I will try to explain the homework there are three different themes:Business Accounting; Business Analysis and Princip

I will try to explain the homework there are three different themes:Business Accounting; Business Analysis and Principles of Marketing.The books for each theme are attached and the homework also.In the homework there is 3 tasks and there are written LO(Learining outcome and the theme ,so i Also wrote the learning outcomes for each theme)

Business Analysis (EQ/05/22)

LEARNING OUTCOME 1

Identify and apply a variety of primary and secondary sources of business data

Performance Criteria

Content

1.1 Create a plan to collect primary and secondary data for a chosen business scenario.

Primary and secondary sources of data for selected scenario.

1.2 Choose an appropriate survey methodology and sampling frame/method.

Survey methodology; sample frame; sampling methods; sample error; pilot surveys.

1.3 Design a questionnaire for a given business problem.

Questionnaire design; format; accessibility.

1.4 Collect data for the above scenario.

Data collection, recording and presentation techniques

LEARNING OUTCOME 2

Apply statistical techniques and software to analyse data for business purposes

Performance Criteria

Content

2.1 Summarise data and analyse results to draw valid conclusions in a given business context.

Summarise data using measures such as mean, standard deviation, analyse data produced for LO1 and draw evidence-based conclusions. Accurately use calculation methodology

2.2 Use financial tools for decision making.

Use spreadsheet formulae and functions for business calculations: e.g. NPV, discounted cash flow, internal rate of return etc. and make recommendations based on your analysis.

LEARNING OUTCOME 3

Be able to present information for business decision making

Performance Criteria

Content

3.1 Explain your data, results and conclusions, explaining reasons for the approach taken, in a formal business report.

Formal report formats, ways to summarise and display data, conclusions drawn from data.

3.2 Prepare a business presentation using software tools to disseminate your findings to a business audience.

BUSINESS ACCOUNTING

LEARNING OUTCOME 1

Explain and apply financial accounting techniques .

Performance Criteria

Content

1.1 Explain the main financial statements.

Basic form, structure and purpose of main financial statements i.e. balance sheet, profit and loss account, cash flow statement, notes. Accurate calculation methodology.

1.2 Compare appropriate formats of financial statements for different types of business.

Sole traders, small companies, partnerships, large companies.

1.3 Interpret financial statements using appropriate ratios and comparisons, both internal and external.

Use of key accounting ratios for profitability, liquidity, efficiency and investment; comparison both external i.e. other companies, industry standards and internal i.e. previous periods, budgets. Accurate calculation methodology wherever appropriate.

LEARNING OUTCOME 2

Interpret and apply management accounting techniques

Performance Criteria

Content

2.1 Classify different types of costs.

Direct, indirect, fixed, variable, overheads, materials, labour, costs of sales etc.

2.2 Use different costing methods to calculate costs using suitable techniques.

Job, batch, process, contract, service costing; marginal, absorption, activity based, stock valuation, cost pricing. Accurate calculation methodology required where appropriate.

2.3 Select appropriate budgeting methods for an organisation and prepare budgets.

Historic, zero-based etc.

LEARNING OUTCOME 3

Apply appropriate accounting techniques in business decision making scenarios

Performance Criteria

Content

3.1 Analyse budgets and make appropriate decisions.

Analysis and monitoring of cash and other budgets.

3.2 Explain the calculation of unit costs and make pricing decisions using relevant information.

Costing and pricing decisions: calculation of unit costs, use within pricing decisions; sensitivity analysis. Calculation methodology to be accurate.

3.3 Evaluate the viability of a project using investment appraisal techniques

Investment appraisal: payback period; accounting rate of return; discounted cash flow techniques i.e. net present value; internal rate of return. Calculation methodology to be accurate wherever appropriate.

