Question 1.

With reference to your company explain the following :

Marketing environment. The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment,' the 'microenvironment' and the 'internal environment'. Our company MJR Timber & Furniture Enterprise is basically a wood processing and furniture manufacturing firm where log wood is processed into timber and assembled for the production of furniture. The industry is equipped with modern machines capable of converting heavy log wood to timber .The processed timber is then used for the manufacture of furniture products in the manufacturing department of the company. The small scale industry manufactures wood furniture products for living, dining and bed rooms under the brand name 'MJR' .The small scale industry was started by Rashid in 1988 in Kuala Lipis, with an initial investment of RM200,000. The main aim was to obtain local processing works and sell maximum upholstered wood furniture to customers through the company retail showroom outlets operating in Kuantan The company is committed to provide high quality furniture products to the customers. The firm aims to deliver the customer needs at the right time .High quality furniture products are manufactured from top quality wood which is imported at times. The wood furniture is manufactured in accordance to the latest design and fashion. The sparkling performance of the company in selling in spite of tough competition reveals the product quality; afford ability and goodwill of the organization among customers. Marketing Environment Analysis is the process of gathering, filtering and analyzing information relating to the marketing environment. It involves the process of tasks of monitoring the changes taking place in the environment & future position in respect of each of the factors. To see which event & trends are favorable from the standpoint of the firm & which are unfavorable; to figure out the opportunities & threats hidden in the environment events & trends. To project how the environment will be at a future point of time.
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To assess the scope of various opportunities & shortlist those that can favourably impact the business.

Micro environment

This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. Customers Organisations survive on the basis of meeting the needs, wants and providing benefits for their customers. Failure to do so will result in a failed business strategy. Employees Employing the correct staff and keeping these staff motivated is an essential part of the strategic planning process of an organisation. Training and development plays an essential role particular in service sector marketing in order to gain a competitive edge. This is clearly apparent in the airline industries

Suppliers As organization requires greater inward investment for growth they face increasing pressure to move from private ownership to public. However this movement unleashes the forces of shareholder pressure on the strategy of organisations. Satisfying shareholder needs may result in a change in tactics employed by an organisation.

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Shareholders Increase in raw material prices will have a knock on affect on the marketing mix strategy of an organisation. Prices may be forced up as a result. Closer supplier relationship is one way of ensuring competitive and quality product for an organisation. Media Positive or adverse media attention on an organisation product or service can in some cases make or break an organisation. Consumer programmes with a wider and more direct audience can also have a very powerful and positive impact, forcing organisations to change their tactics.

Competitors The name of the game in marketing is differentiation. What benefit can the organisation offer which is better than their competitors? Can they sustain this differentiation over a period of time from their competitors? Competitor analysis and monitoring is crucial if an organisation to maintain its position within the market.

Macro Enviroment This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology.

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A macro environmental analysis can be completed alone or in a brainstorming session, however you may like to do some research before starting. To simplify the Macro Environment Analysis the following 6 broad heading will provide some structure, a good start is to list all of the trends you can think of or can find and indicate whether they will have a positive impact or negative impact on the size of your industry.

Economic Trends: The macro economic environment analysis will identify trends such as changes in personal disposable income, interest rates, inflation and unemployment rates.

Political Trends: The macro political environment analysis will identify changes in the position politicians take on issues. A current example is a shift towards greener policies in the developed world.

Technological Trends: The macro technological environment analysis will identify changes in the application of technology. A current example is a shift towards online transactions and in some areas a shift away from online transactions.

Legal Trends: The macro legal environment analysis is closely linked to the political environment (politicians tend to make the laws), but also includes trends in court decisions such as liability compensation.

Social/Cultural Trends: The macro social/cultural environment analysis will identify trends in societies beliefs, behaviors, values and norms. Such as the number of part time workers, attitudes towards global warming, make up of the family structure.

Demographic Trends: The macro demographic analysis will identify trends in population growth at relevant ages for your industry (There maybe zero population growth in general but high growth in the number of people over 65), the population location.

