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Question – 1: Describe Concept and Classification of markets. Also explain

importance and benefits of marketing.

Answer:
 Concept of Market:
The word 'market' was derived from the Latin word "Mercatus" which means
trading or place of transactions.

 According to W.J Stanton,

"A market can be defined as a place where buyers and sellers meet and
goods and services are offered for sale and transfer of ownership occur".

In economics, a market is an arrangement where buyers and sellers come

in direct or indirect contact to sell/buy goods and services.

For example, the market for mobile will constitute all the sellers and
buyers of mobile phones in an economy.

Classification of Markets:
Broadly there are two classifications of markets – the product market and the
factor market. The factor market refers to the market for the buying and selling
of factors of production like land, capital, labor etc. The other classification of
markets is as follows,

On Basis of Geographic Location

1. Local Markets: In such a market the buyers and sellers are limited to the
local region or area. They usually sell goods of daily use.

2. Regional Markets: These markets cover a wider are than local markets
like a district

3. National Market: This is when it is limited to one specific country.

4. International Market: When the demand of product is international and

the goods are also traded internationally in bulk quantities

On the Basis of Time

1. Very Short Period Market: This is when the supply of the goods is fixed,
for example the market for flowers, vegetables. Fruits etc. The price of
goods will depend on the demand.

2. Short Period Market: The market is slightly longer than the previous
one. Here the supply can be slightly adjusted.

3. Long Period Market: Here the supply can be changed according to the
demand of the market.

Subject: Marketing Management 5th Semester – BBA (Business Administration)

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On Basis of Nature of Transaction

1. Spot Market: This is where spot transactions occur, that is the money is
paid immediately. There is no system of credit

2. Future Market: This is where the transactions are credit transactions.

There is a promise to pay the consideration sometime in the future.

Question – 2: Explain E-Business in detail with its benefits and drawbacks.

Answer:
E-Business or Online Business:
What Is E-Business?
- E-Business or Online Business mean business transactions that take place
online with the help of internet.
- E-Business means electronic business. So the buyers and sellers don’t
meet personally.
- The term was defined in the year 1996.

Examples: Daraz.pk, Kaymu.pk etc.

Advantages of e-business
Some of the major advantages of e-business are as follows :

 Easy to Set Up: You can set up an online business even by

sitting at home
 Marketing Strategies cost less.
 Anyone can order anything from anywhere at any time.
 Online businesses get benefits from the government
 No Personal Touch

Subject: Marketing Management 5th Semester – BBA (Business Administration)

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Limitations of e-Business
Some of the limitations of e-business are as follows :

 Lack of Personal Touch: E-business lacks the personal touch.

One cannot touch or feel the quality of product.
 Delivery Time: The delivery of the products takes time for
about 4-7 days or more.
 Security Issues: There are a lot of people who scam through
online business. Also, it is easier for hackers to get your
financial details.

Question – 3: What is Social Market? Explain in Detail.

Answer:
Social Marketing:
- Social Marketing is the use of Marketing skills and practices to achieve
social change for the benefits of individual and society.

- Social Marketing is used by non-profit organizations, charity foundations

and govt. agencies or emergency services.

- Examples are;
Anti-drug campaigns, anti-pollution campaigns or road safety
campaigns etc.

Objectives of Social Marketing:

a. To change peoples’ attitude
b. To introduce change in their behavior

Social Marketing Strategies:

Subject: Marketing Management 5th Semester – BBA (Business Administration)

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1. Symbols 2. Slogans 3. Imagery

Short Phrases are used. The photos of powerful

It uses symbols like;
For example; imagery are used to
Awareness Ribbons etc.
“Just Say No to Drugs” explain the cause.

Importance:
- Promotes health consciousness in people
- It helps to end social evils
- Anyone can take advantage from it.

Question – 4;..: Describe Holistic Market. Explain in detail.

Answer:
Holistic Marketing:
- Holistic approach is a very new concept but it attracts the very large
number of marketers.

For the Complete definition of Holistic Marketing;

“Holistic marketing is a marketing concept in which all marketing
concepts are involved also their inter-dependencies”

- In holistic marketing, we use every type of marketing concept that can

help to satisfy the customers.

