Principle of Marketing (BCOE-141) - Important Questions

Pricing objectives differ by business goals. Any three are:

1. Profit objective: set price to achieve target profit/ROI.
2. Market share objective: use lower price (penetration) to capture more customers.
3. Sales/revenue objective: maximise sales volume or turnover.
4. Survival objective: price low to survive in crisis/intense competition.
5. Image/quality leadership: premium pricing to create high-quality brand image.

Thus, objectives guide the choice of method and strategy.

Positioning is designing the offering and image so that the brand occupies a distinct place in the mind of the target customer compared to competitors.

Positioning statement format:

"For (target customer), (brand) is the (frame of reference) that (key benefit) because (reason to believe)."

Example: For busy students, Brand X is the instant snack that is tasty and affordable because it is ready in 2 minutes.

Marketing management process is a systematic approach to analyse the market, choose target customers and design strategies to achieve objectives.

Steps (exam-style):

1. Market analysis and research

• Understand customer needs, market size, competitors and trends.
• Collect insights through surveys, observation, sales data and feedback.

2. Segmentation, Targeting and Positioning (STP)

• Segment the market into groups (e.g., students, professionals).
• Select target segment(s) based on attractiveness and capability.
• Position the brand clearly (e.g., 'value for money' or 'premium quality').

3. Design marketing mix (4Ps/7Ps)

• Product: decide features, quality, branding, packaging and service support.
• Price: choose pricing strategy, discounts and payment terms.
• Place: decide channels, distribution intensity and logistics.
• Promotion: plan advertising, sales promotions, PR and personal selling. (For services add People, Process and Physical evidence.)

4. Implementation

• Execute plans: launch product, set distribution, run campaigns, train sales staff.

5. Control and feedback

• Measure KPIs like sales, market share, customer satisfaction and repeat purchase.
• Take corrective action and improve based on feedback.

Simple flow:

Thus, marketing management converts customer needs into a practical plan and ensures continuous improvement.