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Assignment on Marketing Theories
Assignment on Marketing Theories
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1Assignment on Marketing Theories
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1.
Market segmentation is a method of dividing a vast consumer market or business, into sub-groups based
similar types shared characteristics. It means that one has to focus on company’s target market in a
segmented manner. Harinder is working B2B (business to business ) market strategy. A market can be
segmented based on age, group, gender, geography and socialogy. As Harinder is working with firms and
not individual customers it’s a Firmographic Segmentation.
A Firmographic segmentation is close to demographic segmentation. The difference in this new type of
segmentation is that here instead of individuals the person focus on the different types of firm. They focus
on company size, number of employees and internet based business. It helps them to understand how to
address their needs and manage the orders.
Targeting market segment- He should aim at targeting firms who sell online for new contract after he has
established a good relation with the E-distributor. He should also maintain relation with his existing clients.
Once his business is well received by individual consumers he can manage to sell product directly to
consumers through online or offline mode.
Positioning strategy- A positioning strategy is how the firm wants the product to be seen in the market,
how it will compete in the market. Being a sole maker of wooden utensils he use dynamic pricing. So he
should be focused on quality. Quality positioning and special pricing strategies can always differentiate
his products from other competitors in future.
He should also hire more people to look after his products so that it can be manufactured exceptional and
committing to minimal defects.
2 .
Sharjah, UAE has number of budget hotels and everyone is competing with each other. The quality is
offered Is also best by some of the competitors. In a budget hotel industry he has to apply more than one
strategy. Like the
Competitor-based pricing- Room rates should match with the competitor unless the hotel is offering
something exceptionally outstanding. The company should see the pricing of their competitors who have
same star rating, rooms design and facility in their location.
Penetration Pricing Strategy- In the beginning the hotel should go for penetration pricing by lowering their
product or service cost in hope of building market share. When the same services are offered at lower
price the company will able to gain more consumers and also penetrate the competitive market.

2Assignment on Marketing Theories
Temporary Discount Pricing- when the hotel is just starting its market in new place it should run some
discount campaign to lure customers. For example - cents-off sales, seasonal price reductions and
volume purchases on discounts. This is a free marketing method where the company is available to
attract attention of new clients.
Occupancy-based dynamic pricing- when hotel has some good market share it should modify its strategy.
Raise price when demands are higher in holiday season.
3.
In marketing communication plays a very important role in planning and marketing.
a) Identifying the Target Audience: Who is the stake holder and partners. Its important to understand their
intensity on the business operation. The level of formal communication can be defined here.
b) Communication Objectives: What is the objective of starting a discussion with a client or business
partner. The objectives can be specific or it can be measureable. The objective should represent the
planning clearly.
c) Determining the Message: The marketing communication should always have message. The
marketing message grabs the attention of the audience. The message should target the audience and
what they can get from this business deal.
d) Communication Tools: The selection of correct communication tool is highly essential. The target
audience preference matters as in what media they prefer. Online marketing is a viral method of
communicating with the client.
4.
a) In the case of a perishable food industry item consumer awareness should be created by innovative
and practical methods like-
 By testing the market through sales in persons and noting the response of the consumer for the
product.
 The samples can also be distributed to big stores like fresh vegetable store and by outdoor
publicity advertisement.
 They should Target: local Hotels, Restaurants and Industrial canteens for selling their sample
product.
b) Distribution channel