Components of Holistic Marketing:

1. Internal Marketing: it includes the internal management
system and marketing departments.

2. Integrated Marketing: it involves product, pricing and

promotion and communication strategies.

3. Performance Marketing: it involves the activities like; how

to sell the product and what is customer equity etc.

Subject: Marketing Management 5th Semester – BBA (Business Administration)

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4. Relationship Marketing: it includes the relationship with

customers, employees, partners and competitors.

Question – 5: What do you know about Relationship Marketing? Explain.

Answer:
Relationship Marketing:
Relationship Marketing is about forming long term relationships with
the customers.

“The Relationship Marketing refers to the activities undertaken by the

firm to establish and maintain the profitability and the long term
relationship with the customers.”

Example:
Ufone Network use to make feedback calls to their customers to ask
for their complaints.

Benefits of Relationship Marketing:

 Relationship Marketing ensures the long term attention of the
customers
 Once the strong relationship is formed, then even the rise in
price of the product won’t have affect on the customers.
 When the customer is happy they will spread more words about
you to others.

Strategies to use in Relationship Marketing:

 Show customers you value them

Subject: Marketing Management 5th Semester – BBA (Business Administration)

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 Listen to customers and respond

 Give customers free information
 Communicate frequently through social media or email etc.
 Expand loyalty words.

Question – 6: What is Retail Marketing? What are the functions of a retailer.

Answer:
Retail Marketing:
Retail comes from the old French word ‘tailler’ which means ‘to
divide’

What is Retail Marketing?

Retail Marketing includes activities of selling goods or services to final
consumer for personal or non-business use.
The business of selling goods to final consumer is done in an organized
manner.

Functions of a Retailer:
1. Breaking Bulk: A retailer buys in bulk and provides customers in
smaller quantities.

2. Bridge between Manufacturers and Customers: A retailer provides

the products to the customers and feedback from the customers to
the manufacturers.

3. Add Value to Customers: a retailer provides different opportunities

to the customers like; home delivery, park access etc.

4. Innovation through competition: to attract more customers they

provide new choices.

Question – 7: How does environment affect the marketing? Explain micro and
macro environment.

Answer:
Marketing Environment:
Marketing Environment refers to factors and forces that affect a firm’s
ability to build and maintain successful customer relationships.

Subject: Marketing Management 5th Semester – BBA (Business Administration)

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 Components of Marketing Environment:

The marketing environment is made up of the internal and external
environment.

1. Internal Environment: (Controllable)

It includes all the factors and forces inside the organization which affect its
marketing operations.
These components can be grouped under the 5 M’s of the business;
 Men
 Money
 Machinery
 Material
 Markets

2. External Environment: (Uncontrollable)

It includes factors and forces outside the organization. It is of two types;
Micro & Macro

 Micro Environment: It includes forces and factors that are

directly related to the business.
These include suppliers, customers, partners, competitors and
public.

How Micro Environment does effects marketing

process?
---The suppliers: The supplier holds the power when they are the
only or the largest supplier of their goods
---The customers: Who the customers are and their reasons for
buying the product will play a large role in how you approach the
marketing of your products and services to them.
---The competition: How does their price and product
differentiation impact you? How can you utilize this to reap better
results and get ahead of them?
---The general public: The public have the power to help you reach
your goals

Subject: Marketing Management 5th Semester – BBA (Business Administration)

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 Macro Environment: It includes the factors and forces which affect

the industry as a whole but don’t have direct affect on business. It
can be divided into 6 parts
o Demographic
o Economic
o Physical
o Technological
o Political-legal
o Social Cultural

How Macro Environment does effects marketing

process?
---Demographic forces: including country/region; age; ethnicity;
education level; household lifestyle; cultural characteristics and
movements.
---Economic factors: The economic environment can impact both
the organization’s production and the consumer’s decision making
process.
---Technological factors: The skills and knowledge applied to the
production, and the technology and materials needed for
production of products and services can also impact the smooth
running of the business
----Political and legal forces: Sound marketing decisions should
always consider political and legal developments relating to the
organization.
---Social and cultural forces: any products/services that are harmful
to society should be eliminated to show your organization is taking
social responsibility.

