Introduction

In this assignment we will going to see different topics and after we see those topics
we will have a good Understanding of them. First we will see what marketing
myopia means and how can it be avoided next, we will define the five types of
customer markets with examples then, we will briefly explain how the market structure and
demand differ for business markets compared to consumer markets, we will describe the four
major sets of variables that might be used in segmenting consumer markets and What a brand
means? How does branding help both buyers and sellers?, finally we will List and briefly
describe the five major promotional mix elements.
Q-1. What is marketing myopia, and how can it be avoided?
Answer.

Marketing myopia is a short-sighted and inward approach to marketing that focuses on the
needs of the business rather than on the needs of the customer. It often leads to businesses
making decisions that are not in the best interests of their customers or that fail to take into
account changes in the marketplace.

It refers to a narrow focus on a company's products or services rather than on the needs and
wants of its customers. In other words, it occurs when a company becomes too inwardly focused,
and fails to see the bigger picture of what its customers really want.

It comes in when short-term marketing goals are given more significance than long-term goals.
It is also a situation when a company has a conventional marketing approach and it focuses
mainly on only one aspect out of many possible marketing attributes. What this simply means is
that the company has placed more focus on its products without taking into consideration its
buyer’s really needs.

It is a situation where market technique and concentration depend primarily on a single element
(product) than on the needs of the buyers.

It suggests that businesses will do better in the long-term if they concentrate on improving the
utility of a product or good, rather than just trying to sell their products.

The concept identifies companies that only focus on short-term goals and strategies, neglecting
to address their customers’ needs and desires.

How to Avoid Marketing Myopia

Here are some specific ways that companies can avoid marketing myopia:

1. Always Put the Customer First

We don't have to think about being customer-centric: the key is being customer-first. Always we
have to do everything around our customer: their needs, their wants, their expectations, their
frustrations, their problems. If we are getting feedback that what we offer doesn’t satisfy our
customers,we have to work hard to rectify it — and follow up with a new and improved version
of our products or services.

2. Define a Clear, Realistic Plan and Vision

 This is crucial to avoid marketing myopia. Regardless of how well our company is doing today,
we still need to have a clear vision for tomorrow. We have to try to anticipate any potential
issues and opportunities, and come up with creative, productive ways to handle them.

3. Keep a Close Eye on Our Competitors

“Keep your friends close, and your enemies closer” works a treat in marketing. So, we should
always monitor our rivals if we want to avoid marketing myopia.

■ What are they up to?

■ Are there any new threats or opportunities for you?

4. Embrace Change and Innovation

Trying something new can be daunting, especially when our business is concerned. But, as they
say, “fortune favors the brave” — so we have to be brave and invest in changes and innovations
that make sense for our brand. Experimenting can also show our customers the lengths we are
willing to go in order to satisfy their ever-changing needs and wishes, which in turn boosts
customer loyalty and satisfaction.

5. Incorporate the customer into Our plan

When planning a great marketing strategy, we have to keep the client in mind. When developing
products and marketing techniques, we should try to consider the customer’s point of view. We
could also solicit client feedback. When businesses prioritize client connections and satisfaction,
they can achieve more effective long-term growth.

6. Keep up with market developments

Customers’ desires may alter as the market changes. Customers, for example, may desire extra
services from businesses as technology evolves. We should consider subscribing to marketing
news or undertaking frequent market research to stay up to date on these trends. We may build
marketing strategies and goods that fit our clients’ requirements and demands by knowing about
trends and changes.

7. Conduct market research: Companies should conduct market research to gain a deeper
understanding of their customers' needs, wants, and preferences. This can include surveys, focus
groups, and customer interviews.

8. Focus on customer outcomes: Companies should focus on the outcomes that their customers
want to achieve, rather than just the features of their products or services. By understanding what
their customers are trying to achieve, companies can develop products or services that help them
reach those goals.
9. Emphasize customer experience: Companies should focus on providing an excellent
customer experience, from initial contact to post-purchase support. This can include things like
responsive customer service, easy-to-use products, and clear communication.

