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Q.

B1 (10 marks)
Compare the production and marketing concept. Discuss how a business
that applies the marketing concept will tend to be different in its approach
to the market and consumers, from a business that applies a production
concept. Briefly argue the case EITHER that McDonalds (the leading
international fast food retailer) is practicing the marketing concept OR
that it is not practicing the marketing concept.
The Production Concept: The idea that consumers will favor products that are highly
available and highly affordable and that the organization should therefore focus on
improving production and distribution efficiency.
The Marketing Concept: The marketing management philosophy that achieving
organizational goal depends on knowing the needs and wants of target markets and
delivering the desired satisfactions better than competitors do.
McDonalds the leading international fast food retailer
Q.B2 (10 marks)
Compare the selling and marketing concept, listing and discussing the key
components of each philosophy.
The Marketing Concept: The marketing management philosophy that achieving
organizational goal depends on knowing the needs and wants of target markets and
delivering the desired satisfactions better than competitors do.
The Selling Concept: The idea that consumers will not buy enough of the firms
products unless it undertakes a large-scale selling and promotion effort.
Selling concept
Emphasis is on the product
Company first makes the product and
then figures out how to sell it profitably

Internal, Company orientation.


Emphasizes company (sellers) need

Marketing concept
Emphasis is on customers want.
Company first determines what the
customers want and then the firm
figures out how to profitably make and
deliver a product to satisfy those wants
External, market orientation.
Emphasizes market (buyers) needs.

Q.B3 (10 marks)


Outline what is meant by population diversity? Discuss with at least two
examples the marketing implications of the ethnic diversity of the
Australian population.
Population diversity- Customers in different cultures have different values,
experiences, expectations, and ways of interacting. Even within a culture, such
differences will be apparent between different subgroupsnot just ethnicity, but
also age, gender, profession, religion, family size, physical environment, and more.
Diversity marketing involves acknowledging that marketing and advertising must
offer alternative ways of communicating to these diverse groups. With that
knowledge, diversity marketers aim to develop a mix of different communication
methods, in order to reach people in each of the diverse groups present in the
market.
For example, the western suburbs of Sydney Bankstown region consists of Middle
East migrants with high Muslim populations, who speak Arabic (including Lebanese).
McDonaldss in that region has started to introduce Halal ( allowed) foods in their
menu targeting the Muslim population. Halal is an Arabic word that means
lawful.The Arabic-speaking people in Australia are predominantly Muslim people;
and a small percentage of them are Christian people. Therefore, can only consume
Halal food.
Moreover,Several ethnic background such as African, Indian and Asian are target by
telecommunicaters such as Optus, Lebara and Lycamobile. Due to reasonable well
known international callers for their cheap rates. These telecommunciators
assume that these ethnic group will be interested due to the fact that their will like
to call family or relatives overseas.
Q.B5 (10 marks)
Distinguish between commercial and personal sources of information.
Briefly describe the roles of commercial and personal sources of
information in the consumer buying decision process
Personal sources: family, friends, neighbors etc.
Commercial sources: advertising; salespeople; retailers; dealers; packaging; pointof-sale displays
In the information search stage in the consumer buying decision process after the
consumer have recognizes the needs, he/she needs to obtain information vital
leading to the purchase of the product. The consumer can obtain this information
either from personal sources and commercial sources

Customers value and respect personal sources more than commercial sources (the
influence of word of mouth). The challenge for the marketing team is to identify
which information sources are most influential in their target markets.

Q.B6 (10 marks)


Briefly describe the various stages that consumers pass through to reach
a buying decision. Give an example to describe a buying situation where a
consumer EITHER might not pass through all the stages of the buyer
decision process OR might pass through the stages in a different order.
Need recognition- The buying process starts with need recognition. At this stage,
the buyer recognizes a problem or need (e.g. I am hungry, we need a new sofa, I
have a headache) or responds to a marketing stimulus (e.g. you pass Starbucks and
are attracted by the aroma of coffee and chocolate muffins).
Information search- Consumers engage in both internal and external information
search. Internal search involves the consumer identifying alternatives from his or
her memory. For certain low involvement products, it is very important that
marketing programs achieve top of mind awareness. For high involvement
products, consumers are more likely to use an external search. Before buying a car,
for example, the consumer may ask friends opinions, read reviews in Consumer
Reports, consult several web sites, and visit several dealerships.
-

Consumers engage in both internal and external information search.


Personal sources: family, friends, neighbors etc.
Commercial sources: advertising; salespeople; retailers; dealers; packaging;
point-of-sale displays
Public sources: newspapers, radio, television, consumer organizations;
specialist magazines
Experiential sources: handling, examining, using the product

Evaluation of alternatives - An important determinant of the extent of evaluation


is whether the customer feels involved in the product. By involvement, we mean
the degree of perceived relevance and personal importance that accompanies the
choice. High-involvement purchases include those involving high expenditure or
personal risk for example buying a house, a car or making investments. Low
involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in
the supermarket) have very simple evaluation processes.

Purchase- In high-involvement decisions, the marketer needs to provide a good


deal of information about the positive consequences of buying. The sales force may
need to stress the important attributes of the product, the advantages compared
with the competition; and maybe even encourage trial or sampling of the
product in the hope of securing the sale.
Post- purchase evaluation- The final stage is of the decision. It is common for
customers to experience concerns after making a purchase decision. This arises
from a concept that is known as cognitive dissonance. The customer, having
bought a product, may feel that an alternative would have been preferable. In these
circumstances that customer will not repurchase immediately, but is likely to switch
brands next time.
For example, a student buying a favorite hamburger would recognize the need
(hunger) and go right to the purchase decision, skipping information search and
evaluation.
Q.B9 (10 marks)
Define and differentiate between the core product, the actual product and
the augmented product as these concepts apply in the car industry.
The CORE product is NOT the tangible physical product. You cant touch it. The core
product would be convenience to your customers. Your customers can also travel by
bus or taxi. But they prefer cars because of convenience as well several times
because of status symbol. Thus the core product in case of Tata cars will be
convenience and value for money whereas in case of BMW it will be Status symbol.
The ACTUAL product is the tangible, physical product. You can get some use out of
it. Again with the car, it is the vehicle that you test drive, buy and then collect. You
can touch it. The actual product is what the average person would think of under
the generic banner of product.
The AUGMENTED product is the non-physical part of the product. It usually consists
of lots of added value, for which you may or may not pay a premium. So when you
buy a car, part of the augmented product would be the warranty, the customer
service support offered by the cars manufacturer and any after-sales service. The
augmented product is an important way to tailor the core or actual product to the
needs of an individual customer. The features of augmented products can be
converted in to benefits for individuals.

Q.B10 (10 marks)


Distinguish between a manufacturers brand (and national brand) and a
private brand (also called a generic brand, a store brand or a

distributor/retailer brand). Who will win the battle of the brands between
manufacturers brands and private brands? Support your position with at
least three rationales.
Manufactures brand: They are created by producers and bear their chosen brand
name. The responsibility for marketing the brand lies with the producer. Most
manufacturer brands are supported by massive advertising budgets. They also have
to MANAGE long distribution channels to reach the final customers.
Private brand: They are created and owned by channel intermediaries. Most of
these brands are owned by big and powerful retailers. The retailers do not
manufacture these brands and may not have any knowledge about the underlying
technologies and processes of the product. Retailers almost completely outsource
manufacturing.
Private brand would win because product are manufactured outside and the
retailers are in contact with customers, and know what the customers like and dont
like. Prices of the manufacture brands too high compared to those of retailer brands.
Some customers feel that private brand satisfy or fulfill their homes and family
needs.
Q.B13 (10 marks)
Discuss, with three examples, the ways that companies are leveraging
interactive communications technologies to tap consumers for message
ideas and actual advertisements.
Companies can now search existing video sites such as YouTube; set up their own
Web sites, create accounts on social networks such as Facebook, and sponsor adcreation contests.
Big annual events like the Super Bowl and the Grammys have been garnering more
viewers and buzz as social media and second screens create a digital watercooler.
Brands are catching the attention of viewers whose attention is split between
screens in various ways.
Tapping consumers for message ideas or actual ads can involve:
-

Searching existing Web video sites.


Holding contests or inviting consumers to submit ad message ideas and
videos.

Q.B14 (10 marks)

Marketers can choose between two basic promotion mix strategies push
promotion or pull promotion. Discuss and compare these two strategies
with examples.
Push strategy: A push promotional strategy involves taking the product directly to
the customer via whatever means, ensuring the customer is aware of your brand at
the point of purchase. Taking the product to customers, include how promotions to
encourage retailer demand Negotiation with retailers to STOCK your product or
Direct selling to customers in showrooms or face to face.
Pull strategy: A pull strategy involves motivating customers to seek out your
brand in an active process. "Getting the customer to come to you". Sales
promotions and discounts, word of mouth or Advertising and mass media
promotion.

Q.B16 (10 marks)


Discuss the differences among the intensive, selective and exclusive
distribution strategies. The characteristics of convenience, shopping,
specialty and unsought goods play a major role in determining the
marketing mix for products in each of these categories. Briefly describe
the distribution strategies (intensive, selective, or exclusive) of each type
of product. Which channel member(s) is/are most likely to bear the
promotional responsibility for each type of product?
Firms that choose an intensive distribution strategy try to sell their products in as
many outlets as possible. Intensive distribution strategies are often used for
convenience offeringsproducts customers purchase on the spot without much
shopping around. Soft drinks, bread, milk and newspapers are an example. You see
them sold in all kinds of different places.

Selective distribution involves selling products at select outlets in specific locations.


For instance, apple phones can be purchased at JB HI-FI, Harvey Norman or Bing lee
but the same models not sold at all the outlet. The lowest priced one can be sold at
JB HI-FI, but the better apple phone model more expensive sold at an apple
electronic store or specialty electronics stores. By selling different models with
different features and price points at different outlets, a manufacturer can appeal to
different target markets.
Exclusive distribution involves selling products through one or very few outlets.
Most students often think exclusive means high priced, but thats not always the
case. Exclusive simply means limiting distribution to only one outlet in any area,
and can be a strategic decision based on applying the scarcity principle to creating
demand. For instance, proud jewelries or Michael hill are sold at specific jewelry
stores, and to purchase those items you need to go to one of those retailers.
Q.B18 (10 marks)
Compare simple lists such as a mailing list with a customer database. How
has the implementation of Do Not Call legislation changed telephone
marketing?
A mailing list is a list of people who subscribe to a periodic mailing distribution on a
particular topic. On the Internet, mailing lists include each person's e-mail address
rather than a postal address. Customer database is a collection of records of
consumer purchasing patterns and histories stored in a computer system and
organized so that it can be retrieved quickly to provide information for a variety of
uses.
The Do Not Call Register allows customers to greatly reduce the amount of
unwanted telemarketing calls. It bans most business telemarketing calls to
registered phone numbers. Millions of customers have joined the do-not-call list,
and businesses that break the laws can be fined heavily. Telemarketers are more
effectively managing relationships with existing customers. They are developing
"opt-in" calling systems, in which they provide useful information and offers to
customers who have invited the company to contact them by phone or e-mail.

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