Universiti Malaysia Pahang

Executive Bachelor Program In Business Management

MARKETING MANAGEMENT

1. Select three advertisements and describe the needs identified by Abraham Maslow
that each ad addresses. Find an international version of an advertisement for one
of the products. What differences do you detect in the international version of the
ad.

Introduction

Maslow's Hierarchy of Needs

In the most basic sense, Maslow's hierarchy identifies five primary areas of needs
experienced by most humans. Beginning with physiological, or basic life survival,
needs, the model progresses in subsequent steps through safety and security, love and
belongingness, self-esteem and finally self-actualization. Maslow postulated that as
man meets the needs at the first level, he moves toward the next, then the next and so
on. More recent studies have added levels to the needs hierarchy and refined the
categories, but marketing classes throughout the country continue to use Maslow's
needs hierarchy as a reasonable focus for modern marketing efforts.
Potential Marketing Implications of Maslow's Theory
Maslow posited that human behavior and decision-making are motivated by one of
the five need levels in his hierarchy. Applied to marketing theory, your ability to
effectively appeal to one of these motivational drivers is a key determinant of your
potential success. Non-essential services – massage treatments or custom tailoring, for
example – may be marketed successfully to those in the fourth or fifth level of
Maslow's hierarchy because those people are driven by the needs for increased self-
esteem and realizing their full potential.
The same marketing campaign is unlikely to appeal to those on the first level, as they
are driven by the most basic of human needs: food, water and other elements of
survival.
Practical Applications of Maslow's Hierarchy of Needs
A prospective customer driven by Maslow's second needs level, safety and security,
might be enticed to buy a new car if you convince him that it is safe for his family,
reliable and well-rated in consumer studies. Someone driven by the need for self-
esteem, in needs level four, is looking for recognition and validation, so you might
tailor your marketing to convince her that acquiring and implementing your
accounting methods will bring accolades from her peers or make her look good to her
boss.
Things to Consider
Maslow's basic principles linking marketing to human psychology remain valid. You
connect best with prospective customers if you appeal to their needs in a relevant,
meaningful way. Consider the level of need your customer is trying to meet, and
market your product in such a way as to convince him that it will fulfill exactly that
need. Perform periodic evaluations of your marketing techniques because your target
audience may not remain static.
Always be aware of where on Maslow's needs hierarchy your customer base is and
where your product fits in. The more these two dovetails, the more effective your
marketing efforts are.

Advertising is one of the marketing tools used by the companies to promote their
products and instigate the customers to buy them. Though it is just the tip of the ice-
berg, it is considered to be the biggest and most effective communication tool enabling
companies to enjoy higher sales and better profit margins through hard-sell or soft-sell
approaches used in advertising (push strategy). It is used to encourage, persuade, or
manipulate an audience into taking some action. 1
Advertising is targeted towards the general audience in large unless it is segmented into
different target markets.

Example 1

Cartoons are the main way advertisers try and target children. Why? The answer is
simply because they like cartoons. Cartoons have bright smiling faces and flashy colors
that attract children. A very popular example from Pakistan would be of the Ding Dong
Bubble Gum. Most of the young population, has been consuming Ding Dong for several
years now. We’d often hear children below the age of 10 or maybe even adults singing
the “ding dong...” jingle to the children, or we’d see small kids nagging for Ding Dong
bubble at a store. There is a reason why it is a leading brand in the Confectionery
Industry despite bubble gums having significant health implications particularly for
children if swallowed. The success of the product is not because it just tastes good, but
primarily because it has a series of cartoon episodes in every ad that attract kids and
every wrapper holds a scene from the cartoon episode.

Example 2.
Another example for such promotion would be of Safeguard antibacterial soap, which
also has an entire animated cartoon around it. It now has its own website, games,
movies, music, art and other downloadable content. This doesn’t mean children or
people in general will use soaps more often, however they’d definitely buy more
safeguard. Consumers would more importantly move from other competitive brands
like Lux, Pond’s, or Lifebuoy to Safeguard.
The point of contention is not that it is wrong to promote health awareness and the
importance of hygiene and sanitation among children. But it is, that it is wrong to
influence children about a product to such an extent that they act as decision makers for
the purchase of the product, since their mental faculties are not as developed nor are
they as aware of the benefits and harms of a particular
product such as an anti-bacterial soap to judge which
would be the best one for purchase and use.

