate in all but pay attention to local
variations.

2. Demographic Segmentation

In demographic segmentation, the market is divided into groups on the basis of:

 Age and life-cycle stage: Consumer wants and abilities change with age.

 Gender: Gender segmentation has long been applied in clothing, hairstyling,
cosmetics, and magazines.

 Income: Income segmentation is a long-standing practice in such categories as
automobiles, boats, clothing, cosmetics, and travel. However, income does not always
predict the best customers for a given product.

 Generation: Each generation is profoundly influenced by the times in which it grows
up—the music, movies, politics, and events of that period.

 Social class: Social class strongly influences preference in cars, clothing, home
furnishings, leisure activities, reading habits, and retailers, which is why many firms
design products for specific social classes.

This is the most popular consumer segmentation method is that consumer wants,
preferences, and usage rates are often associated with demographic variables. Another
reason is that demographic variables are easier to measure.

3. Psychographic Segmentation

In psychographic segmentation, buyers are divided into different groups on the basis of
lifestyle or personality and values. People within the same demographic group can
exhibit very different psychographic profiles.

 Lifestyle: People exhibit many more lifestyles than are suggested by the seven social
classes, and the goods they consume express their lifestyles

 Personality: Marketers can endow their products with brand personalities that

correspond to consumer personalities.

 Values: Core values are the belief systems that underlie consumer attitudes and
behaviors. Core values go much deeper than behavior or attitude, and determine, at a
basic level, people’s choices and desires over the long term. Marketers who use this
segmentation variable believe that by appealing to people’s inner selves, it is possible
to influence purchase behavior.

4. Behavioral segmentation

In behavioral segmentation, buyers are divided into groups on the basis of their
knowledge of, attitude toward, use of, or response to a product. Many marketers believe
that behavioral variables: occasions, benefits, user status, usage rate, loyalty status,
buyer-readiness stage, and attitude are the best starting points for constructing market
segments.

 Occasions: Buyers can be distinguished according to the occasions on which they
develop a need, purchase a product, or use a product.

 Benefits: Buyers can be classified according to the benefits they seek.

 User status: Markets can be segmented into nonusers, ex-users, potential users, first
time users, and regular users of a product

 Usage rate: Markets can be segmented into light, medium, and heavy product users.
Heavy users are often a small percentage of the market but account for a high
percentage of total consumption. Marketers usually prefer to attract one heavy user
rather than several light users, and they vary their promotional efforts accordingly.

 Loyalty status: Buyers can be divided into four groups according to brand loyalty

status:

+ Hard-core loyals: customers who always buy one brand

+ Split loyals: customers who are loyal to two or three brands

+ Shifting loyals: customers who shift from one brand to another brand

+ Switchers: customers who show no loyalty to any brand.

Each market consists of different numbers of these four types of buyers; thus, a brand-
loyal market has a high percentage of hard-core loyals. Companies that sell in such a
market have a hard time gaining more market share, and new competitors have a hard
time breaking in.

 Buyer-readiness stage: A market consists of people in different stages of readiness to
buy a product: Some are unaware of the product, some are aware, some are informed,
some are interested, some desire the product, and some intend to buy. The relative
numbers make a big difference in designing the marketing program.

 Attitude: Five attitude groups can be found in a market: enthusiastic, positive,
indifferent, negative, and hostile.

3. ANSWER TO QUESTION 5. Explain process of selecting the final price.
The process of selecting the final price including 6 steps:

1. Selecting the pricing objective

The company first decides where it wants to position its marketing offering. The clearer a
company’s objectives, the easier it is to set price. Five major objectives that a company

could obtain through pricing: survival, maximum profit, maximum market share,
maximum market skimming, or product-quality leadership.

 Survival: Survival is the major objective of every company. As long as prices cover
all costs, the company stays in their business.

 Maximize profit: Many companies try to set a price that will maximize their profits.
They estimate the demand and costs to choose the price that produces maximum
profit, cash flow or rate of return on investment. However, it is difficult to estimate
the demand and costs in actual.

 Maximize market share: The Company believe that a higher sales volume will lead to
lower unit costs and higher long-run profit. The market is highly price sensitive, and
low prices make market growth. Production and distribution costs will decrease. A
low price discourages actual and potential competition.

 Maximize market skimming: Companies unveiling a new technology favor setting
high prices to “skim” the market.

2. Determining the demand

Following the identification of objectives, the company needs to determine demand. Each
price will lead to a different level of demand and therefore have a different impact on a
company’s marketing objectives. Normaly, demand and price are inversely related: the
higher the price, the lower the demand. Some consumers take the higher price to signify a
better product. However if the price is too high, the level of demand may fall.

The process of estimating demand therefore leads to:

 Estimating Price sensitivity of market.

 Estimating and analyzing demand curve.

 Determining price elasticity of demand.

3. Estimating Costs

The company wants to charge a price that covers its cost of producing, distribution and
selling the product, including a fair return. To price intelligently, management needs to
know how its costs vary with different levels of production.

The company use market research to establish a new product’s desired functions. Then
they determine the price at which the product will sell, given its appeal and competitor’s
prices. They deduct the desired profit margin from this price, and this leaves the target
cost they must achieve.

4. Analyzing competitor’s costs, prices and offers

Analyzing competitor’s costs, prices and offers is also important factor in setting prices.
Within the range of possible prices determined by market demand and company costs, the
company must take the competitor’s costs, prices and possible price reactions into
account.

