MARKETING MANAGEMENT ASSIGNMENT CYCLE ONE

UNIT ONE (CLUSTER 1)

Q8.Classify the difference between product concept and production

concept?
ANS
The marketing concept is the strategy that firms implement to satisfy
customers’ needs, increase sales, maximize profit, and beat the
competition. There are 5 marketing concepts that organizations adopt
and execute. These are; (1) production concept, (2) product concept, (3)
selling concept, (4) marketing concept, and (5) societal marketing
concept.
Differences between production and product concept :
Production Concept

The idea of production concept – “Consumers will favor products

that are available and highly affordable.” This concept is one of the
oldest Marketing management orientations that guide sellers.

Companies adopting this orientation run a major risk of focusing too

narrowly on their operations and losing sight of the real objective.

Most times, the production concept can lead to marketing myopia.

Management focuses on improving production and distribution
efficiency. Although, in some situations, the production concept is still a
useful philosophy.

If a firm decides to operate based on this concept, it will try to minimize

production costs by making the production process efficient. Moreover,
 for its products to be favored by the consumers, it will try to make its
distribution as extensive as possible.

This production concept is found to be applicable if two situations

prevail.

 One, when the demand for a product exceeds supply. This is seen in
markets that are highly price-sensitive and budget-conscious. Under
such situations, consumers will basically be interested in owning the
product, not the quality or features of it. Thus, producers will be
interested in increasing their outputs.
 Two, if the production costs are very high, that discourages consumers
from buying the product. Here, the company puts all of its efforts into
building production volume and improving technology to bring down
costs.

Reduction in production costs helps the firm to reduce, helping the

market size to increase. A company can thus try to create a dominant
position in the market where it operates.

The application of this concept is also seen in service firms such as

hospitals. Application of this concept in service firms such as hospitals
is also criticized because it may cause deterioration in the firm’s service.

Production Concept example:-

You see, in Amazon or retail stores, the market is flooded with cheap
products from china. Everything from the cheap plastic product from
China is on your cart now.

The best example of the production concept is Vivo, the Chinese

smartphone brand. Their phones are available in almost every corner of
the Asian market. You can walk into any phone shop in Asia and can
walk out with the latest and greatest smartphone from Vivo.
Product Concept

The product concept holds that consumers will favor products that
offer the most quality, performance, and innovative features. Here.
Marketing strategies are focused on making continuous product
improvements.

Product quality and improvement are important parts of marketing

strategies, sometimes the only part. Targeting only on the company’s
products could also lead to marketing myopia.

During the first three decades of the twentieth century, more and more
industries were adopting mass production techniques. The supply of
manufactured goods was exceeding demand by the early 1930s.

Manufacturers were facing excess production capacity and competition

for customers. They started realizing that buyers will favor well-made
products and are willing to pay more for product extras, and the product
concept started taking place in the minds of many producers.

The product concept assumes that consumers will favor those products
that are superior in quality, performance, innovative features, designs,
and so on.

Many of the product-oriented firms often design their products taking

little or no suggestions from their target customers.

They are of the firm belief that product design or improvement aspects
are better understood by their engineers or designers than the customers.

They also do not compare their products with that of competitors’

products to bring changes in their products. They sometimes caught up
with “LOVE AFFAIR” with the quality of their product and behaved
unrealistically as people do when they are in love with someone of the
opposite sex.
A general motors executive said years ago: ”How can the public know
what kind of car they want until they see what is available?”

Here engineers first design and develop the product, the manufacturing
makes it, the finance department prices it, finally, marketing and sales
try to sell it.

Many marketers still hold this concept, and this concept so influences
some that they even forget that the market is going in another direction.
Marketing has very little room in this concept.

The main emphasis here is on the product. Therefore, it is understood

that in the product concept, the management fails to identify what
business it is in, which leads to the marketing myopia – i.e., short-
sightedness on the role of marketing.

Product Concept example:-

For example, suppose a company makes the best quality Floppy disk.
But a customer does need a floppy disk?

She or he needs something that can be used to store the data. It can be
achieved by a USB Flash drive, SD memory cards, portable hard disks,
etc. So that the company should not look to make the best floppy disk,
they should focus on meeting the customer’s data storage needs.

When you think of high-quality products, Apple will be one of the top
ones. Their products are so good that they set industry trends and
standards.

