Student ID No.

: 202305D0025 - NAZIRUL HAZIQ BIN MOHD RIZAL

IC No. / Passport No. : 010523-01-2019
Subject Code : BBCT 1013
Subject Name : PRINCIPLE OF MARKETING
Programme : BACHELOR OF BUSINESS ADMINISTRATION
Lecturer Name : NIK RIDHUWAN ILYA BIN ILYAS.
Date (dd/mm/yy) : 03/09/2023
Semester : 202305

Instruction to Candidates:
1. Ensure all information filled is clear and correct.
2. All answer sheet must be combined together into ONE document before submission.
3. All answer must be type in ARIAL font size 12 OR written in blue or black ball point pen.
4. Any hand written or illustrations must be insert within this answer sheet document.

For Examiner’s use only

1st examiner’s 2nd examiner’s

Questions
recommended recommended
attempted
grades grades
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Total grade
SECTION A – True or False Questions.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. TRUE
6. TRUE
7. TRUE
8. TRUE
9. TRUE
10. FALSE

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SECTION B – Short Essay Questions

1) Consumer products can be categorized into two main categories: convenience products and
shopping products. These categories are based on consumer buying behavior and the level of
consumer involvement in the purchase decision.

1. Convenience Products:

Convenience products are everyday items that consumers frequently purchase with minimal effort
and little consideration. Consumers usually buy them regularly, often on impulse. These products
are widely available, and consumers typically do not spend much time comparing brands or
evaluating alternatives.

Examples of convenience products:

 Toothpaste: People often buy the same brand without extensive research.

 Soft drinks (e.g., Coca-Cola, Pepsi): Consumers usually have brand preferences but may
switch easily.

 Bread: Most consumers buy bread regularly, often without much thought.

 Snack foods (e.g., chips, candy bars): These are purchased for immediate consumption.

2. Shopping Products:

Shopping products are items that consumers buy less frequently and invest more time and effort in
the purchase decision. Consumers compare brands, features, prices, and quality before making a
choice. Shopping products often involve higher price points and more significant consideration.

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Examples of shopping products:

 Laptop computers: Consumers research specifications, read reviews, and compare prices
before purchasing.

 Furniture: Buyers may visit multiple stores, test furniture for comfort, and compare prices.

 Automobiles: Car buyers extensively research various makes and models, consider features,
and negotiate prices.

 Smartphones: Shoppers often compare different brands and models based on specifications,
features, and prices.

These categories help businesses understand consumer behavior and tailor their marketing
strategies accordingly. Convenience products often require heavy advertising and distribution
efforts to ensure they are readily available when consumers need them. In contrast, shopping
products demand more extensive marketing efforts to provide consumers with the information they
need to make informed choices.

Companies may also offer specialty products (unique and high-involvement) and unsought
products (products consumers do not actively seek but may need, like funeral services).
Understanding these product categories is crucial for effective marketing and product development
strategies.

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2) The new product development (NPD) process is a systematic approach that businesses use to
bring new products or services to the market successfully. It involves a series of well-defined steps
that help companies innovate, plan, design, test, and launch new products. Here are the steps in
the new product development process:

1. Idea Generation:

The process begins with idea generation, where potential new product ideas are brainstormed.
These ideas can come from various sources, including employees, customers, market research,
and competitive analysis.

2. Idea Screening:

After generating a list of potential ideas, the next step is to screen and evaluate them. Criteria
such as feasibility, market potential, alignment with company goals, and profitability are used to
filter out less viable concepts.

3. Concept Development and Testing:

Once a promising idea is identified, it's developed into a detailed concept. This includes creating a
concept statement, product description, and preliminary marketing strategy. Concept testing
involves seeking feedback from a small group of target customers to assess their reactions and
preferences.

4. Business Analysis:

In this stage, a comprehensive business analysis is conducted to determine the product's financial
feasibility. This involves estimating costs, revenue projections, potential return on investment (ROI),
and assessing the product's impact on the company's overall financial health.

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5. Product Development:

If the concept passes the business analysis phase, the product development stage begins. Here, a
prototype or sample of the product is created. Engineering, design, and manufacturing processes
are established, and a detailed development plan is put into action.

6. Market Testing (Optional):

In some cases, companies may conduct market testing by introducing the product to a limited
geographic area or a specific target market. This helps gather real-world feedback and fine-tune
the product before a full-scale launch.

7. Commercialization:

Once the product has been developed and any necessary adjustments have been made, it's ready
for commercialization. This stage involves finalizing marketing strategies, distribution channels,
pricing, and promotion plans. The product is launched into the market for widespread availability.

