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Assignment for Principles of Marketing

Name - Htoo Myat Wai Lwin


Date - 13.8.2017
Task 1 – (15) Marks
SQ 1 : Understand the role of marketing and marketing management functions.
- Based on your knowledge about marketing, discuss the role of marketing and
marketing management functions of a manufacturing company with suitable example.

Task 2 – (20) Marks


LQ 1 : Understand the value of customers and their consumer behavior
- Do you accept that customer is the King today? Based on this proposal, discuss the
value of customers and stages in consumer decision making process of a product with
suitable example.

Task 3 – (15) Marks


LQ 1 : Understand the market segmentation, targeting and position
- Nowadays, successful company segment their products or services to get more market
share. If you are marketing manager, what do you segment your products or service to enter
the target market and effective positions for them with your suitable examples.

Task 4 - (30) Marks


LQ 1 : Understand how to create the marketing plan
- If the company wants to retain the long-term success, it must prepare or create the
systematic marketing plan. Suppose that you are marketing manager of a manufacturing
company, your company want to produce a new product. So, company confided you to make
a marketing plan about a new product. And thus, discuss the marketing plan for your
company with your suitable product example.

Task 5 – (10) Marks


SQ 1 : Understand the marketing mix in marketing strategy
- Marketing concept means putting the customer first. In practice, the consumer
orientation should permeate every part of a business if it is to succeed. The theory of
marketing is based on the so called the marketing mix variables. Discuss them briefly.
Task (1)
(1) The Role of Marketing
Marketing is a process by which a product or service is introduced and promoted to
potential customers. Marketing is about meeting the needs and wants of customers.
Marketing is about understanding customers and finding ways to provide products or services
which customers demand. Marketing is perhaps the most important activity in a business
because it has a direct effect on profitability and sales.
The role of marketing in organization is too important to be ignored. Today, large and
small organizations are competing for the same market. Marketing plays an important role in
establishing relationship between customers and the organizations offering to the market.
Marketing shapes the image of the organization, how people associate the organizations'
products or services and it gives people the confidence about their products or services.
Without marketing, our brands will not be illuminated and our organizations would be
lifeless. For example: Our company produces a new product but if we don't use any
marketing to promote our product, none of our potential customers will know our new
product. So, without marketing, sales may decrease. Without sales, a company cannot
succeed.

(1) A Marketing role will also assume the following responsibilities;


 Understanding the economic and competitive features of a sector
 Indentifying target markets and segments within a target market
 Indentifying most appropriate strategies
 Developing new products
 Understanding competitors and their strategies
 Making decisions from market research
 Auditing customers' brand experience
 Understanding an organization's strengths and weaknesses
 Creating a sub stainable competitive advantage
 Understanding where a brand needs to be in the future
 Creating and delivering marketing plans to get there
 Establishing management information systems to identify progress.
(1) Marketing Management Functions
When applying marketing, there are seven functions that are as follows:
(1) Information Management
(2) Pricing
(3) Product and Service Management
(4) Promotion
(5) Selling
(6) Distribution
(7) Financing

1.1 Information Management


Marketing information management is the collection of data and analyzing it
to be able to determine what our customers want.
Example : Providing surveys through wail or online, and direct asking to people
to determine customer satisfaction. If a fried chicken franchise from
Vietnam which is thanking to open shops in Myanmar, they need to
collect data and analyze habits of Myanmar consumers. This help them
to meet the needs overseas.

1.2 Pricing
The pricing of a product often times directly determines whether or not a
customer is going to buy it.
Example : During football Champion league, the ticket prices can go through the
roof because of the supply and demand. Although there are a limited
number of tickets and seats, there will always be hardcore fans ready to
pay.

1.3 Product and Service Management


Product and service management in marketing deals with updating, changing
and catering our product to what the consumer wants.
Example : We've already noticed the shape, colour and font style of Red Bull cans
that have changed over time to comply with customer needs and wants.
1.4 Promotion
If we walk into a mall, open our mail, or click into an online store, we can see
some promotional signs and offers. Marketing uses promotions to bring awareness of
our product or brand to consumers through various marketing techniques.
Example : The first 100 customers who buy a company's new product are given
BOGOFs promotions.

1.5 Selling
Selling used to be simply direct communication between a customer and a
seller. Marketing works to help companies, retailers, or sellers sell their products.
Example : A salesperson at a mall helps a woman who chooses a suit to go a
wedding. She assits her with choosing the right colors, fit and style.
This helps and encourages her to make a purchase.

