QUEENS’ COLLEGE

FA CU LT Y OF B USI NE SS AN D
EC ON OMI CS
MARKETING MANAGEMENT
INDIVIDUAL ASSIGNMENT FOR MBA
STUDENTS

Name: - _______YESHI NEGLUSSIEE_____________________

ID :- 0159

MBA STUDENT

SUBMMITTED TO :-Dr tsegaye

SUBMMITTED DATE :-
01/27/2024
 MARKETING MANAGEMENT

Instruction: WRITE ANSWERS FOR EACH OF THE FOLLOWING QUESTION

1. List and briefly describe the different pricing strategies.

Cost-Plus Pricing: Setting prices based on production costs and adding a markup.
Competitive Pricing: Aligning prices with competitors to stay competitive in the market.
Value-Based Pricing: Pricing based on the perceived value of the product or service to
customers.
Skimming Pricing: Initially setting a high price for a new product and gradually
lowering it.
Penetration Pricing: Setting a low initial price to quickly gain market share.
Dynamic Pricing: Adjusting prices based on market demand, time, or other external
factors.
Bundle Pricing: Offering products or services as a package at a discounted rate.
Psychological Pricing: Using pricing to influence consumer perception, like setting
prices just below a round number.
Promotional Pricing: Temporarily reducing prices to stimulate sales or clear inventory.
Geographical Pricing: Adjusting prices based on the location of the customer.
Each strategy has its own advantages and is suitable for different business scenario
2. Name and define the different tools of the promotional mix.
Advertising: Paid, non-personal communication through various media channels to
promote a product, service, or brand.
Public Relations (PR): Building and maintaining a positive public image through
activities such as media relations, sponsorships, and community events.
Sales Promotion: Short-term incentives, discounts, contests, or other activities designed
to boost sales quickly.
Personal Selling: Face-to-face or direct communication between a salesperson and a
potential customer to persuade them to make a purchase.
Direct Marketing: Communicating directly with target customers through channels like
emails, direct mail, or telemarketing.
Social Media Marketing: Utilizing social media platforms to engage with and reach a
target audience.
 Content Marketing: Creating and distributing valuable content to attract and retain a
target audience.
Influencer Marketing: Partnering with influencers or individuals with a significant
online following to promote a product or service.
Events and Experiences: Hosting or sponsoring events to create memorable experiences
and connect with the target audience.
Word of Mouth (WOM) Marketing: Encouraging customers to share positive
information about a product or service with others.
Each tool in the promotional mix serves a unique purpose and can be combined to create
an effective and comprehensive marketing strategy.
3. Briefly discuss stages of new product development stages.
 Idea Generation: Generate and gather potential product ideas from various
sources, including customers, employees, and market research.
 Idea Screening: Evaluate and filter the ideas to identify those with the most
potential for success based on criteria such as feasibility, market demand, and
alignment with business goals.
 Concept Development and Testing: Develop detailed concepts of the selected
ideas and test them with a target audience to gather feedback and refine the
concepts.
 Business Analysis: Conduct a comprehensive analysis of the potential costs,
revenues, and profitability of the product. Assess market size, competition, and
potential risks.
 Product Development: Design and develop a prototype or sample of the
product. This stage involves engineering, design, and manufacturing
considerations.
 Market Testing: Introduce the product to a limited market to assess customer
response, gather feedback, and identify any necessary adjustments before a full-
scale launch.
 Commercialization: If the market testing is successful, launch the product on a
broader scale. Implement marketing strategies, distribution plans, and finalize
production processes.
  Post-Launch Evaluation: Continuously monitor the product's performance in
the market, gather customer feedback, and make necessary adjustments to
improve its success.

These stages provide a systematic approach to bringing a new product from ideation to
market, helping to minimize risks and increase the chances of success.
4. Discuss the basic factors that affect consumers buying behavior.
 Cultural Factors: Culture, subculture, and social class shape individuals' values,
beliefs, and behaviors. Cultural influences can impact preferences, buying
patterns, and product choices.

 Social Factors: Reference groups, family, social roles, and status can
significantly influence consumer decisions. People often seek social approval and
may align their choices with those of their social circles.

