Pir Mehr Ali Shah

Arid Agriculture University, Rawalpindi

Office of the controller of Examinations
Final Exam (Theory)/ FALL-2020 (Paper Duration 24 hours)
To be filled by Teacher

Course No.: MGT- 452 Course Title: Introduction to Marketing Management

Total Marks: 30 (Thirty) Date of Exam: 12-02-2021
Degree: BBA (Hons) Semester: 3rd Section: A, B, C & Afternoon
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Name of the teacher: Dr. Muhammad Maroof Ajmal
Who taught the course: Signature of teacher / Examiner:

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Registration No.: …………19-ARID-4111………… Name……………NADIA ALI………………………...

Answer all the questions, All Questions carry equal marks.

Q.No.1. What kind of pricing strategy can be used to Enter far flung areas, and what kind of
benefits sellers get by adopting such pricing strategy? Discuss in detail with example. (Marks 06)
Answer:
GEOGRAPHICAL PRICING: Geographical pricing, in marketing, is the act of changing a thing's deal
cost dependent on the area of the purchaser. Here and there the distinction in the deal cost depends
on the cost to transport the thing to that area. Yet, the distinction may likewise be founded on what
amount individuals in that area will pay. Organizations will attempt to expand revenue in the
markets in which they work, and geographical pricing adds to that objective.
The most common geographical pricing strategies and how firms should handle buyers in different
locations are as follows:

1) Uniform Delivery Pricing (or postage stamp pricing):

 Everybody is charged the equivalent for delivery. Enough said. This is, in fact, a basic
method to set delivery costs, yet in addition second rate. Right off the bat, for this to
be suitable, you need to authorize a few limitations: clearly, the neighborhood
Chinese takeout spot can't convey $10 worth of ‘'chow mein'’ to each edge of the
world.
 What's more, when a uniform delivery pricing strategy is applied, the limitations will
frequently restrict the capability of your business. All things considered, the clients
that right now will not have the option to order your items may need them actually
severely, and wouldn't fret paying some extra.
 Consequently, uniform delivery pricing might be fine in case you're a neighborhood
takeout spot, yet in case you're a public or global retailer, this is an outright off limit.

2) Dandy Origin (Free Onboard Origin):

  This is a usually utilized geographical pricing strategy, where the shipping cost is just
borne by the dealer. So, in case you're living in no place you can in any case get the
item conveyed, yet it will cost you.
 This is an incredible strategy for various reasons: first, clients will not feel sore about
a high shipping cost as it is totally defended. All things considered, you, the dealer,
will not benefit from it, isn't that so?
 Additionally, as what tops off an already good thing, you can offer a few delivery
alternatives so they, when all is said and done, can conclude whether to go for the
spending delivery service, or the premium expedited service. In that manner, they're
totally responsible for their own destiny, and will not feel any hatred towards you.
Then again, clients ought to consistently get the chance to organize the actual
delivery. While encouraging the delivery is a pleasant service, the distinctive
trademark about this geographical pricing strategy is that it is at last up to the
purchaser how the item is conveyed.
 There is one downside to this strategy, notwithstanding: While the client may
comprehend and acknowledge that the shipping cost mirrors the distance, it is as
yet a cost: and toward the day's end, the client's distance to the dealer will not
impact his ability to pay. Indeed, individuals living in rural areas, for example,
regularly have a low buy power, while those living right in the middle will have a
high buy power. With FOB Origin pricing, the cost will not be entirely lined up with
ability to pay.

3) Zone Pricing:
 Like with FOB Origin pricing, the zone pricing strategy includes charging a higher cost
to clients for whom shipping is costly. This strategy is diverse in that, with zone
pricing, the dealer consistently handles the delivery, and can orchestrate such a
transportation he wishes, and in addition, set the value he wishes: the delivery may
in any case be completed by a third-party firm, yet it is dependent upon the
merchant to encourage this.
 Zone pricing has the very disadvantage as FOB origin, that is, there is no motivation
to accept that shipping cost is attached to readiness to pay in any capacity, and
subsequently, this strategy might be imperfect from a worth pricing point of view.
Also, the potential gain that is the straightforwardness in FOB Origin pricing is absent
similarly, as the purchaser has less said in delivery costs and decision of transporter.
 That being said, it is considerably more straightforward than FOB Origin, and the
ideal strategy for most retailers as it is just unrealistic to make singular plan with
each and every client at whatever point they submit a $50 request.

4) Freight-Absorption Pricing:
 At long last, the dealer can decide to get the bill, or part of it. It is once in a while
ideal, except if you're selling high-margin items where the shipping cost is minuscule
comparative with the cost, and subsequently the delivery cost would be irrelevant to
the point that does not merit disturbing the client with it. This, obviously, just
applies to not many organizations.
 Nonetheless, it could be helpful for different organizations as well, as an intend to
bring down costs without harming the brand and the brand positioning. While
retaining the shipping cost is eventually equivalent to bringing down the value, it
isn't seen along these lines and may work out for your potential benefit in case
you're selling a moderately premium item.
5) Basing point pricing:
 Certain urban communities are assigned as basing points. All goods dispatched from
a given basis point are charged a similar amount.
Q.No.2. As a manufacturer of an Innovative product, what kind of market entry strategy would
you prefer? Justify your answer with logical reasoning. (Marks 06)
Answer:
MARKET ENTRY STRATEGY: Market entry strategy is an arranged dissemination and delivery
technique for goods or services to another objective market. In the import and export of services, it
alludes to the creation, foundation, and management of agreements in a foreign country.

A key advance when extending to another market is picking the best market entry strategy for your
business. There are a couple of approaches to enter a developing market. We should pick one that
will turn out best for our business.
Guides to Enter a New Market:

1) Identify your objective market

 A typical misstep among entrepreneurs isn't distinguishing an objective market.
Realizing your planned clients will assist you with picking your market entry strategy.
 While distinguishing your objective market, think about the socioeconomics and
area of your clients. You should likewise consider the psychographics of your clients.
Psychographics incorporate interests, conduct, convictions, and qualities.

2) Conduct market research

 In the wake of recognizing your objective market, you can lead market research.
Market research comprises of the accompanying:
o Surveying the current market circumstance
o Deciding the market size
o Surveying market patterns
o Recognizing and getting contenders
o Understanding local laws and guidelines
 In the event that you have not concluded which market to enter, lead market
research in each one. Contrast the discoveries in each one with tight down your
determination. The consequences of your market exploration will likewise assist you
with choosing a market entry strategy.

3) Choose a market entry strategy

 Utilizing the aftereffects of your market research, pick a market entry strategy. There
are a few market entry methodologies and everyone has its own focal points. A few
techniques additionally work better with particular sorts of clients than others.
 Ensure that your strategy will help you meet your business goals. You ought not pick
a strategy dependent on cost or comfort.

4) Create a business plan

 Subsequent to picking a market entry strategy, make your business plan. A point-by-
point business plan contains full depictions of your items or potentially services.
 It ought to likewise incorporate the methodologies you will use to arrive at clients.
Also, the cost to begin and work your business should be a piece of the business plan
too.

 Kinds of Market Entry Strategies

1) Exporting/Trading
 One approach to enter another market is through exporting goods. This strategy
permits you to enter a few markets at the same time. You can allocate a local
distributor to manage transactions with your purchasers.
  The fundamental favorable position of working with local distributors is admittance
to their current customer base. They likewise have insight in the local market and
will actually want to impart experiences to you.
 The disadvantage to this, in any case, is that you will be subject to your local
distributor. You will have little power over your deals. This strategy likewise just
works for organizations that sell items, not services.

2) Licensing
 Licensing is the point at which you give legitimate rights to different gatherings to
utilize your organization's name. Under a permit understanding, the licensee can
create and sell items or offer services utilizing your organization name. In return, you
will get eminences.
 Your organization stands to acquire a great deal with negligible exertion if your
licensee performs well in the market. Be that as it may, it likewise conveys chances.
For instance, the activities of your licensee will influence your brand. All things
considered; you need to ensure that you are managing an organization that will
secure your interests.

3) Franchising
 Franchising is like licensing in that it allows a different substance to utilize your
organization's name for a charge. In any case, as the franchisor, you can set
standards for how the franchisee should work the business. You likewise hold
authority over branding. The franchising model is especially mainstream with huge
brands like McDonald's.
 You have marginally more command over the business as a franchisor so it is safer
than licensing. In any case, you can likewise run record verifications on your
potential franchisee.

4) Joint venture
 Basically, a joint venture is an association between your organization and at least
one gathering. Having a local accomplice brings numerous advantages like existing
framework. Your local accomplice can likewise impart bits of knowledge on the
market to you.
 This is one approach to make foreign direct investment in another market. You will
likewise have more power over the business than the recently referenced choices.