8. Launch and Post-Launch Evaluation:

The product is officially launched to the public. Post-launch evaluation is crucial to monitor how the
product is performing in the market. Companies assess customer feedback, sales data, and other
metrics to ensure the product is meeting its objectives.

9.Product Life Cycle Management:

After the product is launched, ongoing management is essential. This includes addressing issues,
making improvements, and deciding on strategies for the product's growth, maturity, and eventual
decline phases within its life cycle.

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10.Feedback and Iteration:

Throughout the NPD process and the product's life cycle, continuous feedback is essential.
Companies should gather insights from customers, monitor market trends, and be prepared to
iterate on the product or develop new versions as needed to remain competitive and meet
evolving customer needs.

Effective new product development involves cross-functional teams, market research, innovation,
and careful planning at each stage to increase the chances of success in the market.

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3) Value-based pricing is a pricing strategy that focuses on setting prices based on the perceived
value of a product or service to the customer. It involves understanding how much value the
customer places on the product and pricing it accordingly. There are two primary types of value-
based pricing: customer value-based pricing and product value-based pricing.

1.Customer Value-Based Pricing:

Customer value-based pricing, also known as customer-driven pricing, starts with a deep
understanding of the customer's perception of value. This approach involves tailoring pricing to
different customer segments, each of which may have a unique perception of value for the product
or service.

Steps in customer value-based pricing:

a. Segmentation: Identify different customer segments based on their needs, preferences, and
willingness to pay.

b. Value Assessment: Understand what each customer segment values most about the product or
service. This could be quality, convenience, features, or other factors.

c. Price Differentiation: Set different prices for each customer segment based on their perceived
value. Premium pricing may be applied to customers who highly value the product, while discounts
or lower prices may be offered to price-sensitive segments.

Example: Airlines often use customer value-based pricing by offering different fare classes
(economy, business, first class) with varying levels of service and pricing to cater to different
customer segments.

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2.Product Value-Based Pricing:

Product value-based pricing focuses on understanding the inherent value of the product or service
itself and pricing it accordingly. It involves assessing the unique features, benefits, and competitive
advantages of the offering to determine its value in the market.

Steps in product value-based pricing:

a. Value Assessment: Evaluate the product's unique features, quality, performance, and benefits
compared to competitors.

b. Competitive Analysis: Understand the pricing strategies of competitors offering similar products
or services.

c. Positioning: Position the product in the market based on its perceived value. This can involve
positioning as a premium, mid-range, or budget option.

d. Pricing Strategy: Set the price that reflects the product's value in the market while considering
factors such as cost, margin, and demand elasticity.

Example: Apple uses product value-based pricing for its iPhone lineup. It positions its products as
premium devices with cutting-edge technology, allowing it to command higher prices than many
competitors.

Both customer value-based pricing and product value-based pricing aim to align pricing with the
value perceived by customers. The choice between these approaches depends on the nature of
the product or service, the target market, and the company's competitive positioning. Effective
value-based pricing requires ongoing market research and a willingness to adjust prices as
customer preferences and market conditions change.

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4) Marketing logistics, also known as distribution logistics or physical distribution, is a crucial
aspect of the marketing mix that focuses on efficiently getting products from the manufacturer to
the end consumer. It involves the planning, implementation, and control of the physical flow of
goods and related information from the point of origin to the point of consumption. The
components of marketing logistics are essential for ensuring products are available to consumers
when and where they are needed. Here are the key components of marketing logistics:

1. Order Processing:

Order processing involves receiving and managing customer orders. This component includes
tasks such as order entry, order verification, order acknowledgment, and order tracking. Efficient
order processing ensures that customer orders are accurate and delivered promptly.

2. Inventory Management:

Inventory management is critical to balancing supply and demand. It includes determining optimal
inventory levels, replenishing stock when necessary, and minimizing excess or obsolete inventory.
Effective inventory management ensures that products are available to meet customer demands
without overstocking or understocking.

3. Warehousing and Storage:

Warehousing plays a crucial role in storing and safeguarding products before they are distributed
to customers. This component involves selecting suitable warehouse locations, designing storage
systems, managing inventory within warehouses, and ensuring the security and integrity of stored
goods.

4. Transportation:

Transportation logistics focuses on the movement of goods from the manufacturer or supplier to
distribution centers and ultimately to retailers or end consumers. It includes selecting
transportation modes (e.g., trucks, trains, ships, airplanes), optimizing routes, and managing
transportation costs. Efficient transportation is vital for timely and cost-effective delivery.

