Marketing

PRINCIPLES OF MARKETING-106 BBA (MGT)-RU
THE ANIRBAN ACHETAN AUGNI -1- E-mail: orionru10@gmail.com

JAHANGIR ALAM
BBA (pursuing)
Department of Management
University of Rajshahi
Rajshahi.
THE LARGEST UNIVERSITY OF ASIAN

SUBCONTINENT PROVIDING ACADEMIC
EXCELLENCE.
Probable Questions of “106-Principles of Marketing”
1. (a) Distinguish between market and marketing. 5
(b) Discuss the role of marketing in a developing economy like Bangladesh. 10
[Questions Common Year: 2002, 2004, 2006, 2007, 2008]
2. (a) What do you mean by consumer goods? 3

(b) Discuss in brief the characteristics and marketing considerations of various classes of
consumer goods. 12
[Questions Common Year: 2002, 2004, 2006, 2008]
3. (a) What is meant by promotion? 3

(b) Discuss the important promotional methods. 6
(c) “Advertisement increases demand” – Discuss. 6
[Questions Common Year: 2004, 2006, 2008]
4. (a) What are the objectives of price determination? 5

(b) Discuss the different methods of pricing products generally followed by the manufacturers. 10
5. (a) What is marketing environment? 3

(b) What are the major forces in the company’s macro environment? 8
(c) Why company’s need to pay more attention on internal environment? 4
[Questions Common Year: 2008]
6. (a) Define a product. 3

(b) Discuss the classification of products. 7
(c) Describe different stages in the new product development process. 5
7. (a) What is the modern concept of marketing? 4

(b) “Consumer is the king of the marketing” Do you agree? Why? 6
8. (a) What do you mean by pricing in marketing? 3

(b) When “skim the cream pricing” and “penetration pricing” is profitable to the business? 7
[Questions Common Year: 2002, 2004, 2006, 2009]
9. (a) What is product life cycle? 3

(b) Discuss the marketing and environmental characteristics of each stage of a product life
cycle. 12
10. (a) What do you mean by market segmentation? 4

(b) Why is it done? 5
(c) State the stages involved in the market segmentation. 6
[Questions Common Year: 2005, 2007]
11. Short Notes: 5x3=15

(a) Marketing (e) Pricing in Marketing (i) Product Differentiation
(b) Marketing Concept (f) Promotion (j) Discounts
(c) Marketing Cost (g) Advertisement (k) Consumer Association
(d) Consumer Goods (h) Marketing Function (l) Product Life

ANSWERS TO THE QUESTIONS
1. Distinguish between market and marketing.
Subject-matter
Market Marketing
of difference
Marketing is total system of
interacting business activities designed
Market is the collection of buyers and
1. Definition to plan/fix-up the price, distribution of
sellers.
want satisfying product to the present
and potential customers.
Marketing objects to create utility of
Market objects to exchange goods and time, place, possession and
2. Objectives
services by buying and selling. information of product for developing
standard of living.
Marketing is formed with execution

Market is formed with buyers and process of conception, pricing,
3. Formation
sellers. promotion and distribution of goods
and services.
Marketing is related with
Market is related with conducting organizational functions that serve the
4. Relation transactions between buyers and market effectively, efficiently and
sellers. profitably.
It consumes various utilities of It creates utility of time, place,

5. Utility
products created by marketing. possession and information of product.
Goods and services is the centre of the Customer’s satisfaction is the centre
6. Centre
market. conception of marketing.
The main function of market is to The main function of marketing is

7. Functions exchange goods and services at physical supply with facilitating
monetary value. activities.
Marketing consists of many parties

Market consists of two parties: buyers
8. Party like producers, distributors, middle-
and sellers.
man and ultimate consumers.
That’s all the basic difference between market and marketing.

