Devlin C.

Pacificar
Final Exam
Industrial Marketing and Management
 Question #1

Assume that you have been hired by XYZ Company as

a Marketing Manager. The company deals in industrial
goods and services. You have heard that the C.E.O.
thinks formal industrial marketing planning is both an
inefficient and ineffective mechanism for companies
operating in an ever-changing environment. You want to
demonstrate to your boss that Industrial Marketing is
essential for the company. You are determined to
change his attitude.
Required: Prepare a presentation to your boss
explaining:
(i) How a formal industrial market planning can be
useful to the firm.
(ii) The requirements for an effective industrial market
planning.
 Answer #1

“Marketing refers to the activities of a

company associated with buying and
selling a product or service. It includes
advertising, selling and delivering products to
people.” – Investopedia
Answer #1

Technically speaking, whether

you like it or not, we are
unconciously doing
marketing whichever,
whatever, wherever
business we are in.
 Answer #1

Marketing is
everything a company
does to acquire
customers and
maintain a
relationship with
them.
 Answer #1

The ultimate goal of marketing is to match a

company's products and services to the
people who need and want them, thereby
ensuring profitability as a fruit of our efforts.
 Answer #1

The perception
about formal
industrial marketing
planning as both an
inefficient and
ineffective might be
from the additional
cost and
manpower it
needs in order to
be executed.
 Answer #1

We have to look at a
formal marketing
planning as an
essential requirement
in the business.

If we don’t reap
what we sow, it
means that we are
doing our marketing
strategy wrong.
 Answer #1

Look into things

and strategies
that works and
nurture it.

While rethink,
redo and change
what doesn’t.
Answer #1

Learn into these things

and in the future, do it
right the first time in
order to utilize the
usage of the resources
we have and maximizing
the growth and profit
from the labor of our
marketing plan.
Answer #1
 Answer #1

People
In doing a market
plan, consider the
people;
your customer,
your client,
your employee and
your partners.
 Answer #1

Products/Servic
es
Products and services
you provide.
Knowledge about it
and the passion for
developing and
promoting it.
What it does?
Why is has to be
needed?
Why is has to be
 Answer #1

Price and
Promotion
Utilization of market
place supply and
demand figures. Also
the usage of
technology in
promotion and
branding must be
considered as well.
 Answer #1

Short and Long

Term Plan

Action plan for future

opportunities and
threats in short and
long term.
 Question #2

(a)Differentiate between industrial

marketing and consumer marketing by
using basic elements of marketing mix
variables. Give an example.
(b) Describe the ways in which
organizations buying behavior is
different from the consumer goods
buying behavior. Give an example.
 Answer #2

Industrial Marketing and Consumer

Marketing is different from each other
in terms of its marketing mix
variables – the product, place,
promotion and price.
 Answer #2

In terms of product, in industrial market, it

provides support for other businesses and their
product/service is considered as a raw material
for the finished product in a consumer market.
For instance, Company XYZ is the provider of
paper for Company ABC of printing services.
Company XYZ provides product and support
for the consumer-oriented Company ABC.
 Answer #2

When differentiating the place between the

two market, it is generally easy to distinguish
which is which. Industrial Market can hardly be
seen in a day to day basis, they are less
noticeable in terms of presence in the whole
market system. While the Consumer Market
on the other hand tends to be present in every
corner and their competition is much tighter
than the Industrial Market.
 Answer #2

Promotion and pricing comes in different

approach as well between the two market. In
Industrial Market the promotion needs to be
concrete and precise due to their target
market is much smaller than the market
available for consumer goods. On the other
hand, in the Consumer Market, the promotion
must be unique and enticing in a way that you
will stand out from the competitors circle for
the business to succeed. After dealing with it,
pricing tends to vary in accordance of the
promotion’s result.
 Answer #2

In terms of product, in industrial market, it

provides support for other businesses and their
product/service is considered as a raw material
for the finished product in a consumer market.
For instance, Company XYZ is the provider of
paper for Company ABC of printing services.
Company XYZ provides product and support
for the consumer-oriented Company ABC.
 Answer #2

The Consumer Buying Behavior and

Organizational Buying Behavior is different
from each other in terms of the following:

○ Buyer’s Objective
○ Quantity
○ Purchasing Decision
○ Buying Process
 Answer #2

Buyer’s Objective

The individual consumers buy goods and

services for ultimate use or satisfy their needs.
While the organizations buy goods and
services for their business needs. The buying
purpose of them is to earn profit by using and
reselling the goods and services.
 Answer #2

