Micro link Information Technology

and Business College

Department of Management
Master of Business Administration
Course Title: Advanced Marketing Management
Individual Assignment
By:- Lielti Aymut Abrha
ID No:- MBA,0239/23
E-mail: lieltim19@gmail.com
Submitted to: MEHARI HAILE (PHD)
E-mail: haileg2003@gmail.com

Date: - 04/04/2024 G.C

Maichew, Tigraiy

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1. What are some fundamental marketing concepts?
Some fundamental marketing concepts include:

1. Target market: Identifying a specific group of consumers that a company wants to

reach with its products or services.
2. Customer segmentation: Dividing customers into different segments based on
factors such as demographics, psychographics, and behavior to better target marketing
efforts.
3. Marketing mix: The combination of the four Ps (product, price, place, and
promotion) that a company uses to market its products or services.
4. Branding: Creating a unique identity for a product or service that distinguishes it
from competitors and builds customer loyalty.
5. Marketing strategy: Developing a plan for how a company will achieve its
marketing objectives, including setting goals, defining target markets, and outlining
tactics.
6. Market research: Gathering and analyzing data about customers, competitors, and
market trends to inform marketing strategies and decision-making.
7. Marketing communication: Creating messages and campaigns to communicate with
customers and persuade them to purchase a product or service.
8. Customer relationship management (CRM): Managing and building relationships
with customers to maximize customer satisfaction and retention.
9. Marketing metrics: Tracking and measuring the performance of marketing efforts to
evaluate the effectiveness of campaigns and make data-driven decisions.
10. Digital marketing: Using online channels such as social media, email, and websites
to promote products and services to a target audience.
2. Choose a company of your choice and analyse its current marketing strategy. Identify
the company's target market, positioning, competitive advantage, and marketing mix
elements.

BGI Ethiopia is a subsidiary of BGI Castel, a leading player in the beverage industry in
Africa. BGI Ethiopia's main products include beer, soft drinks, and water.

Target Market:

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BGI Ethiopia's target market includes consumers in Ethiopia who are looking for high-quality
beverages at affordable prices. The company caters to a wide range of demographics, from
young adults looking for trendy and flavorful beverages to older consumers who prefer
traditional products.

Positioning:

BGI Ethiopia positions itself as a provider of high-quality beverages that are locally produced
and cater to the preferences of Ethiopian consumers. The company emphasizes its
commitment to quality, innovation, and sustainability in its products.

Competitive Advantage:

BGI Ethiopia's competitive advantage lies in its strong distribution network, local production
facilities, and wide product portfolio. The company is able to reach consumers across
Ethiopia through its extensive distribution channels and diverse range of beverages.
Additionally, BGI Ethiopia's focus on locally sourcing ingredients and supporting the local
economy gives it an edge over competitors.

Marketing Mix Elements:

1. Product: BGI Ethiopia offers a range of products, including beer brands like St.
George, Dashen, and Bedele, soft drinks like Raya and Coral, and bottled water. The
company focuses on producing high-quality beverages that cater to the tastes of
Ethiopian consumers.
2. Price: BGI Ethiopia's products are priced competitively to appeal to a wide range of
consumers. The company offers different pricing strategies for its various products to
ensure affordability while maintaining quality.
3. Place: BGI Ethiopia distributes its products through a network of wholesalers,
retailers, and supermarkets across Ethiopia. The company's strong distribution
network enables it to reach consumers in both urban and rural areas.
4. Promotion: BGI Ethiopia uses a mix of advertising, sponsorships, and promotions to
market its products. The company often sponsors local events and sports teams to
increase brand visibility and engagement with consumers. BGI Ethiopia also utilizes
social media and traditional media channels to promote its products.

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Overall, BGI Ethiopia's marketing strategy is focused on providing high-quality beverages
that cater to the preferences of Ethiopian consumers, while also emphasizing its commitment
to sustainability and local sourcing. The company's strong distribution network and diverse
product portfolio are key elements of its competitive advantage in the Ethiopian beverage
market.

