PRINCIPLES OF MARKETING
BCOE 141 Free Solved Assignment
BCOE 141 Free Solved Assignment Jan 2022
Q-1 What is marketing? Explain the different marketing concepts.
ANS: marketing Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
According to the Association of National Advertisers (ANA), influencer marketing focuses on leveraging individuals who have influence over potential buyers and orienting marketing activities around these individuals to drive a brand message to the larger market.
According to the Association of National Advertisers (ANA), relationship marketing refers to strategies and tactics for segmenting consumers to build loyalty.
Marketing is the art and process of developing, executing, and maintaining an exchange relationship. BCOE 141 Free Solved Assignment
You begin with attracting the customers, building a relationship with them, and finally keeping it by satisfying their needs.
That customer can be either other businesses or the customers; therefore, marketing can be B2B or B2C depending upon the situation.
However, the ultimate function of marketing remains the same: to build a relationship with customers and satisfy their needs by meeting their requirements.
For example, telecommunication builds a marketing strategy that first intrigues and persuades people to use their calls, messaging, and internet packages.
Once people begin using, then they urge them to rate their service by giving them stars. different marketing concepts: The marketing concept means whenever a company plans and implements to maximize profit by boosting sales, meeting customer’s needs, and surpassing competitors. BCOE 141 Free Solved Assignment
The goal is to devise a situation that serves both parties; the customer and the company. The idea behind the marketing concept is to predict and satisfy the needs and wants of customers better than the competitors.
The marketing concepts were first derived from the book of Adam Smith, Wealth of Nations.
However, it remained unexplored to the world till the 21st century. To fully appreciate the marketing concept, first, we to understand needs, wants, and demands;
Needs – it is something inevitable for the existence of life; many adverse things can occur without it. The worst-case situation would be death, Needs cover many things, like food, shelter, self-development, security, social belonging, self-esteem, and respect.
Wants – wants are our desires and wishes in life; our social setup and culture mold our wants Demands – when our desires, needs, and wants are backed by our ability to pay, they become demands.
Since we have learned the basics of marketing, it’s time to understand five marketing concepts.
Basic Marketing Concept : BCOE 141 Free Solved Assignment
Product concept: the product concept manufacture the goods on a mass scale and profit out of the economies of scale. When manufacturers produce low-cost products, then they follow a broad distribution strategy to reach more audiences.
By targeting more people, they can boost their productivity by expanding their market.
In the product concept, marketers do not give any importance to the requirements and wants of the customers. Their central focus is to produce more and more goods, quantity matters, not quality.
As a result, consumers are usually unsatisfied with the bad quality of the products. The product concept was popular when there were no competitors in the market; whatever you bring in the market, people would take it.
For instance: Ford was the first vehicle company; it commenced delivering more vehicles in the market. People purchased it because it was the only product available at the time.
Production Concept : It is one of the earliest marketing concepts where the organization concentrates on the ability of its production processes.
It is to manufacture the products cheaper to make them ready for the mass population. The center of the production concept is on the quantity, not the quality of the products.
Production concept began in the mid 1950s, and it accompanies the Say’s Law. It says that supply generates demand in the market. Therefore, according to this law, when a company manufactures a product, BCOE 141 Free Solved Assignment
it doesn’t need to promote its products; it would sell itself. The law became widespread because, at that time, there was no technology and communications, and people used to travel less.
The salesman in the store used to be the only retailer, and there were few manufacturers. So there used to be a confined variety of products, whatever comes in the market, and then it would have been marketed.
For example McDonald’s and fast food chains in general also aim to ace their operations.
Selling Concept : As the name suggests, the idea of selling is to sell the company’s product through large-scale marketing and promotional activities. It doesn’t matter whether they satisfy customers’ needs or not.
The center of the management in this method is to finish the transaction of sale; they believe that their job is done once they market their product.
Therefore, rather than establishing and maintaining a long-term connection with the customer, the customer would come back again.
The sale concept is a very precarious strategy because it’s based on a very weak notion that the company should sell whatever they’re manufacturing instead of meeting customer’s demands.BCOE 141 Free Solved Assignment
In this approach, marketers believe that if consumers don’t like the company’s product, they’ll buy something else and forget about their past shopping experience.
So the whole notion of the sale concept is based on the false presumption that the customers don’t remember their past buying experience.
For example, blood donations and insurance policies come under the category of sale concept, where the marketer believes that their job is done after making the transaction.
Marketing Concept When it comes to the marketing concept, it is customer-oriented. It places customers in the middle of the marketing process, discovering customers’ demands and wants, then meeting those needs better than the competitors.