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5. Packaging and Labeling:

Packaging and labeling influence product protection, presentation, and branding. Proper
packaging ensures that products reach consumers in good condition, and effective labeling
provides essential information, such as product details, barcodes, and handling instructions.

6. Materials Handling:

Materials handling involves the physical movement, loading, unloading, and sorting of goods
within warehouses and during transportation. Automation and efficient materials handling
equipment (e.g., conveyor belts, forklifts) are essential for speeding up the flow of goods.

7. Information Systems and Technology:

Information systems and technology are fundamental for managing logistics operations. These
systems support order processing, inventory management, transportation planning, and real-time
tracking of shipments. They provide valuable data for decision-making and process optimization.

8. Reverse Logistics:

Reverse logistics deals with the return of products from consumers to manufacturers or other
points in the supply chain. This component includes product recalls, product returns, recycling,
and waste management. Efficient handling of returns is essential for maintaining customer
satisfaction and managing product defects.

9. Distribution Network Design:

Designing an efficient distribution network involves determining the number and location of
distribution centers, warehouses, and retail outlets. An optimal network design minimizes
transportation costs and ensures timely product availability.

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10. Supplier and Vendor Management:

Managing relationships with suppliers and vendors is vital for ensuring a reliable supply chain.
Effective communication and collaboration with suppliers help reduce lead times, improve product
quality, and maintain consistent inventory levels.

Effective marketing logistics requires a coordinated effort across these components to ensure that
products reach the right place, at the right time, and in the right condition while minimizing costs. It
plays a crucial role in enhancing customer satisfaction, reducing operational inefficiencies, and
contributing to the overall success of a company's marketing efforts.

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5) Salesperson compensation is a critical aspect of motivating and incentivizing salespeople to
achieve their targets and drive revenue for a company. It typically consists of four primary
elements, each serving a specific purpose in motivating salespeople in various situations. These
four elements are:

1. Base Salary:

Base salary is the fixed, regular payment that salespeople receive regardless of their performance.
It provides financial stability and ensures that salespeople have a consistent income. Base
salaries vary widely based on factors such as industry, company, and the complexity of the sales
role.

Example: In the pharmaceutical industry, medical sales representatives often receive a base
salary that covers their living expenses. This motivates them to stay with the company and
maintain consistent effort, even during periods of slow sales growth.

2. Commission:

Commission is a variable component of salesperson compensation that is directly tied to sales

performance. Salespeople earn a percentage of the revenue they generate through their sales
efforts. The higher the sales, the more they earn in commissions.

Example: A car salesperson may receive a 3% commission on the sale price of each vehicle they
sell. This motivates them to actively pursue and close deals, as their income directly correlates
with their sales success.

3. Bonuses and Incentives:

Bonuses and incentives are one-time or periodic rewards given to salespeople for achieving
specific targets or milestones. They can take various forms, such as cash bonuses, trips, gifts, or
recognition.

Example: A software company may offer a performance bonus to its sales team for exceeding
quarterly sales targets. This provides extra motivation and recognition for exceptional performance.

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4. Sales Contests and Recognition:

Sales contests and recognition programs are non-monetary incentives that acknowledge and
reward salespeople for their achievements. These can include awards, certificates, public
recognition, and competition among sales team members.

Example: A retail store might hold a sales contest where the top-performing salesperson for the
month receives a "Salesperson of the Month" plaque, recognition at a company meeting, or a
special parking spot. Such recognition boosts morale and fosters a competitive spirit among the
sales team.

These four elements of salesperson compensation work together to motivate salespeople in

different situations:

 Motivating Consistency: Base salaries provide a stable income, motivating salespeople to

consistently engage with customers and maintain relationships, even during slower sales
periods.

 Driving Sales Volume: Commission encourages salespeople to maximize sales revenue. The
more they sell, the more they earn, motivating them to actively pursue leads and close deals.

 Rewarding Exceptional Performance: Bonuses and incentives reward salespeople for

surpassing targets, fostering a sense of achievement and encouraging them to exceed their
goals.

 Fostering Healthy Competition: Sales contests and recognition create a competitive

environment that pushes salespeople to excel, surpass their peers, and receive
acknowledgment for their efforts.

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The optimal mix of these elements may vary depending on the industry, company culture, and
sales team dynamics. Companies must carefully design their compensation plans to align with
their sales objectives and the motivations of their salespeople, ultimately driving sales
performance and revenue growth.

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SECTION C – Case Study.