Image 1 : Commander safeguard

Animated Character

Example 3

Image 2: McDonald's Happy Meal Toys

Another example that supports this is the fast food marketing by McDonald’s and other
chains that promote the Kid’s Meal to children with a toy featuring the latest cartoon
character from a movie. This promotion tactic influences the children to such an extent
that they force their parents to purchase the meal for them even if they think it is not
nutritious enough for their diet. Although the methodology might not seem obviously
unethical for the company, but
nevertheless this phenomenon has significant societal implications as translated by the
ever increasing obesity problems among the youth in developed countries where these
fast-food chains have already developed a strong hold in the market. Research
conducted on television advertisements in America shows that 9 out of 10 food
advertisements shown during Saturday morning children’s television programming
were for foods high in fat, sodium, or added sugars, or low in nutrients. Cartoon
characters were used in 74% of food advertisements, and toys or other giveaways were
used in 26% of food advertisements to attract children (Batada, Seitz, Wootan& Story,
2008).
Unrestrained consumption and promotion of fast-food promoted by the giant chains
without conveying their latent negative implications on health particularly of children
in the long run can be classified as negligence of consumer safety and protection from
foreseeable risks, for which the producers are liable.
As the spending power of children has increased, marketers have moved their attention
from targeting adults towards marketing to children. One reason for this is that they are
easily persuaded. The amount of money children spend on food, clothes, movies and
other electronics has immensely increased. Not just that, the real reason for marketers’
interest for kids is the direct influence that children’s under the age of 12 have on adult
spending. Parents often end up buying what their kids tell them to, even if it means
making a choice while buying a car, a phone or any other product. Observing this
phenomenon, marketers try to address themselves to the kids rather than their parents.
This being the reason why, quite a lot of ads portray kids using the product and
promoting it. Studies have shown that high viewership of advertisements by children
leads to increased levels of stress. According to researcher Zoe Williams this is because;
“Bombarded with images of how they should look and what they should own, children
struggle to keep up, suffering from stress, anxiety, increasingly lower satisfaction with
themselves and their lives, and poorer relationships with others (Scanlon, 2007).”

Mcdonald’s is the one example of international Advertisement that really fullfill

Physiological needs are categorized as our most basic psychological motivation. It
pertains to our survival needs and is our most basic motivation because if our
physiological needs aren’t met, our bodies will ultimately fail and we will die. Air,
food, and water, are the most important, with clothing and shelter to help shield us from
various environmental hazards (extreme cold/heat) being second. Maslow has also said
that maintaining an adequate birth rate is a survival instinct, so our sexual instinct would
be located within this level as well.
As it pertains to marketing, it’s pretty basic. By appealing to a consumer’s primal needs,
we encourage them to fulfill their basic psychological motivation. When a restaurant
commercial advertises how filling their food is, or when an advertisement for living in
Hawai’i is produced that showcases its naturally purified water system, these types of
marketing communications seek to appeal to our psychological need to physically
satisfy our survival needs.

Safety Needs:
Safety needs are the second level in the hierarchy, and contain the needs such as
personal/financial security, health/well-being, as well as needing safety nets against
accidents, illness, or breaches in security. This need arises after physiological needs
have been satisfied, and explains individuals whose primary motivations are things like
job security, insurance, and obtaining wealth. Lack of economic security especially
enhances preference for job security over the job description itself, and the lack in
health and well-being of an individual can result in psychological problems like
trauma/increased stress. Fulfilling these needs makes us feel assured that even if bad
things happen to our well-being/economic health, we’ll still be fine.
When you see insurance commercials that depict a customer in an accident, or health
companies advocating immunizations, they are appealing to your safety motivations.
Another example would be a commercial featuring the safety ratings of a new car being
release, prioritizing that value of the product over price, tech, luxury, etc. The fear of
not being able to recover from an illness or economic damage (getting into a car
accident), is a very popular marketing communications technique to assure the
customer that the company will protect them from such dangers. I do see fear being
used to appeal to safety needs very commonly, and this theory explains why we as
humans respond so well to these messages.

