Q.No.1.

(05 Marks)

Training a sales staff to be warm and attentive is one thing; it’s quite another to identify, track,
and interact with an individual customer and then reconfigure your product or service to meet
that customer’s needs. Marketers believe that one to one marketing (Relationship marketing) can
increase value of your customer base, if practiced correctly.

a) How will you identify whether your company is ready to implement a one-to-one
marketing program?
b) What are the key steps for putting a one-to-one marketing program to work?

Q.No.2. (06 Marks)

Marketing analysts use Neuromarketing to better measure a consumer’s preference. It is believed

that Neuromarketing will tell the marketer what the consumer reacts to, whether it was the color
of the packaging, the sound the box makes when shaken, or the idea that they will have
something their co-consumers do not.

a) Do you think consumers are being controlled when it comes to buying?

b) Is neuromarketing the new science of consumer decisions?
c) How neuromarketing is different from Traditional Marketing?

Q.No.3. (10 Marks)

Answer the following questions based on your understanding

a) Why is understanding consumer behavior so important for companies? Think of

examples where you do not think companies understood their consumers.

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 b) What purchasing decisions have you been able to influence in your family and why? Is
marketing to children a good idea? If not, what if one of your competitors were
successful in doing so? Would it change your opinion?
c) What is your opinion of companies like Google that gather information about your
browsing patterns? What advantages and drawbacks does this pose for consumers? If you
were a business owner, what kinds of information would you gather on your customers
and how would you use it?
d) Are there any areas in which you consider yourself an opinion leader? What are they?
How are companies getting information about opinion leaders?

Q.No.4 ( 10 Marks)

Listed below is a number of firms and how they approach segmentation. You need to
identify what type of segmentation base that the firm is using (see list of segmentation bases
at the bottom).

Note: Sometimes more than one segmentation base in combination (that is, hybrid segmentation)
has been used.

1. A bank that markets home loans to young married people and financial planning services
to retired people
2.  A mobile phone company that targets people who frequently holiday in remote parts of
the world
3. A gourmet cheese company that targets people buying cheese platters for a dinner party
or function
4. Computer software firm that is most interested in households with a high level of
software purchases
5. Prestige car manufacturers who highlight the status associated with owning one of their
vehicles
6. Smart phone manufacturers targeting those consumers who are interested in purchasing
their first smart phone in the future
7. A plumber deciding to do letterbox drops his local area

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 8. A book publisher that specializes in children’s books
9. A home-delivered spring water company advertising in a ‘health’ magazine
10. A travel package tour operator targeting retired people who want educational travel
experiences

Choose from the following segmentation bases:

A=Geographic B =Behavioral C =Benefits D =Demographic

E =Psychographie F = Occasion/situation

QUESTIONS

a) Identify the type of segmentation base being used by each firm.

b) Are there any examples above where the approach used could be classified as more than
one of the segmentation base options?
c) A number of the firms use hybrid segmentation, what would be the advantages of this
approach?
d) Do you think there is one best segmentation base that most firms should utilize? Why?

Q.No.5. (04 Marks)

a) Prices are often set to satisfy demand or to reflect the premium that consumers are willing
to pay for a product or service. Some critics shudder, however, at the thought of
$2 bottles of water, $150 running shoes, and $500 concert tickets.

Take a position: Prices should reflect the value consumers are willing to pay vs. Prices
should reflect only the cost of making a product or delivering a service.

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b) Explain Market skimming and Market penetration pricing strategies. Why would a
marketer of Innovative High-tech Products choose market skimming pricing rather than
Market penetration pricing when launching a new product?