SESSION

FEB/MAR 2021

ROLL NO 2114102580
PROGRAM BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SEMESTER SEMESTER 1
COURSE CODE & NAME DBB1104 - MARKETING MANAGEMENT
SESSION FEB/MAR 2021

Q1. What do you understand by term marketing? Briefly explain the meaning, origin,
scope and importance of marketing. 10

Ans 1.

Marketing :

The word ‘Market’ is derived from the Latin word ‘Marcatus’ meaning merchandise, wares,
traffic, trade or place where business is conducted. The common usage of market means a place
where goods are bought and sold. In its strict meaning, market need not necessarily mean a place
of exchange.

In the words of C.C. Knight, "Marketing embraces all efforts made in the discovery of
consumers' actual and potential requirements for commodities and services and the steps taken
for securing their actual distribution."
Origin of Marketing

The barter system existed in the initial stage of marketing. The caveman, with his surplus
products, approached and tried to exchange his products by accepting the products he needed-
exchange of products for products. In the primitive period, man was a nomadic hunter or food
gatherer. The surplus was exchanged in terms of commodities needed. They, in possession of
surplus goods, searched for those who had a surplus to be exchanged. Searching for others who
needed the surplus product became a tedious job as time and energy had to be wasted.

Scope of Marketing

The scope of marketing, i.e., modern marketing, is very wide. It includes all those activities
which are involved in discovering the present and potential requirements of consumers for goods
and services, and in ensuring the flow of those goods and services from the producers to the final
consumers.

Marketing covers a number of activities. They are:

1) Buying and assembling:

Buying in marketing implies buying of goods from manufacturers for use in production or by
middlemen for resale. Collection of same types of goods bought from different places at one
single or central point is known as assembling.

2) Selling:

Selling is the sum total of all those marketing activities that help in the disposing or transferring
of goods by sale from the seller to the buyer at a profitable price.

3) Transportation:

Transportation refers to the physical movement of goods from places of production to places of
consumption.

The Importance of Marketing

Marketing is a very important aspect of business since it contributes greatly to the success of the
organization. Production and distribution depend largely on marketing. Marketing is the father of
innovation; product development; promoter of entrepreneurial talent; developer of the economy;
stimulator of consumption and higher standard of living and guardian of the price system.

Apart from contributing to the development of the nation as a whole, marketing has greater
importance for its contribution to society and individual business firms.

The below given points show the importance of marketing from the point of view of society.

1) Marketing is a connecting link between the consumer and the producer.

The marketing process brings new and new items to retail shops, from where the consumers can
have them.

2) Marketing helps in increasing the standard of living of people. Because of mass production,
the costs of manufacturing and marketing have come down. This facilitates the fixing of cheaper
rates and is a boon to society. Thus, a reduction in prices will result in a higher standard of
living.

3) Marketing helps to increase the nation's income. An efficient system of marketing reduces the
cost to the minimum; this in turn lowers the prices and the consumer's purchasing power
increases. This will increase the national income.

4) The marketing process increases employment opportunities. For continuous production,

continuous marketing is needed. Continuous marketing invites numerous activities and thus job
opportunities are provided for many people. In a country like India, this is true, because these are
sources of livelihood for many people.

6) Marketing removes the imbalances of supply by transferring the surplus to deficit areas,
through better transport facilities.
Q2. You are about to start a restaurant business in your city, it would be your first venture
as an entrepreneur. Briefly explain and perform the types of analysis you will
undertake before initiating this venture. 10 10

Ans 2.

SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats.SWOT analysis

is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and
Threats involved in a project or in a business venture. It involves specifying the objective of the
business venture or project and identifying the internal and external factors that are favorable and
unfavorable to achieving that objective.

SWOT analysis is an important tool for auditing the overall strategic position of a business and
its environment. Strengths and weaknesses are internal factors. For example, strength could be
your specialist marketing expertise. A weakness could be the lack of a new product.
Opportunities and threats are external factors. For example, an opportunity could be a developing
distribution channel such as the internet, or changing consumer lifestyles that potentially increase
demand for a company's products. A threat could be a new competitor in an important existing
market or a technological change that makes existing products potentially obsolete.

First, the decision makers have to determine whether the objective is attainable, given the SWOT
analysis. If the objective is not attainable, a different objective must be selected and the process
repeated.

SWOT analysis with examples

Strengths: Characteristics of the business or team that give it an advantage over others in the
industry. For example, Microsoft’s strength is its operating system – ‘Windows and related
software applications’ is used by a large customer base all over the world.

Weaknesses: are characteristics that place the firm at a disadvantage relative to others. For
example, weakness can be a high attrition rate.
Opportunities: External chances to make greater sales or profits in the environment. For
example, changing lifestyle of people-the firm can make use of their capability to cater to the
changing lifestyle of people, which in turn could help company to gain profits.

Threats: External elements in the environment that could cause trouble for the business. For
example, small retail shop owners found a great threat when big retailers began their operations
in India.