2. Discuss the role of marketing in a developing economy like
Bangladesh.
Bangladesh is developing country where Marketing plays a vital role by developing standards for
products, services, reliability and precognition to business as well as standard of living gradually. The
roles of marketing are discussed below –
A. Economic Roles:
1. Production Of Goods And Services:
2. Creation Of Economic Infrastructure:
3. Equilibrium In Supply And Demand:
4. Large Scale Production:
5. Utility Creation:
6. Survival Of Business:
7. Enhancing National Income:
8. Development Of Foreign Trade:
9. Expansion Of Business:
10. Economic Development:
B. Social Roles:
1. Employment:
2. Improving Standard Of Living:
3. Agricultural Production Enhancement:
4. Industrialization:
5. Adjusting Agriculture And Industrialization:
6. Increasing Per Capita Income:
7. Competitive Advantage:
8. Social Marketing:
9. Improving Image Of Nation:
10. Social Development:

3. What do you mean by consumer goods?
Products that are purchased for consumption by the average consumer. Alternatively called final
goods, consumer goods are the end result of production and manufacturing and are what a consumer will
see on the store shelf. Clothing, food, automobiles and jewelry are all examples of consumer goods.
Consumer goods are final goods specifically intended for the mass market. For instance,
consumer goods do not include investment assets, like precious antiques, even though these antiques are
final goods.
Some recognized definitions are given below-
Ü W. J. Stanton Stated,
“Consumer products are intended for personal consumption by
households.”
Ü Philip Kotler defined,

“Consumer products are product bought by final consumers for personal
consumption.”
Features of consumer goods:
· Objectives to purchase
· Frequency of purchase
· Regular demand
· Processing
· Channel of distribution
· Promotional tool
· Price per unit
From the above discussion, we can say consumer goods are-
· bought by ultimate consumer

· purchased for household consumption
· frequently purchased
· needed daily life
· the final goods at all.
To sum up, we may define the consumer goods refer to any tangible commodity purchased by
households to satisfy their wants and needs. The measurement of consumer goods sales is important in
the assessment of gross domestic product and in determining the health of the overall economy. Demand
for consumer goods indicates whether consumers are willing to part with cash. Items are only counted as
consumer goods once - if they are resold, they will not be included in economic calculations and not be
considered as consumer goods.

4. Discuss in brief the characteristics and marketing
considerations of various classes of consumer goods.
The marketing policy of various products is critically different to one another. For various classes’
consumer goods is also distributed under various marketing considerations. The variety of marketing
considerations according to products’ class are described below-
A. Convenience Goods: E. Industrial Products:
Ø Location of stores [*] Ø After sales service

Ø Channel of distribution [*] Ø Leasing
Ø Regular supply [*] Ø Contractual purchase
Ø Buyer’s income [*] Ø Price competition
Ø Promotional tool [*] Ø Goodwill
Ø Nature of demand
Ø Buying behavior
Ø Product Comparison
Ø After sales service
Ø Brand and Packaging [*] F. Raw Materials:
Ø Contractual Purchase
Ø Standardization
B. Shopping Goods: Ø Warehousing
Ø Transportation cost
Ø Product assortment
Ø Experienced salesman
Ø Additional service
Ø Goodwill
Ø Influence of fashion
G. Installations:
Ø Brand name
C. Specialty Goods: Ø After sales service
Ø Contractual purchase
Ø Product storage Ø Goodwill
Ø Product assortment Ø Price Competition
Ø Advertising
Ø Frequency of purchase
Ø Demand flexibility
H. Accessory Equipments:
Ø Brand name
D. Unsought Goods: Ø Sales service
Ø Goodwill
Ø Creating demand
Ø Sales effort
That’s all the characteristics and marketing considerations of various classes of consumer goods.

5. What is meant by promotion?
Promotion is one of the four elements of marketing mix (product, price, promotion, distribution).
It is the communication link between sellers and buyers for the purpose of influencing, informing, or
persuading a potential buyer's purchasing decision.
Some recognized definition are given below-
Ü W. J. Stanton Defined,
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Ü Steven J. Skinner Stated,

“Promotion refers to any communication activity used to inform, persuade
and remind the target market about an organization, its products and its
activities.”
From above discussion, we can infer that the marketing promotion is-
· A tool of marketing mix

· Applied for influencing buyer to buy
· Serving method of product information
To sum up, we can say that the Marketing promotion is a business tool that is designed to pull customers
to buy the products of a company. Generally, marketing promotion is carried out by companies to launch
their products or attract more potential customers. Before devising any strategy for promotional
marketing, firms must ensure that they allocate a budget to the marketing promotion and set a target that
gives them maximum return on the invested money.
6. Discuss the important promotional methods.