Logitech makes very high-quality computer products such as keyboard,

mouse, and webcams. These high-quality products are priced higher, but
people still buy, and they get almost free advertisement from
independent reviews.
Q9. Explain the evolution of marketing.
ANS
EVOLUTION OF MARKETING  
Production Orientation
The evolution of marketing theory starts with production orientation.
Production orientation is the view that the route to corporate success lies
in production efficiency, getting production costs as low as possible
(usually by manufacturing in very large volume) in order to reduce costs
and prices.
This orientation had its beginnings at the start of the Industrial
Revolution. Up until the nineteenth century, almost everything was
hand-made and made to measure. Clothing was produced by tailors to
almost exact measurements or was made at home, houses and vehicles
were produced to customer specification, and relatively few items were
standardized. Producing in this way is relatively expensive,
consequently prices were high for most goods and people owned
correspondingly fewer things. When machines were introduced to speed
up the manufacturing process, costs dropped to perhaps one tenth of the
cost of customized products, so that prices could also be cut provided
enough goods could be sold. The longer the production run, the lower
the costs and consequently the greater the profit: customers were
prepared to accept items that were not exactly meeting their needs, since
prices were a fraction of what they would have had to pay for the
perfect, tailor-made article. For manufacturers, the key to success was
therefore ever more efficient (and low-cost) production, but at the cost
of meeting individual customers’ needs.

Production orientation still survives in some markets, notably those

where most people do not already own the core benefits of the products
concerned. Until recently production orientation was the prevailing
manufacturing paradigm in Communist countries, but this is now being
replaced by a more market-oriented approach.
Product Orientation
The second stage in the evolution of marketing theory is product
orientation.
Product orientation is the view that an ideal product can be produced
that will have all the features any potential customer might want.

This orientation is thought to be a result of oversupply of basic goods.

Once everyone already owned the core benefits of the products
concerned, manufacturers needed to provide something different in order
to find new customers. Products with more features, made to a higher
standard, began to be introduced. By the late nineteenth century
extravagant claims were being made for products on the basis of their
quality and features. Manufacturers sought to resolve the problem of
diverse customer need by adding in every possible feature. The
drawback of this approach is that the price of the product increases
dramatically, and customers are not always prepared to pay for features
they will never use.
The difficulty with both production orientation and product orientation is
that they do not allow for the different needs and circumstances of
consumers. Customers differ from each other in terms of their needs –
there is no such thing as ‘the customer’.

Sales Orientation
Moving on, we can identify the next stage in the evolution of marketing
theory as sales orientation. This concept is based on the idea that
manufacturing companies can produce far more goods than the market
can accept. Sales-oriented companies assume that people do not want to
buy goods, and will not do so unless they are persuaded to do so: such
companies concentrate on the needs of the seller rather than the needs of
the buyer.

Sales orientation relies on several assumptions: first, that customers do

not really want to spend their money: second, that they must be
persuaded by the use of hard-hitting sales techniques: third, that they
will not mind being persuaded and will be happy for the salesperson to
call again and persuade them some more: and fourth, that success comes
through using aggressive promotional techniques.
Sales orientation is still fairly common, especially in firms selling
unsought goods such as home improvements and insurance, and often
results in short-term gains. In the longer term, customers will judge the
company on the quality of its products and after-sales service, and
(ultimately) on value for money. Sales orientation should not be con-
fused with the practice of personal selling: successful salespeople do not
operate on the basis of persuasion, but rather on the basis of identifying
and meeting individual customers’ needs.

Marketing Orientation
The most common view today in marketing theory is marketing
orientation.
Marketing orientation means being driven by customer needs: this is
sometimes also called customer orientation. Companies that are truly
marketing oriented will always start with the customer’s needs, whatever
the business problem. Customers can be grouped according to their
different needs, and a slightly different product offered to each group.
This type of differentiation allows the company to provide for the needs
of a larger group in total, because each target segment of the market is
able to satisfy its needs through purchase of one or other of the
company’s products.

The underlying assumption of marketing orientation is that customers

want to satisfy their needs, and will be willing to buy products that do
so. Customer need includes a need for information about the products,
advice about product usage, availability of products and so forth.
Customer need therefore goes beyond the basic core benefits of the
product itself.