A SWOT analysis should identify a corporation’s core competencies, along with the
opportunities that the organisation is not currently able to take advantage of due to lack of
appropriate resources. This is essential because subsequent steps in planning for achievement of
the selected objective may be derived from the SWOT analysis.

The SWOT analysis framework has gained widespread acceptance because it is both simple and
powerful for strategy development. However, like any planning tool, SWOT is only as good as
the information it contains. Thorough market research and accurate information systems are
essential for SWOT analysis to identify key issues in the environment.

PEST analysis stands for "Political, Economic, Social, and Technological analysis". It describes
a framework of macro-environmental factors used in the environmental scanning component of
strategic management. It is a part of the external analysis when conducting a strategic analysis or
doing market research, and gives an overview of the different macro environmental factors that
the company has to take into consideration. It is a useful strategic tool for understanding market
growth or decline, business position, potential and direction for operations.

The growing importance of environmental or ecological factors in the first decade of the 21st
century has given rise to green business and encouraged widespread use of an updated version of
the PEST framework.

A PEST analysis incorporating legal and environmental factors is called a PESTLE analysis.
Specifically, PEST or PESTLE analysis is a useful tool for understanding risks associated with
market growth or decline, and, as such, the position, potential, and direction for a business or
organization.

PESTLE analysis is a useful tool for understanding the "big picture" of the environment in which
you are operating and the opportunities and threats that lie within it. By understanding the
environment in which you operate (external to your company or department), you can take
advantage of the opportunities and minimize the threats.

Q3. Define brand with example? Explain the various steps which are undertaken in the
formation of brand name and logo.3+7 10

Ans 3.

Brand :

In earlier times, people bought products and, as the demand was greater than the supply,
companies had a virtual monopoly of the market. It was not necessary to have a brand, as people
purchased the product based on their needs. However, when supply became greater than demand,
it became necessary for companies to acquire and retain customers. To create consumer loyalty,
it became necessary to ensure that there was a corporate personality for the company. Such a
personality or image created for the company came to be known as its brand.

The term brand has a broad meaning and is applied to all visible identification such as
trademarks, symbols, pictures, package designs and signage with distinctive lettering. The brand
ensures that the product has higher recall in the minds of the customers and that there is a
guarantee of quality and standards as per the advertising for the brand.

Branding provides a specific name for the product or group of products in an organisation. By
using a specific name, the product can be defined uniquely and can be distinguished from those
of the competition. A brand that is well promoted earns a name in the marketplace and becomes
difficult to compete with.
Development of a Brand

The brand is the symbol of the product’s personality. It is developed through diligent market
research and is based on the customer’s needs and wants. The various steps which are undertaken
in the formation of a brand name and logo are as follows –

a) Selection of the brand name – The brand needs to convey a particular meaning to consumers.
The first step in the creation of the brand is to select the elements such as brand name and logo.
It is important to choose a good brand name that is easy to remember, recall and pronounce. The
brand name should also be precise and appealing to the consumer and must communicate what
the product stands for in the marketplace.

A few famous examples are –

 Aqua guard – Guards water

 Ford Ikon – Indicates that the car is an icon or landmark image
 IBM – Acronym for the company’s name (International Business
 Machines)
 Coca Cola – Use of the company’s name as the brand name can also
create strong value

b) Selection of logo – A logo is the symbol of the brand represented as a picture. Along with the
brand name, the logo helps to identify the brand. It is a creative symbol that reinforces the visual
imagery of the brand in the minds of the consumer. It becomes inseparable from the brand over
time. The logo must increase the brand’s relevance and staying power in the market.

A few examples are –

 Girl with butter and sandwiches – Amul Butter

 Swoosh – Nike

Brand ‘Amul’

Logo of ‘Nike’

 Dog listening to gramophone – HMV (His Master’s Voice)

Logo of ‘HMV’

 Gattu (Little boy with paint brush and dripping can of paint) – Asian Paints
Logo of ‘Asian Paints’

c) Legal rights – The brand name and logo should be chosen so that it can be registered and
protected legally under the laws of the land.

d) Characteristics of the brand – The brand name should be unique, have pleasant associations
and should be appealing. A few examples are Good Knight, Milkmaid, Maggi, Boost and Fair &
Lovely. The brand name or logo should not be used generically or commonly, as this leads to the
dilution of the brand value. A few examples of brand names which are being used commonly are
Xerox, Band-Aid, Aspirin, Kodak and Eveready.

e) Permanence – The brand name and logo should be stable and should not be affected by time.
The brand should not be named after some item which is in fashion or is chic at the moment, as
these may lose value after some time. Some examples of enduring brands are Eicher, Singer and
Vicco Vajradanti.

f) Positioning – The brand should project the value of the product on the consumers. It is
important to develop the right positioning platform for the brand so that this value proposition
reaches the customer.

g) Brand portfolio – The brand portfolio of the company must be strengthened by activities
such as the right type of acquisitions, monitoring through the various cycles of the product,
correct distribution and visibility, maintaining the product quality and analysing the performance
as well as the market perception of the brand.

The above factors must be reviewed and improved upon from time to time, so as to build the
brand equity of the organization’s flagship products.