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Question 2 Discuss all the stages involve the buyer decision process with suitable example

This model is important for anyone making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision (when it may be too late for a business to influence the choice!) The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. For example, a student buying a favourite hamburger would recognise the need (hunger) and go right to the purchase decision, skipping information search and evaluation.
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However, the model is very useful when it comes to understanding any purchase that requires some thought and deliberation. The buying process starts with need recognition. At this stage, the buyer recognises a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins). An aroused customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins. A customer can obtain information from several sources: Personal sources: family, friends, neighbours etc Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-ofsale displays Public sources: newspapers, radio, television, consumer organisations; specialist magazines Experiential sources: handling, examining, using the product The usefulness and influence of these sources of information will vary by product and by customer. Research suggests that customers value and respect personal sources more than commercial sources (the influence of word of mouth). The challenge for the marketing team is to identify which information sources are most influential in their target markets. In the evaluation stage, the customer must choose between the alternative brands, products and services. How does the customer use the information obtained? An important determinant of the extent of evaluation is whether the customer feels involved in the product. By involvement, we mean the degree of perceived relevance and personal importance that accompanies the choice.
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Where a purchase is highly involving, the customer is likely to carry out extensive evaluation. High-involvement purchases include those involving high expenditure or personal risk for example buying a house, a car or making investments. Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the supermarket) have very simple evaluation processes. Why should a marketer need to understand the customer evaluation process? The answer lies in the kind of information that the marketing team needs to provide customers in different buying situations. In high-involvement decisions, the marketer needs to provide a good deal of information about the positive consequences of buying. The sales force may need to stress the important attributes of the product, the advantages compared with the competition; and maybe even encourage trial or sampling of the product in the hope of securing the sale.

Post-purchase evaluation - Cognitive Dissonance The final stage is the post-purchase evaluation of the decision. It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as cognitive dissonance. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision

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Question 3
A) Explain the following with an example i. ii. iii. Core Product Actual Product Augmented Product

I.

Core product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. Core product are central to the companys performance and make the most money that sustains the business. Core products are also usually the first product

II.

Actual product

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The actual product is the tangible, physical product. You can get some use out of it. Again with thye car example. It is the vehicle that you test drive buy and then collect. The actual product may have as many as five characteristics that combine to deliver core product benefits. They are: a). Quality level. b). Features. c). Design. d). Brand name. e). Packaging.

III.

Augmented product A commodity that has both the primary physical attributes and the nonphysical attributes that are added to increase the product's value. Non-physical attributes of an augmented product may include a product warranty, service or installation, and may increase the price of the basic product being purchased, and allow the company selling the good to provide the consumer with other services that may make using the product easier.

(b) Explain what is Product Life Cycle and discuss the stage
Product life cycle (PLC) Like human beings, products also have a life-cycle. From birth to death, human beings pass through various stages e.g. birth, growth, maturity, decline and death. A similar life-cycle is seen in the case of products. The product life cycle goes through
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multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures. To say that a product has a life cycle is to assert three things:

Products have a limited life, Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller,

Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.

The four main stages of a product's life cycle and the accompanying characteristics are: Stage 1. costs are very high 2. slow sales volumes to start 1. Market introduction stage 3. little or no competition 4. demand has to be created 5. customers have to be prompted to try the product 6. makes no money at this stage 2. Growth stage 1. costs reduced due to economies of scale 2. sales volume increases significantly 3. profitability begins to rise 4. public awareness increases 5. competition begins to increase with a few new players in establishing market
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Characteristics

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6. increased competition leads to price decreases 1. costs are lowered as a result of production volumes increasing and experience curve effects 2. sales volume peaks and market saturation is reached 3. increase in competitors entering the market 3. Maturity stage 4. prices tend to drop due to the proliferation of competing products 5. brand differentiation and feature diversification is emphasized to maintain or increase market share 6. Industrial profits go down 1. costs become counter-optimal 2. sales volume decline 4. Saturation and decline stage 3. prices, profitability diminish 4. profit becomes more a challenge of production/distribution efficiency than increased sales

Question 4
List and explain with examples, the following:
i.

Psychological Pricing Many businesses use a psychological tactic in pricing their product or service; sometimes unknowingly. It's an effective strategy because buyers use price as a measurement of quality: to buyers, high price equals high quality or high value, and low price equals low value. e.g : When buyers have much more information on which to make a decision on perceived value or quality, price moves down the ranking scale as a determiner of value.
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ii.

Geographical Pricing Adjusting an items sale price based on the buyer's location. Sometimes the difference in sale price is based on the cost to ship the item to that location or what the people there are willing to pay. Geographical pricing might result in a California-grown avocado costing less in San Francisco than in Omaha, for example. Companies will try to gain maximum revenue in the markets in which it operates, and geographical pricing enables such practices.

iii.

