MK351: Principles of Marketing

Week 1- Homework
Chapter 1
6. Define the functions of marketing in your own words. Using an example, explain how
they can be shifted and shared.
Marketing functions include, buying, selling, transporting, storing, financing, standardization and
grading, risk taking, and market information (Perreault, Cannon, & McCarthy, 2014). All of
these functions form an interrelated web that is needed in a marketing system. The buying
function is finding goods and services and evaluating their potential. The selling function is
marketing the product to potential customers. The transporting function is moving products or
services between places or to customers. The storing function is holding products until the
customer wants them. The financing function is getting the required capital, funding, or credit
needed to perform the previous and other functions. You cannot store or transport goods without
the funding to pay for it. The standardization and grading function is the act of categorizing
goods by size or quality; example being oranges sorted by those good enough to go to grocery
stores for sale, those used to make orange juice, and those which are used to feed livestock. The
risk taking function is dealing with and accepting the risk involved in the marketing process.
There is always the chance things will not work out as expected and profit may not be made.
Finally, the market information function is the collection, analysis, and distribution of all the
information needed to plan, carry out, and control marketing activities, whether in the firms own
neighborhood or in a market overseas (Perreault et al, 2014). In other words, the marketing
information function is the gathering and analysis of all available information pertaining to the
product, good, or service being marketed which is pertinent to a firms ability to successfully
buy, market, sell, and distribute it.
All of these marketing functions are not independent of the other and are interconnected.
Additionally, each function has to be performed by someone and cannot be completely
disregarded. With that being said not every function has to be performed by the same entity. The
producer does not have to transport to the buyer and the buyer does not have to store goods itself
before it transfers them to the seller. Some services will not require storage during the actual
service, but might after it is complete or during production. Some functions could be shifted to
an outside entity that can provide the function more cost effectively. An example would be a
firm which produces a product using UPS or Fedex to accomplish the transportation function
since UPS and Fedex are established transporters. Functions can be shared by firms if the sharing
could benefit both; an example might be firms which fund and utilize warehousing capabilities.
Nearly every function can be shifted or shared with a facilitator or other firm who can more
effectively or efficiently perform, or aid in, the function.
16. Give an example of some of the benefits and costs that might contribute to the customer
value of each of the following products:

A customer usually takes into account two views when it comes to value for a good or service;
the benefit of the good or service and what they might have to give up or forego to have that
benefit.
a) a wristwatch
The actual price of the wrist watch would contribute to the customer value of the good. If
it was bought from an online retailer that might include the shipping cost of the
wristwatch. The time it takes to ship the item might also contribute. The price may be less
of a factor to the customer if this wristwatch performs needed functions valued by the
customer. The brand name of the wristwatch might instill emotional value for the
customer. The high price of a wristwatch may mean the customer has to give up
something else and that could contribute to the value of the item to the customer. If the
wristwatch is lower priced and it meets the need of the customer the value could be high.
The quality and maintenance plan for the wristwatch might contribute to the customer
value as well.
b) a weight-loss diet supplement
A weight-loss diet supplement with approval from the FDA could contribute to the
customers perceived superior value of the product. If this supplement has no, or few,
side effects could also increase the customer value if they perceive that if has fewer
associated costs to them. If reviews of the products are favorable or not could contribute
to the perception of benefits or costs to the consumer. Actual price and the amount of the
product being received could contribute as well.
c) a cruise on a luxury liner
The brand name of the liner could result in emotional relevance for a customer which
could contribute to perceived value. If the luxury liner had any good or bad press could
contribute. The actual price or perceived discount if purchased online could play a role in
customer value of the service. If the integrity of the luxury liner company is good or bad
could contribute. The amount of amenities, length of the cruise, and ports of call for the
cruise could influence customer value. If the customer had used this luxury liner before
and if there was a good or bad customer satisfaction aspect could contribute.
d) a checking account from a bank
If this checking account offers more options or advantages than its competitors and
whether a credit union could offer better checking options would contribute. With the
advent of everything online the online banking option might add or detract value. Cost to
open the actual account. Cost of driving to the bank to open the account. Time out of the
day to open the account.
Chapter 2

14. Explain how new opportunities may be seen by defining a firms markets more
precisely. Illustrate for a situation where you feel there is an opportunity- namely, an
unsatisfied market segment- even if it is not very large.
There are hundreds or even thousands of combinations of marketing mix decisions and target
markets for a firm to choose to target (Perreault et al, 2014). In order for a firm to more
effectively choose and target the appropriate markets and strategies in relation to its resources
and objective it needs to define the markets first. This can be accomplished through the
employment of a market strategy planning process that evaluates from a broad concept of the
market environment narrowing opportunities down to those best suited for the particular
company. In this process it often becomes apparent that there are segment of the market, related
to what the company already does, that have needs that are not being met. Consideration is given
to the product, place, promotion and price after S.W.O.T. analysis and other broader analysis are
accomplished. Most firms find attractive opportunities that are close to what they already do in
markets they are familiar with, but some diversify into entirely new markets with new products
or services.
For myself I know that I have needs that companies could definitely meet more efficiently and
effectively. I recently transitioned into a job position that requires that I wear rugged civilian
clothing instead of my usual Army uniform. Unfortunately, most of the companies which my
counterparts (typically male) go through for their gear do not make things for either my body
type or for my gender as a whole. So, Ill choose a popular one that they purchase from: 5.11
Tactical. The clothing is durable and made for movement; as long as you are either male, or
female with a straight body shape similar to that of a male. If it fit my need I would be inclined
to purchase from this company, but it does not. If this firm were to analyze the market further
they may see that the current selection offered by the firm fails to meet the need of an ever
growing population of women transitioning in to typically male dominated workplaces. While
this is a small demographic it could be an avenue of growth for the company and an opportunity
to developed their products for an underserved market prior to their competition doing so.
Marketing Plan Questions
The Marketing Plan Coach software on the texts student website (Click on Marketing
Plan Coach) includes a sample marketing plan for Hillside Veterinary Clinic (HVC). Skim
through the different parts of the marketing plan. Look more closely at the Marketing
Strategy section.
a) What is the target market for this marketing plan?
This marketing plan separates the two target markets and factors associated with them
into customers and non-customers. The first target market for HVC will be pet owners
with small animals living within 10 miles of Wellington, Colorado who are not currently
customers of HVC (Hardy, 2008, p. 24). And the second target market would be current
customers of HVC.

b) What is the strategy Hillside Veterinary Clinic intends to use?

Some of the marketing mix strategies they intend to use for each group are the same,
while other strategies are distinct to the current customer or non-customer markets. This
marketing plan utilized the concepts of price, place, promotion, and product to elaborate
strategies. Most of the promotion aspects such as the slogan, logo, vinyl banner,
community events, and Yellow Page Advertising were aimed at both target markets. The
place aspect of the clinics extended hours was also applicable to both the customer and
non-customer target markets. Products aimed at the non-customer market focused on
puppies and kitties while products intended to regain or maintain current customer
markets focused on compassionate care, geriatric, and dental care for pets. There were
many promotion aspects planned for the current customer market to include swag, better
website function, brochures, customer database improvements, in store signs, and point
of purchase materials.
References
Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2014). Basic marketing: a marketing strategy
planning approach (19th Ed.). New York: McGraw-Hill/Irwin.
Hardy, B. (2008, June 27). Hillside Veterinary Clinic Marketing Plan. Marketing Plan Coach.
Retrieved October 25, 2014, from
http://www.mhhe.com/business/marketing/Perreault13e/marketing_coach/LA/HillsideVet
ClinicMP.pdf