Muhammad Khalid Saleem Roll. No.

DMBF-1207 1st Assignment of Marketing Management

QUESTION. No. 1 What are the major tasks, concepts and tools of marketing? Marketing Tasks: A marketer must decide earlier what tasks are to be focused and applied. 1. The CEO is governing body of all the marketing functions. 2. Marketing department starts small and straight and it further needs to stay small and flat. 3. Customer is major stakeholder so gets connected with customer and keep in touch with them on organizations page, or using other source. 4. Providing the latest information to the customer about the product. 5. The latest market research and techniques must be considered. 6. Only hire energetic and passionate workers who work for organizations best interest not for their own pocket. 7. Customers are the key to the organizations show to customer that they are much important for the organizations. 8. Create blogs and communities to know the customers issues and problems. 9. Focus Marketing Mix continuously to grow up your product sale. 10. Approach the customers needs and desires and always try to move one step ahead what customer wants. 11. Do not provide misinformation about product over expectation have negatively affected the market. Marketing Concepts and Tools: Marketing: In easiest words: Marketing is managing profitable customer relationship. Marketing is the process by which companies create value for the customers to capture customers value in return to that Marketing Management: Process of building long term satisfactory profitable relationship among organization customer and employees by delivering value and receiving value in return The art and science of selecting target markets and building profitable relationships with them Marketing Marketing Management

Core Marketing Concepts: 1. Target Market and Segmentation: Market is not only a place from where buyers purchases but market is also customers those are interested to buy. So a marketer must have to target its market / customer to whom he is going to sell its product. Market Segmentation is dividing market into further smaller segments on the basis of their geographic, demographic and some other elements. 2. Market Place, Market space and Meta Market: Market Place is a physical place from where buyer purchases goods. Market space is digital, buying on internet. E-commerce is also including in Market space. Meta Market describes the products and services that are closely related in the mind of consumer but can found in diverse. 3. Needs, Wants and Demands: The basic human requirements are called the needs like food health and shelter are basic human needs. A good marketer must understand the human needs to grow their business. Wants called the likeliness of consumers in needs. E.g. a persons need to travel in between cities but want is the means of travelling he use. Demands are backed by buying power. E.g. which mean of travelling he uses to travel is called demand. 4. Products or Offerings: How we meet our needs, wants and demand using a product or any offer is called product. Means used to fulfill our demands called products. 5. Value and Satisfaction: Products or offerings considered only successful when it meet the desires of the customers satisfactions level. Buyer only wants to purchase in different product who he think is the most valuable. Value is a ratio which is calculated as. Value=benefits/cost=Functional Benefits+Emotional Benefits/Monetary cost+Time cost 6. Exchange And Transaction: Consideration is the most important thing in buyer and the seller. Their must be at least two or more parties. Each party must have something which is valuable for the other party. Both parties must easily be communicate and deliver. No force to buy or refuse the exchange offer.

Each party believes that it is valuable to deal with other party.

7. Relationship Marketing and Marketing Network: Relationship marketing focus to build long term mutual relationship with basic parties, Customer, Supplier and Distributor in order to retain long term preference and business. A marketing network consists of organization and customers, employees, suppliers. 8. Marketing Channels: There are three kind of marketing channel. Communication Channel Distribution Channel Selling Channel

Communication Channel used to deliver and receive messages from customers. Ads, Toll free number are used as communication channel. Distribution Channel is used to display the products, factory outlets are used as distribution channel. Selling channel is used to sell the products or services. General store and company sales points called selling channel. 9. Supply Chain: Supply Chain starts from the bottom of the product and ends when the product is finally ready. 10. Competition: Competition is a major factor in marketing which have further kinds. 1. Brand Competition: A company sees its competitor s in same market of the same brand. E.g. Nokia and Samsung, HP and Dell. 2. Industry Competition: In this competition all companies make the same product or class of product, e.g. Superior and Punjab College. 3. Form Competition: Companies provide the same services in this kind of competition. E.g. FedEx and DHL 4. Generic Competition: They compete for the same consumer dollars. 11. Marketing Mix: Marketing mix consists of four Ps. 1. Product 3. Place 2.Price 4.Promotion