1.6 Distribution
Distribution in marketing is where we make our products available.
Example : A company that sells cosmetics will want to get their products to the
mall and online. They need to target stores such as beauty chain stores,
supermarkets, shopping malls, and they need to creat their own website
that customers can directly buy from.

1.7 Financing
Financing can be done through offering loyal customers loans, leasing options,
or credit terms. This helps to develop trust between and good business relationships.
Example : A man wants to buy a phone handset for his daughter. But he cannot
afford to pay the entire amount at once so, the company should offer
him a loan or an installment that he needs to pay back within a year.
Task (2)
LQ1: We accept that customer is the King today.
The value of customers
Customer value is the difference between what a customer gets from a product, and
what he or she has to give in order to get it.
Customer value is the satisfaction the customer experiences (or expects to experience)
by taking a given action relative to the cost of that action. The given action is traditionally a
purchase, but could be a sign-up, a vote or visit, while the cost refers to anything a customer
must forfeit in order to receive the desired benefit, such as money, data, time, knowledge.
Example : We need to make sure that we are giving out great customer value so that they
are happy to come back for more.
We should try to strive to have the best customer value we can so that people
will give out good word of mouth advertising.

Consumers Behaviour
Consumer behavior is the study of how people make decisions about what they buy,
want, need, or act in regards to a product, service, or company.
Consumer behavior is referred to the behavior that is displayed by the individual
while they are buying, consuming or disposing any particular product or services. The study
of consumer behaviors helps business manager, sales person and marketers in the following
way:
 To design the best possible product or service that fully satisfies consumer's
needs and demands.
 To decide where the service or product would be made available for easy
access of consumers.
 To decide the price at which the consumers would be ready to buy that product
or service.
 To find out the best method of promotion that will prove to be effective to
attract customers to buy a product.
 To understand why, when, how, what and other factors that influence buying
decision of the consumers.
Stages in Consumer Decision Making Process
Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-Purchase Behaviour

2.1 Stage 1 – Need Recognition


It is the first stage of the buying process where the consumer recognizes a
problem or a requirement that needs to be fulfilled. The requirements can be
generated either by internal stimuli or external stimuli. In this stage, the marketer
should study and understand the consumers to find out what kinds of needs arise,
what brought them about, and how they led the consumer towards a particular
product.
Example : A consumer who buys a burger or a piece of cake identifies his/her
need as hunger.

2.2 Stage 2 – Information Search


In this stage, the consumer seeks more information. The consumer may have
keen attention or may go into active information search. The consumer can obtain
information from any of the several sources. This include personal sources (family,
friends, neighbors, and acquaintances), industrial sources (advertising, sales people,
dealars, packaging), public sources (mass media, consumer-rating and organization),
and experiential sources (handling, examining, using the product). The relative
influence of these information sources varies with the product and the buyer.
Example : I want to buy a camera. One of my friends, who is a photographer,
gives me an advice to buy Sony camera. And I also search all
informations about cameras such as "which one is the most suitable
camera for me?"
2.3 Stage 3 – Evaluation of Alternatives
In this stage, the consumer uses information to evaluate alternative brands
from different alternatives. How consumers go about evaluating purchase alternatives
depends on the individual consumer and the specific buy situation. Sometimes
consumers make buying decisions on their own. Sometimes they depends on friends,
relatives, consumer guides, or sales persons.
Example : If the customer involvement is high, then he/she will evaluate a
number of brands. If it is low, only one brand will be evaluated.

2.4 Stage 4 – Purchase Decision


In this stage, the consumer actually buys the product Generally, a consumer
will buy the most favourite brand, but there can be two factors, i.e, purchase
intentions and purchase decision. The first factor is the attitude of others and the
second is unforeseen situational factors. The consumer may form a purchase intention
based on factors such as usual income, usual price, and usual product benefits.
Example : Although my friend give me advice to buy Sony camera, I can't make
purchase decision immediately. Because my sister give me negative
feedback and she wants me to buy other brand. So I confuse whether to
buy it or not.
Finally, I decide to buy Son camera because of good feedbacks, good
quality, average price, and satisfied informations.