Marketing orientation also implies that customer needs are the driving
force throughout the organization. Decisions within the organization, in
every department from manufacture through to delivery, need to be
taken in consideration of customer needs at every stage. Quality control
in the factory, accurate information given by telephonists and
receptionists, and courteous deliveries by drivers all play a part in
delivering customer value. Three components can be identified to
determine the degree to which a company is marketing-orientated:
competitor orientation, customer orientation and inter-functional co-
ordination.

Societal Marketing Orientation

The very last and most recent stage in the evolution of marketing theory
is societal marketing. Societal marketing includes the concept that
companies have a responsibility for the needs of society as a whole, so
should include environmental impact and the impact of their products on
non-users.
Societal marketers believe that sustainability is a key issue since it is of
no help to the long-term survival of the firm if natural resources are used
too quickly. Long-term results of use of the product are also considered,
in terms of their impact on the environment. For example, a car
manufacturer might aim to make cars quieter in operation rather than
simply improving the soundproofing for its occupants and ignoring the
needs of people who live near major roads.
Being able to differentiate the various views that have been developed
over time in the long evolution of marketing theory helps to get a clearer
idea of how marketing can be interpreted.
 UNIT 2 (CLUSTER 2)
Q8. Explain the scope of market research ?
ANS
Scope of Marketing Research

Scope of marketing research refers to the areas covered or the aspects

studied under marketing research. In other words, it implies where or on
which areas marketing research can be applied. In fact, marketing
research concerns with almost each and every activity of marketing
management. It has a wide and comprehensive scope.

The scope of marketing research covers following areas:

1. Research on Products:
Products involve goods and services. This branch of marketing research
covers all the issues related to firm’s products.

It studies and solves the product-related problems, such as:

i. Study of products’ qualities and performance

ii. Study of physical and psychological characteristics of product

iii. Determining uses of the existing products

iv. Comparative study of competitive products

v. Detecting consumers’ problems related to the products

2. Research on Market:
This area of marketing research deals with market/consumers. It studies
characteristics and compositions of the target markets. It covers both
current as well as potential markets.

This branch includes:

i. Defining and selecting target market

ii. Studying needs and wants of target market

iii. Study of size and location of current market

iv. Assessing the current market trends and projecting the future trend

v. Analysis of territorial sales opportunities and potential

3. Research on Sales Methods and Policies:

This area of marketing research, particularly, concerns with study and
analysis of the sales- related activities.

Various aspects covered under this head may be listed as below:

i. Study and analysis of sales records

ii. Analysis of sales territories in terms of products, size of orders, times,

terms and conditions and methods

iii. Study on activities and effectiveness of salesmen

iv. Evaluating existing selling methods

v. Sales force management including size, compensation, training,

control, etc.

4. Research on Advertising:
Advertising is one of the powerful methods of market promotion. Major
part of promotional budget is devoted to advertising activities.
Therefore, it is imperative to conduct research on various aspects related
to advertising.

Under this area, at least following aspects are covered:

i. Comparative study of various elements of promotion

ii. Study on advertising objectives, media and media selection,

advertising message, theme, copy, and advertising agency

iii. Social aspects of advertising – negative and positive effects of

advertising on society at large

iv. Advertising role in different stages of product life cycle

5. Research on Pricing:
Price is an important element of marketing mix. In developing and
underdeveloped countries, price plays a vital role. Suitable pricing
policies and methods can contribute positively in attainment of
marketing goals. It is clear that price has remained a major determinant
of buying decision.

This branch covers:

i. Study on pricing objectives

ii. Study on effectiveness of pricing policies and strategies

iii. Study of various methods for setting price

6. Research on Distribution:
In today’s marketing, distribution has unique role to determine success
of product. A marketer can contribute to total consumer satisfaction by
designing appropriate distribution network. Physical distribution and
distribution channel are two important components of such research.

This area includes:

1. Assessing role of distribution decisions in achieving marketing goals

2. Comparative study of between direct and indirect distribution

3. Physical distribution and ancillary services

Q9. Describe various kinds of marketing research.
ANS
Market research is the process of determining the viability of a new
service or product through research conducted directly with
potential customers. Market research allows a company to discover the
target market and get opinions and other feedback from consumers about
their interest in the product or service

4 common market research methods

There are lots of different ways you could conduct market research and
collect customer data, but you don’t have to limit yourself to just one
research method. Four common types of market research techniques
include surveys, interviews, focus groups, and customer observation.

