Allama Iqbal Open University

Department of Business Administration

PRINCIPLE OF MARKETING(8407)

Autumn Exams 2021

Name: HAMZA AMAN

Roll no: CA475954

Semester: Autumn,2020

Level: BBA 4 Years Program

Q.1 Differentiate between the concept of
marketing and advertising. What do you
understand the organizations’ environment?
Briefly explain five different environments in
which marketing operates.
It may seem like advertising and marketing are two
concepts that share exactly the same objective. In fact,
they do have the same objective: alerting consumers to
products and services being sold. Marketing and
advertising have many things in common, but there are
some differences. Comprehension of these differences
and similarities will help any business or organization with
their strategy for customer and audience acquisition
Marketing
Marketing is a business practice that involves identifying,
predicting and meeting customer needs. Effective
marketing strategies help businesses isolate how best to
serve their client base, while maximizing revenue at the
same time. In business-to-consumer (B2C) marketing,
marketing efforts are directed toward consumers. In
business-to-business (B2B) marketing, marketing efforts
are directed toward other businesses. Marketing is a
process that involves design,
creation, research and data mining about how to best align
the idea of a product or service with the target audience.
Marketing helps to define the product even more than the
actual product does.
Marketing involves research and analysis. This involves
studying audience response and creating language and
design that will best influence that audience. Certain
groups of consumers respond better to images and words
than others. Slogans and mission statements that best
communicate the “message” of the product are essential
to marketing. Marketing strategy can be broken down into
the 4 P’s: product, place, price and promotion.
The message of a marketing campaign transmits what
kind of people can use the product, what kind of
environment best suits the product and other related
information. The message is communicated through
marketing materials, which create tone and personality of
the product as well. Another aspect of market research is
pricing and ways to distribute the product.
Advertising
Advertising is a business practice where a company pays
to place its messaging or branding in a particular location.
Businesses leverage advertising to promote their products
and services for sale as well as establish corporate culture
and branding When employed properly and strategically,
advertising can drive customer acquisition and boost
sales.Advertising is the literal process of making a product
and service known to an audience. It is the description
used to present the product, idea or service to the world.
This generally entails advertising campaigns in the media.
An advertising campaign uses creative
positioning in the media. Advertising must be timely and
used in a specifically strategic way.
Advertising gets the word out about a product or service.
This involves creating a campaign that aligns with the
wants and needs of the prospective audience. A great
advertising campaign uses a mixture of media to best
generate excitement for a product.
For example, if the product is geared toward a younger
audience, then social media platforms like Facebook,
Instagram and Twitter might be the best way to reach that
audience. Other consumer groups may respond better to
radio, television or print ads. Most advertising campaigns
use a combination of media to reach the widest audience
possible.
Organization Environment Marketing
The Marketing Environment includes the Internal factors
(employees, customers, shareholders, retailers &
distributors, etc.) and the External factors( political, legal,
social, technological, economic) that surround the
business and influence its marketing operations.Some of
these factors are controllable while some are
uncontrollable and require business operations to change
accordingly. Firms must be well aware of its marketing
environment in which it is operating to overcome the
negative impact the environment factors are imposing on
firm’s marketing
Q.1 How marketing information system helps
organizations to compete in the contemporary
scenario? Support your answer with suitable example.
Discuss the objectives of market segmentation and
explain all five-segmentation approached to achieve
marketing objectives.
A marketing information system is a managment
information system design to support marketing descion
making Jobber (2007) defines it as a "system in which
marketing data is formally gathered, stored, analysed and
distributed to managers in accordance with their
informational needs on a regular basis." In addition, the
online business dictionary defines Marketing Information
System (MKIS) as "a system that analyzes and assesses
marketing information, gathered continuously from
sources inside and outside an organization or a store."[1]
Furthermore, "an overall Marketing Information System
can be defined as a set structure of procedures and
methods for the regular, planned collection, analysis and
presentation of information for use in making marketing
decisions." (Kotler, at al, 2006)
Developing an MIS system is becoming extremely
important as the strength of economies rely on services
and to better understand the specific needs of customers.
Kotler, et al. (2006) defined it more broadly as "people,
equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and accurate
information to marketing decision makers."
Insofar as an economy focuses on services, marketing is
important to "monitor the marketing environment for
changes in buyer behaviour competition, technology,
economic conditions, and government policies."[4] In this
sense, the role of marketing is becoming pivotal for an
organization to "adapt to changes in the market
environment." (Harmon, 2003)
As an economy relies on the acquisition of knowledge,
MkIS systems
are necessary to be able to define and differentiate the
value proposition that one organization provides with
respect to another, as well as to define their competitive
advantage. (Harmon, 2003)
The main benefit of MkIS systems is to integrate market-
monitoring systems with strategy development and the
strategic implementation of policies and processes that
help capture and act on customer management
applications with marketing decision support systems. This
area constitute Marketing intelligence that supports the
analysis and market based activities that support customer
relations and customer service with real time information
with real time applications that support market based
approaches.
Marketing Information System
1.It handles both internal and external data.
2. It is concerned with preventing as well as solving
problems.
3.It operates continuously as a system.
4.It tends to be future oriented.
5.It includes other subsystems besides marketing
research.
The business function of marketing is concerned more
with the planning, promotion and sale of products in
existing markets and the development of new products
and new markets. Thus marketing performs a vital function
in the operation of a business enterprise. Business firms
who turned to computers have been able to perform vital
marketing function effectively for organizations' growth in
the face of global competition.
RuMIS
A RuMIS is necessary not only for corporate organizations
engaged in marketing of agricultural goods and
manufactured goods intended for sales in rural areas.
RuMIS is required also by the agriculturists and farmers
who have enormous decis!ion-making to do.
information technology
The systems that comprise information technology in a
business today encompass a number of types of
computers, storage and networking equipment. In fact,
one definition of business information technology is: The
use of any computers, storage, networking and other
physical devices, infrastructure and processes to create,
process, store, secure and exchange all forms of
electronic data.

