1. Question 1
a) Briefly explain the differences between the marketing and selling concept.
In sales concept, the organization main focus is to sell products that the
organization make, instead of selling products that customer need and want. In
the marketing concept on the other hand, the organizations concern about
producing product and services that can satisfy customers‟ wants, taste and
Secondly selling concept concern more on selling goods and services they
produce to people who want to consume it. As a result the company will adopt
marketing mixes in order to sell their goods and services to target market. The
main reason for marketing concept is to achieve satisfaction from their customer
who used the goods and services. There are also many efforts done by those
marketers as their strategy.
The sales concept goal is to make as much profit through volume selling of their
product through the use of intensive marketing.
Both selling and marketing concept are concept that directly opposed in respect.
There will always be a need for some selling.
The aim of marketing is to know and understand the customer so well that the
goods and services fit him. Marketing comprise of many activity such as
marketing research, pricing, product development and distribution. In fact, selling
is part of marketing. Marketing takes place before and after the selling activity.
Many companies have adopted the marketing concept in Malaysia for example
KFC. Many companies know the concept but do not practice it. They prefer
2. b) Briefly explain the philosophies of marketing. (15 marks)
Most successful business requires efficient and effective management. This
means the manager must able to plan, organize, direct and control the factors of
production in order to achieve the organization‟s goals.
1. Production philosophies
Production concept is the orientation that holds consumer who will favor
these products that are available and highly affordable and therefore
management should concentrate on improving production and distribution
efficiency. The emphasis on this concept is to produce it as much base on
the capability of the firm. Products that easily available and affordable to most
customers, will give companies the advantages of selling the products very
well in the market.
2. Product philosophies
Product concept is an approach to business that centers its activities on
continually improving and refining its products. All efforts are put into making
the product better. For example we can offer you non-chip paint on your car.
The product concept proposes that consumers will prefer products that have
better quality, performance and features as opposed to a normal product.
The concept is truly applicable in some niches such as electronics and
mobile handsets. Two companies which stand apart from the crowd when we
talk about the product concept are Apple and Google. Both of these
companies have strived hard on their products and deliver us feature rich,
innovative and diverse application products and people just love these
3. Selling philosophies
Selling concept means that the consumer will not buy enough of the
organization undertakes substantial selling and promotion efforts. In simple
words, marketing need to aggressively promote their product by either
advertising, doing a sales promotion and personal selling in order to catch
more customer to consume the product. Selling concept is more focus on the
selling rather than satisfaction of their consumer. A good example would be
the attractive advertisement conducted by Dashing that use Remy Ishak as
their opinion leader.
3. 4. Marketing concept
Companies that adopt marketing concept in their production are known to be
„market oriented‟. So, marketing manager must work hard in order to satisfy
and fulfill customer need and wants. One famous and world-wide well-known
company id Macdonald is known to adopt this marketing concept. How do
they done it? Just ask teenagers today about Mcd. Almost everyone know
them including adults too. In Malaysia, the marketing concept has been
expressed in many forms such as „Maybank – a bank with a smile‟.
5. Societal- marketing philosophies
Societal marketing concept not only concern about the customer need and
wants but also the long term and society as a whole. For example it concern
about pollution of the environment, waste of natural resources and others.
Currently, societal marketing concept is to receiving an increasing emphasis
among many business organizations. Products such as lead-free petrol,
recycled paper are some of the things that marketers are paying more
attention to care for the environment. These are important issues because
customers are now more educated and more aware that they demand not
just quality products but also to have extra benefits. For example benefit
sought from the product.
4. Question 2
a) Briefly explain the BCG growth-share matrix. (10 marks)
Strategic business units (SBUs) is the key business that make up the company.
An SBU can be a company division, a product line or sometime single product or
Stars are high-growth, high-share business or products. They often need
heavy investment to finance their rapid growth. Eventually they will turn into
2. Cash cows
Cash cows are low-growth, high-share business or products. These
established and successful SBUs need less investment to hold their market
share. Thus, they produce a lot of the cash that the company uses to pay its
bills and support other SBUs that need investment.
3. Question marks
Question marks are low low-share business units in high-growth markets.
They require a lot of cash to hold their share, let alone increase it.
Management has to think hard about which question marks it should try to
build into star and which should be phased out.