2.5 Stage 5 – Post Purchase Behaviour


In this stage, the consumers take further steps after purchase based on their
satisfaction and dissatisfaction. The satisfaction and dissatisfaction depend on the
relationship between consumer's expectations and the product performance. If a
product is short of expectations, the consumer is disappointed. If it meets their
expectations, the consumer is satisfied.
Consumer satisfaction is important because the company's sales come from
two basic groups, i.e. new customers and retained customers. It usually costs more to
attract new customers than to retain existing customers and the best way to retain
them is to get them satisfied with the product.
Example : After purchasing Fujifilm camera, I have questions include : "Have I
made the right decision?" , "Is it a good choice?", and "Is it satisfied
me as expected", etc.

Task – (3)
LQ.1:
3.1 Market Segmentation
Market segmentation is a marketing concept which divides the complete market set up
into smaller subsets comprising of consumers with a similar taste, demand and preference.
A market segment is small unit within a large market comprising of like minded
individuals. One market segments is totally distinct from the other segment. A market
segment comprises of individuals who think on the same lines and have similar interests. The
individuals from the same segment respond in a similar way to the fluctuations in the market.

Types of Market Segmentation


Psychographic segmentation
The basis of such segmentation is the lifestyle of the individuals. The individual's
attitude, interest, value help the marketers to classify them into small groups. Example-age,
gender, race, and income, etc.

Behaviouralistic Segmentation
The loyalities of the customers towards a particular brand help the marketers to
classify them into smaller groups, each group comprising of individuals loyal towards a
particular brand.
For example : The young pepple will always prefer lux as a soap, whereas sports
enthsiast will use lifebuoy.

Geographic Segmentation
Geographic Segmentation refers to the classification of mardet into various
geographic areas. A marketer can't have similar strategies for individuals living at different
place.
Example : Nestle promotes Nescafe all through the year in cold states of the country as
compared to places which have well defined summer and winter season.
3.2 Targeting
A targeting market is the market a company wants to sell its products and service to,
and it included a targeted set of customers for whom it directs its marketing efforts.
Identifying the latget market is an essential step in the development of a marketing plan. The
list below refers to what's needed to evaluate the potential and commercial attractiveness of
each segment.
- Criteria size : The market must be large enough to justify
segmentation. If the market is small. it may make it
smaller.
- Difference : Measurable differences must exist between segments.
- Money : Anticipated profits must exceed the costs of additional
marketing plans and other changes.
- Accessible : Each segment must be accessible to your team and the
segment must be able to receive your marketing
messages.
- Focus on different benefits : Different segments must need different benefits.
For example - Toy companies have to maintain a balance between marketing ot
parents and marketing to children. Their product have to be
advertised in a specific way so that children are interested in toys,
but also so that parents are willing to buy them.
- Alcohol companies provide a great example of companies who
want to appeal to a wide variety of tarket markets. They are
advertised in a way that appeals to the tarket market of younger
drinkers, such as college students and a bit such as college students
and a bit older, who have limited money to spend on alcohol.

3.3 Positioning
Market positioning refers to arrangement for a product to occupy a clear distinctive,
and desirable place relative to competing products in the minds of target consumer.
Positioning of product in the market is a major diterminant of company profits. A product
position is the image that product projects in relation to competitive product and to their
products marketed by the same company.
Positioning strategies can be grouped into following six categories :
(1) Positioning in relation to a competitor : Position is directly against the
competition.
(2) Positioning by product attribute : The company associates its product with some
product features.
(3) Positioning by price and quality : To position on high price, high quality or low
price, low quality basis.
(4) Positioning by product use : Position by the uses of the product.
(5) Positioning by target market : Market Segmentation.
(6) Positioning by product class - (Association a class of product)

For example
Tagline/Slogan Brand How to position
Once you pop, Pringles By product attribute
you can't stop Highlights that the taste is irresistible
Impossible is Adidas By user
nothing Taps into the self-identity and motivation of
serious sports people
Don't leave home American Express By use/application
with it State that the product is vital when you are
traveling
Have it your way Burger King Against competition
Highlights the flexibility of their menu
choices, implied against Mc Donald's
offerings
Eat fresh Subway By Product Class
Highlights their fresh menu items, against the
range of fast food options available
Choice of a new Pepsi By user and against competition
generation Tapping into the youth market: this is your
drink and clearly targeted against Coca-Cola.
Task (4)
LQ : 4. Marketing Plan
A marketing plan is a comprehensive document or blueprint that outline a business
advertising and marketing efforts for the coming year. A marketing plan is also a business's
operational document for advertising campaigns designed to reach its target market. A
marketing plan has a formal structure, but can be used as a formal or informal document
which makes it very flexible. It contains some historical data, future predictions, and methods
or strategies to achieve the marketing objectives. A marketing plan can also be described as a
technique that helps a business to decide on the best use of its resources to achieve corporate
objectives.
The marketing plan shows the step or actions that will be utilized in order to achieve
the plan goals. The marketing plan can be used to describe the methods of applying a
company's marketing resources to fulfill marketing objectives. Marketing plan, can also be
used to prepare a detailed case for introducing a new product, revamping current marketing
strategies for an existing product or put together a company marketing plan to be included in
the company corporate or business plan.

