Course Code : MMPC-006
Course Title : Marketing Management

1. (a) Discuss the terms need, want and demand. Why these terms assume significance for every       marketers/business. Discuss.

Answer:

Needs, Wants and Demands are a part of basic marketing principles. Marketing strategies should be based on your target market’s needs, wants, and demands Marketing is all about identifying and fulfilling the needs of the customer. The needs are basic human requirements. There are three important concepts in marketing: needs, wants, and demands. Understanding your target market’s needs, wants, and demands will help you better market your products. Needs are things that satisfy the basic requirements. And what distinguishes a want from demand is whether the customer wants something specific but is willing to pay for it. Consider consumer electronics, an item the customer wants to use but may not be able to afford. Needs” are the basic human requirements that are needed to survive. These necessities include shelter, clothes, food and water. One can say that products in need categories don’t require any push. Instead, the customer buys it themselves. The desire for products or services that are not necessary, but which consumer wishes for. Humans have unlimited needs, and to satisfy them, people desire different things, like products or services and ways of doing things The desire for different things varies from culture to social class and from personality to personality. Marketers can influence human wants by providing a wide range of need-satisfying products. Example of wants category products/sectors – Hospitality industry, Electronics, FMCG, Consumer Durables etc.

Demands: When a customer is willing and able to buy what they need or want, it becomes a demand for the organization. Want becomes demand when supported by purchasing power. For example, everybody would like to drive a Mercedes, but everybody cannot afford it; that’s why  only thos wants which are backed by purchasing power will be calculated as demand. People can make demands because they have the ability, willingness and desire to buy what’s necessary.

For a marketer, demand is very important. It plays a significant role in managerial decision-Making. This helps to forecast the demand while doing strategic marketing planning.


(b) Discuss the various marketing philosophies that you are familiar with. Highlight their importance     and limitations in their evolution process. 

Answer:

Marketing philosophies refer to different approaches or orientations that guide the way companies view their customers, products, and marketing strategies. Some of the key marketing philosophies include:

  1. Production Orientation: This philosophy focuses on improving production efficiency and ensuring that products are available at lower costs. The belief is that customers will prefer products that are widely available and affordable. It is essential in industries where demand exceeds supply or in the early stages of product development.

    Importance: Production orientation can help businesses achieve economies of scale and lower prices, which is beneficial in a highly competitive market.

    Limitations: It often ignores customer preferences, leading to the risk of offering products that customers do not desire or need.

  2. Product Orientation: Companies following this philosophy focus on creating high-quality, innovative products. They believe that customers will favor superior products, and thus, marketing is secondary.

    Importance: It drives innovation and product improvement, which can help create a competitive advantage.

    Limitations: It can lead to the “better mousetrap” fallacy, where companies assume customers will automatically choose the best product without considering other factors such as price or convenience.

  3. Sales Orientation: This approach emphasizes aggressive selling and promotion to push products into the market. The idea is that customers need to be persuaded to buy the product.

    Importance: Effective in highly competitive markets with excess supply and when customer demand is low.

    Limitations: Over-reliance on selling can create customer dissatisfaction, and it can damage long-term customer relationships if customers feel manipulated.

  4. Marketing Orientation: Here, the focus shifts to identifying and meeting the needs and wants of customers. It requires thorough market research and customer analysis to ensure that products and services align with market demand.

    Importance: It ensures customer satisfaction and loyalty, leading to long-term profitability.

    Limitations: It can be resource-intensive and requires ongoing adjustments as customer preferences and market conditions change.

  5. Societal Marketing Orientation: This philosophy extends beyond customer needs to include societal well-being. It stresses that businesses should consider the long-term interests of society and the environment.

    Importance: Helps businesses build a positive public image and cater to environmentally and socially conscious consumers.

    Limitations: It can conflict with short-term profit goals and may require significant investment in sustainability, which could affect profitability.

2.  (a) As a Marketing Manager, when and why you would embark analyzing the marketing   environment? Discuss by selecting any product or product category of any FMCG or a consumer   durables of your choice. Explain what combination of micro and macro environmental analysis that    you would consider and why?

Answer:

Answer. As a Marketing Manager, analyzing the marketing environment is crucial at various points, especially when:

  • Developing a new marketing strategy:

To understand the current market landscape, identify opportunities and threats, and make informed decisions about target markets, positioning, and the marketing mix.