Dogs are low-growth, low-share business and products. They may generate
enough cash to maintain themselves but do not promise to be large source of
5. b) Marketer need to deal with marketing management. Briefly explain about
marketing analysis. (15 marks)
Managing the marketing function begins with a complete analysis of the
company‟s situation. The marketer should conduct a SWOT analysis by which it
evaluate the company overall strength (S), weakness (W), opportunities (O), and
Strength includes internal capabilities, resources and positive situational factors
that may help the company serve its customers and achieve its objectives.
Besides that, the competitive advantages also the strength of the organization
that competes with their competitors.
Weaknesses include internal limitations and negative situational factors that may
interfere with the company‟s performance. For example like the weak
management of worker that the organization have that will affect the
Opportunities are favorable factors or trends in the external environment that the
company may be able to exploit to its advantage.
And threats are unfavorable external factors or trends that may present
challenges to performance. There are many threats that occur recently for
example the overflow of information on the internet which become threat to the
The company should analyze its markets and marketing environment to find
attractive opportunities and identify environmental threats. It should analyze
company strengths and weakness as well as current and possible marketing
actions to determine which opportunities it can best pursue. The goal is to match
the company strength to attractive opportunities in the environment, while
eliminating or overcoming the weaknesses and minimizing the threats. Marketing
analysis provides inputs to each of the other marketing management functions.
6. Question 3
a) Explain the micro and macro forces of environment. (6 marks)
Micro is the actors close to the company that affect its ability to serve its
Marketers must work in harmony with other company departments to create
customer value and relationships. For example, Walmart‟s marketers can‟t
promise us low prices unless its operations department delivers low costs. In
creating value for customers, marketers must partner with other firms in the
company‟s value delivery network. For example, Lexus can‟t create a high-
quality ownership experience for its customers unless its suppliers provide
quality parts and its dealers provide high sales and service quality.
Customers are the most important actors in the company‟s microenvironment.
The aim of the entire value delivery system is to serve target customers and
create strong relationships with them.
Macro consists of broader forces that affect the actors in the
microenvironment. Changing demographic means changes in markets. For
example, Merrill Lynch now targets aging baby boomers to help them
overcome the hurdles to retirement planning. Besides that, concern for the
natural environment has spawned a so-called green movement in industries
ranging from PCs to diesel locomotives. For example, last year HP recovered
and recycled 250 million pounds of electronics globally, equivalent to some
800 jumbo jets. The goal of many companies today is environmental
7. b) The changes of technology and social affect the marketing strategies.
Explain with examples. (10 marks)
Technology is the knowledge of how to accomplish tasks and goals and often
includes all activities involved in translating technical knowledge into physical
reality that can be used on a societal scale. Marketers must be aware of the new
developments in technology and their possible effects, because technology can
and does affect marketing activities in many different ways. Businesses can
easily decline when they ignore the changes in the technology.
Major technological break-through carries a threefold market impact. They can
start entirely new industry, as computers and airplanes have done. Then, it also
radically alters or virtually destroys existing industries. For example, computer
Besides that, technology also involves high cost. Stimulate other markets and
industries not related to the new technology. Rather than being involve in the
producing new products, companies can improve on current products by
developing and making product improvement.
The social environment changes also affect the company and marketing mix. An
increasing number of working women in Malaysia, for example has also led to
increasing number of firms producing fast-food services such as Brahim‟s packet
rendang, kurma, sweet and sour and even instant roti canai to cater to these
career women‟s demand for convenient food and cooking ingredients.
The food industries in Malaysia require conforming the needs and demands of
the various ethnic groups. In general the “Halal” sign at any site selling food will
be something that will make it convenient for all Muslims to consume a halal food
The societies today are accepting the value of health and leisure. So, marketers
need to cater for these activities. There a re increasing number of tour packages
available offering very attractive prices especially during the school holidays. The
Malaysian government has encourage local tourism by giving two Saturday off in
a month and promote the “Cuti-cuti Malaysia” holiday program to boost local
8. c) Explain the types of public that help the organization‟s ability to achieve its
objectives. (9 marks)
Public is any group that has actual or potential interest in or impact on an
organization‟s ability to achieve its objectives. There are seven types of
1. Financial publics
This group influences the company‟s ability to obtain funds. For example
banks, investment analysts, and stockholders are the major financial
2. Media publics
This group carries news, features and editorial opinion. It includes
newspapers, magazines, television stations, and blogs and other internet
3. Local publics
This group includes neighborhood residents and community organizations.