3Assignment on Marketing Theories
As it is a perishable product they should use a faster distribution network that has cold storage facility.
They should either supply the item directly to the consumer from the chain supply storage or should hand
over the raw material to the distributors and retailer who would take care of it. They can also rent a cold
storage or can purchase one for long term usage. They can use transport system that have inbuilt cold
storage and are fast in delivering the items. The distribution channel can producer to whole seller to
retailer to consumer. Or it can also be producer to retailer to consumer.
5.
a) Luxury Watches- Psychographic segmentation is best suited for luxury brand company to
understand the dynamic needs of the customers. It is dividing the market for luxury watches based on the
consumer personality traits, values, interests, and lifestyles.
b) Movers & Packers- As it is an unorganized service sector that has a very high value in the
economy. The inquiry for these services mostly comes online. Thus it should have Geographic
Segmentation based on demographics, location, needs, preferences, and interests according to their
geographies.
6.
a) Designer Jewels- As it is sold by retailers or whole seller the market segmentation should be of
Behavioral Segmentation. This is based on the decision-making patterns like consumption, lifestyle, and
purchase usage
b) Yoga Center- Psychographic Segmentation is best suited for this type of service. The yoga is not
a necessity but luxury. Thus taking into consideration consumer lifestyle, personality and interests can
draw more customers. It caters to people who care about healthy living and exercise.
7.
UAE is an affluent Middle East country the market environment is influenced by political factors like each
of the emirates has their individual government and policies. UAE has good trade relation with many
countries across the world. It has high GDP per capita allowing the good market for luxury items. It is
considered as a good economy with least unemployment rates having a very high lifestyle for most of its
population. As it is located at the coastal area there is higher possibility for sea transport and trading. A
wealthy country can afford any high developed technology when required. The market environment
analysis as per PESTLE for UAE is developed and highly regulated.
8.

4Assignment on Marketing Theories
A Buyer decision process helps in understanding how consumers complete process of knowing the
product to making the purchase decision for the product.
Steps are for enrolling in a degree program-
Identifying problem- A customer recognizes a problem that can be solved by a product or service
available in the market. A student wants to gain more knowledge and do better job. Thus its his problem.
Information Search- The student is convinced that more information is required to know about the
product. Thus they start collecting the information from advertisement, newspaper or word of mouth
information and online platforms.
Evaluation of Alternatives- They starts to evaluate the information gathered and compare it with
competitors information. They compare based on price, location, duration and placement success of the
institute or degree.
Purchase Decision- They take the decision on whether to purchase the service immediately or later. They
take time to decide to buy the best brand available.
Post-Purchase Evaluation- It is the final stage of the buyer decision process, the student takes decision
based on experience about the service whether it met with the goal or not.
9.
Steps are buying a Luxury car-
Identifying problem- A customer recognizes a problem that why they need a luxury car. Is it for show off or
for comfort factors or the interest in collecting new cars (Atwal, & Williams, 2017).
Information Search- The consumer starts to gain more information of the cars and brand available in the
market. Thus they start collecting the information from advertisement, newspaper and online platforms.
Evaluation of Alternatives- They starts to evaluate the information gathered and compare it with
competitor’s in the market. They compare based on price, design, and variant of the cars. Also the after
sale service of the brand.
Purchase Decision- They take the decision based on information collected whether to purchase the car or
not. They take time to decide to buy the best brand available.
Post-Purchase Evaluation- It is the final stage of the buyer decision process, the consumer tries the
product and takes decision based on experience whether it met with the goal or not.
10.

5Assignment on Marketing Theories
Steps are for buying a international vacation package-
Identifying problem- A customer who wants to go for a vacation make recognize many factors as problem
to avail one. Reasons can be bored with life, willing to take family on vacation or something related.
Information Search- The consumer will search options available with the travelling agent as well as on
internet. They starts to gain more information available in the market.
Evaluation of Alternatives- Evaluation of the information gathered and compare it with competitor’s quote
in the market. They compare based on price, location, options of places and service standard of the
company.
Purchase Decision- Finally they decide based on evaluation of the information whether to purchase the
package or not.
Post-Purchase Evaluation- It is the final stage of the buyer decision process, the consumer tries the
product and takes decision based on experience whether it met with the goal or not.
10.
a)
Brand “X” has followed the Value based Pricing Strategy. With a new revolution it was able to sell its
product with extra benefits. Thus it gained by charging the highest possible price for a new product. It can
charge the customers based on value that it is selling. It can lower the price based on skimming pricing
strategy later. The car industry, computer and mobile industry follows this same pricing strategy to skim
the market before their competitor (Haider et al., 2017)
Where as “Y” followed competitive pricing strategy. The pricing strategy works on focusing the existing
market rate and observes the competitors. They only take advantage of their competitors by pricing their
similar kind of product just below their competitor’s price. Many industries like food, apparel and
technology follows the competitors pricing strategy when a similar product is selling excessively in the
market. They target their customers by offering better products at competitive lower price.
b)
ABC is a well-known brand in the cement industry. Thus having a distribution network of around 8000
and 20 C&F agents is good enough for its brand image. The company is losing customer and the reason
can be many such as competitor, price and unfair selling of its distributors. The company has taken a
good decision to open it retail store.
Pros-