Question – 8: What do you know about marketing mix?

Answer:
Marketing Mix:
Marketing Mix Definition
The marketing mix definition is simple. It is about putting the right product in
the place, at the right time, and at the right price.

 Marketing Mix 4ps

A marketing expert named E. Jerome McCarthy created the Marketing 4Ps in
the 1960s.

1. Marketing Mix – Product

- A product is an item that is built or produced to satisfy the needs of a
group of people. The product can be intangible or tangible as it can be in
the form of services or goods.

- You must ensure to have the right type of product that is in demand for
your market.

Subject: Marketing Management 5th Semester – BBA (Business Administration)

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2. Marketing Mix – Price

- The price of the product is basically the amount that a customer pays for to
enjoy it.
- It is also a very important component of a marketing plan as it determines
your firm’s profit and survival.

3. Marketing Mix – Place

- Placement or distribution is a very important part of the product mix
definition. You have to position and distribute the product in a place that is
accessible to potential buyers.

4. Marketing Mix – Promotion Marketing Mix Promotion

- Promotion is a very important component of marketing as it can boost
brand recognition and sales. Promotion is comprised of various elements
like:
 Sales Organization
 Public Relations
 Advertising
 Sales Promotion

Question – 9: Define Product. Differentiate consumer goods and industrial

goods. Also explain the level of product.

Answer:
Product and The Level of Product:
A product is the item offered for sale. A product can be a service or an
item. It can be physical or in virtual form.
A product can be defined as “anything that is capable of satisfying
customer needs”.

This definition therefore includes both:

• Physical products – e.g. DVD players, take-away pizzas

• Services – e.g. dental treatment, insurance, music downloads

The Three Product Levels

Together, these three separate products are known as the Three Product
Levels.
.
1. Core Benefit
The core benefit is the fundamental need that the customer satisfies
when they buy the product.
It is important to think of the core benefit from the customers
perspective. The easiest way to do this is to ask yourself,
“Fundamentally, why is the customer buying this product?”.

Subject: Marketing Management 5th Semester – BBA (Business Administration)

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For example, the core benefit of a mobile phone is to provide a

mechanism to make telephone calls when away from your home or
office.

2. Actual Product
The actual product is the product features and its design. Products
typically have lots of features but very few actual benefits (core
benefits) to the customer.
Returning to our mobile phone example, then the actual product
consists of the design and features of the phone, including:
Dimensions.
Color.
Screen size.
Bluetooth compatibility.
App ecosystem size.
Packaging.

3. Augmented Product
The augmented product is any non-physical parts of the product.
Typically, the augmented product includes such things as warranty and
customer service.

Looking at our phone example once more, the augmented product

could include a 12-month warranty for all customers.

Question – 10: Write a note on Brand, benefits and essentials of brand types, its
packaging and label.

Answer:
BRAND:
A brand is defined as a "name, term, sign symbol (or a combination of
these) that identifies the maker or seller of the product".

 Benefits:
 Customer recognition. Having a strong brand works to build
customer recognition.
 Competitive edge in market. Your brand is what differentiates
you in the marketplace.
 Easy introduction of new products. When you already have a
strong brand and loyal customers, it is often easier and less
expensive to introduce new products .
 Customer loyalty and shared values. Brand loyalty often lasts
a lifetime and even transfers to future generations.
 Enhanced credibility and ease of purchase. Having a strong,
well-known brand enhances your credibility with customers,
your industry, and the marketplace as a whole.

 Essentials of Brand:
1. Brevity: it should be easy to remember, recognize and pronounce

Subject: Marketing Management 5th Semester – BBA (Business Administration)

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2. Distinctiveness: brand names should be unique. They should be

different from the competitive brands. They should avoid
confusion with similar brands.