In this method, the marketer assumes that the customer is always right, and his requirements and wants should be their priority.
Here the marketing strategy concentrates on producing a profit by satisfying the needs and wants of customers.
It supports a very simple strategy: marketers do not search for the right customers for their product; instead, they build the right product. Thus, marketers seek to bridge the gap between the consumers and the company’s products.
When you analyze the marketing concept with the sale concept, you may find a huge distinction between both strategies.BCOE 141 Free Solved Assignment
It won’t be wrong if you state that these two strategies are at two opposite extreme poles. The best example of this concept is the Coke vs. Pepsi war
Societal Marketing Concept: The idea behind the societal marketing concept is based on the welfare of the entire society because it examines the strategy of the marketing concept.
What consumers need doesn’t mean that it would be useful for them in the long term. What you need and what is suitable for you and society as a whole are two entirely different things.
For example, we all like sweet, spicy, and fast foods. We all desire the same things whenever we go out, but it doesn’t imply that it’s good for our health and the well-being of the whole society.
The goal and aim of the societal marketing concept is to make companies understand that they have a friendly and environmental responsibility, much more important than their short-term sales and profit goals.
Businesses should design and operate towards a sustainable future for society; organizations are a part of society and should behave like one.
One of the best examples of societal marketing concepts is the Coca Cola Super Bowl Commercial 2014 “America The Beautiful.” Campaign.
Conclusion : BCOE 141 Free Solved Assignment
Production, product, and sale concepts have become out-of-date in most fields; they only survive in some fields.
Today’s business follows the marketing concept of engaging and fulfilling customers’ needs and wants, but environmental challenges are challenging the entire strategy of the marketing concept.
The societal marketing concept is true that what’s healthy for an individual and suitable for the whole society are totally different things.
Therefore, marketers should create a marketing strategy to consider the societal and environmental factors because there won’t be any marketing activity without society. Therefore, society’s obligations should come first.
Q-2 What do you mean by consumer buying behavior? Explain the factors influencing consumer buying behavior.
ANS: consumer buying behavior: A consumer’s buying decision depends on the type of products that they need to buy. The behavior of a consumer while buying a coffee is a lot different while buying a car. BCOE 141 Free Solved Assignment
Based on observations, it is clear that purchases that are more complex and expensive involve higher deliberation and many more participants.
Consumer buying behavior is determined by the level of involvement that a consumer shows towards a purchase decision. The amount of risk involved in a purchase also determines the buying behavior.
Higher priced goods tend to high higher risk, thereby seeking higher involvement in buying decisions.
1 Complex buying behavior : Complex buying behavior is encountered particularly when consumers are buying an expensive product. In this infrequent transaction, consumers are highly involved in the purchase decision.
Consumers will research thoroughly before committing to invest. Consumer behaves very different when buying an expensive product or a product that is unfamiliar to him.
When the risk of buying a product is very high, a consumer consults friends, family and experts before making the decision.
2 Dissonance-reducing buying behavior In dissonance-reducing buying behavior consumer involvement is very high. This might be due to high price and infrequent purchase. BCOE 141 Free Solved Assignment
In addition, there is a low availability of choices with less significance differences among brands. In this type, a consumer buys a product that is easily available.
Consumers will be forced to buy goods that do not have too many choices and therefore consumers will be left with limited decision making.
Based on the products available, time limitation or the budget limitation, consumers buy certain products without a lot of research.
- Habitual buying behavior: Habitual Buying Behavior is depicted when a consumer has low involvement in a purchase decision. In this case the consumer is perceiving only a few significant differences between brands.
When consumers are buying products that they use for their daily routine, they do not put a lot of thought.
They either buy their favorite brand or the one that they use regularly – or the one available in the store or the one that costs the least. BCOE 141 Free Solved Assignment
Variety seeking buying behavior : In variety seeking consumer behavior, consumer involvement is low. There are significant differences between brands. Here consumers often do a lot of brand switching.
The cost of switching products is low, and hence consumers might want to try out new products just out of curiosity or boredom.
Consumers here, generally buy different products not because of dissatisfaction but mainly with an urge to seek variety.
Factors influencing consumer buying behavior:
i. Motivation : When a person is motivated enough, it influences the buying behaviour of the person. A person has many needs such as the social needs, basic needs, security needs, esteem needs and selfactualization needs.
Out of all these needs, the basic needs and security needs take a position
ii. Perception BCOE 141 Free Solved Assignment
Consumer perception is a major factor that influences consumer behavior.