QUESTION.No.2 Relationship between Product Life Cycle and BCG Matrix? Product Life Cycle: Product Life Cycle describes the stages of product from the start to an end. It shows the phases in which product go through from the development to withdrawal from the Market. There are seven stages of Product Life Cycle. 1. Development 2. Introduction / Launch 3. Growth 4. Maturity 5. Saturation 6. Decline 7. Withdrawal 1. Development: In development stage the ideas about product are discussed. There are so many ideas and developer has to choose one or the basic valuable idea on the basis of market research, demands in market. R & D department work lot more to introduce the idea. 2. Introduction/Launch: At this stage marketer starts advertising to launch the product. Promotion campaign runs to maximize the product value in the market. Time of the product also decided earlier and they monitor the initial sales of the product to know the response in market about the product. 3. Growth: When the product launches in the market and interested buyers have become so aware to uses of the product its sales volume raises. That increases the revenue of the organization due to that products launch. 4. Maturity: At maturity stage sales leads to the highest point and cost to the product reduced to the minimum of the product. Most of the times sales growth likely to be low. And competition is at greater level. It also monitors the current situation of the market. 5. Saturation: At this stage company is looking for the other ways or methods to increase the sale by defining other uses and by switching to the other markets. 6. Decline and Withdrawal: At last product move towards its end point and withdrawal from the market. There might be so many reasons to decline, as fashion change, demand change, technology changes. In dynamic market products move towards withdrawal abruptly as in other markets. 7. Withdrawal:

The last decision of withdrawal is dependant on the availability of the new product in the existing market.

Boston Matrix: Boston Matrix is a mean of analyzing the product portfolio and it inform the decision making for the upcoming market strategies. Boston Matrix tells Growth rate, Market share and cash flows. Boston Matrix classifies into four simple categories. 1. Stars 2. Cash Cows 3. Dogs 4. Problem child Stars: At stars products in marketing experiencing high growth rate with increasing share of market. In stars market have huge potential of growth at high risk and with huge cost. Cash Cows: At this stage product have huge market share with low market growth. This is a maturity stage of Product Life Cycle. It needs no further cost to support in market to build its share in market. Cash cows give high revenue and it shows positive cash flows. Dogs: These products have low growth in market and also declining its market share. This called Decline stage in Product Life Cycle. It needs high cost to support and showing negative cash flows. This is a stage at which product embracing its company. Problem Child: Products having low market share in a high growth market. Product has huge potential but need to spend money for the development of the product. Cash flows may run negatively but have large potential for future. Retaining Product Portfolio with the Help of Product Life Cycle and BCG Matrix: Product Portfolio means when one product gets its maturity stage a marketer spends its earnings for the new products development. PLC and BCG-Matrix identifies that at which stage product is now. Cash Cows means its maturity stage, Stars called growth stage, withdrawal mean child problem.

QUESTION. No 3. What are Customers Value and Satisfaction and how do leading companies produce and deliver them?

Customer Perceived Value: Customer perceived value is the difference of what customer is expecting and what is delivered to the customer in relation to cost and its value. 1. Total Customer Value 2. Total Customer Cost Total Customer Value: Total Customer Value includes all the resources and tools delivered to the customers according to his requirements. Total Customer Value= Product Value + Services Value + Personal Value + Image Value. Total Customer Cost: Total Customer Cost is the cost which customer is expecting to pay in return for getting of Values providing to him. This includes, Total Customer Cost= Monetary cost + Time Cost + Energy Cost + Psychic Cost. Total Customer Satisfaction: Total Customer satisfaction is a business strategy which is used to know are the customers are satisfied from the product or services. Its importance becomes higher when competitor offers the identical products. Satisfaction: Satisfaction is a state of fulfillment of needs, wants and demands as desired by the customer. In other words when a product meet the customers expectations level this called satisfaction level. Customer Expectations: Customer Expectations are the desires or thinking of a consumer about the product before utilizing that. It is also reflection of customer satisfaction. If expectations meet then it called satisfaction. Delivering High Customer Value: Consumers have different kind of thinking about the product or company while using a product. So they divided into further in loyal and committed customers. Loyal customers want to buy again after using that product. Value Proposition: Value Proposition is a business statement that force customer to buy product or attaining services. This statement mostly convince potential buyers that this product or service add more value to their life. E.g. I phone using touching is believing as a proposition. Value Delivery System: VDS is a system of delivering the values to the customers as they want. Customers need not to approach the value but company need to deliver the value to the customers to get their loyalty strong.

Measuring Satisfaction: Companies are concerned mostly how much customers are satisfied. There are two approaches to measuring customer satisfaction level. 1. Complaints and Suggestion System 2. Customer Satisfaction Surveys Complaints and Suggestion System: A customer centered organization makes it simple to register complaints and suggestions. Some organization gives free tools to register complaints. Customer Satisfaction Surveys: As seen in studies that only 5% of the dissatisfied customers complaints so now companies approach customers directly to know their issues and problems by conducting surveys. This is useful method of measuring customer satisfaction. Value Chain: Value Chain is a process of adding values at different stages in the product. As Business needs inputs and process to convert it into Outputs. Like cloth is a value but as we see value chain then we have to start from production of cotton and then move towards yarn and spinning, ginning, dying, pressing, packing processes to covert to cloth. So each department is adding value to the previous one is provided to that department. Suppliers Business Customers

Delivering Customer Value and Satisfaction: Leading business provide customer value and satisfaction in such way. Benchmark: Leading businesses set a benchmark of their product or services. So consumer already knows that at what level of expectation they demand from company. Well known businesses products create high benchmark of delivering customers. So customer purchases that product looking towards that benchmark they set before selling it. If customer gets what he demands then his satisfaction might move him towards loyalty. Core Business Processes: 1. Business must have market sense. That how is market moving and what are market demands. 2. Business should also know to realize the new market offerings. 3. How to attain and retain customers. 4. How to build strong customer relationship by applying customer relationship management. 5. Delivering best by applying management process.