6Assignment on Marketing Theories
 The company can market its brand solely without depending on distributors.
 The company will be able to sell genuine product direct to the consumer.
 The company can cross sale its other products. Like refractory and aluminum-based products.
 Branding and advertisement by self saving cost.
Cons
 Incur cost on new retail outlet.
 The sale may not improve by opening only one retail outlet. And add to the more expense.
An outlet alone cannot save the market of a cement company. They should have rather invested in
marketing and R&D department for better product. They would have given more offers to distributors
enhance to increase product. The new outlet will ultimately incur cost and may or may not attract new
customers. They should have focused on their competitor and developed a new marketing strategy.
12.
a) Product item- For “Office Needs” item is the office furniture, wooden material and furniture fittings.
Product line- A product line means group of products a company selling under single brand. The products
are similar and for the same market segment. Its product line is four for office furniture, carpets, sofas and
filing cabinets.
Product mix – It is also known as product assortment that means total number of product lines that a
company runs for their customers. There are four dimension of it including width, length, depth and
consistency. It has four product line with office furniture, carpets, sofas and filing cabinets. It has 42
different designs of chairs and 23 designs of office desks. The total of all these is its product mix.
b) The product has huge varieties in all segments. The company is also adhering to the new technology
but still due to recession it is not able to make profit. At this time they should focus on expanding their
product line. It is limited to only 4 products and that is not helpful. Customer wants variety at an affordable
price. Without harming the image of its company they should launch a new range of product line where
they are able to provide lower quality durable products at competitive price to customer while keeping the
high quality item products open for sale.
13.
a) The Promotion Mix is a method to use several promotional tools to create business. The Promotion Mix
is divided into Advertising, Personal Selling, Public Relations, Sales Promotion, and Direct Marketing. The
procedure used by company to give ad in the news paper and get the forms filed was a slow method. It
can only be complete if the target audience is reading those papers and are interested in replying back. A

7Assignment on Marketing Theories
cold list is one of the most essential part of any sales. The company should have used personal selling
and sales promotional ideas to capture larger crowd. As this was a uniquely designed product for limited
high end customers they could have conducted a free seminar for interested peoples giving them
knowledge about blood pressure and along with it product details. Other method was to create team of
trained executives to reach the clients directly in person. Even by giving online advertisement would have
gained more interested clients.
b) As the company is producing a medical product for patients. They should completely focus on their
designed target audience. The permanent method of introducing and selling this unique product is to do
personal selling. Prepare a team of trained sales executives and target hospitals, seminars and offices for
free demo. They should also give small discounts and free gifts. If they want the product to be placed in
higher market segment they should promote it by giving it at high discounts to rich executives, doctors
and companies for first aid.
14.
The Micro-environment factor that may influence the sale of the coffee brand includes:
 Customers- The customer ethics, believe and eating drinking habits.
 Suppliers and Resellers- how much flexible are they. The suppliers and reseller will be easy to
handle or not. How to approach the supplier to fulfill the orders.
 Competitors- An important factor to know who is the competitor and what market share they hold.
 The general public- the taste preference of the general public. Their economic capabilities to
make an offer to purchase international coffee.
The Macro-environment factors
 Demographic forces- Coffee is consumed generally by young age people so its important to
know the composition.
 Technological factors- Is the advanced technology supported in that place.
 Political and legal forces- Very essential to know before signing any deal or opening a outlet.
 Social and cultural forces- A important factors to know about the people preference will they
drink their coffee from an international company. Do they like coffee in the hot environment.
 Natural forces- The climate, terrain and other natural factors.
15.
Modern concept of marketing in today’s world is social media marketing and internet marketing. They
products are sold via internet and orders are also placed online. The SEO is a successful method of doing
business hassle free. Email marketing, social media marketing are the new kind of successful marketing.

