Principles of Marketing

Course code:104

Course teacher: DR. MD. Mesbah Uddin & MD. Kazi Raihan Uddin

Book-Principles of marketing 18th edition

Writer-Philip Kotler and Gary Armstrong

Chapter-1: Creating Customer Value and Engagement
1. What is marketing?

Ans. Marketing is a social and managerial process by which individuals and organizations obtain
what they need and want through creating and exchanging value with each other’s.
2. What is the goal of marketing?

Ans. Twofold goal of marketing:

a. Attracting new customers by promising superior value.

b. To keep and grow current customers by delivering value and satisfaction.
3. What are five marketing process?

Ans. The five steps of marketing processes are:

a. Understand the marketplace and customer needs and wants.

b. Design a customer value driven marketing strategy
c. Contrast an integrated Marketing program that delivers superior value
d. Engage customers, build profitable relationships and create customer delight
e. Capture value from customers to create profits and customer equity.
4. What is need, wants and demand?

Ans. Needs- states of felt deprivation,

Want- the form of human needs shaped by the culture and individual personality,

Demands- human wants that are backed by buying power.

5. What is market offering?

Ans. Market offerings (products, services, and experiences): some combination of products, services,
solutions, and experiences offered to a market to satisfy a need or want.
6. What is marketing myopia?

Ans. Marketing Myopia is focusing only on existing wants and losing sight of underlying consumer
needs.
7. What is exchange?

Ans. Exchange is the act of obtaining a desired object from someone by offering something in return.
8. What is a market?

Ans. markets are the set of actual and potential buyers of a product.
9. What is marketing management?

Ans. Marketing management is the art and science of choosing target markets and welding
profitable relationships with them.
10. What is shared value?

Ans. Shared value is an approach by which any organization can create economic returns by
developing solutions to social problems.
11. What are the five alternative concepts under which organization design and carry out their marketing
strategies?

Ans. Here are 5 alternative concepts under which organizations design and carry out their marketing
strategies:

a. Production Concept: The idea that consumers will favor products that are available and
highly affordable; therefore, the organization should focus on improving production and
distribution efficiency.
b. Product Concept: The idea that consumers will favor products that offer the most quality,
performance, and features; therefore, the organization should devote its energy to making
continuous product improvements.
c. Selling Concept: The idea that consumers will not buy enough of the firm’s products unless
the firm undertakes a large-scale selling and promotion effort. The aim often is to sell what
the company makes rather than to make what the market wants
d. Marketing Concept: A philosophy in which achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired satisfactions
better than competitors do.
e. Societal Marketing concept is the idea that a company should make good marketing
decisions by considering consumers wants, the company's requirements, consumers long
term interest and societies long run interest.
12. What should a company consider in setting their marketing strategies?

Ans. Companies should balance three considerations in setting their marketing strategies:

a. Company profits,
b. Consumer wants,
c. Society's interest.
13. What are the four piece of marketing?

Ans. Four piece of marketing are;

a. Product
b. Price
c. Place
d. Promotion
14. What is societal marketing concept?

Ans. Societal Marketing concept is the idea that a company should make good marketing decisions
by considering consumers wants, the company's requirements, consumers long term interest and
societies long run interest.
15. What is customer-perceived value?

Ans. The customer’s evaluation of the difference between all the benefits and all the costs of a
market offering relative to those of competing offers.
16. What is Customer satisfaction?

Ans. The extent to which a product’s perceived performance matches a buyer’s expectations.
17. What is Customer-engagement marketing?

Ans. Customer -engagement is making the brand a meaningful part of consumers’ conversations and
lives by fostering direct and continuous customer involvement in shaping brand conversations,
experiences, and community.
18. What is Customer brand advocacy?

Ans. A set of actions by which satisfied customers initiate favorable interactions with others about a
brand.
19. What is Customer generated marketing?

Ans. In Customer-generated marketing brand exchanges created by consumers themselves—both

invited and uninvited—by which consumers are playing an increasing role in shaping their own
brand experiences and those of other consumers.
20. What is Customer lifetime value means?

Ans. The value of the entire stream of purchases a customer makes over a lifetime of patronage.
21. What do you mean by Share of customers?

Ans. Share of customers is the portion of the customer’s purchasing that a company gets in its
product categories.
22. What is Customer equity?

Ans. Customer equity is the total combined

customer lifetime values of all of the company’s current and potential customers. As such, it’s a
measure of the future value of the company’s customer base.