Q.3 Some industrial suppliers make above-

average profits by offering service, selection,
and reliability at a premium price. How might
these suppliers segment the market to locate
customers who are willing to pay more for these
benefits? Cite examples of organizations that
use each targeting strategy, i.e., undifferentiated,
differentiated, and concentrated. Discuss why
they have chosen this strategy.
Niche Marketing
Niche marketing (also called concentrated marketing) is a
strategy that targets only one or a few very defined and
specific segments of the consumer population. The goal is
to achieve high penetration among the narrowly defined
target segments. For example, the manufacturer of Rolex
watches has chosen to concentrate on only the luxury
segment of the watch market.

An organization that adopts a niche strategy gains an

advantage by focusing all efforts on only one or a small
handful of segments. All of their market analysis, product
development, marketing strategy, and tactics concentrate
on serving that select part of the market. When they do it
well, this approach can provide a differential advantage
over other organizations that don’t concentrate all their
efforts on the “niche” segment(s). Niche targeting is
particularly effective for small companies with limited
resources, as it does not require the use of mass
production, mass distribution, or mass advertising. When a
company is highly successful in desirable “niche” market
segments, it can be very profitable.

Individual marketing is sometimes referred to as “mass

customization” or “one-to-one marketing.” With this
approach, companies offer consumers a product created
to their individual specifications. For example, Build-A-
Bear Workshop invites children to create their own custom
stuffed animals. A child can select the type of animal, from
teddy bear to unicorn, along with color, size, clothing, and
other accessories. Creators of handmade goods on
Etsy.com take orders from buyers who may request
variations on the individually crafted jewelry, clothing, toys,
and other items displayed on the Web site. In the following
video, Etsty CEO, Chad Dickerson, explains what makes
the company’s approach unique

Micromarketing
Micromarketing is a targeting strategy that focuses even
more narrowly than niche marketing. It caters to the needs
of individuals (“individual marketing”) or very small
segments in a targeted geography (“local marketing”).
Micromarketing can be very powerful by giving consumers
exactly what they want, when they want it. However, to
achieve large-scale success with this approach,
companies must figure out how to meet highly
individualized needs efficiently and profitably.

THE END, THANKS!