  • Launching a new product:

To assess market demand, competitive dynamics, and potential barriers to entry.

  • Experiencing a significant change in performance:

To diagnose the root causes of the change and develop appropriate responses.

  • Periodically reviewing the marketing plan:

To ensure the plan remains relevant and effective in a dynamic environment.

For a Fast-Moving Consumer Goods (FMCG) product like packaged snacks, a combination of micro and macro environmental analysis would be beneficial:

Micro Environmental Analysis

Customers: Understanding consumer preferences, buying behavior, and trends through market research and data analysis.

  • Competitors:Monitoring competitor activities, market share, and strategies.
  • Suppliers:Assessing the reliability and cost-effectiveness of the supply chain.
  • Distributors:Evaluating the efficiency and effectiveness of distribution channels.

Macro Environmental Analysis

  • Political:Analyzing government regulations, trade policies, and political stability.
  • Economic:Examining economic growth, inflation, interest rates, and consumer spending patterns.
  • Social:Understanding cultural trends, demographics, and lifestyle changes.
  • Technological:Assessing the impact of new technologies on the industry and consumer behavior.
  • Legal:Monitoring changes in laws related to product safety, advertising, and consumer protection.
  • Environmental:Considering the environmental impact of products and operations, and consumer attitudes towards sustainability.

By combining these analyses, a Marketing Manager can gain a comprehensive understanding of the marketing environment and make informed decisions to achieve marketing objectives.

   (b) Define a Product and discuss the various classifications that you are familiar with.

Answer:

A product is anything that can be offered to a market to satisfy a need or want. It can be a tangible good, a service, an idea, or even an experience. Products are at the core of any business, and understanding their types and classifications helps businesses meet customer needs and develop effective marketing strategies.

Classifications of Products:

  1. Consumer Products: These are products intended for personal use by consumers. They can be further classified into:

    • Convenience Products: Items that are bought frequently with minimal effort, like groceries, toiletries, and fast food. They tend to have low prices and are widely available.

    • Shopping Products: Products that consumers buy less frequently and usually compare based on price, quality, and style before making a decision. Examples include clothing, electronics, and furniture.

    • Specialty Products: These are high-end products with unique characteristics or brand identity that make them stand out. Consumers are willing to make a special effort to purchase them, like luxury cars, designer clothes, or exclusive jewelry.

    • Unsought Products: Products that consumers do not think about regularly and may not consider purchasing until a need arises, such as insurance, funeral services, or emergency repair services.

  2. Industrial Products: These products are used for further processing or for business operations. They are classified as:

    • Materials and Parts: Raw materials or components used in the manufacturing of other goods, like steel, wood, or car parts.

    • Capital Items: Products used to produce other products or services, such as machinery, buildings, and equipment.

    • Supplies and Services: Goods used in operations but not part of the final product, such as office supplies, maintenance services, or cleaning products.

  3. Services: Intangible offerings that cannot be touched or stored. Examples include consulting, healthcare, education, and entertainment. Services are characterized by their intangibility, inseparability, variability, and perishability.

3.(a) Explain the concept of Product Life Cycle (PLC). Pickup any product/brand of your choice in the recent past where the marketing mix element have changed during the different stages of the PLC. List out all the changes that have occurred during its PLC.

Answer: 

The Product Life Cycle (PLC) is a concept that describes the stages a product goes through from its introduction to its decline in the market. The PLC is typically divided into four main stages: Introduction, Growth, Maturity, and Decline. Each stage presents different challenges and opportunities, and the marketing mix (product, price, place, and promotion) often changes to adapt to the needs of each phase.

Stages of the PLC:

  1. Introduction: The product is launched into the market. Sales are low, and awareness is being built. Marketing efforts focus on promoting the product to early adopters and creating awareness.

  2. Growth: The product gains acceptance and experiences rapid sales growth. Competition may begin to emerge, and companies often focus on differentiating their product.

  3. Maturity: Sales growth slows as the product reaches widespread adoption. The market becomes saturated, and competition is fierce. Marketing efforts focus on maintaining market share and reinforcing brand loyalty.

  4. Decline: Sales decline due to changing customer preferences, technological advancements, or market saturation. Companies may discontinue or rebrand the product.