Customer perception is a process where a customer collects information about a product and interprets the information to make a meaningful image about a particular product.
When a customer sees advertisements, promotions, customer reviews, social media feedback, etc. relating to a product, they develop an impression about the product.
Hence consumer perception becomes a great influence on the buying decision of consumers.
When a person buys a product, he/she gets to learn something more about the product. Learning comes over a period of time through experience. A consumer’s learning depends on skills and knowledge.
While a skill can be gained through practice, knowledge can be acquired only through experience. BCOE 141 Free Solved Assignment
Learning can be either conditional or cognitive. In conditional learning the consumer is exposed to a situation repeatedly, thereby making a consumer to develop a response towards it.
Whereas in cognitive learning, the consumer will apply his knowledge and skills to find satisfaction and a solution from the product that he buys.
iv. Attitudes and Beliefs
Consumers have certain attitude and beliefs which influence the buying decisions of a consumer. Based on this attitude, the consumer behaves in a particular way towards a product.
This attitude plays a significant role in defining the brand image of a product. Hence, the marketers try hard to understand the attitude of a consumer to design their marketing campaigns. BCOE 141 Free Solved Assignment
- Social Factors
Humans are social beings and they live around many people who influence their buying behavior. Human try to imitate other humans and also wish to be socially accepted in the society.
Hence their buying behavior is influenced by other people around them. These factors are considered as social factors. Some of the social factors are:
i. Family : Family plays a significant role in shaping the buying behavior of a person. A person develops preferences from his childhood by watching family buy products and continues to buy the same products even when they grow up.
ii. Reference Groups : Reference group is a group of people with whom a person associates himself. Generally, all the people in the reference group have common buying behavior and influence each other. BCOE 141 Free Solved Assignment
iii. Roles and status : A person is influenced by the role that he holds in the society. If a person is in a high position, his buying behavior will be influenced largely by his status.
A person who is a Chief Executive Officer in a company will buy according to his status while a staff or an employee of the same company will have different buying pattern.
Cultural factors : A group of people are associated with a set of values and ideologies that belong to a particular community.
When a person comes from a particular community, his/her behavior is highly influenced by the culture relating to that particular community. Some of the cultural factors are:
i. Culture : Cultural Factors have strong influence on consumer buyer behavior. Cultural Factors include the basic values, needs, wants, preferences, perceptions, and behaviors that are observed and learned by a consumer from their near family members and other important people around them.
ii. Subculture : Within a cultural group, there exists many subcultures. These subcultural groups share the same set of beliefs and values. BCOE 141 Free Solved Assignment
Subcultures can consist of people from different religion, caste, geographies and nationalities. These subcultures by itself form a customer segment.
iii. Social Class : Each and every society across the globe has form of social class. The social class is not just determined by the income, but also other factors such as the occupation, family background, education and residence location.
Social class is important to predict the consumer behavior.
Personal Factors : Factors that are personal to the consumers influence their buying behavior. These personal factors differ from person to person, thereby producing different perceptions and consumer behavior.
Some of the personal factors are:
i. Age : Age is a major factor that influences buying behavior. The buying choices of youth differ from that of middle-aged people. Elderly people have a totally different buying behavior.
Teenagers will be more interested in buying colorful clothes and beauty products. Middle-aged are focused on house, property and vehicle for the family.
ii. Income : Income has the ability to influence the buying behavior of a person. Higher income gives higher purchasing power to consumers. When a consumer has higher disposable income,
it gives more opportunity for the consumer to spend on luxurious products. Whereas low-income or middle income group consumers spend most of their income on basic needs such as groceries and clothes.
iii. Occupation : Occupation of a consumer influences the buying behavior. A person tends to buy things that are appropriate to this/her profession.
For example, a doctor would buy clothes according to this profession while a professor will have different buying pattern.
iv. Lifestyle : Lifestyle is an attitude, and a way in which an individual stay in the society. The buying behavior is highly influenced by the lifestyle of a consumer.
For example when a consumer leads a healthy lifestyle, then the products he buys will relate to healthy alternatives to junk food.
- Economic Factors
The consumer buying habits and decisions greatly depend on the economic situation of a country or a market. When a nation is prosperous, the economy is strong,
which leads to the greater money supply in the market and higher purchasing power for consumers. When consumers experience a positive economic environment, they are more confident to spend on buying products.
Whereas, a weak economy reflects a struggling market that is impacted by unemployment and lower purchasing power.
