BBDT1013 Principles of Marketing

Tutorial 1: An overview of contemporary marketing

SECTION A: Discussion Questions

1) What is marketing? How did you define the term before you read this chapter? *(2016
September Examination & 2017 September Examination)

Marketing is the process by which companies create value for customers and build strong
customer relationships in order to capture value from customers in return.

Before I read this chapter, I think marketing is the activities of a company to buying and
selling the products and services to consumers, clients, or society.

2) What is marketing myopia and how can it be avoided?

Marketing myopia which refers to the mistake of paying more attention to the specific
products a company offers than to the benefits and experiences produced by these products.
Companies neglect to satisfy customer needs and build customer relationships.

Marketing myopia can be avoided through filtering every strategic initiative and company
program through the screen of the customers it seeks to serve, Fundamentally, any company
initiative or program must have the customer at its heart. In short, the companies should shift the
perspective and focus on the customer rather than just themself and their product.

Besides that, smart marketers look beyond the attributes of the products and services they
sell. By orchestrating several services and products, they create brand experiences for consumers.

3) What are the four variables of the marketing mix? Are the four variables equal important?

There are four variables of the marketing mix, which are product, price, place, and
promotion. These four variables are equally important.

It is because the product is the most critical parts of the marketing mix. As a consumer,
we are spoilt for choice of hundreds of different products. But in recent years, as the increasing of
well-being life, people are raised their standard and requirement on living quality. They will be
mainly to consume high-quality products regardless of other factors such as the products its price.
Therefore, the best marketing in the world can't mask a bad product.
 BBDT1013 Principles of Marketing

4) Relate customer satisfaction to customer expectation. *(2015 August/September

Examination)

If the product’s performance falls short of expectations, the customer is dissatisfied. For
example, if the customers leave feeling like they did not get what the companies were promised, they
are more likely to leave bad reviews and will not be recommending this product to others.

If the performance matches expectations, the customer is satisfied. For example, the
companies provide their customers with a realistic expectation for their products and services, and
they will leave feeling like they got exactly what they wanted out of the experience. By being honest
and accurate about the products and services, customers will trust the companies to provide them with
a satisfying experience.

If performance exceeds expectations, the customer is highly satisfied or delighted. For

example, when the customers have a lower expectation for the company's service, they are more
likely to feel highly-satisfied after it is complete, it is easier to exceed customers. This can help the
companies get good reviews, as customers will be surprisingly pleased by the experience.

5) Examine the types of marketing management orientation. *( 2018 January Examination)

P
p
e
tn
c
u
dk
lm
roia
tis
M
g
S
BBDT1013 Principles of Marketing
 BBDT1013 Principles of Marketing

Tutorial 2: Developing successful marketing and organisational strategies

SECTION A: Discussion Questions

1) What is the SWOT analysis?

SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT

analysis is a framework used to evaluate a company's competitive position and to develop
strategic planning. In addition, SWOT analysis assesses internal and external factors, as
well as current and future potential.

The first element of a SWOT analysis is strengths. It is internal capabilities that

may help a company reach its objectives. This element addresses things that the company
or project does especially well. This could be something intangible, such as the
company’s brand attributes, or something more easily defined such as the unique selling
proposition of a particular product line. It could also be the labour, company's literal
human resources, strong leadership, or a great engineering team.

Besides that, weaknesses. It is internal limitations that may interface with a

company’s ability to achieve its objectives. This element can include organizational
challenges like a shortage of skilled people and financial or budgetary limitations. This
element of a SWOT analysis may also include weaknesses in relation to other companies
in the industry, such as the lack of a clearly defined unique selling proposition in a
crowded market.

Furthermore, opportunities. It is external factors that the company may be able to

exploit to its advantages. This element of a SWOT analysis covers everything the
company could do to improve sales, grow as a company, or advance the organization’s
mission.

Moreover, threats. It is current and emerging external factors that may challenge
the company’s performance. It is everything that poses a risk to either the company itself
or its likelihood of success or growth. This could include things like emerging
competitors, changes in regulatory law, financial risks, and virtually everything else that
could potentially harm the future of the company or project.

2) Name and describe the four product/market expansion grid strategies. *(2017 September
Examination & 2018 January Examination)
 BBDT1013 Principles of Marketing

3) Discuss the five marketing management functions.

 BBDT1013 Principles of Marketing

4) Explain why it is important for all departments of an organization—marketing,

accounting, finance, operations management, human resources, and so on—to “think
consumer.” Why is it important that even people who are not in marketing understand it?

SECTION B: Group Discussion

Rolex: Building Brand Equity through a Customer-driven Marketing Mix
Refer to http://www.rolex.com and https://www.youtube.com/user/WorldOfRolex/featured

1) How Rolex has set and maintained its position in the market through the marketing
strategies?
-4P
Product wise.
Distribution (place) wise.
Pricing wise.
Promotion wise.
 BBDT1013 Principles of Marketing

2) What is Rolex really selling? What are customers really buying?

 BBDT1013 Principles of Marketing

3) If you worked as Rolex’s operations manager, financial analyst, IT specialist, or

human resources manager, why would it be important for you to understand
Rolex’s marketing strategy?
 BBDT1013 Principles of Marketing

Tutorial 3: The marketing environment & Marketing research

SECTION A: Short Scenario

Use the following to answer the questions.

A new U.S. automobile company, Specialty Motors, was established in 2004. In 2008, a
recession caused disposable income to decline, and the annual amount of dollars spent by
consumers for automobiles dropped drastically. Specialty Motors faced the problem of trying
to determine whether the economy would turn toward prosperity or toward depression. No
matter what happened, Specialty Motors was also worried about an impending global steel
shortage. The economy might recover from the recession, but the automobile makers might
be forced to ask consumers to curtail consumption.

1) Refer to scenario; identify type of competitor Specialty Motors views towards Toyota
Corolla and Suzuki motorcycle.