Example: Apple iPhone

iPhone is an ideal example of a product where the marketing mix has evolved through its PLC:

  • Introduction (2007): The iPhone was introduced with premium pricing, focusing on innovation (touchscreen, camera, internet browsing). The promotion emphasized exclusivity, and it was initially sold through limited channels like AT&T.

  • Growth (2008-2013): As sales grew, Apple expanded its distribution, offering the iPhone through multiple carriers globally. The marketing shifted towards highlighting new features like apps and iOS integration. Prices remained high, but Apple began offering more models (e.g., iPhone 3G, iPhone 4) to cater to different consumer needs.

  • Maturity (2014-Present): The iPhone became widely adopted. Apple introduced various pricing tiers (e.g., iPhone SE) to cater to different budgets. Promotions began emphasizing brand loyalty, ecosystem integration (iCloud, Apple Watch), and incremental upgrades like better cameras and faster processors.

  • Decline (Future): Though iPhone sales are still strong, the market may eventually reach saturation. Apple might eventually reduce the number of models, lower prices, or shift focus to newer product categories like AR/VR or autonomous devices.

The changes in the marketing mix across these stages include shifts in pricing strategy, product differentiation, distribution channels, and promotion tactics to suit the evolving market conditions.


(b) Discuss the elements of promotion mix. Identify the reasons why companies in the current business environment are of the opinion that there is a felt need and necessity of integrating all the elements of marketing communication mix with a strategic intent to compete and stay relevant at any given point of time.
Explain with a example where all the elements of promotion mix/marketing communication are integrated. Select and make SWOT analysis and highlight the importance of integration.

Answer:

The promotion mix consists of five key elements: advertising, sales promotion, personal selling, public relations (PR), and direct marketing. These elements work together to communicate a brand’s message, promote products, and build relationships with customers.

  1. Advertising: Paid communication through media channels such as TV, radio, online platforms, and print.
  2. Sales Promotion: Short-term incentives like discounts, coupons, or contests to stimulate demand.
  3. Personal Selling: Direct interaction with customers by salespeople to address needs and close sales.
  4. Public Relations (PR): Efforts to build a positive image through media relations, events, and community involvement.
  5. Direct Marketing: Direct communication with individual customers through channels like email, catalogs, or telemarketing.

Need for Integration in Marketing Communication

In today’s highly competitive business environment, integration of the promotion mix is crucial for a unified, consistent, and impactful marketing message. With customers receiving information from multiple touchpoints (online, offline, social media, etc.), it’s vital that all communication elements reinforce each other. Integration ensures that customers receive a cohesive brand experience, which increases trust and engagement.

For example, Coca-Cola integrates all its promotional elements in a campaign like “Share a Coke”. Advertising features personalized bottles, supported by social media promotions (sales promotion), a public relations push around the campaign’s positive message, and personal selling through in-store promotions. This ensures a seamless experience across all channels.

SWOT Analysis of Integrated Marketing Communications (IMC)

  • Strengths: Consistent brand messaging, stronger customer relationships, better targeting, increased customer loyalty.
  • Weaknesses: High implementation cost, complexity in coordination, potential message overload.
  • Opportunities: Reach wider audiences, enhance customer engagement, gain market share.
  • Threats: Misalignment of strategies across channels, the potential for brand dilution.

Importance of Integration

Integration ensures efficiency, effectiveness, and relevance in reaching modern, omnichannel consumers. It creates a more compelling, memorable brand experience that stands out in a crowded marketplace. Without integration, marketing efforts may become disjointed, reducing their overall impact.

4. (a) Bring out the major differences and similarities if any between product marketing and services marketing.

With the help of internet and the secondary data sources prepare an essay on the reasons for the growth of service sector since 2010-2023. Furnish all the data and details.

Answer:

Differences Between Product Marketing and Services Marketing

1. Tangibility:

  • Product Marketing: Products are tangible, meaning they have physical attributes that can be seen, touched, and measured.
  • Services Marketing: Services are intangible, meaning they cannot be physically touched or stored. The service experience is often the primary product being marketed.

2. Ownership:

  • Product Marketing: When a product is purchased, ownership of the item is transferred to the buyer.
  • Services Marketing: No ownership is transferred when a service is purchased. Customers typically consume the service without owning it.