Which method you use may vary based on your business type:
ecommerce business owners have different goals from SaaS businesses,
so it’s typically prudent to mix and match these methods based on your
particular goals and what you need to know.

1. Surveys: the most commonly used

Surveys are a form of qualitative research that ask respondents a short

series of open- or closed-ended questions, which can be delivered as an
on-screen questionnaire or via email. When we asked 2,000 Customer
Experience (CX) professionals about their company’s approach to
research, surveys proved to be the most commonly used market research
technique.

What makes online surveys so popular? They’re easy and inexpensive

to conduct, and you can do a lot of data collection quickly. Plus, the data
is pretty straightforward to analyze, even when you have to analyze
open-ended questions whose answers might initially appear difficult to
categorize.

We've built a number of survey templates ready and waiting for

you. Grab a template and share with your customers in just a few clicks.

2. Interviews: the most insightful

Interviews are one-on-one conversations with members of your target

market. Nothing beats a face-to-face interview for diving deep (and
reading non-verbal cues), but if an in-person meeting isn’t possible,
video conferencing is a solid second choice.

Regardless of how you conduct it, any type of in-depth interview will
produce big benefits in understanding your target customers.

What makes interviews so insightful?

By speaking directly with an ideal customer, you’ll gain greater empathy

for their experience, and you can follow insightful threads that can
produce plenty of 'Aha!' moments.

3. Focus groups: the most dangerous

Focus groups bring together a carefully selected group of people who fit
a company’s target market. A trained moderator leads a conversation
surrounding the product, user experience, and/or marketing message to
gain deeper insights.

What makes focus groups so dangerous?

If you’re new to market research, I wouldn’t recommend starting with

focus groups. Doing it right is expensive, and if you cut corners, your
research could fall victim to all kinds of errors. Dominance bias (when a
forceful participant influences the group) and moderator style bias (when
different moderator personalities bring about different results in the
same study) are two of the many ways your focus group data could get
skewed.

4. Observation: the most powerful

During a customer observation session, someone from the company

takes notes while they watch an ideal user engage with their product (or
a similar product from a competitor).

What makes observation so clever and powerful?

‘Fly-on-the-wall’ observation is a great alternative to focus groups. It’s

not only less expensive, but you’ll see people interact with your product
in a natural setting without influencing each other. The only downside is
that you can’t get inside their heads, so observation is no replacement for
customer surveys and interviews.
 UNIT 3(CLUSTER 3)
Q8. Compare different levels of product with suitable illustrations.
ANS

What is a Product?
For Kotler, the definition of a product goes way beyond being a physical
object or a service. He defines a product as anything that can meet a
need or a want. This means that even a retail store or a customer service
representative is considered a product.

The model considers that products are a means to an end to meet the
various needs of customers. The model is based on there being three
ways in which customers attach value to a product:

 Customer Need: the lack of a basic requirement.

 Customer Want: a specific requirement for a product or service to meet
a need.
 Customer Demand: a set of wants plus the desire and ability to pay to
have them satisfied.

LEVELS OF A PRODUCT :
1. Core Benefit
The core benefit is the fundamental need or wants that the customer
satisfies when they buy the product.

For example, the core benefit of a hotel is to provide somewhere to rest

or sleep when away from home.
2. Generic Product
The generic product is a basic version of the product made up of only
those features necessary for it to function.

In our hotel example, this could mean a bed, towels, a bathroom, a

mirror, and a wardrobe.

3. Expected Product
The expected product is the set of features that the customers expect
when they buy the product.
In our hotel example, this would include clean sheets, some clean
towels, Wi-fi, and a clean bathroom.

4. Augmented Product
The augmented product refers to any product variations, extra features,
or services that help differentiate the product from its competitors.
In our hotel example, this could be the inclusion of a concierge service
or a free map of the town in every room.

5. Potential Product
The potential product includes all augmentations and transformations the
product might undergo in the future. In simple language, this means that
to continue to surprise and delight customers the product must be
augmented.
In our hotel, this could mean a different gift placed in the room each
time a customer stays. For example, it could be some chocolates on one
occasion, and some luxury water on another. By continuing to augment
its product in this way the hotel will continue to delight and surprise the
customer.