4.1 How to create the Marketing Plan


A marketing plan may not be at the top of a business owner's task list, but it should
be. When a business is looking to grow, expand, and succeed, the first course of action is to
create an effective marketing plan.
If I am a marketing manager of an manufacturing company, I want to make a
marketing plan with six essential keys are as following:
(1) Market Research
(2) Competitive Analysis
(3) Indentify Target Audiences
(4) Set Goals and Objectives
(5) Define Specific Strategies and Tactics
(6) Determine Evalution Methods

4.1.1 (1) Market Research


Before laying out strategies and tactics, it's important to start with research (a lot of
research). When we create marketing plans for clients, we spend our first few hours
researching the industry and local market. We focus on understanding where the company fits
in he market, where their biggest opportunities and challenges are and where resources are
available for their marketing efforts.
When business leaders know where their company fits in the industry and market,
they will be prepared to set effective goals for their marketing activities. Without this
understanding, companies are flying blind and any plans created are just a roll of the dice.

4.1.2 (2) Competitive Analysis


Next, it's important to review the competitive landscape. Companies need to identify
and study competitors in depth. What are their strengths and weaknesses? What kind of
marketing are they doing, and is it effective? These are just two examples of the many
questions that need to be asked with regard to competitors.
When a business owner understands their competitors they can use that knowledge to
craft strategies and campaigns that will give them an edge in the market.

4.1.3 (3) Identify Target Audiences


In order to be successful, a business must identify and know its primary target
audiences. Learning who these people are, how they communicate, and what drives to them
to a company's products or services will make success a lot easier for business owners.
Companies need to categorize these audiences into groups, so they can better
understand how to reach them and what messages customers will respond to . While one
group may be active on face book, another group may prefer email communication.

4.14. (4) Set Goals and Objectives


Using the research about the market, competitors, and target, audiences, companies
can craft their goals and objectives. There should be both short and long-term goals and
objectives that push a company to reach their marketing goals, but are also achievable.
These goals and objectives will cover a whole year, and should work alongside other
business goals. It's okay to make adjustments to the marketing goals and objectives over time,
but they should challenge companies to work hard and smart to achieve them.

4.1.5 (5) Define Specific strategies and Tactics


This is the meat of marketing plan. Using all of the previously mentioned information,
companies are in a position to develop specific marketing strategies, and define the tactics
needed for each strategy.
These strategies could be to use advertising to grow revenue by a certain amount
within a set time period, or implement social media to improve customer perception of a
business or product. These strategies will differ for each company and brand, but should
focus on using marketing to achieve particular goals. With strategies in place, companies
need to determine the specific tactics needed to fulfill the strategy. These strategies and
tactics will naturally evolve over time as companies achieve their goals, and as business
leaders discover what works best and what doesn't.

4.1.6 (6) Determine Evaluation Methods


Companies won't know which marketing strategies and tactics are effective if they
don't implement some form of evaluation. Evaluating marketing comes in many forms. Some
marketing tactics allow for direct data collection, like Google Adwords, where companies can
review real data that shows exactly how well a marketing effort is performing. Other
marketing tactics aren't as easily evaluated, but companies can get creative in the way they
review and assess their marketing practices.
The point is that it's important to review each strategy and tactic, and determine the
best ways to evaluate them for success, even if the evaluation methods aren't perfect.
Example : Our company wants to produce new product, green coconut water.

