Pir Mehr Ali Shah

Arid Agriculture University, Rawalpindi

Office of the controller of Examinations
Final Exam (Theory) / Fall 2020 (Paper Duration 24 hours)
To be filled by Teacher

Course No.: MGT-351 Course Title: Intro to Marketing

Total Marks: 30 Date of Exam: 8 th Feb, 2021
Degree: BSCS 3 Semester: 3 Section: A
Marks
Q. No. 1 2 3 4 5 6 7 8 9 10 Obtained/
TotalMarks
Marks
Obtaine
d
Total Marks in Words:
Name of the teacher:
Who taught the course: Signature of teacher / Examiner:

To be filled by Student

Registration No.: ……19-ARID-5157….……… Name:……………FaizanNazir…………..

Answer the following questions.

Q1)

Ans:

 Marketing concept:

The concept of marketing is the use of marketing data to focus on customer needs
and requirements in order to develop marketing strategies that not only satisfy
customer needs but also achieve organizational goals.

 Macro-marketing:

Macro-marketing influences its marketing policies and strategies in the economy and
society as a whole. Macro-marketing experts study the same effects society and
marketing programs have on each other.

 How Macro-marketing Works

Since macro-marketing is meant to reflect society's values. Therefore, seeks to

conduct the marketing of goods, services and ideas in a manner that is in the best
interests of the community and society as a whole. Experts believe that studying
macro-marketing is important because it focuses on understanding how individuals,
communities, and societies build, adapt, and learn. Some scholars work under the
assumption that macro-marketing represents the conscience of marketing practice,
while others maintain that its value is highly dependent on the intensity and
resistance of science, using tools such as A / B testing.

Commercial market in Rawalpindi is one of the central market in my city, it facilitate

exchange through selling of goods in exchange of cash or money.

Q2)

Ans:

 With the help of diagram discuss the stages of product life cycle:

The term Product life cycle refers to the length of time a product is introduced
to consumers in the market until it is removed from the market. The product life cycle
is divided into four stages.

1. Introduction
2. Growth
3. Maturity
4. Decline.

1. Introduction

At this stage, the product is introduced to the market. This stage is the most
dangerous one that can cause or break a product in the end success. The cost of
marketing and promotion is very high. Then the company can assess how the target
market is reacting to the product. This category requires a very large number of ''
hands-on '' managers because this will form the basis of the overall product
management plan details, procedures, and service requirements.

2. Growth
 Consumers are already buying the product and increase it. The product perception
is proven and is becoming popular and sales are increasing. The company can
improve the functions and features of the product especially if there is heavy
competition. This stage holds the greatest profits potential because the product
demand is increasing.

3. Maturity

Sales tend to slow or even stop - signaling a largely saturated market,

which means sales volume is maxed out. Sales can even go down. Pricing can
competitive. Marketing at this point is targeted at fending off competition, and
companies will develop new or altered products to reach different market segments.

4. Decline

Product sales drop significantly and consumer preference changes as there are
less demand for the product. The company's product loses its market share, and
competition often causes sales to decline. The product will be retired out of the
market unless you can redesign it to stay fit.

 Discuss the reasons Products decline:

Sales of some products will decline in another category. This may be due to factors
such as technological advances, trends, innovation, or changes in consumer
preferences. You will know when your product reaches the point of decline in its life
cycle because you will see a significant decline in the income you generate.

 Elaborate the new product development process:

The new product development process entails different phases, which will help me in
different ways to avoid confusion and to examine if the new product will be profitable.
These phases are;

Firstly, I need to generate ideas. My ideas are to introduce a new product in my

existing product line. In the process, my objective is to introduce a new product on
my current product line successfully and increase the company's sales. However, I
am supposed to look at the current customer problems before introducing the new
one. After identifying this solution, I find some possible solutions to the existing
issues.

Screening of my idea. This is the second phase where I am supposed to do a

SWOT analysis on my thoughts, and I need to choose the concept of the product
with a higher success potential.

Developing and testing my ideas. A priority is given to generating a detailed

version of the concept. In this stage, I will test my idea's effectiveness and develop
various mechanisms on how to implement them. Also, analysis of competition is
conducted in this stage and outlining the features of the product.

Analysis of business and marketing strategies. This stage focus on how I will
advertise the new product I want to introduce. However, marketing is an essential
aspect of the success of any business. The best marketing strategy is to follow the
4Ps advertising tools. The business analysis will help me to examine whether the
new product development process deserves my financial investment.

Q3

Ans:

 With the help of example and illustration discuss direct and in-direct
marketing distribution system?

A Distribution channel is a chain of businesses or intermediaries through which a

good or service passes until it reaches the final buyer or the end consumers.

Direct Distribution

A direct channel allows the consumer to make purchases from the manufacturer.

PRODUCER Customer

A direct distribution channel is organized and managed by the manufacturer itself.

Direct channels tend to be more expensive to set up at the beginning and can
sometimes require significant capital investment. Warehouses, logistics systems,
trucks and delivery staff will need to be set up. However, once those are in place, the
direct channel is likely to be shorter and less costly than an indirect channel. Direct
selling can be difficult to manage on a large scale, but it often allows the
manufacturer to have a better connection to its consumer base.