 Personal Factors: Personal characteristics such as age, occupation, lifestyle, and

personality influence buying behavior. Different life stages and personal traits can
lead to distinct preferences.

 Psychological Factors: Psychological aspects, including perception, motivation,

learning, and attitude, play a crucial role. Perception of a product, motivational
factors, past experiences, and attitudes toward a brand can impact purchasing
decisions.

 Marketing Mix (4Ps): Product, Price, Place, and Promotion are fundamental
elements of the marketing mix that affect consumer choices. A well-designed
product, competitive pricing, convenient distribution, and effective promotion
influence buying decisions.
  Situational Factors: Immediate circumstances, such as time, location, and the
buyer's mood, can affect purchasing behavior. Urgency, availability, and the
context in which a product is encountered can influence decisions.

 Online and Social Media Influence: The rise of digital platforms has
transformed consumer behavior. Online reviews, social media recommendations,
and influencers can significantly impact purchasing decisions.

 Economic Factors: Economic conditions, including income levels, employment

rates, and inflation, influence consumer buying power and willingness to spend.

 Technological Factors: Advances in technology can affect consumer preferences

and expectations. Innovations may lead to the adoption of new products and
changes in buying patterns.

Understanding these factors helps businesses tailor their marketing strategies to better
meet the needs and desires of their target audience, ultimately influencing consumer
buying behavior.
5. Define the term marketing? And explain the core concepts of marketing?
Marketing is the process of planning, executing, and managing activities that facilitate the
exchange of goods or services between producers and consumers. It involves creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.

Core Concepts of Marketing:

1. Needs, Wants, and Demands:

 Needs: Basic human requirements like food, shelter, and clothing.
 Wants: Desires shaped by culture and individual personality.
 Demands: Wants backed by purchasing power. Marketing aims to convert wants
into demands.
2. Target Market:
- Identifying a specific group of consumers with shared characteristics who are likely to
be interested in a product or service.

3. Value, Satisfaction, and Quality:

- Value: The benefit customers perceive from a product relative to its cost.
- Satisfaction: Fulfillment of customer expectations and needs.
- Quality: Meeting or exceeding customer expectations.

4. Exchange and Transactions:

- Exchange: The act of obtaining a desired product from someone by offering
something in return.
- Transaction: A trade between a buyer and a seller that involves the exchange of
values.

5. Marketing Mix (4Ps):

- Product: Designing and developing a product that meets customer needs.
- Price: Setting a competitive and profitable pricing strategy.
- Place: Ensuring the product is available at the right place and time.
- Promotion: Communicating with customers through advertising, sales promotions,
and other methods.

6. Market Segmentation and Targeting:

- Identifying distinct groups of consumers with varying needs and preferences, then
developing strategies to target those segments effectively.

7. Customer Relationship Management (CRM):

- Building and maintaining long-term relationships with customers by understanding
their needs and preferences.
 8. Environmental Analysis:
- Monitoring and adapting to external factors such as economic conditions,
technological advancements, social trends, and legal and regulatory changes.

9. Social Responsibility and Ethics:

- Recognizing and addressing the ethical and social implications of marketing activities,
ensuring they contribute positively to society.

These core concepts guide organizations in developing comprehensive marketing

strategies to create, communicate, and deliver value to their target markets
6. Identify and explain briefly the marketing philosophies?
There are several marketing philosophies, each representing a different approach to how
businesses should focus on their markets. Here are some key marketing philosophies:
1. Production Orientation:
 Focus: Emphasizes efficient production and distribution processes.
 Assumption: Consumers will favor products that are widely available and
affordable.
2. Product Orientation:
 Focus: Concentrates on product quality, innovation, and features.
 Assumption: Consumers will prioritize products that offer the most quality,
performance, or features.
3. Sales Orientation:
 Focus: Aggressively promotes and sells products.
 Assumption: Consumers need persuasion to buy, and significant promotional
efforts are required.
4. Market Orientation:
 Assumption: Understand customer needs and wants, and tailor products and
services accordingly.
5. Societal Marketing Orientation:
 Focus: Balances customer satisfaction, company profits, and societal well-
being.
  Assumption: Businesses should not only meet customer needs but also
contribute to the overall betterment of society.
6. Holistic Marketing Orientation:
 Focus: Considers all stakeholders (customers, employees, partners, society) in
marketing decisions.
 Assumption: Successful marketing integrates and aligns all aspects of the
business to create a positive overall experience.