Large companies usually create departments and programs that deal with
local community issues and provide community support.
4. General public
A company needs to be concerned about the general‟s public attitude
toward its products and activities. The public‟s image of the company
affects its buying.
5. Internal publics
This group includes workers, managers, volunteers and the boards of
directors. Large companies use newsletter and other means to inform and
motivate their internal publics. When their employees feel good about the
company they work for, this positive attitude spills over to the external
6. Citizen-action publics
A company‟s marketing decisions may be questioned by the consumer
organizations, environmental groups, minority groups and others. Its
public relation department can help it stay in touch with consumer and
9. Question 4
a) Explain the internal and external influences that affect the consumer behavior.
Consumer purchases are strongly influenced by cultural, social, personal, and
1. Cultural factors
Culture is the set of basic values, perceptions, wants and behaviors learned
by a member of society form family and other important institutions. Marketers
need to understand the role played by the buyer‟s culture, subcultures, and
social class. Every group or society has a culture, and cultural influence on
buying behavior may vary greatly from country to country. For example, the
cultural shift toward greater concern about health and fitness has created a
huge industry for health-and-fitness services, exercise equipment and
clothing, organic foods, and a variety of diets.
Each culture contains smaller subcultures, or group of people with shared
value systems based on common life experiences and situations. Subcultures
include nationalities, religions, racial groups and geographic regions.
Examples of four such important subculture groups include Hispanic
American, Africa American, Asian American, and mature customer.
Social class is not determined by a single factor, such as income, but is
measured as a combination of occupation, income, education, wealth, and
2. Social factors
Group that have a direct influence and to which a person belong are called
membership groups. Reference groups serve as direct (face-to-face) or
indirect points of comparison or reference in forming a person‟s attitudes or
behavior such as opinion leader. Aspirational group is one to which the
individual wishes to belong, for example Datuk Lee Chong Wei.
Family member can strongly influence buyer behavior. For example
husband-wife involvements are widely by product category and by stage in
the buying process.
People usually choose products appropriate to their roles and status.
Consider the various roles of working mother plays. In her company, she
plays the roles of a brand manager; in her family, she plays the role of wife
10. and mother; at her favorite sporting events, she plays the role of avid fan. As
a brand manager, she will buy the kind of clothing that reflects her role and
status in her company.
3. Personal factors
Life-stages changes usually result from demographics and life changing
events marriage, having children, purchasing a home, divorce and retirement.
A person‟s occupation affects the goods and services bought. Blue-collar
workers tend to buy more rugged work clothes, whereas executives buy more
business suits. A person‟s economic situation will affect his or her store and
product choices. Their demand was backed by purchasing power.
4. Psychological factors
Motivation is the need that drives or directs the person to seek satisfaction of
the need. Maslow hierarchy explains about the arrangement of human need.
They include physiological needs, safety needs, social needs, esteem needs,
and self-actualization needs.
Perception is the process where people select, organize and interpret
information to form a meaningful picture of the world. People can form
different perceptions of the same stimulus because of three perceptual
processes which is selective attention, selective distortion, and selective
Learning describes the changes in an individual‟s behavior arising from the
experience. Learning occurs through the interplays of drives, stimuli, cues,
responses, and reinforcement.
A belief is a descriptive thought that a person holds about something. Beliefs
may base on real knowledge, opinion, faith and may or may not on emotional
charge. Attitude describes a person‟s relatively consistent evaluations,
feelings, and tendencies toward and object or idea.
11. b) Explain how marketers use marketing strategy to segmenting, targeting,
differentiate and positioning. (13 marks)
Market segmentation involves dividing a market into smaller segment of buyers
with distinct needs, characteristic or behaviors that might require separate
marketing strategies. There are six steps marketers need to know segmenting a
market. There are follows:
i. Select a market or product category for study
This involves the process of defining the overall market or product category.