2) Discuss types of competitive structures. In what type of competitive structure is Specialty

Motors operating?
 BBDT1013 Principles of Marketing

3) Based on above, identify and explain the marketing environmental forces that influence
Specialty Motors automobile.

SECTION B: Discussion Questions

1) Assess how sociocultural forces impact a foreign company’s marketing activities when it
enters into the Malaysian market.*(2015 January Examination)
 BBDT1013 Principles of Marketing

2) List the four steps in the marketing research process. *(2015 January Examination)

3) What is secondary data? List the advantages and disadvantages of using secondary data
for marketing research. *(2018 September Examination)
 BBDT1013 Principles of Marketing

SECTION C: Group Discussion

Domino’s “Pizza Turnaround” campaign

Refer to “pizza turnaround” from different perspectives by going to www.youtube.com and
entering the keywords “pizza turnaround.”

Domino’s “Pizza Turnaround” campaign

After five years of stagnant or declining revenues, Domino’s Pizza did something
practically unheard of in the business world. It asked customers for honest feedback
and reinvented its product “from the crust up.” The Domino’s “Pizza Turnaround”
campaign began with marketing research to understand what customers thought
and wanted. Industry research showed that although Domino’s was tops in service,
convenience, and value for the money, it trailed far behind competitors in taste. To
gain deeper insights into what consumers really thought, Domino’s turned to
research using social media channels and focus groups. Rather than hiding from
these stinging results or waving them off, Domino’s executives fessed up to the
problems and faced them head on. The company began by completely
reinventing its pizza recipes, and customers seemed to like it. To announce
the changes and to turn around customer opinions, Domino’s launched a
daring $75 million “Pizza Turnaround” promotion campaign. The startlingly
honest campaign was fully integrated into the brand’s Facebook and Twitter
pages, where the company posted all the bad along with the good and asked
for continuing feedback. Since the Pizza Turnaround campaign began,
Domino’s has seen revenues increase by 21 percent and profits increase by
31 percent, even as the pizza-delivery industry and restaurants in general
have struggled. The lesson for marketers is that talking to customers, hearing
what they have to say, and acting on the resulting insights can pay big
dividends. 

1) How is it possible that a large and successful corporation such as Domino’s drifted so far
from what its customers thought about them and how their pizzas tasted? How Domino’s
gain key customer insights into the underlying needs, emotions, and brand connections of
its pizza customers?
BBDT1013 Principles of Marketing
 BBDT1013 Principles of Marketing

Tutorial 4: Segmenting and positioning

SECTION A: Discussion Questions

1) How does market segmentation differ from market targeting?

2) Name and describe the levels at which market targeting can be carried out. *(2020
January/February Examination)
 BBDT1013 Principles of Marketing

3) Why is selecting the appropriate target markets important to an organization which wants
to adopt the marketing concept philosophy?

SECTION B: Sample Exam Questions *(2014 August/September Examination)

Question 1
THAI Smile is a brand-new subsidiary airline of THAI Airways which is operated under
the management of Thai Smile Airways Company Limited. A brand positioning of Thai
Smile is 'light premium'. THAI Smile offer variety of products and services to meet the
need to passengers who want to travel in a short distance flight session while ensuring
greatest comfort and convenience for a superior air travel experience.
 BBDT1013 Principles of Marketing

(a) Based on the above, identify the positioning practice by THAI Smile. Explain how
does positioning help in deciding on marketing strategy? (7
marks)

(b) Propose segmentation strategies that could practice by THAI Smile. Support each
segmentation strategies with relevant example. (12
marks)
 BBDT1013 Principles of Marketing

(c) Abu often used his free time to tour and travel around. While his father Ali, often
required by company to go for business visit. Based on the statement, describe the type of
markets Abu and Ali belong to relate to THAI Smile. (6
marks)

[Total: 25 marks]

SECTION C: Group Discussion

Form students into groups of three to five. Each group was given a list - Segmentation
Variables in Different Industries. This exercise is designed to get students to think in terms of
segmentation variables discussed in the chapter and link it with the list given.

Segmentation Variables in Different Industries.

 BBDT1013 Principles of Marketing

1. Recreational vehicles (RVs):

2. Baby food:

3. Rolls Royce automobiles:

4. Snow tires:

5. Hotel rooms:

6. Magazines:

7. Soft drinks:

8. Movies:

9. Shoes:

10. Bicycles:

11. Air passenger service:

12. Cameras:

13. Swimsuits:

14. Restaurants:

15. Snowboards:
 BBDT1013 Principles of Marketing

Tutorial 5: Understanding consumer behaviour and understanding organisations as

customers

SECTION A: Short Scenario

Use the following to answer the questions.

Consumers use information from many sources when making purchasing decisions, including
information from friends and family members. One of the most dissatisfying consumer
experiences is with auto repair. Aware of this, Karla has asked several of her friends and
family members where they have their cars repaired, since she has been experiencing a
problem with her car starting when the weather is cold. Karla has heard that Skola's Auto
Repair has reasonable prices, but it can be difficult to get an appointment. However, one of
her friends, Steve, had a very poor experience with Skola's. Once he complained to them,
they fixed the situation and now he prefers their auto shop over others.

1) Briefly explain the type of problem solving that consumers normally use to select an auto
repair shop.

2) Outline the three perceptual process – selective attention, selective distortion and
selective retention.
 BBDT1013 Principles of Marketing

3) Refer to Question 2. A dissatisfied Skola's Auto Repair customer told a friend about his
experience. The friend has been a long-time Skola's customer and the next day, didn't
remember what her friend told her. Identify which perception process a customer is in?