These marketing philosophies reflect different perspectives on how companies should

approach their markets and customers. The shift has been towards customer-centric
approaches, acknowledging the importance of understanding and meeting customer needs
to achieve long-term success.
7. Identify at least three distinctions between marketing and selling.
1. Focus on Customer Needs:
 Marketing: Focuses on understanding and satisfying customer needs and wants
through product development, pricing, promotion, and distribution strategies.
 Selling: Primarily concerned with persuading customers to buy a product or
service, often emphasizing the features and benefits of the offering.

2. Long-Term Relationship vs. Short-Term Transaction:

 Marketing: Aims to build long-term relationships with customers by creating
value, addressing their needs, and fostering loyalty.
 Selling: Often focuses on closing individual transactions without necessarily
emphasizing long-term relationships. The primary goal is to make the sale.

3. Process vs. Activity:

 Marketing: Encompasses a broader process that includes market research,
segmentation, targeting, positioning, and the development of the marketing mix.
 Selling: Represents a specific activity within the marketing process, involving
direct interaction with potential buyers to persuade them to make a purchase.
 While selling is a component of the broader marketing process, the distinction lies in the
orientation and focus. Marketing takes a holistic approach, considering the entire
customer journey and building relationships, whereas selling is more transactional,
concentrating on closing immediate sales.
8. Define the term marketing environment.
The marketing environment refers to the external factors and forces that can affect an
organization's ability to develop and maintain successful relationships with its target
customers. This environment is dynamic and includes various elements that impact a
company's marketing efforts. Key components of the marketing environment include:

1. Microenvironment:
 Customers: Individuals or organizations that purchase or use the products and
services.
 Suppliers: Entities providing input resources for the production of goods or
services.
 Intermediaries: Distributors, retailers, and other middlemen involved in getting
the product to the end consumer.
 Competitors: Other organizations offering similar products or services.

2. Macro environment:
 Demographic Factors: Characteristics of the population, such as age, gender,
income, and education.
 Economic Factors: Economic conditions, including inflation, interest rates, and
overall economic health.
 Social and Cultural Factors: Cultural influences, societal norms, and trends that
can impact consumer behavior.
 Technological Factors: Advances in technology that affect how products are
produced, distributed, and consumed.
 Political and Legal Factors: Government regulations, policies, and legal
frameworks that influence business operations.
  Environmental Factors: Concerns related to sustainability, climate change, and
environmental responsibility.
 Global Factors: International influences, including global markets, trade
agreements, and cultural differences.

Understanding and analyzing the marketing environment are crucial for businesses to
adapt their strategies to changing conditions, identify opportunities, and mitigate potential
threats. It provides the context within which marketing decisions are made and helps
organizations stay responsive to external changes
9. How do you relate the micro-environment with the macro-environment forces?
The micro-environment and macro-environment are interrelated components of the
overall marketing environment, and both play crucial roles in shaping an organization's
marketing strategy. Here's how they relate:

1. Impact on Marketing Strategy:

 Micro-Environment: Directly influences the day-to-day operations of a company.
Elements like customers, suppliers, intermediaries, and competitors have a more
immediate and specific impact on marketing decisions.
 Macro-Environment: Provides the broader context within which a business
operates. Factors such as economic conditions, technological advancements, and
legal regulations shape the overall landscape and set the stage for strategic
planning.

2. Interactive Nature:
 Micro-Environment: Involves close and immediate relationships with
stakeholders directly connected to the company. Interactions with customers,
suppliers, and competitors can influence short-term decisions.
 Macro-Environment: Represents larger societal and global forces that may not
have direct and immediate effects but can shape the long-term direction of the
business.
 3. Adaptation to External Changes:
 Micro-Environment: Companies must be agile and responsive to changes in
customer preferences, supplier conditions, and competitive actions. Flexibility in
adapting to these changes is crucial for success.
 Macro-Environment: Businesses need to anticipate and adapt to broader trends
and shifts in the economic, social, technological, and regulatory landscapes. This
requires a more strategic and long-term perspective.