3. Assess the importance of customer relationship management in today's competitive

market. Discuss the benefits of CRM strategies in building long term customer loyalty
and driving repeat purchases in Service sector

Customer relationship management (CRM) is crucial in today’s competitive market as it

focuses on building and maintaining strong relationships with customers. In the service
sector, where customer experience and satisfaction are paramount, CRM plays a vital role in
creating long-term customer loyalty and driving repeat purchases. Some key benefits of CRM
strategies in the service sector include:

1. Customer retention: By maintaining regular communication with customers and

addressing their needs and concerns promptly, businesses can enhance customer
retention rates. Loyal customers are more likely to continue patronizing a service
provider and recommend it to others, thus driving repeat purchases.
2. Personalization: CRM allows businesses to collect and analyze customer data to
understand individual needs and preferences. By personalizing interactions and
offerings, businesses can create a unique and tailored experience for each customer,
leading to increased satisfaction and loyalty.
3. Cross-selling and upselling opportunities: CRM systems enable businesses to
identify cross-selling and upselling opportunities based on customer preferences and
purchase history. By offering relevant and timely recommendations, businesses can
increase customer engagement and drive additional revenue through repeat purchases
4. Improved customer service: CRM systems help businesses streamline customer
interactions and provide efficient and effective customer service. By maintaining a
centralized database of customer information, businesses can offer timely assistance
and resolve issues quickly, leading to enhanced customer satisfaction and long-term
loyalty.

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 5. Data-driven decision-making: CRM systems provide valuable insights into
customer behavior, trends, and preferences. By utilizing this data, businesses can
make informed decisions regarding product development, marketing strategies, and
customer engagement initiatives, leading to improved customer satisfaction and
loyalty.

In conclusion, CRM is essential for building long-term customer relationships and driving
repeat purchases in the service sector. By leveraging CRM strategies effectively, businesses
can enhance customer satisfaction, loyalty, and retention, ultimately leading to increased
profitability and sustainable growth in today’s competitive market.

4. How do we define and classify services, and how they differ from goods? Explain by
giving practical examples.

Services can be defined as activities or performances that are intangible and provided by one
party to another. They cannot be stored or owned, and they are consumed at the point of sale.
Examples of services include haircuts, legal advice, house cleaning, and entertainment
services like streaming platforms or ticket sales for concerts.

Goods, on the other hand, are tangible products that can be stored, owned, and physically
exchanged. They are typically manufactured or produced and include items such as
electronics, clothing, food, and vehicles.

Services can be classified in various ways, such as based on their industry (e.g. healthcare,
hospitality, transportation), their purpose (e.g. personal services, professional services), or the
level of customization (e.g. standardized services, customized services).

One key difference between services and goods is that services are often more perishable and
cannot be stored or inventoried like goods can. For example, a haircut appointment cannot be
saved for later if it is missed, whereas a physical product like a shirt can be stored on a shelf
until it is purchased.

Another difference is that services are typically more variable and dependent on the
provider delivering them. For instance, two different hairstylists may provide slightly
different haircuts even if they are using the same techniques, while a shirt produced in a
factory will be more consistent in quality across different units.

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In summary, services are intangible, perishable, and dependent on the provider, while
goods are tangible, storable, and more consistent in quality.

5. Identify the key factors that influence consumer behaviour.

Consumer behavior is influenced by a wide range of factors, both internal and external. Some
key factors that influence consumer behavior include:

1. Social Factors: Social factors, such as reference groups, family, social networks,
and social roles, influence consumer behavior. Reference groups (e.g., peers,
celebrities) can impact individuals’ preferences and purchase decisions by serving as
sources of comparison and influence. Family plays a critical role in shaping
consumption patterns and attitudes. Social networks and social roles can also
influence consumer behaviour.
2. Cultural Factors: Culture, subculture, and social class play a significant role in
shaping consumer behavior. Cultural values, beliefs, norms, and customs influence
what products or services individuals value and purchase. Subcultures, such as
ethnicity or religion, can also impact consumer preferences. Social class can affect
the types of products or services consumers buy and their shopping behavior.
3. Economic Factors: Economic factors, such as income, pricing, employment,
economic conditions, and inflation, influence consumer behavior. Income level
affects what individuals can afford and their willingness to spend on products or
services. Pricing strategies, promotions, and discounts can impact purchase
decisions. Economic conditions and uncertainties can affect consumer confidence
and spending patterns.
4. Personal Factors: Personal factors, such as age, gender, lifestyle, personality, and
self-concept, influence consumer behavior. Age affects preferences, needs, and
purchase behavior. Gender can impact choices in products or services. Lifestyle and
personality characteristics shape consumption patterns and brand preferences. Self-
concept refers to how individuals perceive themselves and how this influences their
consumption choices.
5. Environmental Factors: Environmental factors, such as social responsibility,
sustainability, and ethical considerations, are increasingly influencing consumer
behavior. Consumers are becoming more conscious of the environmental impact of
their choices and are seeking sustainable and ethical products or services.