4) Refer to above Scenario. Positive feelings generated by satisfaction with Skola's response
will become part of Steve's attitude. Assess how attitude influence consumers behaviour.
 BBDT1013 Principles of Marketing

SECTION B: Discussion Questions

1) Identify, describe, and give examples of the four major types of business markets.*(2019
January Examination/ 2020 January/February Examination)
 BBDT1013 Principles of Marketing

2) Why do buyers involved in straight rebuy purchases require less information than those
making a new-task purchases?
 BBDT1013 Principles of Marketing

3) Describe the stages in the buyer decision process for an existing product.*(2018
September Examination)
 BBDT1013 Principles of Marketing

4) What are the commonly used methods of business buying? *(2018 August/September
Examination)
 BBDT1013 Principles of Marketing

5) Differentiate business markets from consumer markets. *(2015 August/September

Examination)
 BBDT1013 Principles of Marketing

Tutorial 6: Product decisions and pricing decisions

SECTION A: Short Scenario

Use the following to answer the questions.

Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made
improvements on their razors offering many "firsts" such as the Mach3, the Sensor, and the
Fusion. For many years, women were forced to use razors designed primarily for men, but
often marketed to women by offering them in different colors and with minimal
modifications. In 1998 Gillette developed the Venus razor, based on the Mach3 but made
specifically for women. Gillette promoted the Venus razor heavily, with television ads and
other forms of media. The Gillette product line, now owned by Procter & Gamble, continues
to introduce new versions of the Venus, such as the Venus Embrace, which has additional
blades and other modifications.

1) Refer to scenario above, briefly explain Shaving razors fall into which classification of
consumer products?

2) When Gillette developed the Venus razor in 1998, in which stage of the PLC was the
Venus? Briefly explain it.
 BBDT1013 Principles of Marketing

3) Tasha is shopping for personal care items at her local Target. She walks by one aisle and
sees a floor-standing display for the new Venus Embrace. She hadn't thought about
buying a new razor, but the display has caught her attention. Identify which stage of the
product adoption process is Tasha most likely in at the present time?

Key Notes of Chapter 9’s Pre-Lecture:-

 Factors that can affect Pricing Decisions
 New Product Pricing Strategies 
 Product - Mix Pricing Strategies
 Price Adjustments Strategies     
 BBDT1013 Principles of Marketing

SECTION B: Discussion Questions

1) Is a personal computer sold at a retail store a consumer product or a business product?

Defend your answer.
-both

2) How do industry profits change as a product moves through the 5 stages of its life cycle?

3) In the category of business products, how do component parts differ from process
materials?
 BBDT1013 Principles of Marketing

4) Why are pricing decisions important to an organization?

Pricing decisions are important to a firm because they directly relate to the
generation of total revenue. This links price with other elements of business, such as
accounting and finance. A change or error in price will send repercussions
throughout the company. Pricing is also important because it is indirectly related to
quantities sold. As the most flexible aspect of the marketing mix, price plays
another important role by affecting production and inventory levels. Price even more
indirectly influences total costs through its effect on quantities sold.

5) Name and briefly describe the five product mix pricing strategies.

 In product line pricing, management must decide on the price steps to set between
the various products in a line.  The price steps should take into account cost
differences between the products in the line.  More importantly, they should account
for differences in customer perceptions of the value of different features.

 Many companies use optional-product pricing—offering to sell optional or

accessory products along with their main product.  Pricing these options is a sticky
problem, though, as automobile marketers found when advertising the most basic,
stripped down version of their cars.

 Companies that make products that must be used along with a main product are
using captive-product pricing.  Examples of captive products are razor blade
cartridges, video games, and printer cartridges.  Producers of the main products
(razors, video game consoles, and printers) often price them low and set high
markups on the supplies.  Companies using captive-product pricing must be careful
—consumers trapped into buying expensive supplies may come to resent the brand
that ensnared them.  In the case of services, captive-product pricing is called two-
part pricing.  The price of the service is broken into a fixed fee plus a variable usage
rate.

 Producing products and services often generates by-products.  If the by-products

have no value and if getting rid of them is costly, this will affect the pricing of the main
product.  Using by-product pricing, the company seeks a market for these by
products to help offset the costs of disposing of them and to help make the price of
the main product more competitive.  
 BBDT1013 Principles of Marketing

 Using product bundle pricing, sellers often combine several of their products and
offer the bundle at a reduced price.  For example, fast-food restaurants bundle a
burger, fries, and a soft drink at a “meal” price.

6) Compare the geographic pricing strategies companies use for customers located in
different parts of the country or world. Which strategy is best? *(2016 April
Examination)

There are five geographical pricing strategies and which one is “best” depends on the
market situation:

 FOB-origin pricing:  this practice means that goods are placed free on board (FOB)
a carrier.  At that point the title and responsibility pass to the customer, who pays the
freight from the factory to the destination.  Because each customer picks up its own
costs, some feel this is the fairest way to assess freight charges.  The disadvantage
is that costs are higher for distant customers.
 Uniform-delivered pricing: the company charges the same price plus freight to all
customers, regardless of their location.  The freight charge is set at the average
freight costs.  This pricing strategy results in a higher charge for closer customers
compared to FOB-origin pricing.  This strategy is fairly easy to administer and it lets
the firm advertise its price nationally.
 Zone pricing:  falls between FOB-origin pricing and uniform-delivered pricing.  The
company sets up two or more zones.  All customers within a given zone pay a single
total price, the more distant the zone, the higher the price.  Customers within a given
price zone receive no price advantage from the company, however, close customers
within a zone pay part of the freight cost of farther customers within that zone.
 Basing-point pricing:  the seller selects a given city as a “basing point” and charges
all customers the freight cost from that city to the customer location, regardless of the
city from which the goods are actually shipped.  If the basing point is Chicago, for
example, but the product is actually shipped from Atlanta, a customer in Atlanta pays
the freight cost from Chicago to Atlanta, even though the goods are shipped from
Atlanta. This method is less popular today, but some companies set up multiple
basing points to create more flexibility and quote charges from the basing-point city
nearest to the customer.
 Freight-absorption pricing:  the seller absorbs all or part of the actual freight
charges in order to get the desired business under the assumption that if it can get
more business, its average costs will fall and more than compensate for its extra
freight cost.
 BBDT1013 Principles of Marketing

Tutorial 7: Marketing channels

Key Notes for Chapter 10 Lecture

1. Significance of Marketing Channels 
1. Marketing Channels Create 4 utilities : Time, Place, Possession , Form.
2. Distributor can help to reduce number of transactions
2. Conventional Marketing Channels vs Vertical Marketing Systems.
a. Types of Vertical Marketing Systems (VMS) - Corporate, Contractual &
Administered VMS.  
3.  Multichannel Distribution Systems 
4. Channel Design Decisions : Number of Marketing Intermediaries : Intensive,
Selective & Exclusive.

