Name – Dhananjay Singh
Roll.No. 2114501014
Assingment
BBA Semester-1
Marketing Management
(DBB1104)
(SET-1)
Answers
Ans.1) Product mix also known as Product assortment refers to the number of products and
services which is marketed by organization in the market.
Let’s discuss the strategies employed by marketers for decisions related to product mix.
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Expansion of Product mix
Contraction of Product mix
Deepening of product mix
Expansion of product mix
Expansion of product mix refers to increasing in product range, variety and service for
the Existing costumers. For example : we know nestle very well, nestle launches new
products or add in existing products every year like noodles, milkpowder, cofee, chockets
And tomato ketchup etc.
Contraction of Product mix
When a company trie to dicontniue producing and selling some of its products from
product line it is known as Contraction of product mix.This is because some products are
not licked by costumers and companies having loss on producing these products, so they
discontniue producing and selling the product.
Deepening of product mix
Deeping of product mix means acompany goes deep in its product line instead of
launching new products in the market. This is because their existing product is doing so
well that theydont’t need to add new product.
Factors that influence the product mix decision of a firm are Cost of Production
 Change in company desire
 Change in the demand of product
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Change in purchasing power of customer
Quantity of production
Good willof the company
Cost of Production
Cost of production is really an important factor that influences the product mix
decision of a firm because cost of product is going to finalise the final price of any
product. And price really matters of the increasing or decreasing sales of a
company. So if a new product is develop at the cost of same labour, same
technology and same plant so can be benificial for the company.
Change in company desire
Some companies try to reform the production policies inorder to make more profit
or try to safe their company from loss, so they discontinue some products which
were unprofitable to produce and sell in market for them. For example: Escorts
Group the manufacturer of it’s once a leading bike of indian market rajdoot
discontinued because of decrease in no of sales in the market.
Change in the demand of product
Because of costumer choices and preferences or change in terms of fashion, If the
demand of a new product is increasing in the market and the production of that
new product and services is beneficial to the company considering its cost of
production, utilization of its plant and machinery, and labour force.
Change in purchasing power of the customer
when the number of customers are increased in the market. Due to increase in
their purchasing power or with the change in their buying Choises and preferences
etc.The company may think of adding new product keeping mass production or
increase in profitability in the mind.
Good will of the company
Because of companies big reputation, it can sell any new product or service in the
market without facing any difficulty. It may take decision of adding new product
without any hazitation because they knows that customers will accept any product
introduced by the company.
Ans.2) Yes I agree with this theory that macro environment contains variable that
directly or indirectly exert an influence on the business. Let us discuss this in
detalis Demographic Environment
 Political Environment
 Technological Environment
 Economic and Legal Environment
Demographic Environment
Demography Environment is on of the variable of Macro-economic that
has an influence on the market. The study of Culture, age, gender,
Religion, country, Human population in terms of area, density, location,
race, occupation and Urban and rural population, etc is called
Demography. people who are the major interest to marketers are part of
this theory or variable. Having that much information about people is
beneficial for the business because then we know, what we have to
produce, choices of the people and where we have to advertise our
product. Business man should continuously observe the changes that are
taking place in the Demographic structure. So it would help them to have
substantial control over target Buyers. For example: Metropolitan cities
like Delhi, Mumbai, Kolkata, and Banglore are densely populated so
people there are facing House issues they will not easily get the place to
live, and if available then it is not according to their choice so a Builder
should construct the buildings after knowing about peoples demand and
budget because it would be helpful for them and for the customers also.
 Political Environment
Political environment is another variable of Macro environment
that has an influence on market. Because having political stability
in the country is important for the business. Because having
balance political environment in the country comes with great
laws, statutes, government agencies and political parties. Political
environment has a strong influence on business. So marketers
should use the political Wave in the favour of their brand.
Countries which have political stability has a strong economy
because of their long term planning and policies so they have a
long vision. Countries those who have unstable political
environment have not a strong economy For example: China the
communist party of china ruling the country since long years so
they have stable political environment which they will work on
their plans for so many years and on the other hand if we see the
political conditions of Afghanistan it is not stable they have no
plans to work for then simply we can compare the economic
conditions of both of the countries easily.