4. Consideration in Strategic Planning:

 Micro-Environment: Companies focus on building strong relationships with
immediate stakeholders, understanding their needs, and developing strategies to
gain a competitive edge.
 Macro-Environment: Organizations consider the broader societal and global
trends when formulating their long-term strategies. This involves scanning for
opportunities and threats arising from external forces.
10. Discuss the strategic planning process?
The strategic planning process involves the systematic development and execution of
strategies to achieve specific goals and objectives. Here are the key stages of the strategic
planning process:
1. Mission and Vision:
 Mission Statement: Define the organization's purpose, its reason for existence,
and the value it provides.
 Vision Statement: Outline the desired future state and long-term goals the
organization aspires to achieve.
2. SWOT Analysis:
 Strengths, Weaknesses, Opportunities, Threats (SWOT): Evaluate internal strengths
and weaknesses as well as external opportunities and threats to gain a comprehensive
understanding of the business environment.
3. Setting Objectives:
 Establish clear, specific, and measurable objectives aligned with the mission and
vision. Objectives should provide a roadmap for achieving the organization's goals.
4. Strategy Formulation:
 Develop strategies to capitalize on strengths, address weaknesses, exploit
opportunities, and mitigate threats identified in the SWOT analysis.
 Consider differentiation, cost leadership, focus, or other strategic approaches based
on the organization's competitive position.

5. Tactical Planning:
 Break down the high-level strategies into actionable plans at the departmental or
functional level.
 Allocate resources and define specific activities and tasks to achieve strategic
objectives.

6. Budgeting:
 Allocate financial resources in line with the strategic and tactical plans.
 Ensure that the budget supports the implementation of strategies and achievement of
objectives.

7. Implementation:
 Execute the tactical plans and strategies through day-to-day operations.
 Monitor progress and make necessary adjustments to ensure alignment with strategic
goals.

8. Monitoring and Evaluation:

 Regularly assess performance against objectives and key performance indicators
(KPIs).
 Identify areas of success and areas needing improvement, adjusting strategies as
necessary.

9. Feedback and Adaptation:

  Encourage open communication and feedback loops to capture insights from
employees, customers, and other stakeholders.
 Use feedback to adapt and refine strategies based on changing internal and
external conditions.

10. Review and Update:

Periodically review and update the strategic plan to ensure it remains relevant and
responsive to evolving market dynamics, industry trends, and organizational needs.

The strategic planning process is iterative and involves a continuous cycle of analysis,
planning, implementation, and evaluation. Successful strategic planning requires
adaptability and the ability to respond to changes in the business environment
11. Discuss the pattern of market segmentation?
Market segmentation involves dividing a diverse market into smaller, more manageable
segments based on similar characteristics or needs. The pattern of market segmentation
typically follows several key criteria:

1. Demographic Segmentation:
 Criteria: Divides the market based on demographic factors such as age, gender,
income, education, occupation, and family structure.
 Example: A company might target a specific age group or income bracket with
tailored marketing strategies.
2. Psychographic Segmentation:
 Criteria: Focuses on consumers' lifestyles, values, interests, and personality traits.
 Example: A brand might target environmentally conscious consumers or those
interested in luxury lifestyles.
3. Behavioral Segmentation:
 Criteria: Analyzes consumer behavior, including purchasing patterns, product
usage, brand loyalty, and decision-making processes.
 Example: Dividing customers based on whether they are heavy users of a product,
brand-loyal, or price-sensitive.
 4. Geographic Segmentation:
 Criteria: Segments the market based on geographic location, such as region,
country, climate, or population density.
 Example: A company might tailor its products or marketing messages to suit the
preferences or needs of customers in different regions.

5. B2B (Business-to-Business) Segmentation:

 Criteria: Focuses on characteristics specific to businesses, such as industry type,
company size, and purchasing behavior.
 Example: Targeting businesses in a particular industry with products or services
tailored to their specific needs.
6. Technographic Segmentation:
 Criteria: Relevant in industries driven by technology, categorizes customers based
on their use of technology, software preferences, or digital behavior.
 Example: A software company might segment its market based on the types of
technology platforms its customers use.
7. Occasion-Based Segmentation:
 Criteria: Considers when consumers make purchases, such as holidays, seasons,
or special events.
 Example: A company might tailor promotions or product offerings for specific
occasions like back-to-school season or festive holidays.
8. Benefit Segmentation:
Criteria: Groups consumers based on the benefits they seek from a product or service.
Example: A skincare brand might target one segment seeking anti-aging benefits and
another seeking hydration.