5) Greenfield investment
 A greenfield investment is the point at which an organization sets up activities in a
foreign country. The utilization of "green" alludes to the new offices the organization
will build. This strategy requires more capital investment than the ones recently
referenced.
 The principle preferred position of a greenfield investment is having finished power
over the organization. Many developing markets invite foreign investment and
permit full foreign ownership of organizations. Note, notwithstanding, that there are
limitations for foreign ownership in certain industries.

Q.No.3. What is Non-store retailing? How it has taken over the Store retailing? Also discuss the
reasons for growth of non-store retailing in last decade. (Marks 06)
Answer:
 NON-STORE RETAILING:
Any deal happening to the end client which isn't occurring through a customary retail
channel or through a physical retail space is known as Non-store retailing.
 FOR EXAMPLE: Amazon is an ideal illustration of Non-store retailing. Amazon doesn't have
its own retail space from where it offers the goods to clients. It straightforwardly sells from
its site and doesn't sell through a retail space. Subsequently, it is known as a Non-Store
Retailer.
There are various sorts of Non-store retailers in the market:
o Direct selling,
o Tele marketing,
o Online retailing,
o Automatic vending,
o Direct marketing, and.
o Electronics retailing.
A portion of the non-store retailers are well known even today though others have faded away.
Allow us to clarify that non-store retailing doesn't mean a normal line of business. Indeed, Non-store
retailing is ascending in importance because of the way that cost of foundation is low and all costs
are variable and not fixed. We will examine the advantages of Non-store retailing in some time.

Why non-store retailing has taken over the Store retailing:

 Simple access to market - from numerous points of view the admittance to market for
entrepreneurs has never been simpler. Online marketplaces, for example, eBay and Amazon
permit anybody to set up a basic online shop and sell items in practically no time.

 Decreased overheads - selling online can eliminate the requirement for costly retail
premises and client confronting staff, permitting you to put resources into better marketing
and client experience on your internet business webpage.

 Potential for fast development - selling on the internet implies customary imperatives to
retail development - e.g., finding and paying for bigger - are not central point. With a decent
computerized marketing strategy and an arrangement, a scale up order satisfaction systems,
you can react and help developing deals.

 Broaden your market/export - one significant preferred position over premises-based

retailers is the capacity expand your market past local clients rapidly. You may find a solid
demand for your items in different nations which you can react to by focused marketing,
offering your site in an alternate language, or maybe joining forces with an abroad
organization.

 Client knowledge - capacity to utilize online marketing instruments to target new clients and
site examination apparatuses to acquire understanding into your clients' requirements. For
guidance on improving your client's on location experience.

REASONS INFLUENCING THE DEVELOPMENT OF NON-STORE RETAILING:

 Globalization:
 Initially, globalization arise the associating innovations all around the planet: PC,
information, communication, and transportation. Customer in a country can without
much of a stretch go out on the town to shop online, looking and purchasing goods by
online payments by means of cashier systems or online banking systems.
 The advancement of containerizations and development of fly plane assistance people
or businesses increment the adequacy and effectiveness in transporting goods globally
and in moving from one spot to different spots.
 Furthermore, globalization helps the declining trade and the investment obstructions
around the world. The globalization of market alludes to the converging of generally
unmistakable and independent public markets into one colossal global marketplace.
Falling boundaries to cross border trade have made it simpler to sell globally.
  It has been contended for in some cases that the taste and inclinations of shoppers in
various nations are starting to join on some global norm by offering standardized global
item worldwide that help make global market.

 Client behavior:
 With the blossom of Internet, the purchasers who has grown up during the time of the
Internet are increasingly expanding. Their shopping behavior is not the same as the
more seasoned purchaser.
 Past examinations show that buyer innovativeness is lower among more seasoned
purchasers. They are less inclined to show an interest in PC shopping in view of their
lower experience with PCs and in light of the fact that they are not compelled by time
and in light of the fact that they appreciate the socializing related with store shopping.
 As opposed to the most recent, youngsters are all the more well-arranged towards
change and utilize the new innovations, for example, the mobile phone, social media
from a very early age.
 They likewise have hedonistic and utilitarian thought processes in utilizing internet and
mobiles, thinking of them as a wellspring of information, communication, amusement
and an elective shopping channel. They utilize social media to follow brands, find new
brands research brands and view video about brands/items.

 Information and Communication Technology (ICT):

 By and large, from 2001 to 2015, the global ICT has quickly evolved. In that, there has
been more individuals utilizing Internet, and they have would in general expand getting
to broadband connection on mobile gadgets and reduction utilizing fixed-telephone.
 These progressions have made more certain impacts on non-store retailing, particularly
the electronic-shopping (internet business), regular postal mail retailer and TV home
shopping.
 Payment framework:
 Payment instruments have been changed during the time, from cash to non-cash
payment, for example, pre-loaded card, Visa, debit card, electronic cash and mobile
payment on the smartphone as of now. The different sorts of payment instrument offer
the clients a ton of decision to make payment for their utilization.
 The all-out estimation of non-cash transactions was expanded from 269.4 billion USD in
2009 to 357.9 billion USD in 2013. Non-cash payment transactions arrived at very nearly
390 billion globally in 2014. Payment cards keep on representing a consistently rising
portion of the non-cash transactions.
 Debit cards specifically are ready to take more market share away from other payment
instruments, for example, cash and checks, and that cycle is probably going to quicken as
customers keep on expanding their utilization of arising instruments, for example,
mobile payments, and decide to settle these transactions through their debit cards. The
non-cash
 payment suppliers are constantly improving their items and services to client, by giving
different sort of payment instrument and improving their security framework to get
client's transactions.

 Technology and Transportation cost:

 Econometric proof has accordingly connected shipping cost decays to quick
development in worldwide trade all in all, just as in non-store retailing on global level in
specific, during that first period of globalization.
 As we probably are aware, albeit non-store retail is a type of retailing wherein deals are
made to customers without utilizing actual store, yet retailers actually need vehicles to
convey the goods to definite clients.
 Hence, the improvement of transportation help decreases the cost and convey
merchandise as expected. The decrease in import costs helps the nonretailers more
 serious and clients can without much of a stretch purchase the items, which are
imported from different nations.

Q.No.4. What is meant by product mix? Discuss all dimensions of product mix with suitable
examples. Also discuss how product mix consistency helps manufacturers in doing business.
(Marks 06)
Answer:
 PRODUCT MIX:
o Product mix, otherwise called product combination, alludes to the complete number
of product lines an organization offers to its clients.
o For example, your organization may sell different lines of products. Your product
lines might be genuinely comparable, for example, dish washing fluid and bar
cleanser, which are both utilized for cleaning and utilize comparable advances. Or on
the other hand your product lines might be immensely extraordinary, for example,
diapers and razors.
The four measurements to an organization’s product mix incorporate width, length, depth and
consistency.

1) Width: Number of Product Lines

 The width, or expansiveness, of an organization’s product mix relates to the quantity
of product lines the organization sells.
 Example: For instance, in the event that you own EZ Tool Company and have two
product lines – sledges and wrenches – your product mix width is two.
 Little and upstart businesses will generally not have a wide product mix. It is more
commonsense to begin for certain fundamental products and construct market
share. Later on, the organization’s technology may permit the organization to
enhance into different industries and fabricate the width of the product mix.

2) Length: Total Products

 The product mix length is the all out number of products or things in your
organization’s product mix.
 Example: For instance, EZ Tool has two product lines, sledges and wrenches. In the
mallet product line are paw hammers, ball peen hammers, sledge hammers,
material mallets and hammer hammers. The wrench line contains Allen torques,
pipe torques, ratchet torques, blend torques and customizable wrenches.
 Subsequently, EZ Tool’s product mix length would be 10. Organizations that have
different product lines will once in a while monitor their normal length per product
line. For this situation, the normal length of your organization’s product line is five.
3) Depth: Product Variations
 Depth of a product mix relates to the absolute number of varieties for every
product. Varieties can incorporate size, flavor and some other distinctive trademark.
 Examples: For instance, if your organization sells three sizes and two kinds of
toothpaste, that specific line of toothpaste has a depth of six. Much the same as
length, organizations now and again report the normal depth of their product lines;
or the depth of a particular product line.
 In the event that the organization additionally has a different line of toothpaste, and
that line comes in two flavors and two sizes, its depth is four. Since one line has a
depth of six and the subsequent line has a depth of four, your organization’s normal
depth of product lines is five (6+4=10, 10/2=5).

4) Consistency is Relationship
 Product mix consistency depicts how firmly related product lines are to each other –
as far as use, production and dissemination. Your organization’s product mix might
be steady in conveyance however immeasurably extraordinary being used.
 Example: For instance, your organization may sell wellbeing bars and a wellbeing
magazine in retail locations. Nonetheless, one product is eatable and the other isn’t.
 The production consistency of these products would change also, so your product
mix isn’t steady. Your toothpaste organization’s product lines, in any case, are both
toothpaste. They have a similar use and are created and circulated a similar way.
Thus, your toothpaste organization’s product lines are predictable.
 Consistency of product mix helps doing business:
o Consistency of product mix is worthwhile for positioning the organization in
a particular market or as a niche producer or distributor. This consistency,
many multiple times, guarantees that the organization’s name gets
synonymous with the product.
o For instance, for quite a while, Microsoft was a significant part in working
systems and productivity programming projects. Another illustration of an
incredible product mix was Nokia that sold a wide assortment of mobile
phones across the world.
o Product mix consistency benefits the organization when they stay in a
similar product class, for instance, when Coca Cola made different kinds of
drinks, similar to Coke Zero, which was added to the product line. These
products can be focused to a similar purchaser base and conveyed through
similar channels. It sets aside the organization cash and time.
 o The advantages incorporate advancing a consistent organization picture
according to the purchaser. The organization turns into a selective supplier
of a specific product line.

Q.No.5. What is Packaging? How does packaging helps manufacturers make their products
attractive and competitive? Discuss in detail. (Marks 06)

Answer:
 PACKAGING:
 Packaging is the overall gathering of activities which move in formulating the plan of
a bundle, and delivering a proper and attractive container or wrapper for the
product. Pressing alludes to the wrapping and crating of goods before they are
transported or stored.
 Packaging is the region of the pressing capacity of marketing. It includes more than
just putting products in containers or covering them with wrappers. Philip Kotler
characterizes packaging as an action which is worried about assurance, economy,
accommodation, and limited time contemplations.
 Packaging clearly is firmly identified with labeling and branding in light of the fact
that the label regularly shows up on the bundle and the brand is commonly on the
label. A bundle characterizes the space wherein a product is contained.
 Attractiveness of Packaging:
 Packaging count an important piece of the product brand and marketing. An
extraordinary packaging can expand the product attractiveness and accordingly
influence to the readiness to purchase the product.
 Packaging is pretty much as important as the actual product. Its motivation is to
stand out from the rack or site, improve deals, give important information on the
product and increase interest. Two thirds of individuals say that the packaging
affects their purchasing choices.
 A packaging can likewise recount an entire tale about the business behind the
product and the product’s ecological, social and prudent effects. It is an apparatus to
impart organization’s qualities and extraordinary advantages that the product brings
to the shopper.
 Powerful packaging is multi-practical. At the absolute minimum, packaging must
have the option to satisfactorily contain the product inside, yet in relentless,
execution driven industries “sufficient” infrequently is.

 Five Criteria for Competitive Packaging To be fruitful, packaging should fill no less
than five distinct rules:
1) Ensure the product, which is most firmly connected with what most would perceive as
packaging’s essential capacity. Notwithstanding, product security suggests going above and
beyond past essentially encasing what’s inside. There’s a time span of usability preservation
component to it, to shield the product from outside components as well.

2) Recognize the brand, which is presumably the following most-consistent quality. A client
should know the idea of the product, yet from which organization they’re getting it. By what
other method can a firm reasonably anticipate that a client should realize that they should
purchase their product?

3) Ensure the brand, which will in general go hand in hand with distinguishing the brand for the
straightforward explanation that developed brand value adds to brand acknowledgment.
Packaging feel that are “on-brand” further empower a client to pick the correct product
from off the store rack. And a marketing division should consistently remain on-brand to
hold it back from debasing.

4) Have product Information, as any self-regarding packaging ought to incorporate a depiction

of what the shopper is buying, headings when relevant, and friends contact information, all
of which adds to convenience and a positive purchaser impression. Regardless of whether
unmistakably showing the contact information appears to be a greeting for client grievances,
the option is a lot of more terrible. Making it hard for clients to get in touch with you is
welcoming negative exposure all things being equal, regardless of whether the actual
product is wonderful from every other perspective.

5) Add to the inside effectiveness of the organization, through an assortment of variables,

similar to genuine maintainability. Packaging ought to never be a drag on activities. There
are consistently approaches to develop great plan from a cost-viability standpoint, which at
last assists organizations’ with lining lines and can fill in as a competitive preferred position,
particularly when joined with different models above.