Chapter 2: Company and marketing strategy

1. What is Strategic planning?

Ans. The process of developing and maintaining a strategic fit between the organization’s goals and
capabilities and its changing marketing opportunities.
2. What is mission statement?

Ans. A mission statement is a statement of the organization’s purpose – what it wants to accomplish
in the larger environment.

Mission Statement should be market oriented.

Mission statements should be meaningful and specific yet motivating.

3. What is Business portfolio?

Ans. the collection of businesses and products that make up the company.
4. What is Growth-share matrix?

Ans. A portfolio-planning method that evaluates a company’s SBUs in terms of market growth rate
and relative market share.
5. What is Product/market expansion grid?

Ans. A portfolio-planning tool for identifying company growth opportunities through market
penetration, market development, product development, or diversification.
6. What is Market penetration?

Ans. Company growth by increasing sales of current products to current market segments without
changing the product.
7. What is Market development?

Ans. Company growth by identifying and developing new market segments for current company
products.
8. What is Product development?

Ans. Company growth by offering modified or new products to current market segments.
9. What is Diversification?

Ans. Company growth through starting up or accruing businesses outside the company’s current
products and markets.
10. What is The role of Marketing in strategic planning?

Ans. Marketing provides a guiding philosophy-the marketing concept—that suggests the company
strategy should revolve around creating customer value and building profitable relationships with
important consumer groups.
11. What is Value Chain?

Ans. The set of internal departments that carry out value-creating activities to design, produce,
market, deliver, and support a firm’s products.
12. Value delivery network?

Ans. A network composed of the company, suppliers, distributors, and ultimately, even customers
who partner with each other to improve the performance of the entire system in delivering
customer value.
13. Marketing strategy?

Ans. The marketing logic by which the company hopes to create customer value and achieve
profitable customer relationships.
14. Market segmentation?

Ans. The process of dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviors and who might require separate marketing strategies or mixes.

A market segment consists of consumers who respond in a similar way to a given set of marketing
efforts.
15. What are the four as of customers?

Ans. Acceptability, affordability, accessibility & awareness

Chapter -3: Analyzing the market environment
1. What is marketing environment?

Ans. The actors and forces outside marketing that affect marketing management’s ability to build
and maintain successful relationships with target customers.
2. What are the 2 types of marketing environment?

Ans. Microenvironment: The actors close to the company that affect its ability to serve its
customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and
publics.

Macro environment: The larger societal forces that affect the microenvironment—demographic,
economic, natural, technological, political, and cultural forces.
3. What is public? What are the 7 types of public?

Ans. A public is any group that has an actual or potential interest in or impact on an organization’s
ability to achieve its objectives.

We can identify seven types of publics:

 Financial publics
 Media publics
 Government publics
 Citizen-action publics
 Internal publics
 General public
 Local publics

Chapter- 4: Managing marketing information to gain customer insights

1.Why is MIS created?

Ans. MIS provides information to the company's marketing and other managers and external
partners such as suppliers, resellers, and marketing service agencies

Marketing information system (MIS)consists of people and procedures for:

a. Assessing the information needs

b. Developing needed information
c. Helping decision makers use the information for customer
2. From Where marketers obtain information?

Ans. Marketers obtain information from:

a) Internal data: Internal databases are electronic collections of consumer and market information
obtained from data sources within the company network

b) Marketing intelligence: Marketing intelligence is the systematic collection and analysis of publicly
available information about consumers, competitors and developments in the marketplace

c) Marketing research: Marketing research is the systematic design, collection, analysis, and
reporting of data relevant to a specific marketing situation facing an organization
Chapter-5: Consumer markets and consumer behavior

1. What is consumer buyer behavior?

Ans. Consumer buyer behavior refers to the buying behavior of final consumers-individuals and
households who buy goods and services for personal consumption

Consumer market refers to all of the personal consumption of final consumers.

2. What are the steps of the buyer decision process?

a. Need recognition
b. Information research
c. Evaluation of alternatives
d. purchase decision
e. post purchase behavior
3. What is customer satisfaction?

Ans. Customer satisfaction is a key to building profitable relationships with customers to keeping and
growing consumers and reaping their customer lifetime value
Chapter-6: business markets and businesses buying behavior

1. What is business buyer behavior?

Ans. Business buyer behavior refers to the buying behavior of the organizations that buy goods and
services for use in production of other products and services that are sold, rented or supplied to
others.
2. What is the business buying process?