3. Adaptable: brand name should be adaptable to new products

4. Product attributes: brand name should reflect product attributes

and benefits. It should appeal to customers for purchase

5. Legal protection: the brand name should be capable of registration

for legal protection and trade mark status

6. Relevant: the brand name should stay relevant. It should deliver

the benefits customers desire

7. Positioning: the brand name should be appropriate for positioning

purposes.

Packaging and Labeling:

The packaging is on which a brand’s marks and name will be
prominently displayed. Sometimes the package itself is part of the
brand.
For example, the curvaceous shape of Coca-Cola’s Coke bottle is a
registered trademark.

Packaging has to fulfill a number of important functions, including

 communicating the brand and its benefits;

 protecting the product from damage and contamination during
shipment, as well as damage and tampering once it’s in retail
outlets;
 preventing leakage of the contents;
 presenting government-required warning and information
labels

Labeling:
A label is a carrier of information about the product. The attached label
provides customers with information to aid their purchase decision or
help improve the experience of using the product. Labels can include:

 Care and use of the product

 Recipes or suggestions
 Ingredients or nutritional information
 Product guarantees
 Manufacturer name and address
 Weight statements
 Sell by date and expiration dates
 Warnings

Subject: Marketing Management 5th Semester – BBA (Business Administration)

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Question – 11: What is importance of pricing? Explain different types of pricing.

Answer:
Importance of Pricing:
What Is a Price?
Buying something means paying a price. But what exactly is “price? ”

Price is the money charged for a good or service. For example, an item
of clothing costs a certain amount of money. Or a computer specialist
charges a certain fee for fixing your computer.

While product, place and promotion affect costs, price is the only
element that affects revenues, and thus, a business’s profits. Price can
lead to a firm’s survival or end.

1. PRICE COMMUNICATES VALUE

Price also confirms value. The more expensive a product or service is,
the more valuable people often perceive it to be.
If a low-quality product that under-delivers is priced high, you’ll lose
the trust and confidence of customers.

2. PRICES AFFECT PROFITS FAST

In fact, a 1% increase in price leads to an 11% increase in profits on
average [Harvard Business Review].

3. STRATEGIC PRICES INCREASE YOUR

CUSTOMER BASE
Pricing isn’t always about a constant increase, though. Marketing can
go in the complete opposite direction and decrease prices. This strategy
builds up your base of customers.

4. MINDFUL PRICING KEEPS YOUR BUSINESS ON

ITS TOES
You can never just set and forget your prices. Your marketing team
should always be thinking of its next move.

Types of Pricing:
1. Penetration Pricing.
The price charged for products and services is set artificially low in
order to gain market share. Once this is achieved, the price is
increased.

2. Economy Pricing.
This is a no frills low price. The costs of marketing and promoting
a product are kept to a minimum.

3. Price Skimming.
Price skimming sees a company charge a higher price because it
has a substantial competitive advantage.

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4. Psychological Pricing.
This approach is used when the marketer wants the consumer to
respond on an emotional, rather than rational basis.

5. Product Line Pricing.

Where there is a range of products or services the pricing reflects
the benefits of parts of the range.

6. Optional Product Pricing.

Companies will attempt to increase the amount customers spend
once they start to buy.

7. Captive Product Pricing

Where products have complements, companies will charge a
premium price since the consumer has no choice.

8. Product Bundle Pricing.

Here sellers combine several products in the same package. This
also serves to move old stock.

9. Promotional Pricing.
Pricing to promote a product is a very common application. There are
many examples of promotional pricing including approaches such as
BOGOF (Buy One Get One Free),

10.Geographical Pricing.
Geographical pricing sees variations in price in different parts of the
world. For example rarity value, or where shipping costs increase
price.

11.Value Pricing.
This approach is used where external factors such as recession or
increased competition force companies to provide value products and
services to retain sales e.g. value meals at McDonalds and other fast-
food restaurants.

12.Premium Pricing.
Use a high price where there is a unique brand. This approach is used
where a substantial competitive advantage exists and the marketer is
safe in the knowledge that they can charge a relatively higher price.
Such high prices are charged for luxuries such as Cunard Cruises,
Savoy Hotel rooms, and first class air travel.

Subject: Marketing Management 5th Semester – BBA (Business Administration)