SECTION A: Discussion Questions

1) Describe the major functions of marketing channels. *(2015 January Examination, 2016
January Examination & 2017 September Examination).

A marketing channel (or distribution channel) is a set of interdependent

organizations that help make a product or service available for use or consumption
by the consumer or business user. The major functions of marketing channels
include creating utility and facilitating exchange efficiencies. 
Marketing channels create time utility by making products available when customers
want them. For example, a store might open on the weekends if customers typically
shop for that product at that time. 
Besides that, place utility created by making products available in locations where
customers wish to purchase them. For example, Apple Inc. sells iPhones and laptops
through its retail stores, but also offers its products through other electronics retailers.
While possession utility refers to customers who have access to the product to use
now or store for future use. For example, offering favourable financing terms toward
ownership of a car, appliance, or home would likely create possession utility for those
products and lead to increased sales.
Then, form utility formed by assembling, preparing, or otherwise refining the product
to suit customer needs. Because intermediaries are specialists at the services they
provide, they can make the exchange more efficient. For example, a company might
design a product to target a specific client's needs or wants.

2) Explain the differences among intensive, selective, and exclusive methods of distribution.
*(2014 August/September Examination & 2016 April Examination)

Intensive distribution is ideal for producers of convenience products and common

raw materials. It is a strategy in which they stock their products in as many outlets as
possible. For example, this method is particularly useful for products like soft drinks
and cigarettes.
While selective distribution is the use of more than one but fewer than all of the
intermediaries or outlets who are willing to carry a company’s products, suitable for
shopping products. For instance, Sony TVs can be purchased at a number of outlets
 BBDT1013 Principles of Marketing

such as Circuit City, Best Buy, or Walmart, but the same models are generally not
sold at all the outlets.
And exclusive distribution purposely limits the number of intermediaries handling
their products. The producer gives only a limited number of dealers the exclusive
right to distribute its products in their territories. For products purchased infrequently,
consumed over a long period of time, or requiring service and information like a
speciality product. For example, Apple, Samsung, Lamborghini, Gucci, Coca Cola,
BMW, and Mercedes.

3) Outline the three main types of vertical marketing systems.

A vertical marketing system (VMS) consists of producers, wholesalers and retailers

acting as a unified system. There are three types of vertical marketing systems,
which are corporate, contractual, and administered.
A corporate vertical marketing system streamlines the process by bringing all of
the elements of the distribution channel, from manufacturing to the stores, under the
ownership of a single business. Firestone, for example, manufactures tires and owns
the service centres that sell the tires to customers. The ownership of the distribution
channel can happen from any point in the chain. A well-financed retail outlet might
buy a wholesaler and production facilities, or a producer could purchase its main
wholesaler and retail outlets.
Under contractual vertical marketing systems, the pieces of the distribution
channel continue to operate as individual entities. The businesses enter into
contractual relationships with other elements in the distribution channel with their
respective obligations and benefits spelt out ahead of time. This approach allows all
of the participants to leverage economies of scale that enable more competitive
pricing.
Then, administered vertical marketing systems employ neither formal contractual
obligation nor corporate ownership of the distribution channel. Instead, one member
of the distribution channel wields enough power, generally though the sheer size, to
effectively control the activities of the other members of the distribution channel.
Massive retail chain stores, such as Walmart, often preside over administered
vertical marketing systems. Most smaller businesses cannot exert the necessary
influence to run such a system but may find it necessary to deal with a wholesaler or
producer that operates under such a system.

4) Explain multichannel distribution systems and support it with a relevant example. *(2018
August/September Examination/ 2020 January/February Examination)

Multichannel distribution systems occur when a single firm sets up two or more
marketing channels to reach one or more customer segments. It allows the firms to
expand sales and market coverage, tailor their products, and services to the specific
needs of the diverse customer and larger profits may occur.
Merchants can choose which channels they want to distribute products to their
customers. Distribution channels can be physical stores, branded websites,
marketplaces like Amazon and eBay, and direct mail. For example, Starbucks uses
a multichannel distribution system by selling in its own-stores, grocery stores, and its
own online site.
 BBDT1013 Principles of Marketing

5) Compare vertical marketing system with conventional marketing channel. Support each
with the relevant diagrams. *(2018 January Examination)

A vertical marketing system (VMS) consists of producers, wholesalers and retailers

acting as a unified system. While a conventional marketing (distribution) channel
consists of one or more independent producers, wholesalers and retailers. Each is a
separate business seeking to maximize its own profits, perhaps even at the expense
of the system as a whole.

SECTION B: Group Discussion

There are many online travel intermediaries that have popped up since the Internet went
public in the mid-1990s. Travelocity, Orbitz, Cheaptickets, Hotwire, Priceline, and others
have succeeded in disintermediating the travel business and darn near extinguishing the
traditional travel agent. But what happens when an intermediary comes along that
disintermediates the same intermediaries who have just dissed some other intermediary?
Enter Kayak. Rather than checking multiple travel sites to see who has the best deal on
airfare, one can go to www.kayak.com, type in their departure and destination locations, and
in a matter of seconds, view the fares available on all airlines servicing the route.

Refer more about Kayak at www.kayak.com

1) Discuss the activities of Kayak in the context of disintermediation. How is this new
service affecting the disintermediated travel agents, the disintermediated travel Web
sites, and the airlines?
2) How might Kayak be contributing to channel conflict?
3) How is Kayak adding value for customers?