For example, Nestle surely would have made an intensive study among
Malaysians market before they introduces a new type of drink “Nestomalt” a
brand that compete with “Horlicks”.
ii. Choose a basis or bases for segmenting the market
In this process, marketers need to have creativity and in depth market
knowledge. For example, when Nestle range of famous “Maggie” brand
produced the latest addition of the “Thai Chili Sauce”, they must have
considered the needs of hot chili lover sauce. It is obvious, if the demand for
this chili sauce among Malaysians is not they will not introduce it into the
iii. Select segmentation descriptors
Through this process, marketers choose the segmentation descriptors which
requires them select demographics as a marketer segmentation basis. They
could use gender, age, income and occupation as a descriptor. For example
“Anlene” milk powder id definitely targeted for adults above 30 years old, who
need high calcium intake and need to prevent themselves from getting
12. iv. Profile and analyze segments
In creating a profile, marketers may need to get the right data from some
organizations who have conducted some form of research on areas they are
focusing. The profile include the details of the segment‟s size, expected growth,
purchase frequency, current brand usage, brand loyalty and long term sales and
market potential. Analyzing profiles of the right segment is important before
deciding which the best segment to target is.
v. Select target markets
This requires the marketing firm to select the most suitable target market and
decide on the firm‟s marketing mix. For example, when New Zealand Milk (M)
Sdn Bhd produces the “Anlene Gold” milk powder for those customers above 1
year, it is certainly a great decision because no other producers have produced a
similar milk powder to cater for customers of this age group. Recently in year
2003, this company have introduced “Anlene Active High Calcium with Bone Max
formula” specially formulated for those above 30s to help reduce the risk of
vi. Design, implement and maintain appropriate marketing mixes
This involves the process of using the most suitable marketing mix: product,
prices, place and promotion to enable the firm target the segmenting of the
Selecting Target Market
Many organizations are not usually able to sell goods and services with equal
efficiency and success to the entire market, because of limited resources,
competition and large markets, example to every market segments. It is
necessary for the sake of efficiency to select target markets. In market targeting,
producers identify market segments, select anyone of them and create products
tailored to each group. Therefore, in market targeting, marketers need to decide
13. on how many segments to cover and how to identify the best segment. The
marketing management may choose one of the following alternatives to market
targeting. They are undifferentiated marketing, differentiated marketing,
concentrated marketing and micromarketing.
Positioning and differentiation
The positioning and differentiation is an attempt to distinguish a company from its
competitors along real dimensions in order to be the preferred company to
certain segments of the market. Position aims to help customers know the real
differences between competing producers‟ products, so that they can match
themselves to other producers‟ product that can be of most value to them.
Although positioning is ultimately in terms of the buyer‟s perception, the actions
taken by firms through their marketing efforts provide the essential information
that buyer‟s process in reaching their perceptions. There are seven positioning
bases that every marketer must know. They are:
I. Product attributes
A product is associated with an attribute, which include the product‟s feature,
national creation, economical buy and durability. Scholl is known for its quality
and providing comfort to users‟ feet.
II. Benefit offer
The objective here is to position the product‟s benefit in relation to competitors.
For example, Colgate‟s “Double Fluoride” reduces cavity.
III. Usage or application
All products that are introduced into its market have a specific purpose and
usage. The Johnson Baby Company‟s positioning strategy involves advertising
the product to cater for the adult market also. For example, Johnson Baby Lotion
from Johnson & Johnson is not only advertised for its basic purpose example
lotion for baby skin but is it also useful for adults use.
14. IV. Competitor
A product can be positioned directly against a competitor. For example the
“Pepsi Challenge Campaign” was directly positioned to compete against Coke in
term of taste.
V. Price and quality
It stresses on high price as indication for quality. For example, Sony is well
known for quality sound and picture for its audio equipment and televisions. A
low price may also indicate value. Department Stores like Kamdar and Globe Silk
Store has successfully adopted the “lower price and value strategy”, making
them very popular among the Malaysians consumers.
VI. Product user
Marketers can position its products based on the type of user or the user‟s
personality. For example, Anlene Gold is specially formulated for adults above 51
in great need for high calcium intake to combat osteoporosis.
VII. Product class
Here, the aim of marketers is to position its product as being associated with a
particular category of products. For example Dorina Margarine is positioned as a
“margarine brand” that competes with butter. To many Malaysians who are
weight and health conscious, Dorina light Margarine is as good as butter but has