GULSHAN CAMPUS, KARACHI

NAME OF STUDENT :BISMA SALEEM SIDDIQUI

ID No.2218-2019

MIDTERM EXAMINATION
Fall 2020
Department / Date of Time Total
Program Semester Course Title Instructor
Faculty Exam Allowed Marks
Faculty of Art
Principle of Mairas
and Design BMS 3rd 1-12-2020 03 Hours 25
Marketing Abbasi
(FAD)

Instructions:
1. This paper contains Report Submission, 10 Objective and 3 detailed Subjective questions.
Attempt all questions.
2. Marks of each question are mentioned at the end of each question.
3. Use of Calculator is allowed (Allowed / Not Allowed).
4. Mobile Phones must be powered off and kept away during the exam.
5. Cheating of any type will disqualify the candidate.
6. Admit card is compulsory to appear in exam.
7. Student shall not be allowed to leave exam hall before one (1) hour from start time of exam.
8. Student shall not be allowed to enter in exam hall after one (1) hour of start time of exam.
9. Student must comply with given instructions by the invigilator or examiner.
10. Any arguments/misbehavior with invigilator shall be resulted to disciplinary action.
11. Do not detach the sheets. (Paper will be cancelled, if the sheets are detached).
12. Write your answers in ink. Pencil may be used for underlining of diagrams only.
13. The work must be neat & clean. Over-writing, cutting will be considered as mistake.
14. Student must bring his/her own stationary. Borrowing in exam hall is not allowed.
15. Answer Script & Question Paper must be returned back to invigilator before leaving exam hall.

This paper has a total of 3 pages including this title page

 GULSHAN CAMPUS, KARACHI

MIDTERM EXAMINATION
FALL 2020
Course Title: Principle of Marketing
Instructor's Name: Mairas Abbasi
_____________________________________________________________________________

Note: Attempt all questions:

Report (25Marks)

Objective (10Marks)
True or False

Tru False
e
01 In SWOT analysis a threat is an internal factor. False
02 A good breakeven percentage for a clothing brand falls between 28% True
to 35%.
03 Location of your business can be your strength and weaknesses both. True
04 Customer demographics, product demand and brand image can affect True
pricing of the brand.
05 When you buy car from a showroom it falls in B2B. False
06 Promotion encompasses marketing communication strategies and True
techniques.
07 Strength of a brand is an internal factor True
08 TVC’s and Marketing coupons both falls in area of advertising True
09 A competitor has a new, innovative product or service is an direct False
opportunity and in favor of the brand.
10 It is not important that marketers have in-depth knowledge of the False
product they are promoting.

Subjective (15 Marks)

Q1. What are the four Principles of Marketing explained in the course session?

There are Four Principles Of Marketing:

 Product

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 Price
 Place
 Promotion

The basic marketing concepts are based upon three things; Needs (A must-have, something one
cannot function without), Wants (Not essential for a being to function properly), and Demand (A
combination of needs and wants and are mostly chosen by the ability to invest in terms of
money). All these are categorized by the level of necessity they possess. However, there are other
essential marketing concepts as well, some of them are as follows:

PRODUCT:

The core of any marketing effort, the product must be something customers desire. The best
marketing in the world will have difficulty selling a product for which there is no demand.
Therefore, the marketing manager must understand how the product helps the customer solve a
problem or achieve a goal. The marketer must also understand the product's relationship in the
market -- how is it superior to the competition?

One of the most helpful tools available at this stage is product testing. There are different types of
product testing. Placing a product into the hands of the customer allows you to gain insights
unavailable any other way.

What does the customer believe the product will do for them? How do they see your product in
relation to the competition? Remember that "the customer is always right" -- what they believe is
what they will use to choose what to buy -- and it's easy to understand how this information is
more valuable than anything said in a meeting or boardroom.

PRICE:
Contrary to popular opinion, price is not the main reason customers buy. An inappropriate price
can still cost you a great deal of money, though -- whether it's in lost sales or in "money left on the
table." Therefore, check that prices of products and services are appropriate both to the reality of
the market and the cost of delivering them.

Often, changing the terms of sale or combining products together may create a negligible effect on
the cost while creating a tremendous effect on the perceived value. These "extra bonuses" may cost
next to nothing while making your prices instantly far more attractive.

PROMOTION:
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Promotion is the heart of what most people think of as "marketing." Promotion encompasses every
aspect of packaging, advertising, sales methodology, and salespeople. Promotions may use small
items or contests to induce the customer to engage with the brand or the product.

Small changes to promotion may produce dramatic changes in your profits. A tiny tweak to your
advertising, for example, can easily double your sales. As you work, keep in mind that no marketing
works forever. Stay prepared to develop new approaches, strategies, and offers on an ongoing
basis in order to keep ahead of the market's changing tastes.

PLACE:
Where the customer meets the salesperson is the "place." Direct sales methods put the place in the
customer's home or office, with a salesperson personally going out to talk with the prospect.
Online stores replace the salesperson with a website.

Other companies use retail establishments or trade shows as their "place." In many instances you'll
find that a combination of these methods produces the best results.

Now, let's look at the "New Four Ps," which extend this model to service-based businesses and a
customer-service oriented world.

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Q2. Explain SWOT Analysis in detail?

SWOT ANALYSIS
SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and for
identifying both the Opportunities open to you and the Threats you face.

It represents a methodological tool designed to help workers and companies optimize

performance, maximize potential, manage competition, and minimize risk. It is about making better
decisions, both large and small. It can help you determine the efficacy of something as small as
introducing a new product or service or something as large as a merger or acquisition.