1. Disintermediation occurs when product or service producers cut out intermediaries

and go directly to final buyers, or when radically new types of channel intermediaries
displace traditional ones. In this example, Kayak has helped to finish off the
disintermediation of the traditional travel agent. Traditional travel agents book only a very
 BBDT1013 Principles of Marketing

small percentage of air travel today, given the proliferation of available booking options on
the Web.

2. Kayak may be viewed as contributing to channel conflict by providing the consumer

with a new source of unbiased information with which to make their travel purchase
decision. By doing this, Kayak is contributing to pricing transparency, thus making
significant pricing variations among suppliers even more difficult.

3. The consumer is the clear winner here. Kayak is providing the consumer with
additional information with which to make an informed decision. Kayak is providing a
source of one-stop information shopping for consumers.
 BBDT1013 Principles of Marketing

Tutorial 8: Integrated marketing communications (IMC) and promotional mix and

personal selling and sales management

SECTION A: Discussion Questions

1) What does the term integrated marketing communications mean?

Integrated marketing communications (IMC) refers to a concept under which a

company carefully integrates and coordinates its many communications channels to
deliver a clear and consistent message. It aims to ensure the consistency of the message
and the complementary use of media. Also, IMC is an integration of all marketing tools
such as advertising, sales promotion, personal selling, public relations, and direct and
digital marketing, as well as approaches and resources within a company which
maximizes impact on the consumer mind resulting in maximum profit at minimum cost. It
uses several innovative ways to ensure that the customer gets the right message at the
right place and right time.

2) Identify and briefly describe the five major promotional methods an organization can use
in its promotion mix. *(2020 January/February Examination)
 BBDT1013 Principles of Marketing

3) Will traditional mass media advertising soon be dead as some have predicted?
 BBDT1013 Principles of Marketing

4) Describe the various tools in traditional direct marketing except the face-to-face selling.
*(2020 January/February Examination)

5) Differentiate marketing websites from corporate websites. *(2018 August/September

Examination)
 BBDT1013 Principles of Marketing

6) Identify the elements of the personal selling process. Must a salesperson include all these
elements when selling a product to a customer? Why or why not? *(2014
August/September Examination, 2017 September Examination & 2019 January
Examination).

Personal selling is the personal presentations by the firm’s sales force for the
purpose of making sales and building customer relationships. There are seven elements of
the personal selling process, which are prospecting and qualifying, preapproach,
approach, presentation and demonstration, handling objections, closing, and follow-
up.
Firstly, prospecting and qualifying. Prospecting is identifying qualified potential
customers. The best source of prospects is referrals. For example, customers, suppliers,
dealers, internet, sales representatives, executives, bankers, et cetera. After identifying the
prospect the salesperson qualifies the prospects on the basis of their financial ability, the
volume of business, needs, location, growth potential, taste, and preferences.
Secondly, preapproach. Preapproach is the process of learning as much as possible
about a prospect, including needs, who is involved in the buying, and the characteristics and
styles of the buyers. For example, the salesperson may make a personal visit, a phone call,
and send a letter or email, based on the convenience of the prospects.
Thirdly, approach. Approach is the process where the salesperson meets and greets
the buyer and gets the relationship off to a good start. For example, the salesperson’s
attitude, appearance, way of speaking matters most at this stage.
Fourthly, presentation and demonstration. During the presentation step of the
selling process, the salesperson tells the “value story” to the buyer, showing how the
company’s offer solves the customer’s problems. For example, the salesperson narrates the
features of the product, explains the benefit and the worth of the product in terms of money.
Fifthly, handling objections. Handling objections is the process where salespeople
resolve problems that are logical, psychological, or unspoken. For example, in handling
objections, the salesperson should use a positive approach, seek out hidden objections, ask
the buyer to clarify any objections, take objections as opportunities to provide more
information, and turn the objections into reasons for buying.
Sixthly, closing. Closing is the process where salespeople should recognize signals
from the buyer, including physical actions, comments, and questions, which ask for an order
and finalize the sale.
 BBDT1013 Principles of Marketing

Last but not least, follow-up. Follow-up is necessary if the salesperson wants to
ensure customer satisfaction and repeat business. For example, the salesperson assures
about delivery at the right time, proper installation, after sales service.

Yes. Although elements involved in the selling process vary from salesman to
salesman and also with selling situations. But each step in the sales process is critical to
success. The amount of time and energy spent on each step can be modified to fit the
situational needs. However, none of the steps can be skipped.

7) Name and describe the types of consumer promotions. *(2015 January Examination,
2015 August/September Examination & 2019 January Examination)

Consumer promotions refers to urge short-term customer buying or to enhance

customer brand involvement which focus on consumer market. There are nine types of
consumer promotions, which are samples, coupons, cash refunds or rebates, price
packs, premiums, advertising specialities, point-of-purchase (POP), contests,
sweepstakes, games, and event marketing.

Samples
Samples are defined as offers to consumers of a small amount of a product for trial. Free
samples are given to consumers to generate their interest in the product. Samples help
consumers verify the quality of the product. Samples are delivered at the doors of
consumers. They are also sent by mail or given to customers in the retail store itself.
Sometimes, samples are attached to another product. Though sampling is effective,
producing numerous samples of a product is quite expensive. Moreover, distributing
samples to customers also involves expenditure. Sampling is not justified in case of well
established product, a product that is not superior in some way to competing products, a
product with a slow turnover, a product with a narrow margin of profit, or a highly fragile,
perishable or bulky product.

Coupons
A coupon is a certificate that fetches buyers a saving when they purchase a specified
product. Coupons are generally issued along with the product. They entitle the holder to
either a specified saving on a product or a cash refund. Coupons are designed to
introduce a new product, to promote the sale of an established product, to sell a product in
large sizes, to stimulate customers to switch brands; and to encourage repeat
sales.Coupons are used for consumer convenience goods. They may be distributed door to
door, by mail or they may be inserted in packages. Sometimes, coupons may be part of
magazine or newspaper advertisements.

