Attempt the company for longer feel that this is

 

Attempt
the following Questions

Qn.1
Gigan
Manufacturers Ltd. has been in existence for the last 20 years. The company has
a

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Heavily
diversified portfolio made up of three product lines; Homecare, Body care and
Auto care. Two months ago a decision was arrived at to introduce new product
features to products in its auto care line. A newly recruited marketing manager
was of the opinion that this introduction of new features should be preceded by
market research to get customer inputs, but the other managers who have been in
the company for longer feel that this is not necessary since according to them
customers are interested in product availability and cost and not features.

Required; identify and discuss the marketing
philosophy/concept that appears to guide

The management of Gigan Ltd. (10 mks)

 

Answer

o   Production Concept

Production concept/philosophy is based on the fact
that consumers will choose products that are readily available and of low cost.
Hence businesses are encouraged to mass produce while enjoying the benefits of
economies of scale resulting to lower prices.

o   The Management of Gigan Ltd feels that market research
is not necessary since according to them customers are interested in product
availability and cost and not features: this is a clear manifestation that
production concept is guiding their marketing philosophy

o   Features of production concept include, mass production,
low prices and intensive distribution strategy, thus the management of Gigan ltd
dwells on the fact that customers are always interested in product availability
and cost but not features.

 

 

 

 

Qn.2    Explain
how pricing and the product elements of the marketing mix perform the function
of promotion. (10 mks)

o  
Promotion referrers to marketing
communications, it’s the element in an organization’s marketing mix that serves
to inform, persuade, and remind the
market of a product and/or the organization
selling the product, in hope of influencing the target audience/recipients
feelings, beliefs, or behavior

o  
Product, price, place and promotion are
the elements of the marketing mix

Use
of Price promotion in promotion

o  
Pricing is one of the most powerful
promotion strategies in existence,

o  
Promotion pricing: promotion
pricing involves reducing the actual prices of a product or service for ascertain
duration. this reduction in price will lead to an increase in demand from price
sensitive customers. Mostly used when launching a new product of product line.

o  
Types of promotional pricing include: buy
one get one free, coupons, point-of-sale
discounts, loyalty schemes, trade promotions etc.

o  
Pricing incentives are
generally intended to bring in customers, drive revenue and cash flow and turn
over stock. They should usually be considered as a short-term approach for
companies, though some retailers use recurring promotional pricing as a way to
maintain ongoing purchases from price sensitive buyers.

 

Qn.3    Marketing
is concerned more with the management of perceptions than reality….
(Anonymous). Discuss this statement (10
mks)

Answer

o  
Perception is the way people see the world
around them, very so often it is equated to reality and guides human behavior
in general.

o  
When selling a product or service its
important to understand the concept of perception

o  
It is vital to understand the fact that a
marketer is not just selling a product in marketing: but an idea about that product,
essentially a marketer presents a certain perception of a products that he/she
wants customers to have.

o  
It’s important to understand that perception
may not be true but if consumers perceive something to be real, then this forms
their reality.

o  
One of the ways in which marketers manage consumer
perceptions of a product is through branding. Branding is the way people see
your product or service and goes beyond just a logo!

o  
Through consumer perceptions of things and
reality, marketers get a glimpse of the fact that marketing is all about management
of people’s perception of products and services and not just the product
itself.