1) Consumer behavior refers to the study of how individuals, groups, or organizations make decisions to
select, purchase, use, or dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
It involves understanding the psychological, social, and economic factors that influence consumer choices.
Here are some key components of consumer behavior with examples:

1. Needs and Wants:

Needs are basic requirements for survival, such as food, shelter, and clothing. Wants are desires for goods
or services that go beyond basic needs.

Example: A person needs food to survive but may want to eat at a high-end restaurant for a special
occasion.

2. Perception:

Perception refers to how consumers interpret and make sense of information from their environment. It
includes sensory perception (sight, sound, taste, touch, smell) and cognitive processes.

Example: A visually appealing product packaging can influence a consumer's perception of product quality.

3. Motivation:

Motivation drives consumer behavior. It can be intrinsic (personal satisfaction) or extrinsic (rewards or
incentives).

Example: Discounts and promotions motivate consumers to make a purchase.

4. Attitude:

Attitudes are a consumer's overall evaluation or emotional response to a product, brand, or service.

Example: A positive attitude towards a particular brand may lead a consumer to remain loyal and make
repeat purchases.

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5. Information Processing:

Consumers gather information from various sources (e.g., advertisements, reviews, word-of-mouth) to
make informed decisions.

Example: Reading online reviews before buying a product to assess its quality and suitability.

Understanding consumer behavior is crucial for businesses and marketers to tailor their products,
marketing strategies, and customer experiences to meet the needs and preferences of their target
audience effectively.

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2) SWOT analysis is a strategic planning tool used to assess the internal strengths and weaknesses and
external opportunities and threats of a project, product, or business venture. In the case of the Barbie
movie, let's examine its strengths and opportunities:

Strengths:

 Brand Recognition and Legacy: Barbie is an iconic and globally recognized brand that has been part of
popular culture for decades. It has a strong brand legacy and a dedicated fan base.

 Appeal to Multiple Generations: Barbie has a multi-generational appeal. It resonates with adults who
grew up with the doll and with children who continue to play with Barbie dolls today. This broad appeal
can attract a wide range of moviegoers.

 Merchandising Opportunities: The Barbie brand offers extensive merchandising opportunities, including
toys, clothing, accessories, and more. A successful movie can further boost merchandise sales.

 Strong Female Empowerment Message: In recent years, Barbie has evolved to promote messages of
female empowerment, diversity, and inclusivity. This aligns with current social and cultural trends and
can resonate with audiences seeking empowering narratives.

Opportunities:

 Targeted Marketing: Barbie can leverage its extensive marketing resources to target both existing fans
and new audiences. It can tailor marketing campaigns to reach different demographics, including
children, parents, and nostalgic adults.

 Cross-Promotion: As seen in the article, cross-promotion with other films, such as the Mission:
Impossible franchise, can create additional buzz and interest in the Barbie movie. Collaborative
marketing efforts can expand the movie's reach.

 Diverse Storytelling: Barbie's brand evolution has introduced diverse characters and storylines. The
movie can capitalize on this diversity by featuring inclusive and relatable characters and narratives,
attracting a broader audience.

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 Streaming and Home Entertainment: While the article focuses on theater releases, Barbie can explore
opportunities in the streaming and home entertainment markets. A successful theatrical release can
lead to lucrative streaming deals and DVD/Blu-ray sales.

 Global Expansion: Barbie's international recognition allows for global distribution and marketing. The
movie can target international markets, leveraging Barbie's existing presence in various countries.

 Franchise Potential: If the Barbie movie performs well, it can open the door to potential sequels or spin-
offs, creating a movie franchise that sustains interest over time.

It's important to note that while Barbie has many strengths and opportunities, it also faces potential
weaknesses and threats, such as changing consumer preferences, competition, and market dynamics. A
comprehensive SWOT analysis would consider all these factors to inform a well-rounded strategic plan for
the Barbie movie's success.

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3) The chosen target markets for both the Barbie and Oppenheimer movies likely reflect the specific
themes, content, and demographics that each film aims to appeal to. Let's explore the reasoning behind the
chosen target markets for both movies:

Barbie Movie:

 Demographic Target: The primary target audience for the Barbie movie is likely to be children and
families. Barbie has traditionally been a beloved toy for young girls, and the movie aims to capitalize on
this existing fan base.

 Psychographic Target: The movie also caters to parents and caregivers who are familiar with and
nostalgic about Barbie. These adults may have grown up playing with Barbie dolls themselves and are
likely to introduce the brand to their children.

 Content: The Barbie movie is expected to have a family-friendly storyline with positive messages,
possibly related to themes like empowerment, friendship, and self-expression. This content is designed
to resonate with parents who want to expose their children to positive role models.