Cash refunds or rebates

Cash refund offers are rebates allowed from the price of the product. It is an offer to refund
part of the purchase price of a product to consumers who send a proof of purchase to
the manufacturer. Moreover, if the purchaser is not satisfied with the product, the whole price
or part of it will be refunded. Cash refunded offer is stated on the package.

Price packs
Price Packs, a type of sales promotion in which consumers are offered a reduction in the
regular price of a product; the amount of the reduction is usually marked, or 'flagged',
prominently on the label or package; also called a 'cents-off' deal. Price Packs are very
effective in stimulating short- term sales, even more than coupons.
 BBDT1013 Principles of Marketing

Premiums
Premium refers to goods offered either free or at low cost as an incentive to buy a
product. A premium may be inside the package, outside it or received through mail. The
reusable package itself serves as a premium. Premium is generally offered for consumer
goods such as soap, toothpaste, etc. Premium may be of several kinds — direct premium,
reusable container free in mail premium, a self liquidating premium, trading stamps, etc.
Direct premium can be inside the pack or outside it. A reusable container can be reused
after the product is reused. Free in mail premium means a premium item will be sent by mail
to consumers who present proof of purchase to the manufacturer. A self liquidating premium
is the extra quantity offered at the normal price. Trading stamps are given by the seller to
consumers. These are redeemable at the stamp redemption centres.

Advertising specialities
Advertising specialties or promotional products are items and handouts where
companies can put their name on. It can be anything from calendars to key rings that are
handed out to customers. And also, useful articles imprinted with an advertiser’s name,
logo, or message.

Point-of-purchase (POP)
Point-of-sale displays are sales promotions that are placed where they can easily draw
customer attention and trigger impulse buying. In smaller retail outlets, POP displays are
supplied by the manufacturer of the products, and are sited, restocked, and maintained by
one of their regular salespersons, but this is less common is larger supermarkets. Point-of-
purchase displays are intended to promote new products, make special offers, and/or
capitalize on special events, such as holidays. POP displays are usually provided by product
manufacturers for smaller stores while larger retail outlet with strong purchasing power,
prefer to use sales material designed in-house to keep store layout and corporate themes
consistent. Demonstration is required when products are complex and of a technical
nature. Customers are educated as to how to make proper use of the product.
Demonstration of products induces customers to buy. Demonstrations are provided free of
cost.

Contests, sweepstakes, games

Contests are the promotion events that give consumers the chance to win something such
as cash, trips or goods. Contests are conducted to attract new customers. They introduce
new product by asking the prospects to state the reasons for the purchase of the product.
The buyer purchases the product and submits the evidence of purchase with entry form for
contest. Entry forms are duly filled by the buyers. A panel of judges selects the best and
buyers are given prizes. A sweepstakes calls for consumers to submit their names for a
draw. Names of consumers are included in a list of prize winning contest. The lots are drawn
and the winners get prizes. Games present consumers with something that may or may not
help them win a prize.
Event marketing
Event marketing or event sponsorships is a strategy marketers use to promote their
brand, product, or service with an in-person or real-time engagement. These events can be
online or offline, and companies can participate as hosts, participants or sponsors.
Marketers use both inbound and outbound event marketing strategies for promotional
purposes. Event marketing is one of the best ways to build brand awareness, increase
customer engagement, generate leads, educate prospects and customers, and upsell
customers. Also, businesses are able to fast grow and can be less costly.

8) How can marketers use social media and mobile marketing to engage customers? What
challenges do marketers face?
 BBDT1013 Principles of Marketing

Marketers can use social media to engage customers through Trending Hashtags.
Hashtags are good to connect with customers on social media platforms such as Twitter,
Instagram, and Facebook mainly. Use the appropriate hashtags that people are using or
topics that they are searching. Hashtagify is just one online tool that provides a percentage
of how popular a word or term is.
Besides that, Positive User Experience. Placing call-to-actions on marketers' social
media accounts such as directions or call now buttons allow customers to easily contact or
access the business information. If the social media pages are easy to navigate around
customers are more likely to return as they have received a high quality user experience.
Select photos that will attract customers to click on the social media icon, pick an image they
won’t forget and can associate the business with.

Marketers can use mobile marketing to engage customers through Location

Features. One basic mobile marketing technique every business with a physical location
that customers or clients visit should have, is a listing with Google Local or Google Business.
This allows customers to quickly map the business’s location while on the move. There is
also a range of location-based apps that can be used to reach out to customers on the
move. Targeting customers using geo-location based information is an area that is set to
increase as brands look to ‘push’ location based services to the consumer.
Besides that, Mobile Apps. Not every business has the resources or expertise to
develop them, but apps can be a great way to increase customer engagement. Apps should
add a value to the mobile experience that simply visiting the website cannot. There are
companies that specialize in delivering an entire customer experience that can develop
these kinds of apps as well as work with the business on other aspects of mobile marketing.

For social media, the challenges faced by marketers is getting followers. Getting more
followers on social media is one of the biggest challenges that every social media marketers
faces. Brands are more interested in increasing followers since they are perceived as future
customers. When the follower count is less, businesses are perceived as unpopular. Low
follower count also means that the content is not reaching enough number of people who
would further share it in their circles thereby reducing the overall reach of the content.
Besides that, dipping organic reach. The number of users on various social media such as
Twitter, Facebook and YouTube has crossed several millions. High volume of content is
being created and curated to be published on the social media. But the algorithms on
different platforms are keen on increasing engagement of users thereby making smart
algorithm changes to remove junk. This can pose challenges to social media marketers
since they often see a dip in the organic reach of their content.