Economic factors bear a significant influence on the buying decision of a consumer. Some of the important economic factors are:
i. Personal Income : When a person has a higher disposable income, the purchasing power increases simultaneously. Disposable income refers to the money that is left after spending towards the basic needs of a person.
When there is an increase in disposable income, it leads to higher expenditure on various items, But when the disposable income reduces, parallelly the spending on multiple items also reduced.
ii. Family Income : Family income is the total income from all the members of a family. When more people are earning in the family, there is more income available for shopping basic needs and luxuries.
Higher family income influences the people in the family to buy more. When there is a surplus income available for the family, the tendency is to buy more luxury items which otherwise a person might not have been able to buy.
Q-3 What do you understand by channel of distribution? Discuss the functions of channel of distribution.
ANS: channel of distribution: Channels of Distribution or Distribution Channel can be defined as the path taken by the good or service when they move from manufacturer to the end consumers.
The movement of the goods implies the physical distribution of the goods or the transfer of ownership.
It is the network of intermediaries such as wholesalers, retailers, distributors, agents, etc., who carry out a number of interrelated and coordinated functions in the flow of goods from its source to its destination.
Additionally, it creates utility of time, place, form, and possession to the product by the quick and efficient performance of the function of physical distribution.
Functions of Channel of Distribution
Transactional Functions: Functions like buying, selling, and risk-bearing which are relevant to a transaction are called transactional functions.
Producers sell goods to intermediaries, who further sell them to the customers. In this way, the title of goods changes hands, and goods flow from producer to consumer. In the absence of any buying and selling, there won’t be any transaction.
Logistical Functions: It involves the physical exchange of the goods such as assembling, storage, sorting, grading, packing, and transportation. This is to make certain that goods must reach the marketplace at right time and sell to the consumers conveniently.
Facilitating Functions: Functions like post-purchase service, maintenance, financing, information dissemination, channel coordination, etc form part of facilitating functions.
Objectives of Distribution channels :
.To increase the availability of the product to the potential customers.
.To fulfill customer’s requirements by providing quality rich services.
.To obtain promotional support from channel members.
.To procure timely and detailed market information.
.To increase cost-effectiveness.
.Factors Influencing Choice of Distribution Channels
Size of the Customer, potential volume of sales, concentration of buyers, size of the purchase order, and so forth are some of the factors which are considered before choosing the distribution channel
Product Considerations: Factors related to perishability, bulkiness, product value, etc. related to the product are taken into consideration while making a choice between the channels of distribution.
Middlemen Considerations: Types of intermediaries, services provided by middlemen, the attitude of middlemen, availability of middlemen, and channel competition are the factors that influence the choice of channel.
Company Considerations: Cost of distribution, management’s ability, services provided by seller, long-run effect on profit, the extent of channel control, financial resources, and experience and ability are the company considerations.
Q-4 What is augmented and virtual reality? State its advantages and limitations.
ANS: Augmented reality and virtual reality (commonly abbreviated as AR and VR respectively) are reality technologies that either enhance or replace a real-life environment with a simulated one.
Augmented reality (AR) augments your surroundings by adding digital elements to a live view, often by using the camera on a smartphone.
Virtual reality (VR) is a completely immersive experience that replaces a real-life environment with a simulated one.
In AR, a virtual environment is designed to coexist with the real environment, with the goal of being informative and providing additional data about the real world, which a user can access without having to do a search.
For example, industrial AR apps could offer instant troubleshooting information when a handset is aimed at a piece of failing equipment.
Virtual reality encompasses a complete environmental simulation that replaces the user’s world with an entirely virtual world. Because these virtual environments are entirely fabricated, they are often designed to be larger than life.
For example, VR could let a user box with a cartoon version of Mike Tyson in a virtual boxing ring.
While both virtual reality and augmented reality are designed to bring a simulated environment to the user, each concept is unique and involves different use cases.
In addition to entertainment scenarios, augmented reality is also increasingly being used by businesses, because of its ability to generate informational overlays that add useful, real-world scenarios.
Augmented reality entails abundant – and growing — use cases. Here are some actual
applications you can engage with today.
Ikea Place is a mobile app that allows you to envision Ikea furniture in your own home, by overlaying a 3D representation of the piece atop a live video stream of your room. YouCam Makeup lets users virtually try on real-life cosmetics via a living selfie.
Repair technicians can don a headset that walks them through the steps of fixing or maintaining a broken piece of equipment, diagramming exactly where each part goes and the order in which to do things.
Various sports are relying on augmented reality to provide real-time statistics and improve physical training for athletes.
Beyond gaming and other entertainment cases, some business examples of virtual reality include: Architects are using VR to design homes – and let clients “walk through” before the foundation has ever been laid.