Marketing promotion is a business tool that is designed to pull customers to buy the products of a
company. Generally, marketing promotion is carried out by companies to launch their products or attract
more potential customers.
There are five basic promotional methods in marketing. They are discussed below-

Advertising:
Advertising is an expensive method of promotional marketing, wherein, the products are
made to reach a large number of people. For example, by using electronic media, TV, radio, press and
outdoor hoardings, advertisers target the audience and try to create an impact on customers. Read more
on promotional advertising.
Features:
· Pervasiveness
· Amplified Expressiveness
· Impersonality
Personal Selling:
One of the oldest ways of direct marketing promotion is to sell the products by direct
interaction between the seller and buyer. It is believed to be the most difficult form of marketing, as it
requires skills of persuasion and excellent communication skills. Read more on sales negotiation training.
Features:
· Personal Interaction
· Relation
· Response
Sales Promotion:
One of the effective, popular and most preferred forms of promotional methods is to
arrange certain contests for the customers. We all will agree to the fact that winning surprise prizes in a
shopping mall or fashion store is simply exciting. One of the most attractive marketing strategies,
organizing contests among the customers is a brilliant way to promote the products. Read more on
marketing tips.
Features:
· Communication
· Contest Reward
· Incentive
Public Relation:
In the quest to attract more customers, companies distribute coupons and pamphlets about
the products. The customers are either given basic information about the newly launched products or they
are provided with discounted coupons on the purchase of some accessories/apparels. Coupons make for
an effective marketing plan for small business units. Read more develop a marketing plan.
Features:
· High Creditability
· Catching buyer’s off guard
· Dramatization
· Distribution of coupons and pamphlets

Direct Marketing:
The idea of freely distributing products sounds weird and crazy for any company,
however, there is a certain element of truth in the fact that marketing firms have gained substantial
promotion through the idea of free samples. While, it is not logical to just distribute your products, you
can devise a strategy, so that, the idea of free samples doesn't incur losses for your firm.
Features:
· Specific Person
· Rapid Communication
· Customization
· Interactive
Besides above, Following promotional methods are growing in the modern marketing.
ü Internet Marketing
ü Relationship Marketing
ü Marketing Tools
To sum up, It is inferred from above discussion, while evaluating different methods of promotion in
marketing, one should realize these strategies are not set formulas or recipes for the successful launch and
eventually high sales of the product. No doubt, these strategies are effective, but there are various market
forces that can affect the sales prospects of firms. These were some of the marketing promotion methods
that firms adopt to increase their sales. At the end, however, it is the customer who is the king and you
have to leave it all to them.
7. “Advertisement increases demand” – Discuss.

Advertisement persuades people to buy that product by informing them about it through various
media. Advertising increases awareness, which in turn increases demand, which then makes the product
more desirable/harder to get, which then increases the amount that the provider can charge for the
product, thus increasing the price that they ask for it.
Some basic reasons for increasing demand by advertisement are discussed briefly below-
a. Providing Information
b. To persuade
c. Informing Advantage
d. Establishing Communication
e. Brand Acceptance
f. Creating Demand
g. Changing Attitude
h. Increasing Purchase Power
i. Informing Using Procedure
j. Making aware of Product
Above described reasons play a significant role to make public awareness and remembrance of
advertising product subconsciously, that’s why advertisement increases demand.
THE ANIRBAN ACHETAN AUGNI - 10 - E-mail: orionru10@gmail.com

8. What are the objectives of price determination?

Pricing is the process of determining what a company will receive in exchange for its products.
Pricing factors are manufacturing cost, market place, competition, market condition, and quality of
product. Pricing is also a key variable in microeconomic price allocation theory. Interaction of the free
market forces of demand and supply to establish the general level of price for a good or service.
Objectives of Price Determination illustrated below-
Ø Survival
Ø Profit Maximization
Ø Market Share Leadership
Ø Product Quality Leadership
Ø Meet Competition
Ø Increasing Demand
Ø Government Intervention
Ø Increasing Sale Volume
Ø Achieve a target return
Ø Stabilize Price
That’s all the objectives of Price determination.
9. Discuss the different methods of pricing products generally

followed by the manufacturers.
Price determination is the key of marketing process followed by manufacturers strictly which can
be preceded in various ways and methods. The major pricing methods are described with illustration
below-
Cost-Plus Pricing:
The simplest pricing method is the cost-plus pricing. It is calculated by adding a standard
markup to the cost of the product.
To illustrate, suppose a toaster manufacturer had the following cost and expected sale volume:
Variable Cost : Tk.10.00

