HARAMAYA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING &FINANCE
Individual Assignment for Principles of Marketing course

NAME ID.NO
ENDESHAW ASRAT 034/14

1. Market segmentation divides the market into subgroups of individuals who share similar
needs, wants, and characteristics.
It is the marketer's goal to identify the appropriate subgroups of consumers. There are four ways
of segmenting consumers

Demographic segmentation
This is one of the most widely used segmentation methods. Demographic segmentation divides
consumers into groups based on
Characteristics such as: Age sex income family size, occupation, etc.

Geographic segmentation
This divides the market based on geographical aspects. Geographic segmentation can be a
helpful tool for marketers, as certain customers from different parts of a country could have
different wants and needs. Geographic segments include: country City, neighborhood, and
climate.

Behavioural segmentation
This breaks down the market into subgroups based on consumers' behavior when making
purchase decisions. It can be based on: occasions, user status, usage rate, loyalty.

Targeting. involves deciding which customer segment or market the firm should be aiming at.
Once a firm identifies all market segments, it must determine which ones to target and how
many. This strategy aims to identify small, well-defined target groups.

Targeting is also important because it is essential to select which customer segment is most
attractive from a marketing perspective.

Positioning involves determining where the brand or product stands affecting others in the
market.
Positioning is a vital part of marketing strategy, as it influences how customers perceive your
product offering. It is directly related to your value proposition.

Advantages of Segmentation
1. The process of breaking up a homogeneous market into heterogeneous segments forces the marketer to
analyze and consider both the needs of the market and the company’s ability to competently serve those
needs – thereby making the company better informed about its customers
2. Competitor offerings and marketing positioning must also be analyses in this context so the company
must consider what its competitive advantages and disadvantages are, helping it to clarify its own
positioning strategy
3. Limited resources are used to best advantage, targeted at those segments that offer t the best potential
management.
2. Marketing Mix
 What is the Marketing Mix?
 The 7Ps of Marketing Mix
 Why is the marketing call Controllable?
 Analysis of the marketing mix of Coca Cola factory?
2. Product, Price Place, Promotion, People, Process, and Physical evidence are the 7 Ps of
marketing mix. The same mix can ales are considered for online marketing mix as well. Below
we are discussing each P and how it contributes to effective marketing strategies.
1. Product.
The first P, Product, refers to the goods or services that a business offers its customers. In other words,
the product is the physical or intangible offering that a business sells to its customers
2. Price.
The price is the amount of money that customers pay for a product. It is important to set a price that is
both competitive and profitable.
3. Place.
 It can be a physical store, an online store, or a combination of both. The goal of this P is to make the
products easily accessible to customers.
4. Promotion.
The various marketing channels used for promotions include advertising, public relations, sales
promotion
5. People.
The people are the employees, customers, and other stakeholders who interact with a business.
It is important to create a positive and memorable experience for these people.
6. Process.
Refers to the procedures and steps involved in delivering a product or service to the end-user.
It is important to streamline the process and make it as efficient as possible.
7. Physical Evidence
Refers to the tangible aspects of a product, including packaging, branding, and more. Ensuring the
tangible aspect of a product aligns with the customer’s perception of the brand is essential in setting the
business apart from competitors.

Marketing control is a process of comparing actual performance of marketing department

with standards to find our degree of deviation, and, if necessary, corrective actions are taken.
Need and importance of marketing control can be explained in relations to the points listed below:

 To achieve objectives.
 To make the plan successful.
 To prevent mistakes to occur.
 To formulate and modify marketing strategies.
 To rectify mistakes.
 To adjust with external environment.
 To take maximum advantages of company’s strengths.
 To verify policies, rules, objectives, and strategies.
 To measure and evaluate effectiveness of marketing efforts.
 To keep employees alert and active, or to apply psychological pressure.
 To achieve better coordination.
 To keep the organization active and engaged.
 To make managers responsible, regular, and disciplined.
 To apply new ideas and methods for better performance.
 To prevent unexpected events to occur, etc.

3. Determine an advantage for using a product life cycle mode.

Product life cycles can be self-fulfilling; each stage has a set of recommended actions.
Consequently, when a product begins to behave as if it is in a decline, managers might decide to
discontinue that product, because that is the protocol. Product life cycle can be defined as the
analysis of the complete life span of a product. It is divided into five stages, i.e., development,
introduction, growth, maturity and decline. It is an essential tool for analyzing the prospective
success or potential of a new product through research and development.
4. Identify key aspects of affective Consumer buying and Business buying behavior?
Buying Behavior is the decision processes and acts of people involved in buying and using
products.

Need to understand:

Why consumers make the purchases that they make?

What factors influence consumer purchases?

The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm
needs to analyze buying behavior for:

 Buyer’s reactions to a firms marketing strategy has a great impact on the firm’s success.
 The marketing concept stresses that a firm should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore need to analyze the what, where, when and
how consumers buy.
 Marketers can better predict how consumers will respond to marketing strategies.

Business buying behavior

Organizations that purchase goods and services for use in the manufacture of other products and
services that are sold, leased, or supplied to others are referred to as business buyers.

Organizational buying is also known as institutional buying or business-to-business (B2B)

buying. The process starts when a company or organization determines a need for goods. Then
they gather details to compare and contrast products and services from competing brands.
Finally, they make a final purchase decision.

Organizations purchase goods and services for internal use as well as for use in the
manufacturing process to provide a finished product or service for end-users. When the goods
are used in their own manufacturing process, the purchase process is referred to as industrial
buying.

In some ways, organizational buying is similar to individual customer buying in that it is not
the organization that makes the purchasing decisions, but people from all levels of the
organization are involved in the process.

5. Critically analyze and evaluate consumer and customer management practices adopted
by the company and how consumers react to individualized consumer organization
interaction
Consumer behavior is important because it helps marketers understand what influences
consumers' buying decisions. By understanding how consumers decide on a product, they can fill
in the gap in the market and identify the products that are needed and the products that are
obsolete.
Customer interaction management is the strategy that allows businesses to facilitate customer
communications across their entire customer journey, aggregating interactions on channels like
self-service portals, chat bots, SMS, phone calls, email, and messaging.
Customer management is the processes, practices, systems, and applications that a company
uses to manage its relationships with existing customers and new prospects. Customer
management strategy can build lasting customer relationships and grow your business.

Building relationships with customers is typically accomplished with marketing campaign

management tools such as CRM and others. A successful CRM strategy combined with customer
management strategies results in customer success.

6. The future trends have differing impacts on society, economy, environment, business, on
local, regional and global levels.

These long range future development directions are called megatrends. Future trends have huge
impacts on global and national economies and will lead to technological and structural changes
in most business areas, service industries included.

The decade of banking after that we will witness a radical transition from traditional banking to
brand-new and hyper-personalized experiences. The financial economy is already boosted by
fetch innovation, increasing business-to-consumer and consumer-to-consumer payments.

People expect more channels, and faster and personalized responses without long wait times.
Banking customers want their financial institutions to provide more than just basic service – they
want insights, guidance, and relevant recommendations.

n the banking industry, where technology continues to evolve the way we handle personal and
business finances, quality customer care includes keeping pace with both live and digital options
for handling simple to complex transactions.

In order to make the most of customer engagement, banks must be proactive, use technology to
their advantage, and encourage customer feedback. By doing so, they will be able to improve
their customer relationships and increase their bottom line.