Five Product Levels Example: Coca-Cola

It can be easy to see how the Five Product Levels apply to the hotel
industry, but what about a company like Coca-Cola?

Let’s examine what each level might be for this company:

1. Core Benefit
The core benefit of Coca-Cola is to quench a thirst.

2. Generic Product
The generic product is a burnt vanilla smelling, black, carbonated, and
sweetened fizzy drink.

3. Expected Product
The expected product is that the customer’s Coca-Cola is cold. If this
isn’t the case then expectations won’t be met and the drink will not taste
its best in the mind of the customer.

4. Augmented Product
Coca-Cola’s augmented product is that it offers Diet-Coke. How does
Coca-Cola exceed customers expectations with this product? By offering
all the great taste of Coca-Cola, but with zero calories.
 5. Potential Product
One way in which Coca-Cola delights customers is by running
competitions. The prizes in these competitions are often things that,
“money can’t buy”, such as celebrity experiences. To continue to delight
customers over time the competition prizes change frequently.

Five Product Levels Advantages

The real advantage of the model is that it enables an organization to
identify the needs and wants of customers. The organization can then:
 match the features they create to what the customer wants.

 match operational processes to what customers want. In our hotel

example, this would mean strict processes around cleaning each room.

 match marketing efforts to appeal to customers wants.

The model ultimately helps organizations differentiate themselves from

their competitors in a way that aligns with the wants and needs of their
customers.
Q9.Explain the following (a)consumer products (b)industrial products.
ANS
Industrial goods are materials used in the production of other goods,
while consumer goods are finished products that are sold to and used by
consumers. Industrial goods are bought and used for industrial and
business use. They are made up of machinery, manufacturing plants, raw
materials, and any other good or component used by industries or firms.
Consumer goods are ready for the consumption and satisfaction of
human wants, such as clothing or food.
Industrial Goods
Industrial goods are based on the demand for the consumer goods they
help to produce. Industrial goods are classified as either production
goods or support goods. Production goods are used in the production of
a final consumer good or product, while support goods help in the
production process of consumer goods such as machinery and
equipment.

Unlike consumer goods, which are purchased by the general public,

there are very specific buyers of industrial goods. They include
component part buyers such as car manufacturers, those who purchase
and install machinery, and distributors or anyone else who buys for
resale.

Characteristics of industrial goods include:

 Rational buying power: The decision and drive to buy industrial

goods is rational compared to consumer goods, which are primarily
purchased because of an emotional need.
 Complex product lines: Industrial goods are usually complex in
nature because they can be highly technical. Those who use them
must be highly skilled.
  Higher purchase value: Industrial goods typically come with a
higher price tag because of their complex nature and limited target
market.
 High level of investment: Those who need to will often invest a
lot of money to purchase industrial goods.

Companies involved in the industrial goods sector represent a variety of

industries including (but not limited to) machinery, construction,
defense, aerospace, and housing.

Consumer Goods
Consumer goods are tangible commodities produced and purchased to
satisfy the wants of a buyer. That's why these goods are also referred to
as final goods or end products. They are goods that consumers can
typically find stocked on store shelves. As such, they can be purchased
for use at home, school, or work or for recreational or personal use.
Consumer goods are divided into three different types: Durable goods,
non-durable goods, or consumer services.

Durable goods have a significant lifespan of three or more years. The

consumption of a durable good is spread out over the entire life of the
good, which causes demand for maintenance and upkeep. Bicycles,
furniture, and cars are examples of durable goods.

Non-durable goods are purchased for immediate consumption or use.

These goods generally have a lifespan of fewer than three years. Food,
beverages, and clothing are examples of non-durable goods.

Consumer services are also intangible products or services produced and

consumed at the same time. Haircuts and car washes are typical
examples of consumer services.

Because of consumer buying patterns, consumer goods are typically

classified into four different categories including convenience, shopping,
specialty, and unsought goods.
 Convenience goods: These products are ready to be purchased.
Milk is one example of a convenience good.
 Shopping goods: These goods require more planning and thought
during the purchasing process by consumers. This category
includes products like electronics and furniture.
 Specialty goods: This category, which includes jewelry, is
composed of goods that are deemed to be luxuries.
 Unsought goods: Unsought goods require a niche market and are
typically purchased by only a few members in the market, such as
life insurance.