Fixed Cost : Tk.300, 000.00
Expected Sale Volume: 50, 000.00
Then the cost per unit as follows-

Fixed Cost 300000
Per Unit Cost = Variable Cost + = 10 + = Tk.16
Sales Unit 50000
Now, If the markup is 20%, then the market price will be as follows-
Per Unit Cost
16
Markup Price = = = Tk .20
1 – Desired Return on Sales 1 - 0 .2
That’s all the cost-plus pricing method. Although it is Easy to apply, but it ignores market
demand.

Pricing Through the Channel:

Pricing of any product through distribution channel is a traditional method of pricing. It
Determines prices under steps to the ultimate consumers. Price is calculated here by adding markup
percentage with purchase cost in each step of channel.
To illustrate, Suppose production cost including profit of a product is Tk.72.00. Manufacturers

sells to the wholesaler at Tk.72.00. Wholesaler sells it at Tk.90.00 taking 20% profit to the retailer who
sells again to the ultimate consumer at Tk.150.00 taking his profit on the way.
The diagram shows the pricing process through the distribution channel.
Mark-up
Mark-up = 40%
= 20% = Tk.60
= Tk.18 Re-
tailer’s Cost to
selling consumer
Manu- Whole- price = Tk.150
Cost and facturer’s Cost saler’s Cost = 100%
profit selling = 80% selling = 60% = Tk.150
= 100% price = Tk.72 price = Tk.90
= Tk.72 = 100% = 100%
= Tk.72 = Tk.90
MANUFACTURER WHOLESALER RETAILER CONSUMER
Figure: Pricing Through Channel
Value based pricing:

Although, Pricing process through channel of distribution is the most traditional way to pricing,
This process is very followed by manufacturers.
Value based pricing, or Value optimized pricing is a business strategy. It sets selling prices on the
perceived value to the customer, rather than on the actual cost of the product, the market price,
competitor’s prices, or the historical price.
Value-based pricing is dependent upon an understanding of how customers measure value,
through careful evaluation of customer operations. Survey methods are sometimes used to determine the
value, and therefore the willingness to pay, a customer attributes to a product or a service. Frameworks
for value-based pricing include Economic Value Estimation are Relative Attribute Positioning, Van
Westendorp Price Sensitively Meter, and Conjoint Analysis.
Another value pricing method uses Customer Value Research, which is Bernstein & Macias'
method for gaining the customer's perception of value through the use of both qualitative and quantitative
research methods.
It Follows a flow which is shown with a flow chart below-
Customer Value Price Cost Product
Figure: Value Based Pricing

Break-Even Analysis:
Break-even analysis refers to a calculation of the approximate sales volume required to just cover
costs, below which production would be unprofitable and above which it would be profitable. Break-even
analysis focuses on the relationship between fixed cost, variable cost, and profit.
Here are the variables needed to compute a break-even sales analysis:

· Gross profit margin
· Operating expenses (less depreciation)
· Annual debt service (total monthly debt payments for the year)
Figure: Break-Even Analysis
Competition Based Pricing:

Marketing approach whereby products are differentiated according to how much they cost, and
companies seek to attract customers solely on the basis of product price. In price competition, marketers
seek to influence customer demand primarily through changing the prices of their products.
The pricing procedure under war of competition is shown below by a diagram-
Figure: Pricing Under Competition

10. What is marketing environment?
The market environment is a marketing term and refers to all of the forces outside of marketing
that affect marketing management’s ability to build and maintain successful relationships with target
customers. The market environment consists of both the macro-environment and the micro-environment.
The marketing environment surrounds and impacts upon the organization.
Figure: Marketing Environment
11. What are the major forces in the company’s macro

environment?
The actors and forces outside marketing that affect marketing management’s ability to build and
maintain successful relationships with target customers. There are some actors and forces of macro
environment. Those are described below-
Demographic Forces: The study of human populations in terms of size, density, location, age,
gender, race, occupation and other statistics are surrounds the demographic environment.
Natural Forces: It involves the natural resources that are needed as inputs by marketers or that
are affected by marketing activities. Trends of the natural environment are-
· Shortages of raw materials
· Increased pollution
· Increased government intervention
Technological Forces: The most dramatic force shaping our destiny. Rapidly changing
forces which creates many new marketing opportunities and turns many existing products extinction.