Demand sets a ceiling and costs set a floor to pricing. Competitors’ prices provide a point
to consider in setting prices. By acquiring competitors’ price lists, buying competitors’
products to analyze, asking customers’ opinion on the price and quality of competitor’s
product, the company may chooses a price close to the competitor if their product is
similar to their competitor’s product. If not, the price should be lower.

5. Selecting a pricing method

(i) Cost Oriented Pricing: Companies often use cost oriented pricing methods when
setting prices. Two methods are normally used:

 Full cost pricing: The company determines the direct and fixed costs for each unit
of product. The first problem with Full-cost pricing is that it leads to an increase in

price as sales fall. The process is illogical also because to arrive at a cost per unit
the firm must anticipate how many products they are going to sell. The demand is
an almost impossible prediction. This method focuses upon the internal costs of
the firm as opposed to the prospective customers’ willingness to pay.

 Direct (or marginal) Cost Pricing: This involves the calculation of only those
costs, which are likely to increase as output increases. Indirect or fixed costs
(plant, machinery etc) will remain unaffected whether one unit or one thousand
units are produced. Like full cost pricing, this method will include a profit margin
in the final price. Direct cost approach is useful when pricing services.

(ii) Competition-based approach:

 Going-Rate Pricing: The company bases its price largely on competitors’ prices,
with less attention paid to its own costs or to demand. The firm might charge the
same, more, or less than its major competitors. Where the products offered by
firms in a certain industry are very similar the public often finds difficulty in
perceiving which firm meets there needs best. In cases like this (for example in
financial services and delivery services) the firm may attempt to differentiate on
delivery or service quality in an attempt to justify a higher selling price.

 Competitive Bidding: Many contracts are won or lost on the basis of competitive
bidding. The most usual process is the drawing up of detailed specifications for a

product and putting the contract out for tender. Potential suppliers quote a price,
which is confidential to themselves and the buyer.

(iii) Marketing Oriented Pricing

The price of a product should be set in line with the marketing strategy. The danger
is that if price is viewed in isolation (as would be the case with full cost pricing)
with no reference to other marketing decisions such as positioning, strategic
objectives, promotion, distribution and product benefits. The way around this
problem is to recognize that the pricing decision is dependent on other earlier

decisions in the marketing planning process. For new products, price will depend
upon positioning, strategy, and for existing products price will be affected by
strategic objectives.

6. Selecting the final Price

Pricing methods narrow the range from which the company must select its final price. In
selecting that price, the company must consider additional factors, including
psychological pricing, gain and risk pricing, the influence of other marketing -mix
elements on price, company -pricing policies, and the impact of price on other parties.

4. ANWER TO QUESTION 7: Explain the process of Integrated Marketing
Communication (IMC).

Six steps in the IMC planning process.
1. Know target customers

 Communicate with customers to make the most effective use of the company’s
resources.

 Segment customers into groups to identify who are most likely to purchase or
utilize company’s products and services.

2. Develop a situation analysis
Make a SWOT analysis: evaluate the strengths, weaknesses, opportunities and threat of
the company. A detail analysis can provide much insight into both internal and external
conditions of the company that can lead to a more effective marketing communications
strategy.
3. Determining marketing communication objectives
Objectives must be clearly and measurable in order to ensure the effectiveness of the
marketing communications strategy.
4. Determining company’s budget
Determine the overal budget for works will be imlemented in the plan. It is important
because it will shape the tactics to be developed in the next step. The budget could be
adjusted after completion of step five.

5. Strategies and tactics
Based on the objectives created in step three, develop strategies which are ideas on how
the company will accomplish those objectives. Tactics are specific actions on how they
plan to execute a strategy.
Step 6: Evaluation and measurement
Outline a method to evaluate the effectiveness of the IMC strategy. Sometimes elements
of the plan will not work. It’s important to know what did or didn’t and its reasons. Take
note for future planning.
The more focused on how the company will utilize your resources for promoting their
business, the more they will understand where the money is going and how it’s
performing. An IMC strategy is important for any business or organization.

5. ANWER TO QUESTION 8: Explain “direct marketing" and its applicability

with examples.

According to the Direct Marketing Association (DMA), direct marketing is defined as an
interactive marketing system that uses one or more advertising media to effect a
measurable response and/or transaction at any location. This definition emphasizes a
measurable response, typically a customer order.

Major chanels for direct marketing: face-to-face selling, direct mail, catalog marketing,
telemarketing, television and other direct-response media, kiosk marketing, and on-line
channels.

 Face-to-face selling: This is the original and oldest form of direct marketing. The
company use a professional sales force to locate prospects, develop them into
customers, and grow their business.

 Direct mail: The company send an offer, announcement, reminder, or other item to
a person at a particular address via fax mail, email or voice mail.

 Catalog marketing: The company mail product catalogs (full-line merchandise
catalogs, specialty consumer catalogs, or business catalogs) to selected mail or
electronic addressees.

 Telemarketing: Telemarketers call custumers directly to attract new customers, to
contact existing customers to ascertain satisfaction levels, or to take orders.

 Direct-response marketing: Marketing via magazines, newspapers, radio and
television. Viewers call in their orders on a toll-free number and receive delivery
within a certain time.

 Kiosk marketing: The company have designed “customer-order-placing machines”

called kiosks and placed them in stores, airports, and other locations. The customer
can order by dialing an attached phone and typing in a credit-card number and an
address where the shoes should be delivered.

 On-line marketing or e-commerce: Customers send their purchase orders and
payments to suppliers via electronic data interchange (internet, ATM…)

REFERENCES

1. Philip Kotler, Marketing Managerment, Millenium Eddition, 2002, Pearson
Custom Publishing.

2. Website: www.learnmarketing.net
3. Website: