MMPC-006 Solved Assignment

Selected session: Jan 2025

Question 1(a)

Rewritten question: Explain the meaning of need, want and demand. Also explain why these three ideas matter so much for marketers and businesses.

1) Need

A need refers to a basic requirement of human life and wellbeing. In marketing terms, needs are fundamental and generally exist regardless of brands—for example, the need for food, safety, health, belonging, mobility, and communication.

2) Want

A want is a specific way of satisfying a need. Wants are shaped by culture, lifestyle, social groups, and personal preferences. For instance, two people may share the same need (hunger), but their wants may differ (home-cooked food vs. a particular restaurant meal).

3) Demand

Demand is a want that is backed by purchasing power and willingness to buy. Many people may want premium products, but only those who can pay for them (and choose to pay) become “demand” in market terms.

Why these terms are significant for marketers/business

• They guide product planning and innovation: Marketers start from needs (problem to solve), translate them into wants (preferred solutions), and then measure demand (commercial viability).
• They help in market segmentation and targeting: Different segments express the same need through different wants (e.g., value-seekers vs. premium seekers).
• They reduce the risk of “wrong offer”: A business may build a technically good product, but if it does not match customer wants (taste, convenience, status, etc.), demand may remain low.
• They support pricing and positioning decisions: Demand depends not only on desire but also on affordability, perceived value, and competitive alternatives.
• They influence communication strategy: Advertising and selling work better when they connect clearly to the underlying need and the customer’s preferred want (benefits and value proposition).

Practical illustration (student-friendly)

If a student has a need to learn (career growth), the want may be “short video lessons on mobile,” and demand appears when the student is ready to pay for an online course or subscription. A smart marketer designs the course format, pricing, and message around this complete chain: need → want → demand.

Question 1(b)

Rewritten question: Describe major marketing philosophies (concepts) you have studied. Explain why each is useful and what its limitations are, and how these philosophies evolved over time.

1) Production concept (production orientation)

• Main idea: Customers prefer products that are widely available and affordable; therefore, the firm focuses on efficiency, scale, and distribution.
• Importance: Works well when demand is higher than supply or when cost reduction is the main driver.
• Limitation: Can ignore changing customer preferences and quality expectations; availability alone may not win in competitive markets.

2) Product concept (product orientation)

• Main idea: Customers prefer products with superior quality, performance, and features; therefore, the firm focuses on product improvement and innovation.
• Importance: Drives R&D and better design; helpful in technology-driven categories.
• Limitation: Risk of “marketing myopia”—over-focusing on features while missing what customers actually value (convenience, service, total cost, ease of use).

3) Selling concept (selling orientation)

• Main idea: Customers will not buy enough unless the firm pushes aggressively through selling and promotion.
• Importance: Useful for unsought goods or when inventory must be cleared; it emphasizes persuasion and sales effort.
• Limitation: Often short-term; if customers feel pressured, it can reduce trust and repeat purchase. It may prioritize the seller’s goals over customer satisfaction.

4) Marketing concept (customer orientation)

• Main idea: Achieve organizational goals by understanding target customers’ needs/wants and delivering superior value better than competitors.
• Importance: Builds long-term customer relationships, loyalty, and sustainable profitability.
• Limitation: Requires strong market intelligence, coordination across departments, and continuous adaptation; it is not “easy execution” even if the idea is correct.

5) Societal marketing concept

• Main idea: Deliver customer value while also considering society’s long-term wellbeing (ethics, environment, public interest).
• Importance: Especially relevant today due to sustainability expectations, consumer awareness, and regulatory scrutiny.
• Limitation: Can create trade-offs (cost vs. sustainability) and needs careful balancing of stakeholder expectations.

6) Holistic marketing concept

• Main idea: Marketing is a broad system—internal marketing, integrated marketing, relationship marketing, and performance marketing must work together.
• Importance: Helpful in complex markets where customers interact across many touchpoints and where long-term relationships matter.
• Limitation: Implementation is demanding (cross-functional alignment, data discipline, consistent processes).

How evolution happened (simple explanation)

As markets moved from scarcity to competition, firms could not rely only on production efficiency or product features. Customer choice increased, competitors became stronger, and informed customers started valuing service, trust, and responsible behavior. Therefore, business thinking progressed toward customer-centric, relationship-based and socially responsible marketing.

Question 2(a)

Rewritten question: As a marketing manager, when should you analyze the marketing environment, and why? Use one FMCG or consumer durable product category and explain how you would combine micro and macro environmental analysis, and why that combination is needed.

When and why a marketing manager conducts environment analysis

Marketing environment analysis becomes essential whenever decisions can be affected by external forces—such as launching a new product/variant, entering a new city/segment, responding to a competitor’s move, handling sales decline, preparing an annual marketing plan, or facing policy/technology change. The purpose is to identify opportunities and threats early, reduce uncertainty, and align marketing strategy with real market conditions.

Product category selected (FMCG): Packaged toothpaste (sensitive-teeth variant)

Assume a company wants to expand a sensitive-teeth toothpaste into Tier-2 cities. In this situation, both micro and macro analysis are required because FMCG performance depends on consumer behavior, channel power, competitor intensity, and also on broader economic, socio-cultural, and regulatory changes.

A) Micro environment analysis (task environment): what I would examine and why

• Company/internal strengths: brand equity, price flexibility, manufacturing capacity, distribution reach, and ability to run promotions.
• Customers: who is the buyer vs. user (family context), pain-points (sensitivity), usage habits, value expectations.
• Competitors: competing sensitive variants, their price points, claims, packaging, and retail visibility.
• Marketing intermediaries: distributors/wholesalers/retail chains and their margins, shelf-space constraints, and willingness to push the brand.
• Suppliers: raw material stability and packaging availability (important because FMCG margins are sensitive to input costs).
• Publics (local influencers): dentists, pharmacists, local media, consumer reviews, and community perception.

Why micro analysis matters here

Toothpaste purchase is influenced heavily by retail availability, price-offs, retailer recommendation, and competitor shelf dominance. Micro analysis directly shapes distribution strategy, trade schemes, and in-store execution.

B) Macro environment analysis: what I would examine and why

• Demographic forces: household size, age mix, education levels (health awareness), and urbanization patterns in target cities.
• Economic forces: income levels, inflation impact on FMCG budgets, and consumer downtrading/uptrading behavior.
• Socio-cultural forces: oral-care habits, trust in dentist recommendations, preference for herbal vs. clinical positioning.
• Technological forces: e-commerce penetration, digital coupons, QR-based engagement, and online reviews affecting brand choice.
• Political-legal forces: advertising standards, labeling rules, health-claim restrictions, and consumer protection requirements.
• Natural/environmental forces: packaging sustainability expectations and compliance pressures.

Why macro analysis matters here

Even if the product is strong, macro shifts (inflation, regulation on claims, social preference for “natural” products, digital influence on trust) can change demand quickly. Macro analysis helps avoid strategic surprises and improves positioning decisions.

Recommended combination (and rationale)

For this FMCG example, I would combine:

• Micro analysis (customers + trade + competition) to decide channel strategy, retailer push/pull, pricing, and promotion execution.
• Macro analysis (economic + socio-cultural + regulatory + technology) to finalize positioning (clinical vs. herbal), claims strategy, and long-term growth plan.

This blend ensures both execution readiness (micro) and strategic fit (macro).

Question 2(b)

Rewritten question: Define “product” in marketing and explain common classifications of products that marketers use.

Meaning of product

A product is anything that can be offered to a market to satisfy a need or want. This includes physical goods as well as services, experiences, ideas, or combinations of these.

Major classifications of products

1) By durability/tangibility

• Non-durable goods: consumed quickly (e.g., packaged snacks, toothpaste).
• Durable goods: used over a longer period (e.g., refrigerator, washing machine).
• Services: intangible performances (e.g., banking, education, healthcare).

2) By type of buyer: consumer vs. industrial

• Consumer products: purchased for personal/family use.
• Industrial (business) products: purchased for production, operations, or resale.

3) Classification of consumer products (based on buying behavior)

• Convenience goods: frequent purchase, low effort (staples, impulse, emergency items).
• Shopping goods: planned purchase with comparison (price/quality/style).
• Specialty goods: strong brand preference; buyers make special effort.
• Unsought goods: not actively sought (e.g., certain insurance); needs strong selling/awareness.

4) Classification of industrial products

• Materials and parts: raw materials and manufactured components used in production.
• Capital items: installations and equipment used for operations.
• Supplies and business services: maintenance/repair/operating supplies and support services.

Extra clarity: product levels (useful for writing answers)

• Core benefit: the basic problem solved.
• Actual product: features, brand, packaging, quality.
• Augmented product: warranty, delivery, service support, returns, etc.

Question 3(a)

Rewritten question: Explain the Product Life Cycle (PLC). Then choose one product/brand and show how the marketing mix (4Ps) changed at different PLC stages.

Concept of Product Life Cycle (PLC)

PLC explains that products typically pass through stages—introduction, growth, maturity, and decline. Sales and profits do not remain constant; they change as competition, consumer awareness, and substitutes evolve. Therefore, marketing strategy and the 4Ps must be adjusted stage-wise.

Product category selected: Electric scooter (category example)

Electric scooters in India show clear PLC-like behavior: early adoption, rapid growth with new entrants, intense competition and maturity effects, and eventual decline risk for certain variants when technology shifts.

Stage 1: Introduction (market entry)

• Product: limited variants; emphasis on core technology, battery assurance, and basic service network.
• Price: typically premium or skimming (to recover development cost) or selective penetration pricing in some markets.
• Place (distribution): selective distribution—few experience centers, limited dealerships; focus on major cities.
• Promotion: informative communication—educating on charging, running cost savings, warranty, and safety.

Stage 2: Growth (rapid acceptance)

• Product: more variants (range, speed, features), better battery tech, app integration, improved after-sales.
• Price: more competitive pricing; financing/EMI schemes to widen adoption.
• Place: expansion into Tier-2 cities; stronger dealer/distributor footprint; partnerships for charging points.
• Promotion: persuasive promotion—comparative value, testimonials, influencer reviews; stronger digital campaigns.

Stage 3: Maturity (intense competition / plateau)

• Product: differentiation through design, service packages, extended warranties, accessories, software upgrades.
• Price: price-offs, exchange bonuses, bundle offers; value-focused variants introduced.
• Place: maximum distribution coverage; focus on retail efficiency, service center density, and spare availability.
• Promotion: reminder and reinforcement advertising; sales promotions to protect share; loyalty/upgrade programs.

Stage 4: Decline (variant-level decline/obsolescence risk)

• Product: pruning of weak models; focus on profitable SKUs; repositioning to niche segments.
• Price: harvesting (maintain price for niche) or discounting (clear stock), depending on strategy.
• Place: selective distribution; focus on channels with best ROI.
• Promotion: reduced spend; targeted communication only; focus on service assurance and replacement cycle.

Summary point

The key PLC learning is that a “fixed marketing mix” rarely works. As the product moves across stages, the 4Ps must be realigned with the competitive and demand situation.

Question 3(b)

Rewritten question: Explain the elements of the promotion mix. Why do companies today feel a strong need to integrate all marketing communication tools strategically? Give one integrated example and present a SWOT analysis to show why integration matters.

Elements of promotion mix

• Advertising: paid, non-personal communication through mass media (TV, print, radio, outdoor, digital ads).
• Sales promotion: short-term incentives to stimulate immediate purchase (price-offs, coupons, samples, contests, POP displays).
• Personal selling: direct, person-to-person communication to influence purchase; especially useful for relationship building and feedback.
• Publicity/Public relations (PR): building a favorable image and managing communication with various publics (media, community, stakeholders).

Why integration (IMC) is strongly needed today

• Customers receive messages from many touchpoints: brand meaning is shaped by ads, retail experience, social media, service, and word-of-mouth together.
• Media is fragmented: relying on one tool is insufficient; integration ensures consistent reach and recall.
• Need for clarity and consistency: IMC aligns tools to deliver a unified brand message and reduces confusion.
• Better impact through synergy: coordinated tools reinforce each other (e.g., ad creates awareness; sales promotion triggers trial; personal selling supports trade push).
• Higher competition and faster imitation: integrated strategy helps brands stay relevant and defend market position.

Example of integrated promotion mix (IMC): Launch of a new “healthy breakfast cereal” brand

Advertising

• YouTube/OTT video ads showing the health benefit and convenience.
• Outdoor ads near schools/offices and local radio spots for frequency.

Sales promotion

• Free sample sachets with newspapers or at supermarkets.
• Introductory “price-off” and “Buy One Get One Free” for quick trials.

Personal selling

• Sales representatives meet retailers to negotiate shelf placement and run in-store demos.
• Trade schemes to motivate retailers/wholesalers (display incentives, target-based rewards).

PR/Publicity

• Nutritionist-led local event/webinar with media coverage.
• Press notes about the brand’s quality standards and community health initiative.

How integration is visible

All tools carry the same promise: “quick, tasty, and healthy breakfast.” Advertising creates awareness, PR builds credibility, sales promotions trigger trial, and personal selling ensures retail availability—together producing a stronger market result than isolated activities.

SWOT analysis (focused on IMC integration)

Importance of integration (final point)

IMC helps the company compete with a strategic intent by ensuring that every communication tool supports the same positioning and objective, improving effectiveness and reducing wasted effort.

Question 4(a)

Rewritten question: Explain the main differences (and any similarities) between product marketing and services marketing. Then, using internet/secondary data, write an essay explaining why the service sector grew strongly during 2010–2023, supported with data.

A) Product marketing vs. services marketing: differences and similarities

Key differences

Similarities

• Both require segmentation, targeting, and positioning.
• Both require customer value creation, pricing strategy, promotion, and channel decisions.
• Both depend on customer satisfaction, repeat purchase/usage, and relationship building (though service relationship is often more direct and continuous).

B) Essay: Reasons for growth of the service sector since 2010–2023 (with data)

Introduction

Between 2010 and 2023, the service sector expanded steadily across the world and strengthened its role in both economic output and employment. This was not driven by a single factor. Rather, it resulted from the combined effect of technology adoption, rising incomes, business restructuring, and deeper global integration of markets.

Supporting global data point

• World Bank (global trend): “Services, value added (% of GDP)” increased globally from about 63% in 2010 to above 65% by 2022. In high-income economies, the share generally stays above 70%. This pattern indicates a long-term shift toward service-led economies.

Key reasons for growth (with examples and data)

1) Digital revolution and platform-based service models

After 2010, widespread smartphones, cheaper mobile data, and cloud computing made it easier to deliver services at scale. This created new platform businesses and accelerated growth in digital services.

• Examples: ride-hailing platforms (e.g., Uber), home-sharing platforms (e.g., Airbnb), entertainment platforms (streaming), and SaaS (Software as a Service) companies offering subscriptions rather than one-time purchases.
• Data point (as reported by WTO): Global ICT services exports increased from about USD 1.1 trillion in 2010 to more than USD 1.6 trillion by 2022.

2) Rising incomes and changing consumption patterns

As per-capita incomes improved—especially in many emerging economies—spending gradually shifted from essential goods toward services such as education, healthcare, travel, entertainment, and lifestyle-related activities. This shift is commonly explained using Engel’s Law, which suggests that the proportion of income spent on basic necessities tends to fall as income rises, allowing more discretionary spending on services.

• Examples: growth in tourism and hospitality, private healthcare, fitness, online entertainment (streaming and gaming), and dining-out culture.
• Data point (as reported by WTTC): Global travel and tourism’s direct contribution to GDP rose from about USD 2.4 trillion (2010) to about USD 3.3 trillion in 2019 (pre-pandemic).

3) Increased specialization and outsourcing by businesses

Firms increasingly outsourced non-core activities to specialist service providers to gain efficiency, reduce cost, and access better expertise. This strengthened growth in professional services and business-to-business services.

• Examples: Business Process Management (BPM), IT consulting, digital marketing agencies, HR services, and integrated logistics/supply chain services.
• Data point (as reported by NASSCOM): India’s IT-BPM industry revenue increased from around USD 88 billion in FY2011 to about USD 245 billion in FY2023, reflecting the scale of global outsourcing and service exports.

4) Policy liberalization and globalization of services

Over time, cross-border trade in services became easier due to policy reforms, improved digital connectivity, and the inclusion of services in trade discussions. As a result, sectors such as finance, education, consulting, and professional services expanded internationally.

• Examples: expansion of global financial services, growth of cross-border higher education, and remote consulting delivered digitally across countries.

5) “Servitization” of goods (services bundled with products)

Many manufacturers began adding services around physical products to create differentiation and stable recurring revenue. This increased the service share even within traditionally “manufacturing” industries.

• Examples: vehicle subscription models, smart appliance monitoring services, annual maintenance contracts, and industrial IoT-based predictive maintenance services.

Conclusion

The expansion of the service sector from 2010 to 2023 can be explained through technology-enabled delivery models, higher discretionary spending, increased outsourcing and specialization, and stronger global integration. Although the COVID-19 period (2020–2021) temporarily disrupted some service segments (especially travel and hospitality), it also accelerated digital adoption and reinforced the importance of online services. Going forward, innovations in AI and automation are likely to create new service formats and further deepen service-led economic growth.

Question 4(b)

Rewritten question: Choose a firm you know (or a local firm) that has adopted digital marketing. Summarize the prospects (benefits) and challenges they face, and suggest practical solutions.

Important note: The assignment expects an actual visit and discussion. Below is a realistic, student-ready field-report format based on typical digital marketing practices described in the course. You can directly replace the firm name, location, and 2–3 specific details after your actual discussion.

Firm selected (example): Local coaching institute (competitive exams / skill training)

Business context: The institute competes with other local centers and online platforms. It uses digital marketing mainly for lead generation, brand credibility, and admission conversions.

Digital marketing activities adopted (what the firm typically uses)

• Google Business Profile + local SEO: maps visibility, reviews, directions, call buttons.
• Social media marketing: Instagram/Facebook posts, student success stories, short videos, announcements.
• Paid advertising: Google search ads for keywords like “best coaching near me”, and social media lead ads during admission season.
• Content marketing: free webinars, sample lectures, exam tips, downloadable notes to build trust.
• WhatsApp/Email follow-up: automated messages, counselling reminders, fee-payment nudges.

These tools match the course idea that digital marketing uses online channels to promote and sell by leveraging internet-based tools.

Prospects/benefits reported by the digital marketing in-charge (typical)

• Better targeting: ads can be shown to students in specific locations/age groups/interests.
• Measurable performance: the firm can track leads, calls, website visits, and conversions more clearly than many offline methods.
• Cost efficiency (when optimized): compared to repeated offline spending, digital can produce a steady flow of leads with better ROI.
• Brand credibility: reviews, testimonials, and consistent content build trust for first-time buyers.
• Speed and flexibility: campaigns can be paused/edited quickly based on results.

Challenges faced (typical issues)

• Lead quality variation: many inquiries are low intent or not eligible, increasing counselling effort.
• Rising competition and ad costs: multiple local players bid on the same keywords/audiences.
• Content pressure: regular high-quality content is needed to stay visible and credible.
• Reputation risk: negative reviews or social comments can impact admissions quickly.
• Skills gap: staff may not have strong capability in analytics, creative design, or campaign optimization.
• Tracking gaps: without a simple CRM, leads get lost between enquiry, counselling, and conversion.

Possible solutions (practical and aligned with course learning)

• Define a simple funnel with KPIs: impressions → clicks → leads → counselling → admissions; track each stage weekly.
• Improve lead qualification: use structured enquiry forms (course, qualification, timeline, budget) to filter low-quality leads early.
• Build a basic CRM discipline: even a spreadsheet-based pipeline with follow-up dates prevents leakage; later upgrade to a CRM tool.
• Content calendar: weekly plan: 2 short videos, 2 testimonials, 1 concept lecture clip, 1 live Q&A; reuse content across platforms.
• Reputation management SOP: respond politely to reviews within 24–48 hours; encourage satisfied students to post genuine feedback.
• Skill development: train one staff member on ads + analytics basics; or use a small agency with clear reporting requirements.
• Budget optimization: run A/B tests for creatives and landing pages; shift budget toward campaigns with best conversion cost.

Closing note (how to finalize after your actual visit)

To complete this answer exactly as the evaluator expects, add 3–5 specific facts from your visit (example: monthly ad budget range, main platform used, typical lead-to-admission conversion rate, and top two challenges quoted by the manager). The structure above remains the same; only the “firm-specific details” change.