Automobiles and other vehicles are increasingly being designed in VR. Firefighters, soldiers and other workers in hazardous environments are using VR to train without putting themselves at risk. Advantages of Augmented Reality
The advantages of Augmented Reality are listed as follows –
. It increases accuracy.
. It offers innovation, continuous improvement, and individualized learning.
. It helps developers to build games that offer real experiences.
. It enhances the knowledge and information of the user.
Disadvantages of Augmented Reality
.The limitations of Augmented Reality are listed as follows –
.Projects based on AR technology are expensive to implement and develop.
.Excessive use of augmented reality technology can lead to eye problems, obesity, etc.
.It can cause mental health issues
Advantages of Virtual Reality
.The benefits of virtual reality are listed as follows –
.It creates an interactive environment.
.It helps us to explore the world by creating a realistic world using computer technology.
.It makes education comfortable and easy.
.It allows users to do an experiment in an artificial environment.
.It increases the work capabilities.
Virtual reality is helpful for medical students to do practice well. It will be helpful for patients, too, as it offers a safe environment to them by which a patient can come into contact with the things they fear.
Virtual reality helps to measure the performance of sportsperson and analyze their techniques.
Disadvantages of Virtual Reality The limitations of virtual reality are listed as follows – Using VR, people start ignoring the real world. They started living in the virtual world instead of dealing with the issues of the real world.
Training in the virtual environment does not have the same result as training in the actual world. It is not guaranteed that a person has done a task well in the real world if he/she has performed that task well in the virtual world.
Q-5 What do you mean by advertising? Explain the various media of advertising and compare their advantages and limitations.
ANS: advertising Advertising is a means of communication with the users of a product or service.
Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them, as defined by the Advertising Association of the UK.
various media of advertising:
Selection of the perfect advertising media where the advertisements will be presented is really important for the success of the marketing campaign.
There are several advertising mediums which can be categorized under five heads:
Each of the media has its own exclusive characteristic like the reach, shelf space, interest, and niche targetting, etc. A marketer has to evaluate each and choose the one with the greatest ROI.
Print Advertising :
One of the oldest and most popular media of advertising, print media has better reach and can even be used for copy extensive advertisements.
Print advertising includes
Newspaper advertisements – Newspapers have the highest reach among other types of print advertisements. They are in the regional languages and have a narrower reach as compared to others because of its economical price.
Magazine advertisements – Magazines can be used for niche advertisements. They have a higher conversion rate as the advertisements are targeted to the right audience.
Brochures – Brochures impart everything a customer should know about the product or a brand. They are targeted and distributed at a later stage to educate customer more about the brand.
Fliers – Fliers are handy and have a great local reach. Fliers turn out to be very useful for local businesses.
Broadcast Advertising : Technological advancement has resulted in increased returns from broadcast advertisements. Broadcast mediums include audio-visual information and entertainment mediums like radio, television, etc.
It’s one of the most effective media for advertising as a story can be better understood if moving images and audio is used. But this medium is one of the costliest advertising mediums too.
Outdoor Advertising : Perhaps one of the most economical options, outdoor advertising can prove to be the most effective advertising strategies if used correctly, creatively, and at the right location.
As the name suggests, Outdoor advertising involves placing fixed (printed or audiovisual) advertisements in locations most visited by the target audience.
Outdoor advertising can be classified into –
.Banners & Hoardings
.Events and sponsorship
Digital advertising refers to advertisements that are digitally displayed over the internet or other digital devices. This includes the Internet, media devices like smartphones, tablets, etc.
Big Data has helped digital marketers to carry extremely targeted advertisements and get the most out of their investments.
With the everyday addition of new users and increased technology and R&D in the digital world, marketers can now not only target customers with their advertisements but also can engage and interact with them.
Brand/Product Integration : Brand Integration allows a brand to reach out to the consumers by integrating the brand within the entertainment media content which is consumed by the users as entertainment.
The brand or the product is interwoven within the script, showcasing products, functions and unique features.
Section – B
Q.6 What do you mean by market segmentation? Explain the basis of market segmentation.
ANS: Market segmentation is a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action,
Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
the basis of market segmentation: Segmenting is dividing a group into subgroups according to some set bases. These bases range from age, gender, etc. to psychographic factors like attitude, interest, values, etc.BCOE 141 Free Solved Assignment
Gender : Gender is one of the most simple yet important bases of market segmentation. The interests, needs and wants of males and females differ at many levels. Thus, marketers focus on different marketing and communication strategies for both.