Why conduct SWOT?

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SWOT is a method that, once mastered, can only enhance performance. What makes SWOT
particularly powerful is that, with a little thought, it can help you uncover opportunities that you are
well-placed to exploit. And by understanding the weaknesses of your business, you can manage
and eliminate threats that would otherwise catch you unawares.

More than this, by looking at yourself and your competitors using the SWOT framework, you can
start to craft a strategy that helps you distinguish yourself from your competitors, so that you can
compete successfully in your market.

When to conduct SWOT?

You can use a SWOT analysis in two predominant ways – as a simple icebreaker helping people get
together to "kick off" strategy formulation, or in a more sophisticated way as a serious tactical tool
in the competitive sense.

What makes SWOT particularly powerful is that, with a little thought, it can help you uncover
opportunities that you are well-placed to exploit. And by understanding the weaknesses of your
business, you can manage and eliminate threats that would otherwise catch you unawares.

More than this, by looking at yourself and your competitors using the SWOT framework, you can
start to craft a strategy that helps you distinguish yourself from your competitors, so that you can
compete successfully in your market.

Note that we believe the SWOT analysis should definitely be used in conjunction with the market
and competitive analyses and is best when it is conducted following these efforts.

Components of SWOT

Once you’ve identified the subject of your SWOT analysis, it is time to begin. SWOT consists of four
components--Strengths, Weaknesses, Opportunities, and Threats. These four components are
organized into two categories--internal and external. That is, look internally for Strengths and
Weaknesses, and look externally for Opportunities and Threats.

Strengths

Once you’ve identified the subject of your analysis (e.g. should we add x product to our lineup?), it
is time to identify your strengths. Quality and reliability, for example, should always be strengths for
any organization. More specifically, Charlie Ioannou defines strengths as “the resources and
capabilities that can be used to develop a competitive advantage” (Ioannue, SWOT Analysis - An
Easy to Understand Guide, 47-49).

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This brings us to perhaps the most important aspect of the Strengths assessment: it is imperative
that you analyze your strengths (and weaknesses) in relation to your competitors. In other words,
what are the unique features of your company--a well-established company with established brand
trust, lower production costs, superior customer service, stronger web presence, etc.--that will
provide a competitive advantage? Identify those and you’ve identified your strengths.

Weaknesses

Now identify your weaknesses. The more honest you are here the better. One way to think of
weakness is the absence of strength. Therefore, the items of your business model you did not
identify as strengths above are the first place to look for weaknesses. Cash flow, brand recognition,
marketing budgets, distribution networks, age of your company, etc. are all places to consider
when assessing weaknesses. The idea here is that you’ll turn these weaknesses into strengths.
Doing so, however, requires an honest assessment of where your company needs to improve.

Now that you’ve looked internally for Strengths and Weaknesses, it’s time to look externally for
Opportunities and Threats. Opportunities and Threats interact similarly to Strengths and
Weaknesses. That is, they draw on similar dynamics (external ones, in this case) to assess whether
those create opportunities or threats to your business.

Opportunities

Here is where you identify the opportunities for growth, greater margins, and larger market share.
Again, assessing opportunity in relation to competition is imperative. What opportunities are there
for you to distinguish your company from your competitors? What opportunities can you identify
to offer a similar service or product at a higher quality or at a lower price than your competition?
What are the needs of your customers that your field does not currently address?

Technology is an external factor that always presents new opportunities and, as we shall see, new
threats. What technological innovations open up new opportunities for your business to lower
costs, speed up production, market more effectively, or improve customer service?

The key with Opportunities is that they must be acted on. Remember, if you don’t act your
competitors will.

Threats

Lastly, in which areas is your company at risk? Is your competitor developing a product to compete
with one of yours? Is there a new or bigger company poaching your best employees? These are all
threats to your business.

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The Harvard Business Reviews defines “Threats” as “possible events or forces outside of your
control that your company or unit needs to plan for or decide how to mitigate.”

What about new legislation? Does a new law or proposed law threaten your production costs?
What about new tax laws? A yes to any of these equals a threat.

Lastly, just as technological innovation may provide an opportunity; it can also issue a threat.

Threats to the business now include lawsuits over insurance liability, legislation proposing banning
the service, and higher profit-margins at competing companies.

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Q3. Describe the structure of Customer?

Structure Of Customer
A customer is an individual or business that purchases another company's goods or services.
Customers are important because they drive revenues; without them, businesses cannot continue
to exist. All businesses compete with other companies to attract customers, either by aggressively
advertising their products, by lowering prices to expand their customer bases or developing unique
products and experiences that customers love, think Apple, Tesla, Google or TikTok.

B2C:
A business-to-consumer, or B2C, business model is one in which a company sells a service or
product directly to a consumer without using an intermediary.

B2B:
Business-to-business – “B2B” – refers to commerce between two businesses rather than to
commerce between a business and an individual consumer. Transactions at the wholesale level are
usually business-to-business while those at the retail level are most often business-to-consumer
(B2C).

C2B:
Consumer to business is an up and coming business market that can be utilized as a
company's entire business model or added to an already existing model. Consumer to

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business (C2B) is the opposite of business to consumer (B2C) practices and is facilitated by
the internet or online forms of technology.

C2C:
Customer to customer (C2C) is a business model that enables customers to trade with each
other, frequently in an online environment. C2C businesses are a type of business model that
emerged with e-commerce technology and the sharing economy

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END