Quantity

The individual consumers buy only the

necessary quantity of goods, which they need
for regular use. Organizational buying is done
in large quantities. There are several reasons
why organizations must buy the goods they
need in bulk. In the first place, they use large
quantities of each item and must maintain
inventories at a level high enough that they
will not run out of stock. Secondly, it is cheaper
and more efficient to make large-volume
purchases.
 Answer #2

Purchasing Decision

Consumer buying takes decision by consumers

themselves. Organizational purchasing is a
rational process because the purchasing
behavior of organizations is guided by
objective factors having to do with production
and distribution. It takes long time than
consumer buying.
 Answer #2

Buying Process

The consumer buying process is very simple.

No need to fulfil any formality. There is also no
need to maintain extensive contact with
sellers. Buyers and sellers in the organizational
market must maintain extensive contact.
 Answer #2

Example:

In a consumer market, if I need a pen, I could just buy

whatever brand I like, how many I need whenever I want
and feel like it and pay it casually in the store and leave.

While on the other hand, if I need a pen for my

organization, I will consider the needs and demands of
the certain item to be purchase and come up with a
rational and logical process on which brand and
company will most likely to give us the best deal and
from there I have to do a formal transaction in which I
have to secure the item and maintain contact with the
supplier.
 Question #3

You recently heard your general

manager commenting. “Industrial
marketing research is a waste. It is very
expensive and more time consuming.”
Write a memo to your boss convincing
him that industrial marketing research
is indeed indispensable and that he
should reconsider his statement.
 Answer #3

To General Manager,

Good day!

As a new exciting day is approaching, I heard you Sir

commenting something interesting that really caught my
attention. In line with that, I would like to share a brief story in
this memo and after reading it, I’d love to know what are your
thoughts about this story and how could we work on amazing
possibilities and opportunities from there.

The story goes like this;

Lego is a well known toy company for quite some times but it
is much more popular to boys of young age, so, the company
decided to conduct a market research on how to be more
appealing for the girls of young age.
 Answer #3

Lego starts to send out researchers to do a four year study

involving 3,500 girls and their parents. This market research
included studying the girl’s playing habits and extensive
questioning regarding what would make a brick toy interesting
for girls.

Lego launched a new line of toys in the following years, giving

the brick toy a vibrant vibe that will entice girls to play with it.
The packaging and other components such as accessories,
hairbrushes and purses in a Lego toy figurine were added as a
result found upon conducting research study.
 Answer #3

Lego’s success among girls can be seen in the market for girls’
construction toys in the U.S. and the larger European
countries, which tripled to $900 million in 2014 from $300
million in 2011, according to research firm NPD Group. This
increase is believed to be due to the entry of Lego Friends.
(SOURCE: fortune.com /2015/12/30/lego-friends-girls/)

With that, I hope that you should reconsider your thoughts

about marketing and open up a conversation with me, I would
love to tell you more and discuss interesting things maybe
with other people as well.

Best regards,
Devlin C. Pacificar
 Question #4

As a consultant, advise a marketing

manager trainee how to use the
synchronizing marketing activities in
managing perishability associated with
service delivery in meeting customers
needs profitable in a competitive hotel
industry DURING: (i) off-peak seasons,
AND (ii) During peak seasons
 Answer #4

Off-Peak/ Peak Seasons:

During off-peak seasons, the demand is less than the

expected and there would be a lot of time to do an
inventory to figure out what it is needed to be purchase in
the future. On the other hand, the demand for items and
perishable goods during peak season is high. So, to
possibly to that, data from the previous months and years
should be taken into consideration. Also, consider things
such as the expiration time of perishable goods, conduct
an inventory in which will align all the resources you have,
the goods you need and the perfect time of having those
during off-peak or peak season.
 Question #5

Giving AN example of a company you

are most familiar with, discuss a
comprehensive launch program of a
new product (goods) by THE company.
 Answer #5

Annualy, Victoria’s Secret launch its product

named the Fantasy Bra, in doing so, they
conduct a fabulous and spectacular fashion
show featuring other product from the other
line, celebrity performing during the runway
show and highly paid models to actually wear
the item. They do these promotion in order to
create an impression that for women, you have
to be confident and proud with what you wear
and upon doing so, they manage to somehow
advertise all their product while highlighting
the main product, the sole reason for doing
this promotion.