This type of segmentation is usually seen in the case of cosmetics, clothing, and jewellery industry, etc.
Age Group Segmenting market according to the age group of the audience is a great strategy for personalized marketing.BCOE 141 Free Solved Assignment
Most of the products in the market are not universal to be used by all the age groups. Hence, by segmenting the market according to the target age group, marketers create better marketing and communication strategies and get better conversion rates.
Income : Income decides the purchasing power of the target audience. It is also one of the key factors to decide whether to market the product as a need, want or a luxury.
Marketers usually segment the market into three different groups considering their income. These are High Income Group, Mid Income Group,Low Income Group
This division also varies according to the product, its use, and the area the business is operating in.
Place : The place where the target audience lives affect the buying decision the most. A person living in the mountains will have less or no demand for ice cream than the person living in a desert.
Occupation : Occupation, just like income, influences the purchase decision of the audience. A need for an entrepreneur might be a luxury for a government sector employee. There are even many products which cater to an audience engaged in a specific occupation.
Usage : Product usage also acts as a segmenting basis. A user can be labelled as heavy, medium or light user of a product. The audience can also be segmented on the basis of their awareness of the product. BCOE 141 Free Solved Assignment
Lifestyle : Other than physical factors, marketers also segment the market on the basis of lifestyle. Lifestyle includes subsets like marital status, interests, hobbies, religion, values, and other psychographic factors which affect the decision making of an individual. )
Q.7 Explain the process of new product development.
ANS: Idea Generation: The first stage in the product development process is idea generation. The development teams of the company and external sources refer to competitor innovations, the customer wants, distributors and suppliers, and so on.
The company thereby focuses on coming up with as many feasible ideas as possible.
Idea Screening: The next stage involves the screening of this often-large set of ideas.
The primary objective of this stage is to focus on ideas that are in line with the company’s customer value and financial goals.
The stage focuses on the filtering out of ideas that are poor or are not feasible and retain those that have good potential. This is to ensure that the company does not face losses by moving ahead with fickle ideas that do not promise adequate returns.
Concept Development and Testing: The third of the product development process steps is concept development and testing. In this stage, the good product ideas must be developed into detailed product concepts that are conveyed in consumer-oriented terms.
The concept must be made in order to project the product in terms of how it is perceived by consumers and how it will potentially be received in the market and by which set of potential customers. BCOE 141 Free Solved Assignment
This concept must then be tested by presenting it to the target consumers and their response must be taken into account.
Development of Marketing Strategy: The new product development process in marketing is covered in stage four. In this step, the company tries to come up with strategies to introduce a promising product into the market.
The company must therefore come up with the price, potential revenue figures as well as advertising and distributing channels in this step.
Business Analysis: The product concept is put through a vigorous business analysis or test in order to ascertain projected sales and revenue and also assess risk and whether the production of the product is financially feasible. BCOE 141 Free Solved Assignment
The company’s objectives are considered and if these are satisfied, the product is moved on to the next step.
Product Development: This is the step that comes after the management of a company declares a product concept to be in line with the goals of the company and issues green light for development.
The research and development wing of the company then works on the product concept for many months and even years in some cases, to come up with a working and functional prototype of the product concept.
Test Marketing: This is the penultimate stage of the new product development process and involves the testing of the product and its suggested marketing program in realistic market settings. BCOE 141 Free Solved Assignment
This stage provides an insight into how the product will be introduced into the market, advertised, produced, packaged, distributed, and eventually sold to the customers, and therefore any optimizations if required can be made by the company.
Commercialization: The final step of the product development process is that of commercialization.
Based on the information gathered during the test marketing process, the business management may either decide to go ahead with the launch of the product or put it on the backburner.
In case the go-ahead is given, the product is finally introduced into the market and this process is called commercialization. BCOE 141 Free Solved Assignment
This stage often leads to massive costs in terms of initial infrastructural investments as well as sales promotions and advertisements.
Q.8 What are the factors affecting promotion mix.
ANS: Type of Product: Type of product plays an important role in deciding on promotion mix. Product can be categorized in terms of branded products, non-branded products, necessity products, luxury products, new products, etc.
All these types of products need different promotional tools. For example, advertising is suitable for the branded and popular products.
Personal selling may be fit for non-branded products. Advertising, personal selling, sales promotion and publicity – all four tools – are used for a newly launched product to get a rapid consumer acceptance. BCOE 141 Free Solved Assignment
Use of Product: Product may be industrial product, consumable and necessity product, or may be luxurious product that affects selection of promotion tools and media.