8Assignment on Marketing Theories
They not only reach the young generation but accurately targets old age consumers (Pappas, 2016). The
E-commerce site is occupying a huge market share selling from a piece of product to a huge bundle.
Other than this everything is considered traditional marketing.
16.
Promotional strategies Daikin for Home segment-
Being an international company it can be difficult for it gain foothold in India, which is flooded with vast
range of A.C companies. There are some major changes that the company should do to gain market:
 They should give heavy discounts in the seasonal sale for limited period. This lures middle class
customers.
 Continuous advertisement on T.V can attract a vast consumer base and can build strong brand.
 The Daikins are known for it costly a.c and are generally found in offices. Thus common people
are not able to trust and relate with this brand. It has to develop strong advertisement plan can
build a new image of the company.
 Franchise outlet should be given offers to sell their products. A common market practice.
 Strong after sale service as promotional offer.
Factor outlet-
 As it is already a market leader in office sale. They can introduce new environment friendly
technology for A.C with value added pricing strategy.
 They can promote their product in tier two and three cities and even small towns.
 Showrooms should be given instructions to advertise their product on the main shelf.
 Sales person has to be hired to for personal sale in office outlets.
 Discounts are liked by all firms so they can promote their product with high quality and limited
discount offers.
17.
a) As Aquapen is a technology based product and has budget of 2million AED the marketing plan can be
exclusive.
The company should first state a mission and vision for this product. The next step to complete an honest
SWOT analysis. This helps in building confident strategies. The company then needs to develop a target
market profile and audience. The target customer should be according to demography, expected demand,
and purchase motivation of the target audience. The company has to clearly form the marketing objective.
The objective can be influenced by total market share they want to own. The pricing strategy should be

9Assignment on Marketing Theories
based on the market competitors offering. The positioning is very important for pricing the product. As it’s
a unique technology product they can position the product at a higher price like using value added
strategies for pricing. It has strong competitive advantage in water purifier market. It can go for a large
portion of the total market share, and can give head-to-head competition to other brands. Lastly, sales
and promotion that completes the marketing plan.
b) The best suited distribution strategy for this new small handy product can be –
The product can be distributed in an organized process from manufacturer to whole seller to retailer to
consumers. This shall increase the cost of the product but it will justify the positioning. And this will help in
gaining a large market share. They can also go for marketing by placing the product on the E-commerce
site. This will give them chance for running promotional offers directly.
18.
a) Boroline is an age old cream in India. The best part is that it is one of the most trusted safe antiseptic
cream used for all purpose. At the time of 1950 it was facing a very shallow competition and thus the
market share was covering major part. But in today’s time the market is filled with millions of option for
cosmetic creams. There not only national but international brand. Some brands claim to be made from
natural ingredient and have nature’s essence. Those are providing the product at a very competitive
pricing. Although Boroline is made up of only 4 ingredient and is safe to use with no side effects people
does not go for its even when the price is pretty low.
Promotional strategy:-
 A cosmetic product should be in beautiful packaging. The age old packaging has to be changed
as per the new style used in the market.
 The promotion online specially on the social media is essential for attracting young women to
believe in the product miracles.
 Hiring beautiful brand ambassadors who can represent the hidden beauty of the product.
 They have to offer some discounts time to time and advertise the offer online.
 To change the image it has to be repositioned with new packaging, advertising line and more
retail outlets.
 The other option is if the company can launch a completely new product line with all the same or
new features then positioning and image building will not be a problem.
b) Prepare a print Advertisement for Boroline

10Assignment on Marketing Theories
References

11Assignment on Marketing Theories
Atwal, G., & Williams, A. (2017). Luxury brand marketing–the experience is everything!. In Advances in
luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Haider, A. A., Zafar, A., Khalid, A., Majid, A., Abdullah, M. A., & Sarwar, M. B. (2017). Marketing
Management. Head, B, 22.
Pappas, N. (2016). Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services, 29, 92-103.