 Technological Environment
Technological Environment is another variable of Macroenvironment that has a strong influence on business. because
technology is the most important factor for any Organization. With
the help of the latest technology we can creates opportunities by
inventing and developing new products and markets by producing
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them. Technology has a strong and direct effect on production,
Development, advertisement, marketing, processing, and finance.
Economic and Legal Environment
Economic and legal Environment factor is also important for
Business and market of the country. Because if a business man has
to run his company in the market then he have to follow the rules
made my legal body of government of the country. This have a
high impact on Decision making for business. These laws were
created for the legal rights of customer, employees and growth of
the economy. Some of the laws that effect the economic activities
areEnvironment Protection Act, 1986
Minimum wage laws
Worker safety laws
Union laws
Factories Act, 1948
Anti- monopoly laws Act, 1969
Sunday closing laws
Indian contract act, 1872
Foreign exchange Management Act, 1999
Ans.3) Brand equity is an important component of the brand. Brand equity is refers to the
loyalty, awareness, quality of the product, perception and the money is willing to pay to the
brand for their excellent service. The image and price of the produt in the customer’s mind is
also known as Brand equity. For example: Tata Group has a strong Brand equity in compare to
their other competitors in the market. Let us discuss the three components of Martin Roll’s
definition of brand equity1. Customer’s knowledge
2. Customer preference
3. Financial potential
Customer’s knowledge
Brand equity will only increased when customer will aware about the product.
Because when customer’s knowledge help them to understand the product its
quality and price etc. know a Days its an easy job to spread awareness about the
product with help of social media like facebook, Instagram, Youtube and on
other plateforms. Awareness about the brand id important because First
purchasing cannot proceed unless a customer is first aware about the product
category and brand with in the that category. If a company wants their brand to
be suceseed for lifetime then they have to do these forever- they have to manage
the awareness level of the product for lifetime, since the product launche till it
exists in the market, if their brand value falls then they have to work hard in order
to spread awareness about the brand until it returns to the desired level. These
were some few things about customer’s knowledge which is important for Brand
equity.
Customer Preference
When a Customer Choose one brand over another brand this is called Customer
preference also known as brand preference. Customer preference is an important
component of brand equity. Customer preference will only develop if the product
quality is good and they are consistence in the market. Customer preference is
important for a brand and its product. A brand will only grow if customers will
prefere their product over the others, if they want that then they have take care of
some things For example- they have to produce an appeling product , an appeling
product will connect you with the customers, they also have to listen to their
customers what they want and what not they have to engage as a brand,
constantly evolve means they have to change the product time to time.
Financial potential
Financial potential is the third variable of Brand equity. It is the outcome of
customer preference and customer awareness. Financial potential shows how
much strong your brand is it also shows the economic growth of the brand. If
your brand value is strong then your financial potential is positive but if your
brand value is not strong then your financial potential is negative.
(SET-2)
Ans.4) Consumer behavior can understand by studying its buying process. Let us
discuss the factors which determine the consumer behavior –
 Personnel Determinants
 Socio-Culture Determinants
 Psychological Determinants
Personnel Determinants
Factors that influence the buying behavior of the consumer’s are called
personnel determinants. It is not same for all, it is different from person
to person. The two factors that influence a person as a consumer1. Consumer Demographics
Age, income, and occupation etc. are some important
factors that may influence consumer’s purchasing
behavior. Let us discuss one by oneAge- Age plays an important role in the process of
purchasing products. Because people from different age
group buy different thing from others. For example- A
teenager buy different from the Middle-age people and
middle-age buy different from elder age like a teenager
buy thing according to their intrest, and a middle-age
will buy according to their need.
Income- Income plays an important role in the process
of buying product and services. When a customer has a
higher income then he/she has higher purchasing power,
and when a customer has low income then he/she has
low purchasing power they will only spent money on
their basic needs.
Occupation- Occupation of a customer can also
influence the buying behavior. A will only buy those
thing that soot’s with their profession. For example- A
sports man would buy those clothes according to their
Occuption.
2. Consumer psychographic- Values and lifestyle are
some of the factors that can influence the buying
behaviour of an individual.
Values- values is also an important factor for
influencing the people at the time of purchasing the
products. Because a person with full of values cannot
buy unethical and unhygenic product from market.
Lifestyle- Way of living in society of a human being is
called lifestyle. The consumer’s buying skills is highly
influenced by his/her lifestyle.