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 6. Psychological Factors: Psychological factors, including motivation, perception,
learning, beliefs, attitudes, and emotions, play a role in shaping consumer behavior.
Motivation drives individuals to satisfy their needs and desires through
consumption. Perception influences how consumers interpret information and make
decisions. Learning processes affect how consumers acquire new knowledge and
behaviours. Beliefs, attitudes, and emotions impact consumer choices and brand
preferences.
7. Technological Factors: Technological advancements, digitalization, e-commerce,
and social media platforms are shaping consumer behaviour. The accessibility of
information, online reviews, and the ability to compare products or services online
influence purchase decisions. Mobile devices, apps, and personalized marketing also
impact consumer behaviour.

Understanding these key factors that influence consumer behaviour can help businesses
develop effective marketing strategies, product offerings, and customer engagement tactics
to meet consumers’ needs and preferences.

6. What is customer value, satisfaction, and loyalty, and how can companies deliver them?

Customer value refers to the perceived benefits and advantages that customers receive from
purchasing and using a product or service. It is the difference between the benefits received
and the costs associated with acquiring the product or service. Customer value is subjective
and can vary from one customer to another, as individuals may have different preferences,
needs, and priorities.

Customer satisfaction, on the other hand, is the extent to which a customer’s expectations are
met or exceeded after consuming a product or service. It reflects the customer’s feelings and
overall impression of their experience with the company. Customer satisfaction is crucial for
building long-term relationships with customers, as satisfied customers are more likely to
make repeat purchases and recommend the company to others.

Customer loyalty refers to customers’ commitment and allegiance to a brand or company.

Loyal customers are those who consistently choose to do business with a specific company
and may be less likely to switch to competitors. Customer loyalty is important for driving
repeat business, increasing customer lifetime value, and generating positive word-of-
mouth referrals.

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To deliver customer value, satisfaction, and loyalty, companies can employ various
strategies, including:

1. Offering high-quality products and services: Companies should strive to

deliver products and services that meet or exceed customer expectations in terms
of performance, reliability, and functionality.
2. Understanding customer needs and preferences: Companies should conduct
market research and analyse customer feedback to gain insights into what customers
value and expect from their products and services.
3. Building relationships and personalized experiences: Companies can
personalize their interactions with customers, tailor offers to individual
preferences, and create a sense of community or belonging around their brand..
4. Providing excellent customer service: Companies should focus on delivering
exceptional customer service at all touch points, from pre-sales inquiries to post-
purchase support
5. Rewarding and incentivizing loyalty: Companies can implement loyalty
programs, discounts, and special offers to reward and retain loyal customers.

By consistently delivering value, satisfying customer needs, and fostering loyalty,

companies can build strong, long-lasting relationships with their customers and differentiate
themselves in a competitive marketplace.

7. Explain the role cultural, social, and personal factors play in consumer behaviour

Cultural, social, and personal factors all play a significant role in influencing consumer
behaviour:

1. Cultural Factors:

 Cultural influences can include cultural norms, traditions, symbols, language, and
religion. For example, in some cultures, the color white is associated with mourning
and is considered inappropriate for a wedding dress, while in other cultures, white is a
symbol of purity and is traditionally worn by brides.
 Culture refers to the beliefs, values, attitudes, and norms shared by a society. These
cultural factors can significantly impact consumer behavior.
 Cultural factors also affect how individuals perceive products, make purchasing

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 decisions, and interact with brands. Advertisements, product packaging, and
marketing strategies often need to be tailored to resonate with specific cultural values
and beliefs.