Political Forces: Consists of laws, government agencies and pressure groups that influence or
limit various organizations and individuals in a given society. The effects of political environment are-
· Legislation affecting businesses worldwide has increased
· Laws protect companies, consumers and the interests of society
· Increased emphasis on socially responsible actions
Cultural Forces: Made up of institutions and other forces that affects a society’s basic
values, perceptions, preferences and behaviors.
Economic Forces: The factors of economics that forces the marketing environment are the
elements of economic environment. It is shaped with investment, return, production, supply, demand and
income etc.
That’s all the forces of macro environment of company.
12. Why company’s need to pay more attention on macro

environment?
Company should pay more attention on macro environment because of some major forces of
macro environment. The forces and it’s effect compel the company to make attentive on macro
environment. The description and analysis is as follows-
The threat of entry:

Ø Economies of scale e.g. the benefits associated with bulk purchasing.
Ø The high or low cost of entry e.g. how much will it cost for the latest technology?
Ø Ease of access to distribution channels e.g. Do our competitors have the distribution channels
sewn up?
Ø Cost advantages not related to the size of the company e.g. personal contacts or knowledge that
larger companies do not own or learning curve effects.
Ø Will competitors retaliate?
Ø Government action e.g. will new laws be introduced that will weaken our competitive position?
Ø How important is differentiation? e.g. The Champagne brand cannot be copied. This desensitises
the influence of the environment.
The power of buyers:

Ø This is high where there a few, large players in a market e.g. the large grocery chains.
Ø If there are a large number of undifferentiated, small suppliers e.g. small farming businesses
supplying the large grocery chains.
Ø The cost of switching between suppliers is low e.g. from one fleet supplier of trucks to another.

The power of suppliers:
Ø The power of suppliers tends to be a reversal of the power of buyers.
Ø Where the switching costs are high e.g. Switching from one software supplier to another.
Ø Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft.
Ø There is a possibility of the supplier integrating forward e.g. Brewers buying bars.
Ø Customers are fragmented (not in clusters) so that they have little bargaining power e.g.
Gas/Petrol stations in remote places.
The threat of substitutes:

Ø Where there is product-for-product substitution e.g. email for fax Where there is substitution of
need e.g. better toothpaste reduces the need for dentists.
Ø Where there is generic substitution (competing for the currency in your pocket) e.g. Video
suppliers compete with travel companies.
Ø We could always do without e.g. cigarettes.
Competitive Rivalry:
Ø This is most likely to be high where entry is likely; there is the threat of substitute products, and
suppliers and buyers in the market attempt to control. This is why it is always seen in the center of
the diagram.
13. Why company’s need to pay more attention on internal

environment?
The Internal Analysis of strengths and weaknesses focuses on internal factors that give an
organization certain advantages and disadvantages in meeting the needs of its target market. Strengths
refer to core competencies that give the firm an advantage in meeting the needs of its target markets.
Factors of internal environment of a company are extremely affected by the internal marketing
management and information system. The success is dependent on concern system. The elementary
causes for which company’s need to pay more attention on internal environment.
Figure: Internal Environment

Goals & Objectives:
Strategic Direction:
Execution:
Strategic:
Monitoring:
13. Define a product

Generally product refers to goods, idea, method, information, object, service, etc., that is the end
result of a process and serves as a need or want satisfier. It is usually a bundle of tangible and intangible
attributes (benefits, features, functions, uses) that a seller offers to a buyer for purchase. In the marketing
mix product is defined as goods or service that most closely meets the requirements of a particular market
or segment and yield enough profit to justify its continued existence.
According to Philip Kotler & Gray Armstrong,