Love/Belonging:
This motivational plateau refers to our interpersonal relationships and the health of
those relationships. Humans are social beings, and we need to have a sense of belonging
among social groups, no matter how big or small. The need to love and be loved arises
as a predominant motivation after the first two needs have been mastered.
To go on a tangent, I’ve mentioned mastered a couple times before now, and this refers
to not only meeting the psychological need, but having control over it. This means at
this that at this level, you have ready access to all the physical needs you require to
survive, and that you’re not living paycheck to paycheck plus acquiring additional debt
from all of your insurance/loan payments you have to make.
The love and belonging need of humans deals with family, intimacy, and friendships
and the strength of those relationships. It’s interesting to note that this level can
overcome physiological and safety needs depending on pressures and stresses caused
by these relationships. Depression that occurs due to unhealthy relationships can cause
a lack in eating habits for example.
We see the need to belong most in social media. Social media is inherently interpersonal
in its very use, as well as an important function of marketing communications. Why is
this?
This is because as a company, we seek to build brand communities that allow our
customers to feel like they belong to something. Creating a feeling of belonging with
our customers satisfies the love and belonging psychological need. Since it is the third
level, it’s also especially powerful. Our strongest brand advocates are often time other
customers that feel like part of their social identity is tied in with our brand (known as
word of mouth marketing). Creating a great brand community (Examples of brands
with strong communities on and offline: Harley Davidson, Starbucks, Apple) creates
great engagement and interest in everything your company does because it helps to
satisfy an individuals need to belong.

Esteem:
Maslow defined the Esteem level as a need for status, recognition, strength, attention,
or mastery/competence of something. In order to master this psychological need, an
individual has to accept who they are internally, which relates a lot to the final
psychological need (we’ll get there). You’ve all heard of having a great self-
esteem/sense of self-respect, and this is what that need pertains to. Failure to achieve
an adequate level of esteem can lead to an inferiority complex or other weakness, and
things like depression can negatively affect your esteem. People’s professions and
hobbies often reflect this need to gain recognition.
Because humans have a need to feel respected, marketers can often appeal to this higher
level of psychological motivation as a way to persuade customers. By offering a luxury
experience, an opportunity to master something, or gain recognition, companies can
often influence a customer’s buying decisions in appealing to their esteem. For
example, with luxury cars and watches, they appeal to esteem by positioning
themselves as a symbol of a person’s status, and something that people of a high status
use/have. Additionally, software programs that teach you skills like the Khan
Academy and Lynda.com offer you an opportunity to gain competency/mastery in a
wide variety of skills and subjects, which increases your esteem.
This is the last level of deficiency needs, meaning that if a human satisfies all four of
these needs, meaning that once all of these needs are met and mastered, an individual
will feel content with their life. But not all individuals stop there. The highest level
deals with the primary motivation of ‘exemplary people,’ as Maslow put it. Those who
strive to succeed, set pace, and trail blaze their mark on human civilization.

Self-Actualization:
“What a man can be, he must be.” ~Abraham Maslow
The top psychological need of the hierarchy is one that’s not ‘required’ for full
psychological development, but is required to be a ‘fully-realized’ individual, to put it
simply. Self-Actualization deals with the realization and obtainment of an individual’s
full potential, a meaning which is subjective and defined by the individual themselves.
It manifests as a desire to accomplish everything that he/she can be and ‘make the most
out of their life.’ Some examples of this motivation could be to become the best
musician who ever lived, be the best athlete of their sport, or simply to become the best
possible parent they can be. Whatever it is, it is the ultimate achievement in that
person’s eyes.
This is the hardest need as marketers to appeal to because as a company, there’s a great
chance that the products/services that we sell don’t comprise a whole person’s identity
(Their life is not built around owning a Nike Hyperdunk 2.0). What we can do to appeal
to this level of motivation is be a brand that represents achieving self-actualization and
one that helps and individual get there. To re-use the Nike example, a lot of their
marketing communications help inspire their customers achieve physical self-
actualization. Their slogan is “Just Do It,” as a motivational statement to help users get
through the physical pain of training that’s required to achieve results in their
activities. In a commercial promoting their brand (notice, they promote the brand, not
the product), Nike uses a song by The Hours called, ‘Ali in the Jungle,’ in which the
main line repeated is:
“It's, not how you start, it’s how you finish.
And it's, not where you're from, it's where you're going now.
Everybody gets knocked down,
How quick are you gonna get up?”
Nike embraces their role in helping an individual accomplish self-actualization by
becoming a source for inspiration, and this method of connecting with their audience is
part of the reason why Nike is so successful in advertising.

Closing Thoughts:
There’s a lot more examples we can look at in the advertising/marketing world, but the
bottom line is that by appealing to some level of Maslow’s Hierarchy of Needs,
companies communicate their messages effectively to their target audience. I see the
hierarchy as the ‘why it works’ behind all of our marketing communications, and I
believe being aware of that fact is important to consistently communicating value
to customers. By aligning the message with a customer’s psychological
needs/motivations, we can focus content and provide more relevant and useful
information, products, and services. That to me, is great marketing.
 2. Design a marketing plan for development of a new product. Justify your
discussion with reasoned examples.