For mobile marketing, the challenges faced by marketers is there are numerous avenues
from which to choose. There are so many options from which to choose when it comes to
mobile marketing. There are features unique to mobile platforms, as well as some that can
be shared with desktop. For example, an advertisement created for Instagram’s mobile app
would not have the same effect if someone were to view it on a desktop. This can make it
challenging for businesses to fully integrate a mobile marketing campaign into their plans.
Besides that, higher-spend apps are not always the solution. When marketers are trying
to get the most value out of their mobile marketing budget, not knowing which avenue to use
or how to measure results can drive marketers to invest in the wrong apps. While higher-
spend apps advertise greater rewards, many marketers find out this is wrong too late.

SECTION B: Group Discussion

 BBDT1013 Principles of Marketing

In a small group, search the internet to locate a controversial or failed social media campaign.
Present an analysis of the failed campaign. Make a recommendation on how to address the
controversy.

Students can search the following resources for controversial content:

● “5 Biggest Corporate Social Media Fails of 2018”

www.inc.com/michelle-cheng/biggest-corporate-social-media-fails-2018.html
● “The Biggest Social Media Fails of 2018”
www.forbes.com/sites/lilachbullock/2018/11/27/biggest-social-media-fails-2018/
● “The Worst Social Media for Business Mistakes of 2019 (and What You Can Learn
from Them)” revive.social/social-media-for-business-fails/
● “Social Media Fails You Need to Know,”
https://www.perzonalization.com/blog/social-media-fails/.
 BBDT1013 Principles of Marketing

Tutorial 9: Reaching global consumers and markets & Ethical and social responsibility
in marketing
SECTION A: Short Scenario

Use the following to answer the questions.

Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites.
With a large number of its bikes sold in markets all around the world, it still retains the
manufacturing close to the headquarters for several reasons, one being that its management
wants to keep close watch on the quality of its products. However, for all the accessories,
apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to
produce the items with the Harley name and logo. Some of these items, particularly the
apparel, are made in China. Lately, Harley-Davidson were to suddenly find its inventory
building up in Japan, it might reduce inventory by selling the bikes at below cost prices.

1) Briefly discuss the type of mode of entry practice by Harley-Davidson when Harley-
Davidson's having manufacturers in China produce apparel items with the Harley logo.

2) One of Harley-Davidson's largest international markets is in Japan, where American

brands are highly demand. Which international marketing environment force does this
statement refer to?
 BBDT1013 Principles of Marketing

3) Refer to scenario above. Harley-Davidson in Japan might reduce it inventory by selling

the bikes at below cost prices. Explain the international marketing environment force this
statement refers to?

SECTION B: Discussion Questions

1) How does international marketing differ from domestic marketing?

International marketing differs from domestic marketing in that exchanges occur

across national boundaries. When marketing occurs across national boundaries,
decisions should take into account differences in the marketing environment and
the unique needs of customers in other countries.
 BBDT1013 Principles of Marketing

2) If you were asked to provide a small tip (or bribe) to have a document approved in a
foreign nation where this practice is customary, what would you do?

-report

3) Critics claim that advertising and promotion results in higher prices for consumers.
Discuss the bases for this claim and how marketers refute them.

Critics charge that advertising and promotion add only psychological, not functional,
value to the product. Marketers respond that although advertising adds to product
costs, it also adds value by informing potential buyers of the availability and merits of
a brand. Brand name products may cost more, but branding gives buyers assurances
of consistent quality. Moreover, consumers can usually buy functional versions of
products at lower prices. However, they want and are willing to pay more for products
that also provide psychological benefits--that make them feel wealthy, attractive, or
special. Also, heavy advertising and promotion may be necessary for a firm to match
competitors’ efforts; the business would have “share of mind” if it did not match
competitive spending.

4) Suggest marketing programme approaches commonly used by domestic companies to go

global. *(2015 August/September Examination)

Standardized global marketing using the same marketing strategy and mix in all of
the company’s international markets. Adapted global marketing adjusting the
marketing strategy and mix elements to each international target market. Using
adapted approach creates more costs but produces a larger market share and return.
 BBDT1013 Principles of Marketing

Sample Exam Questions*(2014 August/September Examination)

Porsche is a unique company with strong ideals. Porsche has developed numerous
technologies that have advanced vehicle performance, improved safety and spurred
environmental innovations within the automotive industry. Porsche is recognized as one of
the world's most successful brand in sports car racing.

(a) Outline the different classification of consumer products. Identify which classification
Porsche is belongs to. (17
marks)

(b) Define marketing channel. Discuss the THREE (3) methods in intensity of market
coverage. Which market coverage method is likely used by Porsche? (8
marks)
[Total: 25 marks]

Sample Exam Questions*(2016 September Examination)

Question 1

The Bugatti automotive is a French automobiles manufacturer based in Molsheim, France.

Bugatti is an automotive brand with distinctive artistry and concentrated on high-performance
and luxury. Bugatti owes its unique character to founder with artistic Italian roots which
primarily inspired by architecture, design and sculpture. To fulfill customer’s needs, Bugatti
is determined to offer the best, extraordinary and superlative products to customers. Only
then it can be called a Bugatti. Today, the name is owned by Volkswagen group.

(a) Based on the information above, name and explain the targeting strategy used by
Bugatti. Support your answer with a relevant diagram. (9 marks)

(b) Outline the types of marketing management orientation. Based on the information
above, identify the type of marketing management orientation practised by Bugatti.
(16 marks)
[Total: 25 marks]

Question 2

Aroma coffee candy is manufactured in Indonesia by the Aroma Group (Aroma) which is one
of the largest confectionary manufacturers in Indonesia and exported to more than 38
countries globally including Malaysia. Aroma coffee candy are tasty candies with rich aroma
that only comes from real Java coffee beans and its quality is preserved by traditional
farming. Aroma Group stated climate changes had impacted their bean production where
hotter weather is killing the coffee bean market. In order to increase the production of bean,
Aroma applied clean energy solution. The use of technology helps to reduce coffee pulp
drying time and minimises the post-harvest loss. Changes in customer healthier eating
lifestyle also forced the company to develop Aroma coffee candy with lower sugar level.
 BBDT1013 Principles of Marketing