Ans. Business buying process is the process where business buyers determine which products and
services are needed to purchase, and then find, evaluate and choose among alternative brands.
3.What do you mean by supplier development?

Ans. Supplier development is the systematic development of network of supplier partners to ensure
an appropriate and dependable supply of products and materials that there will use in making their
own products or resell.
4. What are three major types of buying situations?

Ans. Three Major Types of Buying Situations are:

Straight rebuy: is a routine purchase decision such as reorder without any modification

Modified rebuy: is a purchase decision that requires some research where the buyer wants to
modify the product specification, price, terms, or suppliers

New task: is a purchase decision that requires thorough research such as a new product
5. Who are the Participants in the Business Buying Process?

Ans. Buying center is all of the individuals and units that participate in the business decision- making
process

 Users
 Influencers
 Buyers
 Deciders
 Gatekeepers

Chapter-7: Customer-driven marketing strategy: Creating value for target Customers

1. What is Market segmentation?

Ans. Market segmentation is the process that companies use to divide large heterogeneous markets
into small markets that can be reached more efficiently and effectively with products and services
that match their unique needs.
2. What are the four types of Consumer Market segments?

Ans. The four segments of consumer markets are:

 Geographic segmentation
 Demographic segmentation
 Psychographic segmentation
 Behavioral segmentation
3. What is Demographic segmentation?

Ans. Demographic segmentation divides the market into groups based on variables such as age,
gender, family size, family life cycle, income, occupation, education, religion, race, generation, and
nationality.
4. What are the Requirements for Effective Segmentation?

Ans. To be useful, market segments must be:

1. Measurable
2. Accessible
3. Substantial
4. Differentiable
5. Actionable
5. What does it mean by Target marketing?

Ans. Target marketing consists of a set of buyers who share common needs or characteristics that
the company decides to serve.
6. What do you mean by the term market positioning?

Ans. Product position is the whey protein is defined by the consumers on important attribute the
place the product occupies in consumers mind relative to computing products.
Chapter -8: Products, services and brands: building customer value
1. What Is a Product?

Ans. Product is anything that can be offered in a market for attention, acquisition, use, or
consumption that might satisfy a need or want
2. What is consumer products and their Classifications?

Ans. Consumer products are products and services for personal consumption

Classified by how consumers buy them:

1. Convenience products
2. Shopping products
3. Specialty products
4. Unsought product

3. What are convenience products?

Ans. Convenience products are consumer products and services that the customer usually buys
frequently, immediately, and with a minimum comparison and buying effort. For example:

Newspapers, candy, fast-food.

4. What are Shopping products?

Ans. Shopping products are consumer products and services that the customer compares carefully
on suitability, quality, price, and style. For example: furniture, cars
5.What are Specialty products?

Ans. specialty products consumer products and services with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special purchase effort. For
example: Medical services, designer clothes.
6. What are Unsought products?

Ans. Unsought products are consumer products that the consumer does not know about or knows
about but does not normally think of buying

Life insurance, funeral services

7. What is industrial product?

Ans. Industrial products are products purchased for further processing or for use in conducting a
business.

Materials and parts, capital, raw materials.

Chapter-9: New product development and product life-cycle strategies
1. What are the two ways of obtaining new products?

Ans. Two ways to obtain new products

Acquisition: refers to the buying of a whole company, a patent, or a license to produce someone
else's product

New product development: refers to original products, product improvements, product

modifications, and new brands developed from the firm's own research and development.
2. What are the reasons of new product failure?

Ans. Reasons for new product failure are;

 Overestimation of market size

 Poor design
 Incorrect positioning
 Wrong timing
 Priced too high
 Ineffective promotion
 Management influence
 High development costs

Competition

Previous year questions and answers

1. What is marketing?

Ans. Marketing is a social and managerial process by which individuals and organizations obtain
what they need and want through creating and exchanging value with each other’s.
2. What are the five different marketing management orientation?

Ans. Marketing management is the art and science of choosing target markets and welding
profitable relationships with them.

Production concept

Product concept

Selling concept

Marketing concept

Societal Marketing concept

3.What is needs, wants and demands?

Ans. Needs- states of felt deprivation,

Want- the form of human needs shaped by the culture and individual personality,

Demands- human wants that are backed by buying power

4. What is a distribution channel?

Ans. Firms that help the company to promote, sell, and distribute its goods to final buyers.