QUESTION No. 4 What are the key methods and identifying opportunity in the macro environment? There are three key methods in macro environment. 1. Fads 2. Trends 3. Mega Trends Fads: Fad is unpredictable situation, for short period, and with no economic, social and political significance. A company can generate cash in on a fad, but this depends on luck and good timing than anything else. Trends: Trends are predictable, sustainable and durable. A trend move towards the future. Trend is observable across several market areas and consumer activities and it consistent with other indicators at the same time. Megatrends: Megatrends are large social, economic, political and technological changes that are not much fast to form they are slow to form, they influence us for some time that is between seven and ten years, and longer. Identifying Opportunities in Macro Environment: 1. The growth of global brands identifying as opportunity as like in food, auto, clothing etc. 2. It increases the cross border strategic relations in countries. 3. It also increases the conflicts among nations and religions. 4. To support International transactions barter and counter trade increases. 5. It moves towards rapid Privatization of publically owned companies. 6. Global lifestyle rapidly changes due to macro environment. 7. Opening new markets in different countries. 8. It raises economic power of several Asian countries in global markets. 9. Manufacturing industries moving towards low cost wages countries. 10. Substantial speedup of international transportation, communication and financial transactions, leading to the rapid growth of world trade and investment.

QUESTION No. 5 How do the buyers characteristics, culture, and social, psychological, personal, influence buying behavior? Culture: 1. Culture 2. Sub-Culture 3. Social Class Culture: Culture is the basic determinants of a persons wants, desires and behavior. Culture includes the value which any one adopts from his living style of area in which they live. As Asian and European cultures are different from each other because their needs. Norms are different from each other. Sub-Culture: Dividing culture into smaller parts according to identifications, and socialization. Sub culture includes nationalities, regions, religions, racial groups and geographic regions. Sub cultures have much importance in market segmentation. As marketers to produce products to meet their needs and culture. As in India most of the Indian not like Cow-meet so companies have to keep in mind their culture before applying a product. Social Class: Social classes are relatively homogeneous and divided into societies. Social classes reflect income, occupation, and education. Most common knows classes are Lower, Middle and Upper class. Social Factors: Social factors also influence consumer in various ways. 1. Reference Group 2. Family 3. Roles and Statuses Reference Group: Reference group consists of all the groups who have direct or indirect influence or a buyers behavior towards buying. It includes friends, neighbor, and cow-workers with home buyer interact. Family: Family influence greatly in buying decision because as they are trained or oriented towards such product. Parents told to buy it or not. As in Muslims family have strict role to not to use haram foods. Roles and Status: The persons position in any group is defined as role and status. Role is expectation what he is to perform and each role have a status too. So accordingly buyer has to buy what his role is going to force to buy. Personal Factors:

Personal factors influence buying decision in many ways. 1. Age and Stage in Life cycle 2. Occupation and economic circumstances 3. Lifestyle 4. Personality and self concept Age and Stage in Life cycle: Age and stage in life cycle have great impact on buying as his needs changes with change in age and stage. Because in childhood need are different and in mature age it becomes different so this influence great buyers decision. Occupation and Economic Circumstances: Occupation also influence buyers behavior as a blue color worker buys well dressings as comparison to blue collar job. Lifestyle: Lifestyle is a pattern of living his life as in activities, interests and opinions. Marketer may have to achieve that buyer by following his life style. Personality and Self concept: Each persons personality is different from other which influencing his buying behavior. Personality defined as self-confidence, dominance, autonomy, deference, sociability, defensiveness and adaptability. So all these factors influence the buyers decision to buy or not. Psychological Factors: Persons buying choice influenced by psychological factor also. It includes further heads or points these are as follows. 1. Motivation: A person has many needs at same time but some needs motivate the buyers to purchase at sudden. As hunger or thirst are the needs need to be fulfilled as they arise in respect to any other need as like getting new cloths or something else. 2. Perception: Perception is a process by which a buyer selects the product to buy or refuse on any grounds. Before buying each buyer has perception about the product that what kind of they are. Each persons perception may have different from others at same time about the same product. 3. Learning: Learning comes from past experiences as buyer experienced a product then it becomes easy to the buyer to make decision of buying and refusing the product as he uses it before. 4. Beliefs and Attitudes: After learning people acquire beliefs and attitude that influence the buying behavior. A belief is thought that a person have about something, beliefs may be on knowledge, opinion, or faith.