For example, advertising and sales promotion techniques are widely used for consumer goods while personal selling is used for industrial goods.
Complexity of Product: Product complexity affects selection of promotional tools. Personal selling is more effective for complex, technical, risky, and newly developed products as they need personal explanation and observation.
On the other end, advertising is more suitable for simple and easy-handled products.
Purchase Quantity and Frequency: Company should also consider purchase frequency and purchase quantity while deciding on promotion mix.
Generally, for frequently purchase product, advertising is used, and for infrequently purchase product, personal selling and sales promotion are preferred.
Personal selling and advertising are used for heavy users and light users respectively.
Fund Available for Market Promotion: Financial capacity of company is a vital factor affecting promotion mix.
Advertising through television, radio, newspapers and magazines is too costly to bear by financially poor companies while personal selling and sales promotion are comparatively cheaper tools.
Even, the company may opt for publicity by highlighting certain commercially significant events.
Type of Market: Type of market or consumer characteristics determine the form of promotion mix. BCOE 141 Free Solved Assignment
Education, location, income, personality characteristics, knowledge, bargaining capacity, profession, age, sex, etc., are the important factors that affect company’s promotion strategy.
Q.9 What is product life cycle? Discuss briefly.
ANS: The product life cycle is the process a product goes through from when it is first introduced into the market until it declines or is removed from the market.
The life cycle has four stages—introduction, growth, maturity, and decline.
While some products may remain in a prolonged maturity state for some time, all products eventually phase out of the market due to several factors including saturation, increased competition, decreased demand, and dropping sales.
The 4 Stages of the
Product Life Cycle : Once a product is developed, it typically goes through the four stages of the product life cyclefrom introduction through decline before eventually being retired from the market.
Once a product has been developed, it begins the introduction stage of the PLC. In this stage, the product is released into the market for the first time.
The release of a product is often a highstakes time in the product’s life cycle, although it does not necessarily make or break the product’s eventual success.
During the growth stage, consumers start taking to the product and buying it. The product concept is proven as it becomes more popular, and sales increase.
- Maturity BCOE 141 Free Solved Assignment
When a product reaches maturity, its sales tend to slow, signaling a largely saturated market. At this point, sales may start to drop.
Pricing at this stage tends to get competitive, so profit margins shrink as prices begin to fall due to the weight of outside pressures like increased competition and lower demand.
Marketing at this point is targeted at fending off competition, and companies often develop new or altered products to reach different market segments.
Although companies generally attempt to keep their product alive in the maturity stage as long as possible, eventual decline is inevitable for virtually every product.
Q.10 What do you understand by marketing environment? Explain the types of marketing environment.
ANS: marketing environment: A marketing environment is a combination of internal and external environmental forces and factors that influences the business operation of a business and its ability to serve its customers. BCOE 141 Free Solved Assignment
It is essential to know both internal as well as external environmental factors. Therefore, enterprises keep checking on them to do their business without any legal trouble and to generate maximum profit.
Types of marketing environment:
Microenvironment : The microenvironment of a business consists of all the factors and forces that are directly associated with the company. The micro components of the external environment are also known as task environments.
Macro Environment : Macro components of a marketing environment consist of all external forces and factors that impact the whole industry rather than just changing an organization directly. BCOE 141 Free Solved Assignment
Therefore, the macro marketing environment is also referred to as a large environment.
The best example of an internal marketing environment is the office culture of the organization, Your office culture consists of the values, beliefs, and attitudes of your employees.
All of these factors determine how the employees of your organization will behave.
For example, in an organization where employees are encouraged to perform in a team and support the members of the group are more likely to perform better than the organization where employees compete with one another.
Q.11 Write short notes on the following:
(a) Cash discount
ANS: Every trader is pleased when they see that their customers have paid the invoices made out to them. BCOE 141 Free Solved Assignment
And to grant an incentive for this, many service providers and distributors offer a price reduction in the amount of certain percentage of the invoice total. The price reduction is called cash discount
ANS: Branding is the process of creating a strong, positive perception of a company, its products or services in the customer’s mind by combining such elements as logo, design, mission statement, and a consistent theme throughout all marketing communications.
Effective branding helps companies differentiate themselves from their competitors and build a loyal customer base.
Why is Branding Important? A unique brand can have a huge impact on your bottom line by giving you a competitive advantage over your rivals and helping you acquire and retain customers at a much lower cost. BCOE 141 Free Solved Assignment
In eCommerce, where new companies and therefore, new competitors) are springing up every day, an established brand can be an invaluable asset in bringing customers and generating profit.