Company overview

Herry Telecom Supply’s our products to the Government & Non Government Organization
Like Malaysia Government Organization, TM, Police, Army, Navy, Cellular Operators,
Installation Companies & NGO’s.
Our Clients are very much Happy to work with us because we have Dedicated Office Staff
who provide our Customers a very good service.

Company Profile

Company Name: Herry Telecom

Country/Territory: Malaysia

Business Type: Others

Registration Date: 2017/05/22 (Year/Month/Date)

Buyer / Seller in EC21: Both

Mobile Phone Accessories, Telecommunication, Energy

Keyword
Savings Lamp, Battery, Charger

Products and services

 Adapter

 Battery

 Charger

 Cover

 Antenna

 Travel Charger

 Travel Transformer
 Marketing Plan of Anik Magic Battery (AMB)

1. Introduction:

Herry Telecom is a new and starting up company which forms on 4 April in 2018 in Kuala
Lumpur. Its objectives are to provide world class telecommunications tools.This company is
preparing to launch Anik magic battery (AMB) which is quite new andgood product for all
types of mobile. Using this battery people will feel comfortable. People spend thousands of
money for buying different brands battery to make their mobile safe and maximum use of it.
As thing get better with time, people will move on from the good Battery.

2. Market Segmentations:

2.1Geographic:

Anik Magic Battery has no specific geographic target area in Malaysia but we prefer both
urban area and rural area. It would be very suitable according to our weather condition and
climate. People can use this Magic Battery in all area of our country
.
2.2 Demographic:

•
People of all classes of people may use it. Meal, female and young people can be able to use
it• People who are educated are major concerning customer. People who are involved in
earning and lead a prosperous life also our concerning customer.

2.3Behavior Factor:
•
Young people will prefer our product most. This battery is also stylist. Old as well as matured
people will also like it because it is durable.

2.4 Psychographic: After all we divided the market into group based on customer
knowledge, attitude, use or response to a product.

Anik Magic Battery is a new and uncommon product and its segmentation is different to
other ordinary mobile battery. Its segmentation bases on-
Gender (men & women)
Social class (Upper, middle and lower)
Density (urban area and city area)
Attitude toward product (positive, adaptable with new things.) and generation
(young)
Our market segment is quite measurable because our main target customer is 15–64 aged
people and its approximate size is 63.6% of total population. In order to actionable our
marketing program our market segment will help us. We can introduce different marketing
strategy and promotional
strategy according to men and women choice, preference and needs.
So our market segment is measurable, accessible, actionable, and differentiable.
3. Market Needs:

People usually need mobile battery. Almost all people in our country use mobile phon.
People are very much habituated to use it. So mobile battery is must.

4.Market opportunities and issues

Assuming just about 40 million of mobile users which is 25% of total population of Malaysia,
the market potential comes to about 1 million per year. More over the tie –up with large
authorized dealer and exploration of 3 lack strong armed forces, tribal and costal areas offers
tremendous opportunity for growth. The key success factor in the institutional market is the
provision of quality products in desire quantities and at reasonable prices. Access to quality
raw material at low cost which is remunerative to the producer is another requirement for
success in this market.
5. Objectives: It is also an important matter to set up objectives of a new product to sustain in
the market in a long run.

A Achieve sales of 500, 750 and 1000 in the first, second and third year respectively (Refer
Table A1)

Sales forecast
Table A1
Year Sales (unit) RM (million)
2019 500 150
2020 750 225
2021 1000 300

Assumption:

 The plant will run throughout the year at 70% of the capacity for the first year and 80%
capacity for the second year and 100% capacity for the third year.

 The realized prices will be 10, 00,000 unit for the first two years and 15, 00,000 unit
for the third year.

B. Achieves break-even sales 13.33 units in the first four months of operation (Refer Table
B.2)

Break-even analysis

Table B.2
SL Particular RM
1. Revenue/unit 10,00.000
2. Variable cost/unit 4,00.000
3. Contribution ( 1-2 ) 6,00,000
4. Fixed cost 80,00,000
5. Break even volume (4/3 ) 13.33 unit
Break even sales would be at about 13.33% of the capacity
C. Achieve on internal rate of return is about 20%.