“Product is anything that can be offered to a market
for attention, use or consumption and that might satisfy a want or need.”
According to
Product definition is a critical starting point in the development of any new product. Yet for its
importance, there are a number of common shortcomings to the process of product definition in many
companies:
· No defined product strategy or product plan

· Lack of formal requirements as a basis for initiating product development
· Product requirements developed without true customer input
· A marketing requirement specification (MRS) that is completed late - after development is
underway
· Engineering having little or no involvement in development of MRS, thereby lacking a true
understanding of requirements
· An incomplete, ambiguous, or overly ambitious MRS
· Creeping elegance or a constantly evolving specification that requires increasing development
scope and redesign iteration
A company doesn't blindly respond to customer needs and opportunities. A business strategy which
defines customers and markets to be served, competitors, and competitive strengths provides a framework
from which to evaluate potential opportunities. The result of this evaluation of opportunities is expressed
in a product.
14. Discuss the classification of products.
A. Convenience Product:
B. Shopping Product:
C. Specialty Product:
E. Industrial Products:
F. Raw Materials:
G. Installations:
H. Accessory Equipments:
D. Unsought Product:
15. Describe different stages in the new product development

process.
Improving and updating product lines is crucial for the success for any organisation. Failure for an
organisation to change could result in a decline in sales and with competitors racing ahead. The process
of NPD is crucial within an organisation. Products go through the stages of their lifecycle and will
eventually have to be replaced There are eight stages of new product development. These stages will be
discussed briefly below:
1. Idea Generation is often called the "fuzzy front end" of the NPD process
o Ideas for new products can be obtained from basic research using a SWOT analysis
(Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends,
company's R&D department, competitors, focus groups, employees, salespeople, corporate
spies, trade shows, or Ethnographic discovery methods (searching for user patterns and
habits) may also be used to get an insight into new product lines or product features.
o Idea Generation or Brainstorming of new product, service, or store concepts - idea
generation techniques can begin when you have done your OPPORTUNITY ANALYSIS
to support your ideas in the Idea Screening Phase (shown in the next development step).
2. Idea Screening
o The object is to eliminate unsound concepts prior to devoting resources to them.
o The screeners should ask several questions:
§ Will the customer in the target market benefit from the product?
§ What is the size and growth forecasts of the market segment/target market?
§ What is the current or expected competitive pressure for the product idea?
§ What are the industry sales and market trends the product idea is based on?
§ Is it technically feasible to manufacture the product?
§ Will the product be profitable when manufactured and delivered to the customer at
the target price?
3. Concept Development and Testing
o Develop the marketing and engineering details
§ Investigate intellectual property issues and search patent data bases
§ Who is the target market and who is the decision maker in the purchasing process?
§ What product features must the product incorporate?
§ What benefits will the product provide?
§ How will consumers react to the product?
§ How will the product be produced most cost effectively?
§ Prove feasibility through virtual computer aided rendering, and rapid prototyping
§ What will it cost to produce it?
o Testing the Concept by asking a sample of prospective customers what they think of the
idea. Usually via Choice Modelling.

4. Business Analysis
o Estimate likely selling price based upon competition and customer feedback
o Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock
equation
o Estimate profitability and break-even point
5. Beta Testing and Market Testing
o Produce a physical prototype or mock-up
o Test the product (and its packaging) in typical usage situations
o Conduct focus group customer interviews or introduce at trade show
o Make adjustments where necessary
o Produce an initial run of the product and sell it in a test market area to determine customer
acceptance
6. Technical Implementation
o New program initiation
o Finalize Quality management system
o Resource estimation
o Requirement publication
o Publish technical communications such as data sheets
o Engineering operations planning
o Department scheduling
o Supplier collaboration
o Logistics plan
o Resource plan publication
o Program review and monitoring
o Contingencies - what-if planning
7. Commercialization (often considered post-NPD)
o Launch the product
o Produce and place advertisements and other promotions
o Fill the distribution pipeline with product
o Critical path analysis is most useful at this stage
8. New Product Pricing
o Impact of new product on the entire product portfolio
o Value Analysis (internal & external)
o Competition and alternative competitive technologies
o Differing value segments (price, value, and need)
o Product Costs (fixed & variable)
o Forecast of unit volumes, revenue, and profit
These steps may be iterated as needed. Some steps may be eliminated. To reduce the time that the
NPD process takes, many companies are completing several steps at the same time (referred to as
concurrent engineering or time to market). Most industry leaders see new product development as a
proactive process where resources are allocated to identify market changes and seize upon new product
opportunities before they occur (in contrast to a reactive strategy in which nothing is done until problems
occur or the competitor introduces an innovation). Many industry leaders see new product development
as an ongoing process (referred to as continuous development) in which the entire organization is always
looking for opportunities.