3. Standardization:

  • Product Marketing: Products can be standardized, ensuring uniformity in every unit produced.
  • Services Marketing: Services are often customized based on customer needs and can vary each time they are delivered.

4. Perishability:

  • Product Marketing: Products have a longer shelf life and can be stored for later use.
  • Services Marketing: Services are perishable; once the service is not consumed, it cannot be recovered (e.g., a missed airline flight).

5. Customer Interaction:

  • Product Marketing: Customer interaction is limited during the purchase and use phase.
  • Services Marketing: High customer interaction is often involved, as services are often produced and consumed simultaneously (e.g., consulting, healthcare).

6. Marketing Strategies:

  • Product Marketing: Focuses on product features, pricing, and distribution.
  • Services Marketing: Focuses on the quality of service, customer experience, and building long-term relationships.

Growth of the Service Sector (2010-2023)

The service sector has experienced significant growth from 2010 to 2023 due to several factors:

  1. Digital Transformation: The rise of technology, particularly the internet and smartphones, has led to the creation of new service-based businesses like e-commerce, online education, and digital banking. According to the World Bank, digital services accounted for 20-30% of global GDP by 2023.

  2. Globalization: The globalization of trade has fueled growth in service industries such as logistics, consulting, and tourism. Increased cross-border exchanges have created new opportunities for service-based economies.

  3. Economic Shifts: As economies moved from manufacturing to knowledge-based industries, the demand for intellectual services like IT, finance, and healthcare surged. The service sector in the U.S. alone accounted for 79% of GDP in 2022.

  4. Health and Wellness: The increased focus on health and wellness, especially post-pandemic, has driven growth in healthcare, fitness, and wellness services.

  5. Outsourcing: Companies increasingly outsourced non-core functions, driving growth in business services such as IT, customer support, and finance, especially in developing countries like India.


(b) Make a visit to any firm /company in your location or you are familiar with where digital marketing has been adopted. Talk to the manager or the concerned person who is in-charge of the digital marketing activities and collect all the prospects and challenges that are being faced by the firm and the possible solutions for the same.

Answer:

Digital Marketing Adoption at XYZ Pvt. Ltd.

I recently visited XYZ Pvt. Ltd., a local firm that has actively embraced digital marketing to promote its products and services. I spoke with Mr. A, the Digital Marketing Manager, who shared valuable insights into the prospects, challenges, and solutions their firm faces in the digital space.

Prospects:

  1. Increased Brand Awareness: By utilizing social media platforms like Facebook, Instagram, and Google Ads, XYZ Pvt. Ltd. has significantly expanded its reach, allowing them to target specific demographics and increase their brand visibility.
  2. Cost-Effective Campaigns: Digital marketing has proven to be a more affordable option compared to traditional marketing. The firm can track the effectiveness of campaigns in real-time and adjust them to maximize ROI.
  3. Targeted Marketing: With tools like Google Analytics and Facebook Ads, XYZ Pvt. Ltd. can create highly targeted campaigns, ensuring that the right message reaches the right audience, increasing engagement and conversion rates.

Challenges:

  1. Constant Algorithm Changes: The ever-changing algorithms of platforms like Facebook and Google pose a challenge. These changes often require quick adaptation to maintain visibility and engagement.
  2. High Competition: The digital space is crowded, and XYZ Pvt. Ltd. faces stiff competition from both local and international brands. Standing out in a saturated market has been an ongoing struggle.
  3. Limited Resources and Expertise: Despite their efforts, XYZ Pvt. Ltd. has a small digital marketing team, and there are gaps in expertise for advanced tactics like SEO and content marketing.

Solutions:

  1. Regular Training and Upskilling: The firm is focusing on regular training programs to enhance the digital marketing team’s knowledge of the latest trends and techniques.
  2. Outsourcing SEO and Content Creation: To overcome expertise limitations, XYZ Pvt. Ltd. is considering outsourcing SEO and content marketing tasks to specialized agencies.
  3. Diversification of Platforms: To address competition, XYZ Pvt. Ltd. is exploring emerging platforms like TikTok and LinkedIn to expand their digital footprint and reach untapped audiences.

In conclusion, digital marketing offers immense opportunities for growth but also presents certain challenges that require continuous adaptation and strategic planning to stay competitive.