Attemptthe following QuestionsQn.1GiganManufacturers Ltd. has been in existence for the last 20 years. The company hasa Heavilydiversified portfolio made up of three product lines; Homecare, Body care andAuto care.
Two months ago a decision was arrived at to introduce new productfeatures to products in its auto care line. A newly recruited marketing managerwas of the opinion that this introduction of new features should be preceded bymarket research to get customer inputs, but the other managers who have been inthe company for longer feel that this is not necessary since according to themcustomers are interested in product availability and cost and not features.Required; identify and discuss the marketingphilosophy/concept that appears to guide The management of Gigan Ltd. (10 mks) Answero Production ConceptProduction concept/philosophy is based on the factthat consumers will choose products that are readily available and of low cost.Hence businesses are encouraged to mass produce while enjoying the benefits ofeconomies of scale resulting to lower prices.
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o The Management of Gigan Ltd feels that market researchis not necessary since according to them customers are interested in productavailability and cost and not features: this is a clear manifestation thatproduction concept is guiding their marketing philosophyo Features of production concept include, mass production,low prices and intensive distribution strategy, thus the management of Gigan ltddwells on the fact that customers are always interested in product availabilityand cost but not features. Qn.2 Explainhow pricing and the product elements of the marketing mix perform the functionof promotion. (10 mks)o Promotion referrers to marketingcommunications, it’s the element in an organization’s marketing mix that servesto inform, persuade, and remind themarket of a product and/or the organizationselling the product, in hope of influencing the target audience/recipientsfeelings, beliefs, or behavioro Product, price, place and promotion arethe elements of the marketing mixUseof Price promotion in promotiono Pricing is one of the most powerfulpromotion strategies in existence,o Promotion pricing: promotionpricing involves reducing the actual prices of a product or service for ascertainduration. this reduction in price will lead to an increase in demand from pricesensitive customers. Mostly used when launching a new product of product line.o Types of promotional pricing include: buyone get one free, coupons, point-of-salediscounts, loyalty schemes, trade promotions etc.
o Pricing incentives aregenerally intended to bring in customers, drive revenue and cash flow and turnover stock. They should usually be considered as a short-term approach forcompanies, though some retailers use recurring promotional pricing as a way tomaintain ongoing purchases from price sensitive buyers. Qn.
3 Marketingis concerned more with the management of perceptions than reality….(Anonymous). Discuss this statement (10mks)Answero Perception is the way people see the worldaround them, very so often it is equated to reality and guides human behaviorin general.
o When selling a product or service itsimportant to understand the concept of perceptiono It is vital to understand the fact that amarketer 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/shewants customers to have.o It’s important to understand that perceptionmay not be true but if consumers perceive something to be real, then this formstheir reality.o One of the ways in which marketers manage consumerperceptions of a product is through branding. Branding is the way people seeyour product or service and goes beyond just a logo!o Through consumer perceptions of things andreality, marketers get a glimpse of the fact that marketing is all about managementof people’s perception of products and services and not just the productitself.