The pattern of segmentation depends on the nature of the product or service, the industry,
and the specific goals of the marketing strategy. Effective segmentation helps companies
better understand and meet the diverse needs of their target audiences.
12. Explain the term consumer market and buyers behavior.
  Consumer Market:
The consumer market refers to the vast and diverse group of individuals or households
who purchase goods and services for personal use. This market encompasses a wide
range of products, including clothing, electronics, food, automobiles, and more.
Understanding the dynamics of the consumer market is crucial for businesses to develop
effective marketing strategies that resonate with the needs, preferences, and behaviors of
individual consumers.
 Buyer Behavior:
Buyer behavior, also known as consumer behavior, involves the actions and decision-
making processes individuals go through when purchasing and using products or
services. Several factors influence buyer behavior:
1. Cultural Factors: Cultural background, values, beliefs, and customs impact
purchasing decisions.
2. Social Factors: Reference groups, family, social class, and other social influences play
a role in shaping consumer behavior.
3. Personal Factors: Age, occupation, lifestyle, and personality traits influence
individual preferences and choices.
4. Psychological Factors: Perception, motivation, learning, and attitudes affect how
consumers perceive and respond to marketing messages.
5. Situational Factors: Immediate circumstances, such as time, place, and mood, can
impact buying decisions.
Understanding buyer behavior is essential for marketers to tailor their strategies to meet
the needs and expectations of their target audience. This involves conducting market
research, analyzing trends, and adapting marketing efforts to align with consumer
preferences. Additionally, the rise of digital technologies has transformed buyer behavior,
with online reviews, social media, and e-commerce platforms playing significant roles in
the decision-making process. Marketers need to stay attuned to these shifts to effectively
engage and connect with consumers in the ever-evolving marketplace.
13. Discuss the model of buyer behavior.
The model of buyer behavior provides a framework for understanding and analyzing the
decision-making process that consumers go through when making purchasing choices.
One widely recognized model is the "Consumer Decision-Making Process" model, which
consists of several stages:
1. Problem Recognition:
 The process begins when a consumer recognizes a need or problem that can be
satisfied by purchasing a product or service.
 Factors influencing problem recognition include changes in needs, desires, or
external stimuli like advertising.
2. Information Search:
 Once the need is identified, the consumer seeks information about potential
solutions.
 Information can be gathered from internal sources (memory, past experiences) or
external sources (friends, family, online reviews, advertising).
3. Evaluation of Alternatives:
 Consumers assess different options based on criteria such as price, quality, brand
reputation, and features.
 The consideration set is narrowed down to a few alternatives during this stage.
4. Purchase Decision:
 After evaluating alternatives, the consumer makes a decision to purchase the
chosen product or service.
 Factors influencing the purchase decision include product availability, pricing,
and promotional efforts.
5. Post-Purchase Evaluation:
 After making the purchase, the consumer evaluates their satisfaction with the
product or service.
 Positive experiences reinforce brand loyalty, while negative experiences may lead
to dissatisfaction and potentially impact future buying decisions.
This model is often represented as a linear process, but in reality, consumers may move
back and forth between stages, and certain stages may be skipped or repeated based on
the complexity of the purchase and individual differences. Additionally, external factors
like cultural influences, social influences, and situational factors can impact each stage of
the decision-making process.
 Understanding the buyer behavior model helps marketers tailor their strategies to
effectively engage consumers at each stage of the process. It emphasizes the importance
of providing information, building positive perceptions, and ensuring customer
satisfaction to foster long-term relationships.
14. Identify and briefly discuss the different types of individual buying decisions.
Individual buying decisions can be categorized into various types based on factors such
as involvement, time, and effort invested in the decision-making process. Here are
different types of individual buying decisions:
1. Routine Response Behavior:
 Characteristics: Low involvement, low risk.
 Description: Consumers quickly make routine decisions with minimal thought or
effort. These are typically habitual, everyday purchases.