16. What is the modern concept of marketing?
17. “Consumer is the king of the marketing” Do you agree?

Why?
Yes, I agree that the consumer is the king of the marketing.

There are three basic aspect that affect consumer choice and purchase motive. Because of these
aspects consumer can select a product properly from the competitive market; as a result, market is treated
as consumer oriented and consumer becomes the king of the market.
The aspects are following-
Ü Consumer’s Buying Behavior
Ø Psychological Influences
· Perception
· Motivation
· Learning
· Beliefs And Attitudes
· Personality and Self Concept.
Ø Cultural and Social Influences
· Social Class
· Household Types
· Reference Groups
· Roles And Status.
Ü Consumer’s Satisfaction
Ø Department-wise capability of the supplier.
Ø Technological and engineering or re-engineering aspects of products and services.
Ø Type and quality of response provided by the supplier.
Ø Supplier’s capability to commit on deadlines and how efficiently they are met.
Ø Customer service provided by the supplier.
Ø Complaint management.
Ø Cost, quality, performance and efficiency of the product.
Ø Supplier’s personal facets like etiquettes and friendliness.
Ø Supplier’s ability to manage whole customer life cycle.
Ø Compatible and hassle free functions and operations.
It is implied from the discussion that the consumer is the king of marketing.

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PRINCIPLES OF MARKETING-106 BBA (MGT)-RU

THE ANIRBAN ACHETAN AUGNI -1- E-mail: orionru10@gmail.com

THE LARGEST UNIVERSITY OF ASIAN

2. (a) What do you mean by consumer goods? 3

3. (a) What is meant by promotion? 3

4. (a) What are the objectives of price determination? 5

5. (a) What is marketing environment? 3

6. (a) Define a product. 3

7. (a) What is the modern concept of marketing? 4

8. (a) What do you mean by pricing in marketing? 3

9. (a) What is product life cycle? 3

10. (a) What do you mean by market segmentation? 4

11. Short Notes: 5x3=15

THE ANIRBAN ACHETAN AUGNI -3- E-mail: orionru10@gmail.com

1. Distinguish between market and marketing.

Marketing is formed with execution

It consumes various utilities of It creates utility of time, place,

The main function of market is to The main function of marketing is

Marketing consists of many parties

That’s all the basic difference between market and marketing.

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1. Production Of Goods And Services:

2. Creation Of Economic Infrastructure:

3. Equilibrium In Supply And Demand:

4. Large Scale Production:

7. Enhancing National Income:

8. Development Of Foreign Trade:

10. Economic Development:

2. Improving Standard Of Living:

3. Agricultural Production Enhancement:

5. Adjusting Agriculture And Industrialization:

6. Increasing Per Capita Income:

9. Improving Image Of Nation:

10. Social Development:

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Some recognized definitions are given below-

Ü Philip Kotler defined,

Features of consumer goods:

From the above discussion, we can say consumer goods are-

· bought by ultimate consumer

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A. Convenience Goods: E. Industrial Products:

Ø Location of stores [*] Ø After sales service

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Some recognized definition are given below-

Ü Steven J. Skinner Stated,

· A tool of marketing mix

6. Discuss the important promotional methods.

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7. “Advertisement increases demand” – Discuss.

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8. What are the objectives of price determination?

Objectives of Price Determination illustrated below-

That’s all the objectives of Price determination.

9. Discuss the different methods of pricing products generally

Variable Cost : Tk.10.00

Then the cost per unit as follows-

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Pricing Through the Channel:

To illustrate, Suppose production cost including profit of a product is Tk.72.00. Manufacturers

MANUFACTURER WHOLESALER RETAILER CONSUMER

Figure: Pricing Through Channel

Value based pricing: