Marketing

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Briefly explain what ethics in Marketing is and give three (3) examples of unethical practices marketing managers have to deal with.  (4 marks)

moral principles behind the operation and regulation of marketing 
3 example of unethical practice marketing managers are

• receive free give or hamper from the supplier 
• misleading advertisement
• misrepresentation of the product 

Vertical Marketing Systems (VMS) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system. DISCUSS THREE (3) types of vertical marketing systems. Support your answers with relevant examples.               (4 marks)

( control and maintained by? amount of cooperation, example )

administrated - some to good - total leadership -  procter and gamble
contractual - fairy good to good - legal relationship - franchise like Mc Donald's
corporate vertical - complete - total ownership - distribution single ownership Iphone




 



Padini Concept Store is all about looking good without the hefty price tag. The store keeps up-to-date with the latest fashion trends for ladies, men and children. List briefly describe THREE (3) major forms of promotional mix. How Padini could use each form of promotional mix to sell its products and services.      (6 marks)


advertising
paid promotion and presentationdss idea used television, radio, newspaper, social media and Internet ads

sale promotion
stimulating consumer purchase and is usually based on a short-term or immediate goal. 
Examples of sales promotion items are contests, free samples or coupons.

public relationship
helps build a positive public image for a company
donate a percentage of ticket sales to local charities


A consumer product is a product bought to satisfy an individual’s personal wants. Briefly describe the various classifications for consumer products and provide an example of each classification. (6 marks)

Convenience Goods
inexpensive 
frequent purchases
little effort needed to purchase without any research and price comparing
Examples : fast food, toiletries and confectionery products.


Shopping Goods
more expensive 
expect to have them for longer
will do some research prior to purchase comparing product features and price.
Examples : fridge/freezers and washing machine
 
Speciality goods 
expensive - pay a premium

unique features or branding
x compare them with other products as the goods have features unique to them. 
Instead they will spend time searching for the retailer selling the product they want. 

Example : designer clothes, luxury cars, antiques. 
Professional services provided by a person known for the effectiveness and quality of their work can also come under this category. 
For example Lawyers and Accountants provide speciality services.

 Unsought products
consumer either does not know about or knows about but does not consider buying under normal conditions
consumers do not think about normally, at least not until they need them
require much more advertising, selling and marketing efforts than other types of consumer products
examples of these types of consumer products are life insurance, pre-planned funeral services 





 A marketing philosophy defines the mission of a company using the satisfaction and benefits that the company offers; it focuses on a two-way system of communication with the customer, so that the marketing department understands the customer needs more clearly. Briefly describe five (5) marketing management philosophies. (10 marks)

Production Concept

• assumption that consumers prefer a product which is inexpensive and widely available
• companies focus on producing more of the product and making sure that it is available to the customer everywhere easily
• Supply creates its own demand 
• Increase in the production of the product makes the companies get advantage of economies of scale. 
• This decreased production cost makes the product inexpensive and more attractive to the customer.

Low price may attract new customers, but focus is just on production and not on the product quality. This may result in decrease in sales if the product is not up to the standards.
This philosophy will only work when the demand is more than the supply. Moreover, a customer will not always prefer an inexpensive product over others. There are many other factors which influence his purchase decision.

Examples of Production Concept of Marketing Management Philosophies

• Companies whose product market is spread all over the world may use this approach.
• Companies having an advantage of monopoly.
• Any other company whose product’s demand is more than its supply.

Product Concept
This concept works on an assumption that customers prefer products of ‘greater quality’ and ‘price and availability’ doesn’t influence their purchase decision. Hence company devotes most of its time in developing a product of greater quality which might turn out to be expensive.
Following this concept may result in the company being a victim of customer relations as it doesn’t look at all the needs of the customer which include ‘Price, availability, and other basic needs like promotion, etc.’ rather than just quality.

Examples of Product Concept of Marketing Management Philosophies

• Companies in technology industry.
• Companies having an advantage of monopoly.

Selling Concept
Production and product concept both focus on production, either more or of good quality. But Selling Concept, though still a company oriented approach, focuses on making an actual sale of the product. Selling Concept focuses on making every possible sale of the product, regardless of the quality of the product or the need of the customer. The main focus is to make money. This philosophy doesn’t include building relations with the customers. Hence repeated sales are very less. Companies following this concept may even try to deceive the customers to make them buy their product

Companies which follow this philosophy have a short sighted approach as they ‘try to sell what they make rather than what market wants’.

Examples of Selling Concept of Marketing Management Philosophies

• Sometimes companies having huge competition follow this approach.
• Fraudulent companies.

Marketing Concept
This concept works on an assumption that consumers buy products which fulfil their needs. Hence, business has to conduct a research to know about customers’ needs and wants and how to fulfil them, better than the competitors of course. By doing so, the business makes a relation with the customer and generate profits in the long run.
However this isn’t the only philosophy which should be followed. Many business still follow other concepts and make profits. It totally depends on the demand and supply and the needs of the parties involved.

Examples of Marketing Concept of Marketing Management Philosophies

• Companies in perfect competition.
• Companies who want to stay in the market for long time.

Social Marketing Concept
 Business focus on how to fulfil the needs of the customer without effecting the environment, natural resources and focusing on society’s wellbeing. This philosophy believes that the business is a part of the society and hence should take part in social services like elimination of poverty, illiteracy, and controlling explosive population growth etc.
Many of the big companies have included corporate social responsibility as a part of their marketing activities.

introduction
growth
maturity
decline

advertisement  
exposure
sale
profit

price
competitor
production