10. Stay adaptable: Companies need to be adaptable and willing to change as the market and
customer needs evolve. This means being open to new ideas, technologies, and business models,
and being willing to pivot when necessary.

Q-2. Describe the five types of customer markets with examples.

Customer markets can be broadly classified into five types;

1. consumer market: These are markets in which individuals or households purchase products
or services for personal consumption.

Examples of consumer markets include:

■ clothing, food, and housing.

■ Food, drinks, beverages, legal, health and financial services, clothes, etc

2. Business Markets or Industrial markets: These are markets which buy goods and services
for further processing or for use in their production process or markets in which businesses
purchase products or services for use in their operations or for reselling to other businesses or
consumers. Typically, business markets facilitate sales from one business to another in cases
where one business plans to reuse or resell another company's products or services.

Examples of business markets include:

■ The raw materials used in the production of goods, office supplies, and equipment

3. Reseller Markets: These are markets which buy goods and services to sell at a profit. the
market consists of wholesalers and retailers who buy products for resale purposes.

Eg. ■ The retail industry, which comprises of Supermarket chains, Specialty stores,etc

4. Government Markets: These are markets which are made up of government agencies that
buy goods and services to produce public services or transfer the goods and services to others
who need them. they are also markets where the main buyers are federal, state, and local
governmental organizations. They purchase goods or services from private businesses.

Eg. ■ The Postal Services, which is a government agency.

■ Military equipment, public transportation, and utilities.

5. International Markets: These are markets which consists of these buyers in other countries,
including consumers, producers, resellers, and governments or markets in which products or
services are sold across national borders.

Eg. ■ The export of automobiles from Japan to the United States

■ The import of bananas from Ecuador to Europe

Q-3. Explain how the market structure and demand differ for
business markets compared to consumer markets.
Answer.

Like many well-known business organizations, they sell their product to other businessorganization.
Even in consumer products companies also sell most of their product in other businesses. This way
refers to business buyer behavior of any organization. This organization buys goods & services for
further process, sold, rented or supplied to others. This also includesin retailing & wholesaling business
behavior.

In the business buying process, buyers decide which types of product they need when they try tofind out
that product, evaluate, and choose the best alternatives. B-2-B marketers mustunderstand the business
markets & business buyer’s behavior very efficiently. Then they sell thefinal output to the final
customer. They always try to build profitable customer relations withtheir customers by delivering
superior customer value.

Business markets

The business market is higher than the consumer market because business market involvesmillion
dollars & items than in consumer markets. For example: Think about the Unilever. It hasall types of
consumer’s goods item & every year Unilever earn million dollars. But think aboutGoodyear. A large
number of the business transaction occurs only for Goodyear tires, steel,rubber. Goodyear has a high
demand in the business markets. Thus many business buyers buyonly for resale the products.

In another way, business markets are the same as consumer markets. Because both are involvedin
buying & selling decisions to satisfy the needs. The main differences between business market&
consumer’s markets are;

1. Market structure & demand

2. Nature of the buying unit

3. Types of decisions & the decision process Market structure & demand

Business marketers generally work more than consumer marketers. The business marketer dealswith a
large number of buyers but they stay far fewer. Besides, the demand for the business market is different
from the consumer markets. The business market always faces a derived demand. Derived demand
means that demand usually comes from the demand for consumergoods.

Another business market may face inelastic demand & more fluctuating demand. These types ofdemand
effect on price changes only for the short run. A reduction in price may not increase the purchase of that
product unless the demand for this product existing in the markets.

Nature of the buying unit

Here, every time compared with the consumer market, the business market involves in two wayslike –

■ More decision participants

■ More professional purchasing effort

There are some trained agents who purchase a product that can perform better. If there are toomany
agents, the buying decision may be more complex. That’s why the buying committeesselect expert
people for their work.

Types of decisions & the decision process

Than consumer buyers, business buyers face more complexity in buying decision. A business buyer
usually buys a large number of inventories, invest large sums of money, adopt technical &economic
considerations, and interact with many people in the different channel of theorganization. This process
is so longer & more formalities need to do. Even, a large businessorganization maintains a formal
written approval with other partners.Finally, buyer & seller depends on each other in the business
markets.

Q-4. Name and describe the four major sets of variables that might
be used in segmenting consumer markets.
Answer.

The four major sets of variables that might be used in segmenting consumer markets are:-

1. Demographic Variables: These are the most commonly used segmentation variables and include
characteristics such as age, gender, income, education, occupation, family size, and ethnicity. Companies
use demographic variables to identify groups with similar needs and preferences.

2. Geographic Variables: Geographic segmentation is based on where consumers live, work, or play. The
variables used in geographic segmentation include country, region, city or town size, climate, and
population density. Companies use geographic variables to identify consumers in specific locations and
to tailor their marketing strategies to meet the needs of those consumers.

3. Psychographic Variables: Psychographic segmentation is based on consumers' lifestyle, personality,

values, attitudes, and interests. Companies use psychographic variables to identify consumers with
similar lifestyles, preferences, and values and to create marketing campaigns that appeal to those
consumers.

4. Behavioral Variables: Behavioral segmentation is based on how consumers behave towards a product
or service. The variables used in behavioral segmentation include usage rate, loyalty, benefits sought,
occasion, and readiness to buy. Companies use behavioral variables to identify consumers who are most
likely to respond to their marketing efforts and to develop marketing campaigns that meet those
consumers' needs.

Q- 5. What is a brand? How does branding help both buyers and

sellers?
A brand is a name, term, design, symbol, or other feature that identifies a product or service and
distinguishes it from those of other companies. It represents the essence of what a company
stands for, including its values, culture, and reputation. A strong brand can create an emotional
connection with consumers, build loyalty, and increase the perceived value of a product or
service.

Branding helps both buyers and sellers in several ways:

1. For buyers, branding provides a way to identify and differentiate products and services. A
strong brand can signal quality, reliability, and trustworthiness, making it easier for consumers to
make purchasing decisions.

2. For sellers, branding can help to create a unique identity and differentiate products or services
from competitors. A strong brand can also create customer loyalty, which can lead to repeat
business and positive word-of-mouth recommendations.

3. Branding can also help to establish a premium price point for a product or service, as
consumers are often willing to pay more for products with strong brand recognition and positive
associations.

4. Branding can also help companies to build a strong reputation and increase their overall brand
equity, which can lead to increased market share, profitability, and long-term success.
In summary, branding is a critical aspect of marketing that helps both buyers and sellers by
creating a unique identity, establishing trust and loyalty, and increasing the perceived value of a
product or service.

Q-6.Name and describe the major steps in the new product

development process.
Answer.
The new product development process typically involves the following major steps:

1. Idea Generation: This is the first step in the new product development process. Ideas can
come from a variety of sources, such as customers, employees, suppliers, and competitors.
Companies can also use market research and other tools to generate new product ideas.

2. Idea Screening: Once ideas are generated, they need to be evaluated to determine their
feasibility and potential market demand. This involves screening ideas to determine if they align
with the company's goals, resources, and capabilities.

3. Concept Development and Testing: At this stage, the company develops a detailed concept
for the new product and tests it with potential customers to gather feedback and refine the
concept.

4. Business Analysis: In this step, the company evaluates the potential market size, pricing,
costs, and profitability of the new product. This analysis helps to determine if the product is
financially viable and whether it is worth investing resources in further development.

5. Product Development: This is the stage where the product is actually developed. This
includes designing the product, creating prototypes, and testing the product to ensure it meets
quality standards.

6. Test Marketing: Before launching the product to the market, test marketing is conducted to
get feedback from a small group of customers to identify any potential issues and refine the
marketing strategy.

7. Commercialization: If the product passes the test marketing stage, it is launched into the
market. This involves finalizing the marketing plan, setting up distribution channels, and
launching the product to the target market.

8. Post-Launch Review: After launching the product, the company evaluates its performance in
the market and gathers feedback from customers to identify any issues and make necessary
improvements.
In summary, the new product development process involves several stages, from idea generation
to post-launch review, and requires careful planning, testing, and analysis to ensure the success
of the new product.

Q-7. Name and describe the types of costs marketers must consider
when setting prices. Describe the types of cost-based pricing and the
methods of implementing each.
Answer.

Types of Costs Marketers Must Consider When Setting Prices:

1. Fixed Costs: These are costs that do not vary with changes in production or sales volume,
such as rent, salaries, or insurance.

2. Variable Costs: These are costs that vary with changes in production or sales volume, such as
raw materials, shipping, or packaging.

3. Total Costs: This is the sum of fixed and variable costs for a given level of production or sales
volume.

Types of Cost-Based Pricing:

1. Cost-Plus Pricing: This involves adding a markup to the total cost of a product to determine
its selling price. The markup is typically a percentage of the total cost and is intended to cover
overhead and generate a profit.

2. Marginal Cost Pricing: This involves setting the price of a product equal to its marginal cost,
which is the additional cost of producing one more unit of the product. This method is often used
for short-term pricing decisions, such as clearing out excess inventory.

Methods of Implementing Cost-Based Pricing:

1. Markup Pricing: This involves adding a markup to the total cost of a product to determine its
selling price. The markup is typically a percentage of the total cost and is intended to cover
overhead and generate a profit.

2. Target Return Pricing: This involves setting a price that will achieve a specific return on
investment (ROI) for the company. The price is determined by dividing the desired ROI by the
expected sales volume and adding the result to the cost per unit.
3. Breakeven Pricing: This involves setting a price that will cover all of the company's fixed
and variable costs, but will not generate a profit. The price is determined by dividing the total
cost by the expected sales volume.

In summary, cost-based pricing involves setting prices based on the costs associated with
producing and selling a product. The types of costs marketers must consider include fixed costs,
variable costs, and total costs. The methods of implementing cost-based pricing include markup
pricing, target return pricing, and breakeven pricing.

Q-8. List and briefly describe the five major promotional mix
elements.
Answer.

1. Advertising: This element involves using paid messages to promote a product or service
through various channels such as television, radio, print media, outdoor advertising, online
advertising, and social media.

2. Sales Promotion: This element involves creating short-term incentives to entice customers to
purchase a product or service. Examples include discounts, coupons, contests, loyalty programs,
and free samples.

3. Personal Selling: This element involves engaging potential customers face-to-face with the
goal of selling a product or service. Personal selling can take place in a variety of settings such as
in a store, over the phone, or through web conferencing.

4. Public Relations: This element involves building a positive image for a company or brand
through various tactics such as media relations, press releases, events, sponsorships, and
charitable activities.

5. Direct Marketing: This element involves reaching out to potential customers directly through
channels such as email, direct mail, telemarketing, and mobile messaging. Direct marketing
allows for personalized messages to be delivered to specific target audiences.

Summary
Marketing myopia is a short-sighted and inward approach to marketing that focuses on the
needs of the business rather than on the needs of the customer. It refers to a narrow focus on a
company's products or services rather than on the needs and wants of its customers. We can
avoid marketing myopia through different ways such as by always putting the customer first,
Defining Clear, Realistic Plan and Vision, Keeping a Close Eye on Our Competitors, Keeping
up with market developments, etc..

There are five types of customer markets include consumer markets, business markets, reseller
markets, government markets and international markets.

A brand is a name, term, design, symbol, or other feature that identifies a product or service and
distinguishes it from those of other companies. It represents the essence of what a company
stands for, including its values, culture, and reputation.

REFERENCE
1. Principles of marketing pdf.

2. Https//www.businessyield.com

3. Https//www.economywatch.com