Regardless of whether you’re investing time and effort into crafting a compelling brand or paying no attention to it whatsoever, your business still has a brand. However, it may be completely different to how you intended to be seen.
By carefully constructing your brand through stories, relationships, marketing messages and visual assets, you have the opportunity of shaping your customers’ expectations and creating a unique bond that goes beyond the buying-selling relationship.
Good branding is strategic, while marketing is tactical. When you establish the higher objectives and clearly define your brand promise, you can start crafting a marketing plan that’s geared Towards achieving these goals BCOE 141 Free Solved Assignment
Q 12 Distinguish between the following
(a) Skimming and penetration pricing
ANS: Definition of Penetration Pricing Penetration Pricing implies a pricing technique in which new product is offered at low price, by adding a nominal markup to its cost of production, to penetrate the market as early as possible.
It aims at maximizing the market share of the product, and once it is achieved, i.e. when the demand picks up, the firm can increase the price of the product.
Penetration pricing results in lower profits in the short run, however, in the long run, it results in higher profits because it increases the market base.
The reasons behind adopting penetration pricing are as under: New product offered by the firm is already provided by other well-established brands.
The low price will lure customers to switch to the new product, who are already familiar with other brands.
It can help in increasing sales of the product in short period. It restricts new entrants from entering the market.
This technique is used in case of new product, which faces no to little competition in the market, and have a great extent of consumer acceptability.
Market skimming pricing is adopted by the company, due to the following reasons: In the early stages, the demand for the product is inelastic, till the product occupies a good position in the market.
In the initial phase, the demand for the product is not known, and high price helps in covering the cost of production. BCOE 141 Free Solved Assignment
In the beginning, there is a huge requirement of capital for producing the product, resulting in high production cost.
Further, a huge amount is invested in the promotional activities, that also adds to its cost. When the product is charged high, it will cover the cost of production and promotion expenses easily.
The difference between penetration and skimming pricing are presented hereunder: Penetration Pricing can be described as a pricing method adopted by the firm to attract more and more customers, in which the product is offered at low price at the early stage.
Conversely, skimming pricing is used to mean a pricing technique, in which high price is charged at the beginning to earn maximum profit.
Penetration pricing aims at achieving a greater market share, by offering the product at low prices. As against the object of using skimming pricing strategy is to earn maximum profit from the customers, by offering the product at the highest price.
Penetration pricing strategy is put into practice when the demand for the product is relatively elastic. On the other hand, skimming pricing is used when the demand for the product is inelastic. BCOE 141 Free Solved Assignment
In case of penetration pricing, the profit margin is low, whereas, in skimming pricing, the profit margin is very high.
As the price of the product is initially low in penetration pricing, huge quantities of product is sold by the firm. As against, due to high price of the product customer demand small quantity of the product, in case of skimming pricing.
Conclusion When a new product enters a market having no to little product differentiation, penetration pricing strategy is used. On the contrary, skimming pricing strategy is when a new product is launched in the market for which there is no competition.
(b) Product and services
ANS: Products and services are two closely aligned concepts, and, in fact, most products have an element of service in them.
For example, a car buyer now buys a comprehensive bundle of service benefits, in addition to the tangible components of the carl. BCOE 141 Free Solved Assignment
However, there is a distinct difference between them and it is important to establish some working definitions. One way to think of them is from the clients’ point of view.
When a client asks “what can you make for me?” they are asking about products, when a client asks “what can you do for me?” they are asking about services.
While a product is something that can be measured and counted, a service is less concrete and is the result of the application of skills and expertise towards an identified need.
A product is something you can point at, whereas a service, as The Economist defines it, is any activity “you can’t drop on your foot”2 although this definition doesn’t hold up when the products are digital in form – weightless objects that have no mass or material definition aside from the physical media on which they exist.
Nonetheless, even in file-based workflows, there is a distinction between a product being produced and a service provided to fill a need.
Products are tangible and discernible items that the organization produces, including digital filebased output. Examples of products from the Digitization Services Branch:
A service is the production of an essentially intangible benefit, either in its own right or as a significant element of a tangible product, which through some form of exchange, satisfies an identified need.
Sometimes services are difficult to identify because they are closely associated with a good; such as the combination of a diagnosis with the administration of a medicine. Examples of services from the Digitization Services Branch:
consulting with clients on appropriate products for specific purposes providing advice on risk assessment and priority setting working on standards committees conducting training and other educational outreach BCOE 141 Free Solved Assignment
BCOC 135 FREE SOLVED ASSIGNMENT 2022