Socio-culture Determinants- Socio-culture Determinants contains two factors Social factors
and cultural factors. When an individuals buying skills is influenced by the society where he
lives it is called Social factor. And when a consumer’s buying skills is influenced by his/her
culture, which he thought from his childhood is called cultural factor.
Psychological Determinants- Psychology plays an important role in human’s life because it
shows your mindset, mindset also shows your preferences and choices which has a great impact
on buying skills. Perception, Learning, memory, motivation and attitudes are important
factors of psychological determinants.
Ans.5) The process of dividing a large number of consumer into different groups based on
comman needs, choices, and preference is called market segmentation. Market segmentation is
also known as market segregation. It helps organization on various levels like selling, advertising
and producing the product. It is also helpful for consumers by classifying the brands and
products on the bases of needs, price and quality for them.
Need for market segmentation
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Market Segmentation helps the businessman in the process of marketing policies and
advertising schemes according to the choice of customers of a single market. A seller
must engage with their permanent consumers.
Marketing Segmentation helps the sellers to understand the needs of the permenent
customers and according to that need they make new policies. Because of market
segmentation companies can follow their straight policies which will be beneficial for
them.
Market segmentation also helps consumer by clearing their Doughts about what they
have to purchase and what not. For example: A middle class consumer will not purchase
Zara clothes they will buy according to their income. A men will not purchase women’s
perfume, vice-versa. A manager will not wear informal clothes he/she have to wear
according to their occupation in the office.
Same thing goes for people those who belong from high class society, they will also buy
according to their class, premium cars, watches, clothes and expensive house.
Market segmentation helps the companies to select the right product for the right
consumer at the right place. According to Geographical segmentation a customer
classifies by their locations. For example- In india at the time of festival like holi
shopkeepers will store the colours and sweets in comparison to other shopkeepers around
the world.
Market segmentation makes organization work so easy by helping them to understand the
customer. Son that they can fullfil their demands by understanding what they want as a
consumer. Advertising and promoting their product also an easy job for them. After
market segmentation organization know who are there permanent costumers and they
have to produce new products for them.
The advantage of market segmentation for organization is that because now they know
market and their customers very well so they can easily make profit for their company by
attracting the right customers, Driving growth, developing your product, increasing brand
loyalty and better response rate at low acquisition cost in the market.
Ans.6) Let’s discuss Steps in developing an integrated promotion mix
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Establishing a clear goal and Measurable objectives
In order to developing an integrated promotion mix an organization needs to set
clear goals and try to establish measurable objectives towards achieving their
goals. It becomes easier to sell you products for you when you targated your goals
and objectives. A goal is a broad statement of some desired end point. For
example: An organization establish their goal that at the end of this year they will
become a unicorn of the country.
Understanding the target Audience
If an organization want to make his brand equity for that they have to target the
audience. Because if an organization have permanent customers this shows that
you have a clean image and you are hard working organization. For example: A
Sports car company already have less customers because of high price and less
milage so they have to target the customer age group of young men because in
most of the cases only youngsters have craze about sports car. So a compay
should understand their requirements and start work on it.
Evaluation communication option
Communication is the best option in order to connect with your costumers so an
organization should try to communicate with their targated audience by different
ways. They should try most popular ways of communication like social media (
Facebook, Instagram, snapchat and youtube etc) they can also go for
advertisement on popular news channels, sports channels, other channels and
news papers etc. You also higher big stars those who influence the audience for
your brand, because communication is important for careful analysis of the
customers.
Implementing communication Tactics
Implementation of communication tactics is an important work to do, it is one of
the factor that can develop an integriated promotion mix. An organization should
find more and effevtive way for implementing communication tactics. They
should spent money on different workshops, by advertising on big plate forms
like google, youtube and social media influencers. They should develop their App
by software engineer of their brand, where customer can easily check out their
products and also communicate with them. For example: You have heard an
emearging brand name “Mama Earth” they have take some apperacting steps for
the purpose of advertisement, communication and also for sales. They have heired
big social media influencers those who review their products, they also have an
application software of their brand called Mama earth. They also said that if a
person purchase a product so from that money they will plant 1 tree, so these are
some communication tactics that an organization should implement in order to
develop their brand.
Thankyou