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BBM 131 Principles of Marketing

Tutor-marked Assignment 1
(TMA 1 15%)

Instructions:

1. This assessment covers topics you have learnt in Unit 1. This is


an individual assignment. No duplication of work will be
tolerated. Any plagiarism or collusion may result in disciplinary
action.

2. Answer ALL the questions.

3. Please write your answers in short essay format. Do not answer


in point-form, unless the question mentioned List or State.
You dont have to write sections of introduction or conclusion in
your answers. Just answer directly to what the question is
asking.

4. The total marks for TMA 1 is 100 and this contributes 15%
towards the total grade of the course.

5. The deadline for the submission of TMA 1 is Tutorial 2. Please


submit your answers to your tutor.

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Question 1

a) Dramatic changes are occurring in the marketing area.


Discuss FOUR (4) major trends and forces that are changing
the marketing landscape in Malaysia. What is the main factor
that binds all these major trends and forces? (25
marks)

b) Marketing management can adopt any five competing market


orientations. Discuss all FIVE (5) marketing orientations.
Give specific examples of Malaysian companies for each of
the marketing orientations. (25 marks)

Question 2

An old friend of yours has a small company that


manufactures canned food. Recently he has sought your
advice on company wide strategic planning for his
company. As a marketing professional, how would you
explain to your friend the concept of company wide
strategic planning and its FOUR (4) steps? Explain to your
friend in relation to his business.
(50marks)

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Marking Scheme for TMA 1

Question 1

Dramatic changes are occurring in the marketing area. Discuss


how FOUR (4) major trends and forces that are changing the
marketing landscape in Malaysia. What binds all these factors
together?
(25
marks)

Dramatic changes are occurring in the marketplace; there are four major
developments.

The New Digital Age

The technology boom had created exciting new ways to learn about
and track customers, and to create products and services tailored to
individual customer needs.
Technology is also helping companies to distribute products more
efficiently and effectively.
Its helping them to communicate with customers in large groups or
one-to-one.

(Clear explanation with well discussed examples 6 marks)

Rapid Globalisation

Many marketers are now connected globally with their customers and
marketing partners.
Almost every company, large or small, is touched in some way by
global competition.
Companies are not only trying to sell more of their locally produced
goods in international markets, they are also buying more supplies and
components abroad.

(Clear explanation with well discussed examples 6 marks)

The Call for More Ethics and Social Responsibility

Marketers are re-examining their relationships with social values and


responsibilities that sustains us.
Todays marketers are being called upon to take greater responsibility
for the social and environmental impact of their actions.

(Clear explanation with well discussed examples 6 marks)

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The Growth of Not-for-Profit Marketing

Marketing has become a major part of the strategies of many not-for-


profit organisations.
Government agencies have also shown an increased interest in
marketing.

(Clear explanation with well discussed examples 6 marks)

The factor that binds all these four trends and forces is relationships. In building
a profitable customer relationship, marketers nowadays must take advantage of
the technology, aware and be prepared for the globalisation and ensure that they
will not forgo ethics in pursuing sales and profits. (1
mark)

4 trends X 6 marks = 24 marks


1 factor X 1 mark = 1 mark
25 marks

b) Marketing management can adopt any the five competing


market orientations.
Discuss all FIVE (5) of the marketing orientations. Give
specific example of Malaysian companies for each of the
marketing orientations. (25
marks)

There are five alternative concepts under which organisations design and carry out
their marketing strategies.

The production concept holds that consumers will favour products that are easily
available and highly affordable. Management focuses on improving production
and distribution efficiency. This concept is one of the oldest orientations.

The product concept holds that consumers will favour products that offer the most
in quality, performance, and innovative features. Marketing strategy focuses on
making continuous product improvements.

The selling concept holds that consumers will not buy enough of the firms
products unless it undertakes a large-scale selling and promotion effort. This
concept is typically practiced with unsought goodsthose that buyers normally
do not think of buying. Most firms practice the selling concept when they face
overcapacity.

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The marketing concept holds that achieving organisational goals depends on
knowing the needs and wants of target markets and delivering the desired
satisfactions better than competitors do. This concept is customer centered.