Indirect Distribution

An indirect channel allows the consumer to buy the goods from a wholesaler or
retailer. Indirect channels are typical for goods that are sold in traditional brick-and-
mortar stores.
 PRODUCER Intermediaries Customer

An indirect distribution channel relies on intermediaries to perform most or all

distribution functions, otherwise known as wholesale distribution. The most
challenging part of indirect distribution channels is that another party has to be
entrusted with the manufacturer's products and customer interaction. However, the
most successful logistics companies are experts at delivering receivables in a way
that most manufacturers cannot be.

 Give an example of producer that uses two or more different channels of

distribution briefly discuss what problems this might cause, also
elaborate the difference between vertical and horizontal system?

Producer producing exportable goods will use more than one channel distribution.
Consumers' demand for certain exports will cause the following flow of a product.

Manufacturer to agent to wholesale to retailer to consumers

 Problems caused by channels of distribution are;

Loss of revenue – the cost of products at the producer level is always low than the
price charged by the intermediaries. If there are no intermediaries, the revenue will
be earned by the producers because they will directly sell products to consumers.

Communication control loss – to achieve sales target, sales associates give false
promises. Producers cannot control these actions. Product importance loss – The
importance of the product is lost when there is a problem in transportation or
damages during delivery.

A horizontal system is a system that can be applied for use in many different types
of companies. A vertical system is designed to meet the unique requirements of a
specific business.

Q4:
Ans:

A promotion strategy is an actionable plan to influence people about your

business, generate more leads, and boost customer engagement. It visualizes how
to perform your marketing strategy and communication, who to target as your
audience, and where and when to execute the promotion plan.

Face-to-face selling – Salespeople from a company give you a sales presentation

in person to persuade their offer. Unlike the other approaches, it is easier to build
relationships with you.

i.e.) Sales meeting, sampling, telemarketing, etc.

B2B promotions – a B2B company offers materials and services that other
businesses need to work and get benefits. It focuses on how people will benefit from
using your offers.

i.e.) Trade shows, case studies, online courses, etc.

Traditional advertising – You can use any paid advertisements to reach a bigger
audience, and prompt short-term engagement and sales. It is one-to-one marketing
and its costs are based on the bidding.

i.e.) Print ads, billboards, TV, radio, etc.

Direct marketing – It is direct communication with a highly-targeted audience

through marketing channels. It has more chances to get quick feedback and retain
customer relationships.

i.e.) Emails, direct mail, digital ads, etc.

Sales promotion – Performing a short-term marketing campaign to gain attention

and encourage conversion or purchase. You can get immediate responses and
interactive, but it’s not good for developing a long-term relationship.

i.e.) Contests, coupons, flash sale, sweepstakes, etc.

Public relations – To build a good corporate image and cultivate a stronger

customer relationship, you can provide appropriate information and handle both
positive and negative voices from consumers.

i.e.) Newspaper/magazine articles, seminars, speeches, etc.

Customer loyalty program – The Customer loyalty program attracts your current
customers to buy more and save which brings you greater profits over time.

i.e.) Reward programs, referral incentives, etc.

Word-of-mouth marketing – It is a process of encouraging people to share

information about your products and services with others. Since people rely more on
names that are closer to people than company, it will bring the right clues.

i.e.) Referral program, customer reviews, influencer marketing, etc.

  How opinions leader should affect a firm’s promotional planning?

we know that the opinion leaders are prospect leaders who have the influence of
realigning the attitudes, beliefs and motives of others in relation to this movement.
They can be useful in the use of the company's environment and in the company's
work environment in terms of how the social and economic dimensions are built for
the longevity of the company. They can therefore affect the planning of a company's
promotion negatively or negatively.

On the negative side, ideological leaders will never rely entirely on the firm's
customers and that they can distort the firm's strategic line for their ill-gotten gains.
This comes in the form of ideological leaders who work for the company and
participate in internal activities regarding the firm.

On the positive side, ideological leaders can influence the company’s promotion
plans because they create transformation agents for the company in an external
environment where the company thrives. They have the power to develop the
programs the company intends to undertake. they also include providing official
ideas for the company's planning stages which may be to maintain a market share or
increase the company's performance in the market.

Q5:

Ans:

5 a)

Pricing Strategies:

Skimming - This is a pricing strategy that involves setting a high price for a product
and lowering it as the market evolve. This strategy is used when a new product
enters the market. The goal is to earn as much revenue as possible while consumer
demand is high and competition has not entered the market. The company uses this
strategy when it believes that there are enough prospective customers willing to buy
the product at that high price. They then gradually lower the price to serve the next
layer of the market.

Penetration pricing - This pricing strategy involves setting a low price to enter a
competitive market and raising it later. This strategy is used where there is stiff
competition and the company wants to use its price as an entry into the market. The
price is aimed at enticing and attracting customers to buy the product after which,
when the product is already known in the market, the price is raised to the favorable
price the company wanted their product to sell.

5 b)

Consumer buying behavior process defines the actions of the consumers in

the marketplace and what are their motives behind those actions.

In simple words we can say that Consumer Behavior Process or consumer buying
process is how consumers decide what they need, want and what they desire and
how they buy, use and get rid of goods that they don’t need or they don’t want.