D. Achieve on average rate of growth in sales of about 25% per year.

E. Achieve the image of the most preferred supplier in the minds of the institutional buyer
by delivering superior value through quality, pride and reliability.

6. Market strategy
Customer focus with operational efficiency and customer intimacy.
7. Target market
AMB’s target customers are ordinary mobile users, tribal and costal areas users. Remote areas
people and armed forces.
8. Positioning
AMB will position itself as a value for money brand one that is easy for charge, reducing
tension to charge, no need to electricity etc. its appeal will be “TALK UNLIMITED
WITHOUT CHARGING TENSION”.
1. SWOT analysis

SWOT stands for strength, weakness, opportunity and threats

1.1 Strength
 Combination of different features

 Easy to use

 Provide comfort.

 Suitable for almost all types of mobile phone

 We ensure product differentiation.

1.2 Weakness
 Production cost and price would be higher.

 No brand awareness of the new product as a set up company.

 Lack of depth industry experience and insight.

1.3 Opportunity
It will enjoy less competitive because this kind of product is not yet come in the market. That’s
why it will be available to earn more money than other existing product of this company.
1.4 Threats It will enjoy less competitive because this kind of product is not yet come in the
market. That’s why it will be available to earn more money than other existing product of this
company.

2. Marketing Mix

 Product
The battery turns sound into electricity allowing mobile to be powered up while a
conversation is in process and the greater the volume the greater the charge. This motivated the
customer to realize power generation by turning sound energy from speech, noise or music into
electrical power.
  Price
It will offer value for money beginning with an average realization of 300 PU. A
discount of 10% will be offered on the invoice price for volumes exceeding 1000 unit month.
The distributor or retailer will decide the maximum retail price to be printed on the unit.

 Place
Initially AMB will supply to institutional markets directly. In the second year of
operation the product will be launched under “ANIK” brand in few major towns at select outlets
through authorized dealer.

 Promotion
The basic promotional route will be point of purchase material, altercative danglers.
Placed near check out counter and sample trail. This will be done only for the branded products.
For the institutional markets the major trust will be efficient supply dealer management, weekly
visit to headquarter and major outlets by senior personnel Continues feedback and multiple
contacts with distributor.
Add is given on:

RTM, & TV3 Channels

Radio

Newspaper, Magazine

Promotes through banners, placards and festoons.

Marketing communication: By integrating all messages in all media,

we will reinforce the brand name, and the main points of product,
especially our exclusive feature.
Marketing communication

We will take some promotional activities- first of all we will give ads on TV channels; it is
the most interesting recreational media of our country. We will hold dramatic advertisement
on various satellite channels like RTM, TV3 and NTV7 . make attraction to the people. We
will sponsor popular drama, cinema to make awareness of the consumer. Secondly we will
add the various popular daily newspapers like “Berita Harian”“STAR” “Sinar” etc. Because
most of educated and urban people read this news papers. Thirdly we would like to choice
FM radio, which is growing popular recreational media in our country.In the small period of
time there comes some radio channel like “RADIO ERA” “SINAR RADIO” Hitz FM” etc.
We will hold jingle types of advertisement in the radio channels. Young generation is the
most vital customer of our product and the hear FM radio in their leisure time. We will also
add in periodical like different types of magazines. We will sponsor different events and give
wall and bill board advertisement in the important places to draw attention of the people. As a
opinion leader we will use some reputed player and a reference group we can use our
Malaysian Football team. Finally, we will hold customer driven campaign in most of towns.
Such as

 Distribution of samples
 Discount of coupons to customers in the retail stores
 Prize through raffle draws
 Free trials of new customers

Discount coupon will serve as marketing strategy to develop similar loyalty scheme in order
to indentify and stimulate brand awareness.In the Malaysian market.

Review and Control

AMB will have simple, decision friendly weekly, monthly, quarterly, half yearly and yearly
report focusing on –

 Revenue and unit sales

 Expenses
 Customer feedback
 Market log (self and competitive major activities)

Conclusion

As Anik Magic Battery is a new product in our country, so it has some lacking such as no
popular brand name, people are not accustomed with such kind of product etc. but we hope
we can easily overcome these lacking in our nearest future by providing better quality and
creating strong brand loyalty among the customer. We believe that our people will prefer the
Anik Magic Battery then traditional Mobile Battery after comparing the product benefits.
Hopefully in near
future our people will get rid of that old Mobile Battery and get yourself Anik Magic Battery.
Bibliography
Different web address…..
Principles of marketing – Philip kotler & Gary Armstrong……