Price Skimming A product pricing strategy by which a firm charges the highest initial price that customers will pay. As the demand of the first customers is satisfied, the firm lowers the price to attract another, more price-sensitive segment. Therefore, the skimming strategy gets its name from skimming successive layers of "cream," or customer segments, as prices are lowered over time. Skimming is a useful strategy when: -There are enough prospective customers willing to buy the product at the high price. -The high price does not attract competitors. -Lowering the price would have only a minor effect on increasing sales volume and reducing unit costs. -The high price is interpreted as a sign of high quality.

iv.

Product bundle pricing Product bundle pricing as combining several products and offering the bundle at a reduced price. This strategy can be effective at selling product accessories that customers would not buy outside the bundle. This can increase the total profit gained from each customer even if the profit margin on each item sold in the bundle is lower than if they had been sold separately.

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Example: Product bundle pricing is defined as combining several products and offering the bundle at a reduced price. (Kotler p.274) For most of the telecommunications service companies, they use product bundle pricing by combining several of their products and offer the bundle at a reduced price. For example, T-mobile offers lower price or even free cellphones if signing up a 2 year contract of their telecommunication service. Taking its HTC Mytouch 3G as an example, it is sold at instant discount at $149.99 in any T-mobile stores with 2 years contract required whereas it costs around $399.99 at the current market. Consumers can get a low combined price with this cellphone but they have to be bound with 2 year contract and a data service which is required in order to access this phones Web functionality and features (Internet access and e-mail) which costs $59.99 montly with T-mobile. On the other hand, this HTC Mytouch 3G is only available at T-mobile in the video. As a result, people who want this phone with telecommunication service can save $$$ by purchasing at T-mobile with their product bundle pricing.

Question 5 What is promotion mix? Discuss in details including the activities involved.
Getting the marketing mix right for your product or service means you are covering all of the important bases in your marketing campaign. Here is a definition of marketing mix and a description of its main components. The term marketing mix refers to the primary elements that must be attended to in order to properly market a product. Also known as The 4 Ps of Marketing, the marketing mix is a very useful, if a bit general, guideline for understanding the fundamentals of what makes a good marketing campaign. Here is a brief description of each component of the 4 Ps of the marketing mix.
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Product: The marketing mix concept has its roots in the 1950s U.S. corporate marketing world, and the practice of marketing has obviously evolved tremendously since this term was invented. One of the changes is that there are a lot more services available nowadays, such as those available online. Also, the distinction between product and service has become more blurry (e.g., is a Web-based software application a product or a service?). Either way, product here refers to products or services. The product you offer needs to be able to meet a specific, existing market demand. Or, you need to be able to create a market niche through building a strong brand. Price: The price you set for your offering plays a large role in its marketability. Pricing for offerings that are more commonly available in the market is more elastic, meaning that unit sales will go up or down more responsively in response to price changes. By contrast, those products that have a generally more limited availability in the market (but with strong demand) are more inelastic, meaning that price changes will not affect unit sales very much. The price elasticity of your offering can be determined through various market testing techniques. Place: This term really refers to any way that the customer can obtain a product. Provision of a product can occur via any number of distribution channels, such as in a retail store, through the mail, via downloadable files, on a cruise ship, in a hair salon, etc. The ease and options through which you can make your product available to your customers will have an effect on your sales volume. Promotion: Promotion is concerned with any vehicle you employ for getting people to know more about your offering. Advertising, public relations, point-of-sale displays, and word-ofmouth promotion are all traditional ways for promotion. Promotion can be seen as a way of closing the information gap between would-be sellers and would-be buyers. Your choice of a promotional strategy will be dependent upon your budget, the type of offering you are selling, and availability of said promotional vehicle. Marketing has come a long way from the 4 Ps of yesteryear, and yet understanding this marketing mix is for your relevant today. The product remains very marketing mix serves

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as an excellent touchstone for continually checking that you are covering all of the bases in your marketing campaign.

Refferences 1. www.ilr.cornell.edu.my 2. www.investopedia.com 3. www.quickmba.com 4. www.wikipedia.com

5.

www.ioimovement.com

6. Angkasa Training Notes 7. Principles Of marketing book prentice hall

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