Product Profile
Name of the product : Jaul
Type of product : Green coconut water
Ingredients : Pure natural green coconut water, sugar, mineral salts, vitamins C.
Container : Stylish glass bottle

Market Research
Our company wants to develop and introduce a new Product. So, we have gathered
information through in-depth interviews. We made a survey of the market to have a clear idea
about our market, our customer demand, needs and wants. This information helps us to know
about the current market and prospects of our new product.
Competitive Analysis
The soft drink industry is very much competitive. But the unique features of "Jaul"
will take it far beyond the reach of the competitor. Because, no one has yet though about
selling green coconut water in such as specialized way.
* SWOT analysis:
* Strengths:
1. Available input materials
2. Low production cost
3. Technological and marketing knowledge
4. Strong distribution channel
5. Easy distribution channel

* Weakness:
It is easy to copy the idea by others. Taste differ from the natural green coconut water. Green
coconut water cannot be preserved for longer period

* Opportunities
1. Monopoly market
2. Large market
3. High Demand
4. Might have a chance to get subsidies by Government to export

* Threats :
1. High competition in future by copying the idea
2. Entrance of new product
3. Alternatives are avoidable in some segment
4. Uncertainty of launching a new product.

* Target Audiences
Health Consious – 32%
Sick people – 43%
Tourist – 3%
General people – 22%

* Strategies
- Providing the best service to create high customer satisfaction
- Reasonable and acceptable pricing
- Promising and providing top quality product
- Launching highly effective mass promotional activities
- Continuous innovation and modification of the products
- Creating and maintaining long term customer relationship
- Creating "Brand Loyalty" among the target consumers

* Goals and Objectives


Our goal is to be the lowest cost, preferred supplier of a broad range of attractive and
innovative private label soft drinks to aligned retailer partners.

Task –(5)
SQ 1 : Marketing mix in marketing strategy
" Marketing mix" is general Phrase used to describe the different kinds of choices
organizations have to make in the whole process of bringing a product or service to market.
The 4ps is probably the best-known way of defining the marketing mix. The 4ps are:
 Product
 Price
 Place
 Promotion

5.1 Product
This is either a service or a good that has been manufactured to meet specific
customer needs or demands. During development, products follow through a specific
lifecycle and that's why it's important for marketers to plan for the product every step of the
way. This starts by understanding what sort of problem the product is trying to solve. The
potential and target customers need to be identified and understood perfectly in order for the
product to succeed.

5.2 Price
This is the amount that the consumer is expected to pay for using the product. The
pricing of a product will impact greatly how the product sells in the market. A firm's pricing
decision is often aimed at attracting a particular market segment.
There are a number of popular pricing techniques to choose from:
1. Cost-plus pricing: A common way to make pricing decisions is to calculate how much
it costs to do a particular job or activity, and then add on a given percentages as a
return for the job or activity. This is sometimes known as mark-up.
2. Hour-based pricing: Many small businesses are able to work out what their typical
costs for every hour of work they do, e.g. for gardening, sign writing, photography
etc. The business owner is then able to charge a standard rate per hour.
3. Penetration pricing: When a firm brings out a new product into a new or existing
market, it may feel that it needs to make a lot of sales very quickly in order to
establish itself and to make it possible to produce larger qualities. It may therefore
start off by offering the product at quite a low price. When market penetration has
been achieved, prices can be raised.
4. Skimming: When you bring out a new product, you may be able to start off by
charging quite a high price. Some customers may want to be the first to buy your
product because of the prestige of being seen with it, or because they want to be
associated with your product before anyone else.

5.3 Place
This refers to how the product is availed to the end consumer. A key element of
placement is distribution of the product. A good placement strategy will help you assess the
most appropriate channel to be used for the product. e.g. channels , locations, trans partitions,
et.

5.4 Promotion
Promotion is the process of communicating with customers. For marketing purposes,
communication of products and services contributes to the persuasion process to encourage
consumers to avail themselves of whatever is on offer. The key processes involved in
promotion, include:
 Branding – creating a distinctive image and character to an organization / and or its
products /services.
 advertising – to inform and persuade the public
 Packaging- presenting the product in a desirable and appropriate way.
 Public relations activities and other forms of publicity
 Special promotions- e.g. buy one get one free.
For example – The marketing mix for a bank account might include:
 the product/service itself-he account and what the customer can do with it.
e.g. Overdraft facilities, direct debit payment etc.
 the place-either online/ over the telephone or in a physical location
 the promotion – attractive offers to students who open the account when first going to
university such as interest free loan, or money to buy books.
 the price- the rate of interest paid on positive balances and charged on negative
balances.