 Merchandising: Barbie is known for its extensive merchandise, including toys, clothing, and
accessories. Targeting children and families with the movie can boost merchandise sales and reinforce
brand loyalty.

Oppenheimer Movie:

 Demographic Target: The Oppenheimer movie is likely targeting an older demographic, including
history enthusiasts, adults interested in significant historical events, and those seeking a more
intellectually stimulating cinematic experience.

 Psychographic Target: This film may attract individuals who appreciate biographical or historically
based dramas. It could also appeal to those interested in science, World War II history, or the
complexities of ethical and moral dilemmas.

 Content: The Oppenheimer movie's content is expected to be more serious and thought-provoking,
delving into the life and work of J. Robert Oppenheimer, a key figure in the development of the atomic
bomb. It may explore themes related to the ethical implications of scientific discovery and the
consequences of technological advancements.

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 Educational Appeal: This movie may have educational value, attracting viewers who want to learn more
about historical events and the people behind them. It could be of interest to students studying history,
physics, or ethics.

 Cross-Promotion: The film's promotion through historical documentaries, educational institutions, and
relevant publications can reach its intended audience.

In summary, the chosen target markets for both movies are tailored to their unique content, themes, and
intended messages. The Barbie movie aims to entertain and inspire young audiences and their families
while reinforcing brand loyalty and merchandise sales. In contrast, the Oppenheimer movie targets a more
mature and intellectually curious audience interested in history and ethical dilemmas. Each film strategically
selects its target market to maximize its appeal and impact.

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4) The consumer decision-making process involves several stages that individuals go through when
making choices, including selecting which movies to watch. Let's elaborate on how moviegoers decide on
their movies using the consumer decision-making process:

1. Problem Recognition:

 This is the first stage where moviegoers realize they have a need or desire to watch a movie. The need
can be driven by various factors, such as entertainment, relaxation, socialization, or personal interests.

 In the case of the "Barbenheimer" frenzy, moviegoers may have become aware of the simultaneous
release of Barbie and Oppenheimer through advertisements, social media, or word-of-mouth.

2. Information Search:

 After recognizing the need to watch a movie, consumers typically seek information about available
movie options. They may gather information from various sources, including:

 Movie trailers and posters

 Reviews and ratings on websites like Rotten Tomatoes and IMDb

 Recommendations from friends and family

 Promotional materials and advertisements

 Social media discussions and influencers' opinions

 Moviegoers in this scenario may have watched trailers, read reviews, or discussed the films with
friends to gather information about Barbie and Oppenheimer.

3. Evaluation of Alternatives:

 Once consumers have gathered information, they evaluate the available movie options based on their
preferences, needs, and criteria. They may consider factors like genre, cast, director, storyline, and
personal interests.

 In the "Barbenheimer" case, viewers likely compared Barbie and Oppenheimer based on their
individual interests and preferences. Some may have been drawn to the light-hearted and family-
friendly nature of Barbie, while others may have been intrigued by the historical and intellectual aspects
of Oppenheimer.

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4. Purchase Decision:

 After evaluating the alternatives, consumers make their purchase decision. In this context, the
purchase decision involves selecting a specific movie and deciding when and where to watch it (e.g., in
a theater or via streaming).

 Moviegoers may have purchased tickets for one or both films, considering factors like showtimes,
availability, and convenience.

5. Post-Purchase Evaluation:

 After watching the chosen movie(s), consumers engage in post-purchase evaluation to assess whether
their expectations were met. They reflect on their movie-watching experience and whether it fulfilled
their entertainment or informational needs.

 Those who watched both Barbie and Oppenheimer might have discussed their impressions with friends,
shared reviews online, or even planned to watch them again.

Factors Influencing the Decision-Making Process:

1. Emotional Appeal: Some moviegoers may be emotionally drawn to a particular movie's theme or genre.

2. Social Influence: Recommendations from friends, family, or social media influencers can significantly
impact the decision.

3. Marketing and Promotion: Effective marketing strategies, including trailers and advertising, can sway
moviegoers.

4. Previous Experience: Positive experiences with a certain genre or director may influence choices.

5. Convenience: Factors like showtimes, theater locations, and streaming platforms play a role.

In summary, the consumer decision-making process for choosing movies involves recognizing a need or
desire, seeking information, evaluating alternatives, making a purchase decision, and reflecting on the post-
purchase experience. The specific factors influencing each stage can vary based on individual preferences
and circumstances, as seen in the "Barbenheimer" scenario where moviegoers had diverse reasons for
selecting their movies.

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