2. Social Factors:

 Social influences can include reference groups (groups that an individual aspires to
or identifies with), social class, family dynamics, and peer pressure. For example, a
teenager may be influenced by their peer group in deciding what fashion brands to
purchase.
 Social factors encompass the influence of family, friends, social groups, and society
as a whole on consumer behaviour.
 Social factors can also impact how consumers perceive and evaluate products or
services. Recommendations from family and friends, social media influencers, and
online reviews can all shape consumer opinions and purchase decisions.

3. Personal Factors:

 Personal factors can impact consumer preferences, attitudes, and purchasing habits.
For example, a health-conscious individual may prefer organic food products over
processed ones.
 Personal factors refer to individual characteristics that influence consumer behavior,
such as age, gender, lifestyle, personality, values, and interests.
 Personal factors also include psychological influences, such as perception,
motivation, learning, and memory. Marketers often leverage these psychological
factors to create targeted marketing campaigns that resonate with consumer emotions
and motivations.

Overall, cultural, social, and personal factors interact in complex ways to shape consumer
behaviour. Understanding these influences is essential for businesses to develop effective
marketing strategies and tailor products and services to meet the needs and preferences of
diverse consumer segments.

8. Develop a channel strategy for Raya Brewery, including the selection of appropriate
channel partners, distribution methods, and channel design. Discuss how the chosen
channels will help achieve the company's marketing objectives.

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To develop a channel strategy for Raya Brewery, we need to consider various factors such as
the target market, product characteristics, distribution methods, and the company’s
marketing objectives. Here is a recommended channel strategy for Raya Brewery:

1. Selection of Channel Partners:

 Raya Brewery should consider partnering with distributors, wholesalers,
retailers, and potentially e-commerce platforms. It is important to select
channel partners who have experience in the beverage industry, a strong
distribution network, and a good understanding of the local market.
2. Distribution Methods:
 Raya Brewery should use a mix of direct and indirect distribution methods.
Direct distribution can involve selling directly to retailers or consumers
through an online store or company-owned retail outlets. Indirect
distribution can involve partnering with wholesalers and distributors to
reach a wider geographic area.
3. Channel Design:
 Raya Brewery should design a channel structure that is efficient and
responsive to customer needs. This can involve setting up a tiered distribution
system, where products flow from the manufacturer to wholesalers, then to
retailers, and finally to consumers. The company can also use a hybrid
distribution model, combining both traditional and online channels to reach
different customer segments.
4. Marketing Objectives:
 The chosen channels should help Raya Brewery achieve its marketing
objectives, such as increasing brand awareness, expanding market reach, and
driving sales growth. By partnering with experienced channel partners, the
company can ensure that its products are available in key markets and outlets.
Using a mix of distribution methods can also help Raya Brewery reach a
diverse customer base and adapt to changing market trends.

Overall, the chosen channel strategy for Raya Brewery should focus on building strong
partnerships, utilizing a mix of distribution methods, and designing an efficient channel
structure to achieve the company’s marketing objectives and drive business success.

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9. How can companies use packaging, labelling, warranties, and guarantees as marketing
tools? Explain by giving practical examples

Packaging, labeling, warranties, and guarantees can be used by BGI Ethiopia companies as
effective marketing tools to attract customers and build brand loyalty. Here are some practical
examples of how these tools can be utilized:

1. Packaging: BGI Ethiopia companies can use attractive and visually appealing
packaging to differentiate their products from competitors and attract customers. For
example, a beverage company could use unique and eye-catching packaging design
for their bottles or cans to stand out on store shelves and catch the attention of
consumers.
2. Labeling: Companies can use labeling to communicate important information about
their products, such as ingredients, nutrition facts, and serving size. For example, a
food company could use clear and informative labeling to highlight the health benefits
of their products, helping customers make informed purchasing decisions.
3. Warranties: Offering warranties on products can help build trust with customers and
reassure them of the quality and reliability of the product. For example, a technology
company could offer a one-year warranty on their electronic devices, providing
customers with peace of mind and encouraging them to make a purchase.
4. Guarantees: Guarantees can be used to assure customers of the quality and
performance of a product, ultimately driving sales. For example, a clothing company
could offer a satisfaction guarantee, allowing customers to return or exchange items if
they are not completely satisfied with their purchase, leading to increased customer
satisfaction and loyalty.

By leveraging these marketing tools effectively, BGI ETHIOPIA companies can create a
competitive advantage in the market and attract more customers to their products and
services.

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