(a) Based on the information above, name and explain the market entry strategy used by
Aroma to go global. (4 marks)

(b) Outline the SIX (6) marketing environment forces. Based on the information above,
identify the marketing environment forces that influence Aroma. (21 marks)
[Total: 25 marks]

Sample Exam Questions*(2016 April Examination)

Ever since Toyota Motor Corporation (Toyota) was founded in 1937, Toyota has sought to
contribute to a more prosperous society through the manufacturing and sales of automobiles.
Today, Toyota has extended beyond its automobile manufacturing business into a variety of
other fields, including housing, financial services, communications, marine and many more.
In 1983, Toyota’s chairman, Eiji Toyoda, issued a challenge his staff to build the world's best
car – the Flagship One (F1) project. The F1 project was completed in January 1989 and the
company developed the Lexus LS 400. Lexus LS 400 went on sale in September 1989. The
launch of Lexus was accompanied by a multimillion-dollar advertising campaign.

(a) Outline the Product/Market Expansion Grid. Based on the above information, identify
Product/Market Expansion Grid strategy used by Toyota and support your answer
with relevant example. (10
marks)

(b) With the aid of diagram, explain the product life-cycle (PLC). In September 1989,
Lexus is in which stage of the PLC? (15
marks)
[Total: 25 marks]

Sample Exam Questions*(2018 January Examination)

Mamaa Pot (MP) is a specialized buffet restaurant in Malaysia serving Sichuan hot pot
designed for medium sized groups, where family and friends get to huddle close together
whilst enjoying great food. In order to share the exclusive dining experience, MP gathered
technology from Japan and expertise from Sichuan and fuse them together. The result is a
cuisine with an incredible depth and complexity of flavour yet customers are able to
experience healthy food in a warm atmosphere. And to top everything off it come with an
affordable price tag – RM31.90 (lunch) and RM38.90 (dinner) for an adult, and child (under
12) was given 30% off the adults price. MP flagship restaurant was established in 2014 and to
date MP has 8 restaurants in Malaysia. Recently, MP is considering an expansion of another
two stores in Thailand, it newest overseas market.

(a) Define segmented pricing and outline the types of segmented pricing strategies. Based
on the above information, identify the types of segmented pricing strategies used by
MP. (12 marks)
 BBDT1013 Principles of Marketing

(b) With the aid of a diagram, assess the Product/Market Expansion Grid. Based on the
above information, identify the types of Product/Market Expansion Grid strategies
practised by MP. (13 marks)
[Total: 25 marks]

Sample Exam Questions*(2017 September Examination)

In 1983, Toyota’s chairman launched the Flagship One (F1) project and the project result -
Lexus LS400. Lexus is the luxury vehicle division of Toyota which target the premium
segment. Lexus dedicated to offer exceptional customer experiences, and in doing so, created
loyalty throughout the world. Beyond Lexus, Toyota launched Scion brand in 2003 which
target the generation Y. Scion was designed as an extension of its efforts to appeal towards
younger customers.

(a) Based on the above information, name and explain the targeting strategy used by
Toyota. Support the strategy with a relevant diagram. (10 marks)

(b) Outline the types of brand development strategies. Based on the above information,
identify the type of brand development strategy practised by Toyota. (9 marks)
(c) Define marketing. Based on the above information, name and describe the major type
of segmentation strategy used by Scion. (6
marks)
[Total: 25 marks]

Sample Exam Questions*(2020 January/February Examination)

Mama Cho Sdn. Bhd. (MC) was the first chocolate manufacturer in Malaysia launched in
1928. Currently, it offers different types of chocolate from milk chocolate, dark chocolate,
white chocolate and many more under the name MC chocolate. The pricing for these
products is 28 sen cheaper on the 28th of every month to mark the occasion of being the first
chocolate manufactured in Malaysia. Last year, MC launched its first premium ice cream
brand and called it Galaxii.

(a) Discuss the types of segmented pricing strategies. Based on the above, identify the
types of segmented pricing strategies likely used by MC chocolate. (10 marks)

There are four types of segmented pricing strategies, which are customer-segment
pricing, product-form pricing, location-based pricing, and time-based pricing.
Customer-segment pricing refers to different customers pay different prices for the
same product or services. For example, student prices at movie theatres and senior
prices for coffee at McDonald’s.
Besides that, product-form pricing refers to different versions of the product are
priced differently but not according to differences in their costs. For example, the price of the
same type of car may vary because of different colour and add-on features.
Furthermore, location-based pricing refers to a company charges different prices
for different locations, even though the cost of offering each location is the same. For
 BBDT1013 Principles of Marketing

example, in movie theatres, the customer pays different amounts for the different locations
from where they can watch movies.
Moreover, time-based pricing refers to a firm varies its price by the season, the
month, the day, and even the hour. For example, the movie tickets for the matinee show is
less as compared to other show timings.

The types of segmented pricing strategies likely used by MC chocolate is product-

form pricing and time-based pricing.

(b) Briefly explain the types of new product pricing strategies. Based on the above,
identify the type of new product pricing strategy likely used for Galaxxi. (7 marks)

There are two types of new product pricing strategies, which are market-penetration
pricing and market-skimming pricing.
Market-penetration pricing refers is setting a low initial price in order to penetrate
the market quickly and deeply, to attract a large number of buyers quickly and win a large
market share. For example, an online news website offering one month free for a
subscription-based service and a bank offering a free checking account for six months.
Besides that, market-skimming pricing or price skimming is setting high initial
prices to “skim” revenues layers from the market. Product quality and image must support
the price. Buyers must want the product at that price. For example, Apple prices its
innovative products higher during their initial release because the company knows steeper
prices would not decrease customer demand for the latest gadgets, and they benefit from
the higher short-term profit margins.

The type of new product pricing strategy likely used for Galaxxi is the market-
skimming pricing strategy.

(c) Based on the above, identify and explain the types of brand development strategies
used by MC. Support each type with a relevant example. (8 marks)
[Total: 25 marks]