The societal marketing concept holds that marketing strategy should deliver value
to customers in a way that maintains or improves both the consumers and the
societys well-being.

(Clear explanation with well discussed examples 5 marks each)


(5 orientations X 5 marks = 25 marks)

Question 2

An old friend of yours has a small company that manufactures canned


food. Recently he seeks your advice on company wide strategic
planning for his company. As a marketing professional, how would you
explain to your friend on companywide strategic planning and its four
steps? Explain to your friend in relation to his business.
(50 marks)

Strategic planning is the process of developing and maintaining a


strategy fit between the organisations goal and capabilities and its
changing marketing opportunities. It involves 4 steps: defining a
clear company mission, setting supporting objectives, designing a
sound business portfolio, and coordinating functional strategies.
(3 marks)

Defining a Market oriented mission.


Mission statement is a statement of the organisations purpose what
it wants to accomplish in the larger environment. A market oriented
mission statement defines the business in terms of satisfying basic
customer needs. Management should avoid missions statement that
are too narrow or broad. Missions should also fit the market
environment. Try to avoid making statement that focuses mainly on
making more sales and profits. Need to take into account companys
employees and its contribution to peoples life.

(Clear explanation and able to suggest a suitable marketing


mission - 5 marks)

Setting Company Objectives and Goals.

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Mission needs to be turned into detailed supporting objectives for
each level in the organisation. Managers from each level should have
objectives and be responsible for reaching them. Mission must lead to
a hierarchy of objectives, including business and marketing
objectives. Marketing strategies must be developed to support these
marketing objectives. Each marketing strategy must then be defined
in greater detail.

(Clear explanation and able to suggest a few objectives and


goals that are related to the mission above 4 marks)

Designing the Business Portfolio


Involves 2 steps, first, company must analyze its current business
portfolio and decide which businesses should receive more, less or no
investment. Second it must shape the future portfolio by developing
strategies for growth and downsizing. (2 marks)

i) Analyse current portfolio


Using the Boston Consulting Group (BCG) approach. BCG approach
classifirs a company SBUs according to the growth-share matrix. The
growth share matrix defines the 4 types of SBUs:

Stars. High growth, high share businesses or products. Need


heavy investment to finance their growth
Cash cows low growth, high share business or products.
Established and successful .Need less investment to hold their
market share.

Question marks low share in high growth markets. Requires


large amount of cast to hold their share.

Dogs Low growth, low share.

(Each quadrant in the growth-share matrix with well discussed


examples 4 marks)
(4 quadrant X 4 marks = 16 marks)

Once your friend had classified its SBUs, he must determine what role
each will play in the future. One of four strategies can be pursued.
The company can invest more to build its share or invest just enough
to hold its share at current level. He also can harvest milking short-
term cash flow regardless the long term-effect. Or he can choose to
divest the SBU by selling it and use the resources elsewhere.

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ii) Developing Strategies for Growth and downsizing.

Marketing has the main responsibility for achieving profitability


growth for the company. One useful device to identify growth
opportunities is the product/market expansion grid. Under this
product/market expansion grid there are 4 strategies that an company
can chose to undertake:
Market penetration involves making more sales to current customers without
changing its products.
Market development involves identifying and developing new markets for its
current products.
Product development is offering modified or new products to current markets.
Diversification is where a company starts up or buys businesses outside of its
current products and markets.

(Each strategies with well discussed examples 4 marks)


(4 strategies X 4 marks =16 marks)

Coordinating functional activities.

Marketing implementation is the process that turns marketing plans


into marketing action. People at all levels of marketing system must
be coordinated to work together to implement strategies and plans.
Marketing managers need to coordinate and make decisions about
target segments, branding, packaging, pricing and so on. They need
to coordinate with Engineering Department about the product design,
with Manufacturing Department about production and inventory
levels and with finance about funding and cash flows. Successful
marketing implementation depends on how well the company
coordinates and blends its people and organisation structure, decision
and reward systems and company culture into a cohesive action
programme that support its strategies. (4 marks)

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