BRAC University

BRAC Business School

Semester: Fall 2021
Marketing Principles and Practices (MKT 701)
Mid-Term Examination
Time 3.5 Hours (Answer Any TWO Questions) Full Marks 20

1. Distinguish between Marketing Concept and Societal Marketing Concept. In order to

satisfy the foreign market, responding to the societal marketing concept is extremely
necessary. As a marketing manager how can you respond to this concept? Please give
example(s). 10

2. Due to COVID-19 there has been a profound impact on socio-economic condition of

Bangladesh. Explain the possible changes in the socio-economic conditions along with
your response as a marketing manager. You may draw example from your company’s
viewpoint. 10

3. Understanding regarding consumer decision making process empowers the marketing

manager substantially. How can you, as a marketing manager, ensure the best use of this
knowledge? 10

4. Let, you are a marketing manager of a XYZ company. Your company has decided to
launch a new product in Bangladesh. Based on demographic force segment the market
and then target one or more segment for your new offering. You can use hypothetical
example. 10

----------------------Good Luck---------------------
Question 3. Understanding regarding consumer decision making process empowers the
marketing manager substantially. How can you, as a marketing manager, ensure the best use of
this knowledge?

Answer to the Question no 3

The Consumer or Buyer Decision Making Process is the method used by marketers to identify
and track the decision making process of a customer journey from start to finish. As a marketer
has to understand these steps to properly move the consumer to the buying the product,
communicate effectively to consumers and close the sale.

Problem Recognition:
The first stage of the process is working out what exactly you or the customer needs. The
customer feels like something is missing and needs to address it to get back to feeling normal. If
you can determine when your target demographic develops these needs or wants, it would be an
ideal time to advertise to them.

As a Marketer the very first stage of the model is need/problem recognition when consumers
realize that they need something. Interestingly, marketers want to create intentionally an
imbalance between consumers' present status and their preferred status. This imbalance will
create a need and make consumers detect and buy a product or service. Marketers create an
imbalance/need by using advertising and sales promotions. When consumers recognize an
unfulfilled need and that a product will satisfy it, they have created a want. On this stage for
marketers it is important to determine when their target demographic develops these
needs/wants, therefore, it would be an ideal time to advertise to them. Marketers may also help to
recognize the consumer’s need/problem or circumstances that trigger a need/want

Information search:

In this stage a customer is beginning to think about risk management. People often don’t want to
regret making a decision so extra time being put into managing risk may be worth it.
After the consumer has developed a need, he/she starts an information search about the different
alternatives that he/she can purchase to satisfy the need/want. It is the second stage so-called
information search. He/she will look both internally and externally for this information to help
him/her make a decision. An internal information search consists of utilizing information from
memory, such as past experiences with the product/service. An external information search is
asking friends and family about their experiences with acquiring a new product. They can also
research public sources, such as reviews, blogs. Another external information source would be
marketing-controlled sources, such as banners, television ads, brochures, etc.

Marketers have to catch it and provide a relevant description of the product, promotions, etc.
Also, recommendations from friends and family and reviews from other consumers will be
taking into account. Moreover, previous experience of using the product or similar one and
personal experiments while searching (testing the samples) will influence the process.

Evaluation of Alternatives:

At the third stage of evaluating alternatives, a consumer may ask her/himself questions like: "Do
I actually need the product?" Are there alternatives out there? Is the original product that bad?
Usually, the consumer chooses one the most important attribute based on which he/she will make
a final decision or using cut-off method.

For marketers on this step, it is important that a consumer is aware of their brand during the
evaluation high levels of brand awareness through reminder advertising, periodic promotions,
and prominent shelf positions in stores.

Purchase:
The customer has now decided based on the knowledge gathered what to purchase and where to
purchase what they desire.

At this stage a customer has either assessed all the facts and come to a logical conclusion, made a
decision based on emotional connections/experiences or succumbed to advertising/marketing
campaigns, or most likely a combination of all of these has occurred.
Post Purchase satisfaction or dissatisfaction:
The review stage is a key stage for the company and for the customer likewise. Did the product
deliver on the promises of the marketing/advertising campaigns? Did the product match or
exceed expectations?

If a customer finds that the product has matched or exceeded the promises made and their own
expectations they will potentially become a brand ambassador influencing other potential
customers in their stage 2 of their next customer journey, boosting the chances of your product
being purchased again. The same can be said for negative feedback which, if inserted at stage 2,
can halt a potential customer’s journey towards your product.

The moments that matter on the last stage is to catch the point if the customer is not satisfied. If
the customer is satisfied, then to turn him/her into a loyal customer. Such factor as the product
matched or exceeded consumer expectations. Also, follow up activities (after purchase) help to
make a loyal customer.

Question: Let, you are a marketing manager of a XYZ company. Your company has decided to
launch a new product in Bangladesh. Based on demographic force segment the market and then
target one or more segment for your new offering. You can use hypothetical example.

Answer to the Question no 4

Market segmentation allows us to target our content to the right people in the right way, rather than
targeting our entire audience with a generic message. Depending on the product types, we can
segment the market. I will describe how the segmentation are selected below after giving new
product descriptions of my company which has recently decided to launch.

Company New Product: As a Bangladeshi company, it is going to launch a product named X juice
with various size of bottle after long time research which is made from Guava. It is a low cost
product due to producing from Guava. As we know that there is no single way to segment a
market. So a market manager has to determine different segmentation variables, alone or in
combination.
We can divide our market in major four segment which are

 Geographic
 Demographic
 Psychographic and
 Behavioral variables.

First I want to describe major area of segmentation in short and find out the reason why we will
select some particular forces in demographic segmentation.

Geographic segmentation: The where

By comparison, geographic segmentation is often one of the easiest to identify, grouping

customers with regards to their physical location. This can be defined in any number of ways:

 Country
 Region
 City
 Postal code

For example, it’s possible to group customers within a set radius of a certain location – an
excellent option for marketers of live events looking to reach local customer. Being aware of
your customers’ location allows for all sorts of considerations when advertising to consumers.

Demographic segmentation: The Demographic segmentation might be the first thing people

think of when they hear ‘market segmentation’. This is perhaps the most straightforward way of
defining customer groups, but it remains powerful. Demographic segmentation looks at
identifiable non-character traits such as:

 Age
  Gender
 Ethnicity
 Income
 Level of education
 Religion
 Profession/role in a company

For example. Demographic segmentation might target potential customers based on their
income, so your marketing budget isn’t wasted directing your messaging at people who likely
can’t afford your product.

Psychographic segmentation: The why

Psychographic segmentation is focused on your customers’ personalities and interests. Here we

might look at customers and define them by their:

 Personality traits
 Hobbies
 Life goals
 Values
 Beliefs
 Lifestyles

Compared to demographic segmentation, this can be a harder set to identify. Good research is
vital and, when done well, psychographic segmentation can allow for incredibly effective
marketing that consumers will feel speaks to them on a much more personal level.

Behavioral segmentation: The how

Behavioral segmentation is possibly the most useful of all for businesses. As with psychographic
segmentation, it requires a little data to be truly effective – but much of this can be gathered via
your website itself. Here we group customers with regards to their:

 Spending habits
  Purchasing habits
 Browsing habits
 Interactions with the brand
 Loyalty to brand
 Previous product ratings

All of these are datasets that can be harvested from a customer’s usage of your website.

Customers’ every decision is judged on whether the result is what they want, or whether it is
what they need. Market segmentation allows to recognize these needs and market directly to
them, without any wasted messaging.