2. Limited Decision Making:

 Characteristics: Moderate involvement, moderate risk.
 Description: Consumers engage in limited decision-making when purchasing
products that require some consideration, but not an extensive evaluation. These
decisions often involve familiar products or brands.

3. Extended Decision Making:

 Characteristics: High involvement, high risk.
 Description: Consumers undertake extensive decision-making for significant
purchases that involve a high level of risk or investment. This process may
include thorough research, comparing options, and careful evaluation.

4. Impulse Buying:
 Characteristics: Low involvement, high emotional appeal.
 Description: Impulse buying occurs when consumers make unplanned purchases
driven by sudden desires or emotions. These decisions are often made quickly
without extensive consideration.
5. Socially-Motivated Buying:
  Characteristics: Influence of social factors.
 Description: Consumers make decisions based on social influences, such as peer
pressure, family expectations, or societal trends. The desire to fit in or conform to
social norms plays a significant role in these decisions.
6. Habitual Buying:
 Characteristics: Low involvement, low risk, frequent repetition.
 Description: Consumers exhibit habitual buying behavior when they repeatedly
purchase a particular product or brand out of habit or routine. These decisions are
automatic and require minimal thought.
7. Brand Loyalty:
 Characteristics: High involvement, emotional attachment to a specific brand.
 Description: Consumers who consistently choose a specific brand over others,
often due to trust, positive experiences, or a strong emotional connection.
8. Post-Purchase Dissonance:
 Characteristics: High involvement, uncertainty after purchase.
 Description: Occurs when consumers experience doubt or anxiety after making a
significant purchase. Marketers aim to minimize post-purchase dissonance
through effective communication and support.
Understanding these types of individual buying decisions helps marketers tailor their
strategies to align with the specific characteristics and motivations influencing consumers
in different situations. Each type requires a nuanced approach to address the unique
factors at play during the decision-making process.
15. What is the impact of cultural factors on the consumers buying behavior?
Cultural factors have a profound impact on consumers' buying behavior, influencing their
preferences, values, and decision-making processes. Here are key ways in which cultural factors
affect consumer buying behavior:
 Cultural Values and Beliefs:
Impact: Consumers are shaped by their cultural background, including values, beliefs,
customs, and traditions.
Example: Cultures that prioritize individualism may emphasize personal choice and uniqueness
in product selection, while collectivist cultures may value group preferences and conformity.
  Cultural Symbols and Rituals:
Impact: Certain symbols and rituals are culturally significant and influence product choices.
Example: Products associated with specific cultural symbols or rituals may hold greater
appeal. For instance, certain foods or gifts may be tied to cultural celebrations.

 Language and Communication Styles:

Impact: Language nuances and communication styles can impact how products and messages
are received.
Example: The choice of words, tone, and cultural references in marketing messages must align
with the cultural context to resonate effectively with consumers.
 Cultural Subcultures:
Impact: Subcultures within a larger culture can influence consumer preferences and behavior.
Example: Subcultures based on factors like ethnicity, religion, or age may have distinct buying
patterns and preferences. Marketers may need to tailor strategies to address these subcultures.
 Cultural Influences on Perception:
Impact: Cultural factors shape how individuals perceive and interpret the world, impacting
their preferences and product evaluations.
Example: Colors, symbols, or images that carry different meanings in various cultures may
influence how a product is perceived.
 Cultural Influences on Motivation:
Impact: Cultural factors contribute to the motivation behind consumer behavior.
Example: Cultures that value achievement and success may see higher demand for products
associated with status or accomplishment.
 Cultural Influences on Decision-Making:
Impact: Decision-making processes, such as information-seeking and evaluation, are
influenced by cultural norms.
Example: Cultures with a high uncertainty avoidance may prefer familiar brands or products,
while those with lower uncertainty avoidance may be more open to experimentation.
 Cultural Influences on Lifestyle:
Impact: Cultural lifestyles affect consumer choices regarding leisure activities, hobbies,
and spending habits.
 Example: Urban and rural cultural differences may lead to distinct lifestyle preferences
and corresponding product choices.