Resellers

Physical distribution

Marketing services agencies

Financial intermediaries

A public

5. Explain the role of Marketing in strategic planning?

Ans. Marketing provides a guiding philosophy of the marketing concept that suggests the company
strategy should revolve around creating customer value and building profitable relationships with
important consumer groups.

6. What is the product life cycle (plc)?

Ans. The product life cycle (PLC) is a framework that describes the stages a product goes through
from its introduction to the market to its eventual decline and withdrawal.

Product development

Introduction

Growth

Maturity

Decline

7. What is it meant by market segmentation?

Ans. Market segmentation is the process that companies use to divide large heterogeneous markets
into small markets that can be reached more efficiently and effectively with products and services
that match their unique needs.

8. What do you mean by the term market positioning?

Ans. Market positioning refers to the process of establishing a distinct and favorable image of a
product, service, or brand in the minds of target customers relative to competitors.

9. What it means by product Idea, concept and product image?

Ans. Product Idea: A basic, unrefined thought or notion about a potential product. It focuses on the
general solution to a problem or a new way to satisfy a need

Product concept: A more detailed and specific version of the product idea. It involves defining the
features, benefits, target market, and the value proposition of the product. The concept provides a
clearer picture of how the product will solve a problem or fulfill a need.

Product image -The perception or impression customers have of the product based on marketing,
branding, and their experiences. It reflects how the product is viewed in the marketplace and in the
minds of customers.
10. What is market skimming?

Ans. Market segmentation is the process that companies use to divide large heterogeneous markets
into small markets that can be reached more efficiently and effectively with products and services
that match their unique needs.
11. What is Market penetration?

Ans. market penetration means a company growth by increasing sales of current products to current
market segments without changing the product.
12. What are the steps in the new product development process?

Ans. Major Stages in New-Product Development

a. Idea generation

b. Idea screening

c. Concept development and testing

d. Marketing strategy development

e. Business analysis

f. Product development

g. Test marketing

h. Commercialization
13. What do you mean by customer value and customer satisfaction?

Ans. Customer value is the perceived benefit a customer receives from a product or service
compared to the cost or effort they must invest to obtain it.

Customer satisfaction is the degree to which a product or service meets or exceeds a customer’s
expectations. It reflects how well the customer feels their needs and desires were fulfilled.
14. Give a brief about Undifferentiated marketing, differentiated marketing and individual marketing?

Ans. Undifferentiated marketing targets the whole market with one offer. For example

Mass marketing

Differentiated marketing targets several different market segments and designs separate offer for
reach.

Goal is to achieve higher sales and stronger position

Individual marketing involves tailoring products and marketing programs to the needs and
preferences of individual customers
14. What is a market share and customer equity?

Ans. Market share refers to the percentage of total sales or revenue in a specific market that is
captured by a particular company, product, or brand over a defined period.

Customer equity is the total combined customer lifetime values of all of the company’s current and
potential customers. As such, it’s a measure of the future value of the company’s customer base.
15. What is Demographic segmentation?

Ans. Divides the market into groups based on variables such as age, gender, family size, family life
cycle, income, occupation, education, religion, race, generation, and nationality.
16. What is product mix?

Ans. The set of all product lines and items that a particular seller offers for sale.
17. Define style, fashion and fad?

Ans. Style: A distinctive and enduring form of expression in appearance, behavior, or art.

Fashion: A popular and prevailing trend in clothing, accessories, behavior, or ideas during a specific
period:

Fad: A short-lived trend that gains rapid popularity but quickly fades.
18. What are the steps in the marketing process?

Ans.

a. understand the marketplace and customer needs and wants.

b. design a customer value driven marketing strategy

c. contrast an integrated Marketing program that delivers superior value

d. Engage customers, build profitable relationships and create customer delight

e. Capture value from customers to create profits and customer equity.

19. What Is value-based pricing strategies?

Ans. Value-based pricing means that marketers cannot design a product and marketing program and
then set the price. They must consider price along with all other marketing mix variables before they
set a marketing program.
20. What is cost-based pricing strategies?

Ans. The company designs what it considers to be a good product, adds up the costs of making the
product, and sets a price that covers costs plus a target profit.
21. What do you mean by customer relationships management?

Ans. The overall process of building and maintaining profitable customer relationships by delivering
superior customer value and satisfaction.
22. What is it meant by the product/market expansion grid?

Ans. Grid A portfolio-planning tool for identifying company growth opportunities through market
penetration, market development, product development, or diversification.
23. What is portfolio analysis?

Ans. Portfolio analysis The process by which management evaluates the products and businesses
that make up the company.