3.4 Analyse the sources of finance available to a business .

Explain possible ways to raise finance and select most suitable for a given scenario

Principles of Marketing

Stage 1 – Principles of Marketing (EQ/05/08)

Equivalent RQF Level : ____
Unit Code : EQ/05/08
Credit Value : 15

Unit Purpose : This unit enables the learner to explain the principles, costs and benefits of marketing, describe marketing processes and their application to different types of business and market, explore the components of the marketing mix and the use of market segmentation, targeting and positioning to achieve competitive advantage.

LEARNING OUTCOME 1

Evaluate the marketing concept and process.

Performance Criteria

Content

1.1 Explain the elements of the marketing concept and process.

Marketing concept: evolution of marketing; marketing orientations; societal issues and emergent philosophies; customer and competitor orientation; efficiency and effectiveness; limitations of the marketing concept; satisfying customer needs and wants; value and satisfaction; exchange relationships. Marketing process: marketing audit; integrated marketing; environmental analysis; SWOT analysis; marketing objectives; constraints; options; plans to include target markets and marketing mix; scope of marketing

1.2 Analyse the benefits and costs of marketing orientation for a selected organisation.

Costs and benefits of marketing: marketing and competitive advantage; building customer satisfaction; desired quality; service and customer care; relationship marketing; customer retention; customer profitability

LEARNING OUTCOME 2

Analyse the elements of the extended marketing mix and apply it to marketing in different contexts.

Performance Criteria

Content

2.1 Explain McCarthy’s 4 Ps: how products are developed, distributed, priced and promoted to sustain competitive advantage.

Explain McCarthy’s 4 Ps: how products are developed, distributed, priced and promoted to sustain competitive advantage.

2.2 Analyse the additional 3Ps of the extended marketing mix: people, physical evidence and process management.

Shift from 4Ps to 7Ps: people, physical evidence and process management.
B2C and B2B markets, service and product marketing, international markets and globalisation.

LEARNING OUTCOME 3

Apply the concepts of segmentation, targeting and positioning in response to marketing problems.

Performance Criteria

Content

3.1 Analyse macro and micro environmental factors which influence marketing decisions for a chosen scenario

PESTEL analysis and SWOT to identify organisational competencies.

3.2 Propose segmentation criteria to be used for products in different markets.

Bases for segmenting markets, (geographic, demographic, psychographic and behavioural); benefits of Segmentation.

]

3.3 Identify and describe a targeting and positioning strategy for a selected product/service.

Segments and targeting strategies e.g. airline and train ticket pricing, mobile phones, supermarkets.Positioning: definition and meaning; relationship to segmentation and positioning; influence over marketing mix


EduQual Diploma in Business
and Marketing Management
(SCQF Level 8)
COMBINED ASSIGNMENT ONE: Business Accounting; Business
Analysis and Principles of Marketing
Copyright © EduQual Ltd. 2016
Page 1 of 8
Contents
Assessment Guidelines
2
Context
2
Confidentiality
2
Assessment Criteria and Mark Sheets
2
Tutor Guidance
2
Word Count
2
Referencing and Professionalism
3
Plagiarism and Collusion
3
Combined Assignment 1: Business Accounting; Business Analysis and Principles of Marketing
4
Task 1
4
Task 2
4
Task 3
5
Assignment Word Count
5
Combined Assignment 1: Criteria and Mark Scheme
6
Assessment Criteria for All Assessments
8
BMM Combined Assignment 1: Business Accounting,
Business Analysis and Principles of Marketing (SCQF), Issue 1.0, March 2017
Copyright © EduQual Ltd. 2016
Page 2 of 8
Assessment Guidelines
Learners of EduQual qualifications must complete the tasks given in the assignment brief approved
by EduQual. Learners are able to request assistance from tutors about completing the tasks, mark
schemes and grade descriptors. Learners are expected to adhere to policies and guidelines set out by
the centre, which includes word/page/slide count and plagiarism/collusion.
Context
Learners are required to refer to the guidance notes and assignment brief in order to present an
answer that would fall within the required context.
Confidentiality
Learners must seek permission and advice when using organisational/business information that
would be considered sensitive or confidential within their assignments. If the organisation’s consent
is given, and anonymity is a given requirement of the organisation, then the learner must respect
this.
Assessment Criteria and Mark Sheets
The assignment brief will include the mark scheme along with grade descriptors for learners to refer
to if needed. The guidance notes before the assignment questions should be used for reference in
order to ensure that learners are equipped with the information and formats required. Learners are
requested to obtain necessary advice on assignment context, format and other supporting
information to clarify and help understand the requirements.
The assessment criteria and the mark sheets will help learners identify how and where the marks
have been allocated and allow them to structure their answers accordingly. Please note that learners
must achieve a minimum of 40% of the marks allocated for each task and that the average mark
awarded to all tasks of an assignment must be a minimum of 40% of the overall marks awarded.
Tutor Guidance
Learners are allowed one piece of feedback for draft answers they present. Any subject-related
questions relating to the module can also be directed to the tutor.
Word Count
It is mandatory that learners adhere to the specified word count given in the assignment brief within
a margin of -/+10%. For certain tasks, the assignment brief may specify the page count depending on
the task requirement and, although a word count may not always be applicable for these, the page
count must be adhered to at all times. All tables, charts, diagrams, referencing (in-text) will be
considered a part of the assignment word count.
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BMM Combined Assignment 1: Business Accounting,
Business Analysis and Principles of Marketing (SCQF), Issue 1.0, March 2017
Copyright © EduQual Ltd. 2016
Page 3 of 8
If the task requires learners to make a presentation, the word count will only be applicable to the
notes provided. The assignment questions may also specify the number of slides, in which case the
learners are also required to adhere to this.
Any supporting documents used to reinforce a learner’s answer need to be attached at the end of
the report as appendices. Such supplementary material will equip the examiner with the required
background knowledge on the information provided within the report. However, these will not be
considered for grading nor as part of the word/page count.
All assignments submitted with clear disregard for the stipulated page/word counts may be
discounted, and the learners may have to resubmit his/her work for assessment pending
revision/review of their work.
Referencing and Professionalism
To ensure that they follow a professional stance at all times, learners must:

Use the Harvard system of referencing for all citations and references (including in-text)

Use professional, formal English in presenting their work

Refrain from writing in a first-person perspective (i.e. ‘I’, ‘We’, ‘Me’, etc. should not be used
within the answer).
Learners should bear in mind that marks are awarded for professional format and presentation, and
that considerable marks can be awarded for validity and quality of referencing. Therefore,
referencing and professionalism will be assessed in every task.
Plagiarism and Collusion
Plagiarism and collusion will be considered an academic offence and will be dealt with as a serious
issue.
Plagiarism can be defined as: the presentation of the work of another author without appropriate
referencing and/or attribution (leading to the false assumption that the learner is the originator of
the text).
Collusion can be defined as a circumstance in which: two or more learners present work with
distinct similarities in concept and ideas.
Learners must have access to valid plagiarism software (i.e. Turnitin) to assess ‘similarity index’
between their work and work that has been published elsewhere. This Turnitin report must be
submitted along with their final assignment scripts for reference purposes.1
Excessive referencing (i.e. where unneeded/irrelevant) will also be considered an academic offence,
which will lead to learners being penalised in marks awarded for structure and format of their work
or, in serious cases, leading to the work of learners being discounted as unfit for assessment. Such
matters will be decided by academic panel along with EduQual.
1
Note that centres must provide their learners with access to Turnitin software or else submit learners’ work for analysis
via Turnitin upon receiving learner assignment scripts. In either case, the Turnitin report must be included with the
submission of any learner work for assessment.
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BMM Combined Assignment 1: Business Accounting,
Business Analysis and Principles of Marketing (SCQF), Issue 1.0, March 2017
Copyright © EduQual Ltd. 2016
Page 4 of 8
Combined Assignment 1: Business Accounting; Business
Analysis and Principles of Marketing
The three tasks shown below constitute 90% of the overall mark. 10% of the overall marks for the
assignment must be given to ‘Structure and Format’.
You have been asked to prepare reports and make presentations to explain the role of accounting,
related business analysis techniques and the implications for marketing to the managers of other
departments. In writing your report, you should make use of the financial data/ statements
available for your organisation and address the issues in each of the three Tasks outlined below.
Task 1
For a selected organisation, identify primary and secondary sources of data concerning costing,
pricing and investment decision- making techniques. Use business presentation tools to construct
a presentation to communicate your data, results and conclusions to an appropriate audience

Choose and plan appropriate survey methods, sampling techniques and questionnaires and
collect and collate data

Explain how appropriate accounting techniques support effective decision-making, including
pricing and investment decisions. In so doing, you should explain budgets, calculation of unit
costs, selected investment appraisal techniques and identify the sources of finance available
to a business.
Business Analysis LO1, LO2, LO3; Business Accounting LO1, LO3
Task 2
For your selected organisation, use financial and management accounting techniques to explain,
record and interpret financial data, financial statements and preparation of budgets. Your
response should feature:

Comparison of different types of financial statements and their appropriateness for different
types of business.

Explanation and application of management accounting techniques to classify and calculate
costs; to prepare budgets for your selected organisation. In your response, you should:

classify different types of cost

use different costing methods for your calculations

select appropriate budget methods for preparation of a budget
Business Accounting: LO1, LO2
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BMM Combined Assignment 1: Business Accounting,
Business Analysis and Principles of Marketing (SCQF), Issue 1.0, March 2017
Copyright © EduQual Ltd. 2016
Page 5 of 8
Task 3
For a selected organisation

Explain the elements of the marketing concept and processes, and their relation to the costs
and benefits of its marketing orientation.

Propose segmentation, targeting and positioning criteria for its products and/or services in
response to existing marketing problems/issues. (For example: how would 2 major retail
organisations such as Tesco or Marks and Spencer respond to their current problems?)

Differentiate between the marketing mix and the extended marketing mix, and explain the
role of the marketing mix in sustaining competitive advantage.
Principles of Marketing: LO1; LO2; LO3
Assignment Word Count
Task 1
Presentation, with notes and of 20 slides/equivalent maximum
Task 2, 3
2500 words across both tasks
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BMM Combined Assignment 1: Business Accounting,
Business Analysis and Principles of Marketing (SCQF), Issue 1.0, March 2017
Copyright © EduQual Ltd. 2016
Page 6 of 8
Combined Assignment 1: Criteria and Mark Scheme
Assessment Criteria
Task 1: For a selected organisation, identify
primary and secondary sources of data
concerning costing, pricing and investment
decision- making techniques. Use business
presentation tools to construct a
presentation to communicate your data,
results and conclusions to an appropriate
audience

Choose and plan appropriate survey
methods, sampling techniques and
questionnaires and collect and collate
data

Explain how appropriate accounting
techniques support effective decisionmaking, including pricing and investment
decisions. In so doing, you should explain
budgets, calculation of unit costs,
selected investment appraisal techniques
and identify the sources of finance
available to a business.
Business Analysis LO1, LO2, LO3; Business
Accounting LO1, LO3
Task 2: For your selected organisation, use
financial and management accounting
techniques to explain, record and interpret
financial data, financial statements and
preparation of budgets. Your response
should feature:

Comparison of different types of financial
statements and their appropriateness for
different types of business.

Explanation and application of
management accounting techniques to
classify and calculate costs; to prepare
budgets for your selected organisation. In
your response, you should:

classify different types of cost

use different costing methods for
your calculations

select appropriate budget methods
for preparation of a budget
Business Accounting: LO1, LO2
Marks
allocated
Typical Content
30
Primary and secondary data sources data
collection plan, Survey methods, sampling
frames and methods e.g. random, quota, quasirandom, pilot surveys
Mark
Given
Collect and record and analyse data
Types of costs and classification: materials;
labour; overheads; direct and indirect; fixed;
variable and semi-variable.
Costing methods: Job costing; batch costing;
process costing; contract costing; service costing.
Cost measurement: absorption and marginal
costing; traditional overhead absorption and
activity-based costing; stock valuation methods
(FIFO, LIFO, AVCO, standard costing).
Costing as basis for pricing and stock valuation:
cost plus pricing; market pricing; target costing.
Budgeting: Historic basis; zero-based Calculation
methodology must be accurately used and
wherever appropriate
30
Terminology: Introduction to debit, credit,
books of prime entry, accounts and ledgers, trial
balance, final accounts and international
equivalents under the International Accounting
Standards (IAS).
Financial Statements: Basic form, structure and
purpose of main financial statements (i.e.
balance sheet, profit and loss account, cash flow
statement, notes).
Interpretation: Use of key accounting ratios for
profitability, liquidity, efficiency and investment;
comparison, both external (i.e. other companies
and/or industry standards) and internal (i.e.
preceding period budget reports).
Back to Contents
BMM Combined Assignment 1: Business Accounting,
Business Analysis and Principles of Marketing (SCQF), Issue 1.0, March 2017
Copyright © EduQual Ltd. 2016
Page 7 of 8
Task 3:
For a selected organisation

Explain the elements of the marketing
concept and processes, and their relation
to the costs and benefits of its marketing
orientation.

Propose segmentation, targeting and
positioning criteria for its products
and/or services in response to existing
marketing problems/issues. (For
example: how would 2 major retail
organisations such as Tesco or Marks and
Spencer respond to their current
problems?)

Differentiate between the marketing mix
and the extended marketing mix, and
explain the role of the marketing mix in
sustaining competitive advantage.
Principles of Marketing: LO1; LO2; LO3
30
Marketing concept: evolution of marketing;
marketing orientations; societal issues and
emergent philosophies; customer and
competitor orientation; efficiency and
effectiveness; limitations of the marketing
concept; satisfying customer needs and wants;
value and satisfaction; exchange relationships.
Marketing process: marketing audit; integrated
marketing; environmental analysis; SWOT
analysis; marketing objectives; constraints;
options; plans to include target markets and
marketing mix; scope of marketing
Costs and benefits of marketing: marketing and
competitive advantage; building customer
satisfaction; desired quality; service and
customer care; relationship marketing;
customer retention; customer profitability.
Product, Price, Promotion, Place: B2C and B2B
markets; service and product marketing;
international markets and globalisation.
Shift from 4Ps to 7Ps: people, physical evidence
and process management.
B2C and B2B markets, service and product
marketing, international markets and
globalisation. PESTEL analysis and SWOT to
identify organisational competencies.
Bases for segmenting markets, (geographic,
demographic, psychographic and behavioural);
benefits of Segmentation.
Segments and targeting strategies e.g. airline
and train ticket pricing, mobile phones,
supermarkets.
Positioning: definition and meaning; relationship
to segmentation and positioning; influence over
marketing mix factors.
Structure and Format

Relevance to the tasks,
professional tone and format of
response (2 marks).
Harvard Referencing (8 marks)

In-text citation

Bibliography, listed correctly
and correlates to references
made

Accurate, correctly-formatted
footnotes

Integration of: supporting
concepts, frameworks, critical
thinking.
10
Total Mark
100
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BMM Combined Assignment 1: Business Accounting,
Business Analysis and Principles of Marketing (SCQF), Issue 1.0, March 2017
Copyright © EduQual Ltd. 2016
Page 8 of 8
Assessment Criteria for All Assessments
Marks
70-100
Criteria





60-69






50-59






40-49
30-39
0-29















The answer submitted has an outstanding result with negligible amount of mistakes.
The answer shows an appreciative level of knowledge and clear understanding of related models,
theories and frameworks. Analytical techniques used show the wide area of knowledge the learner
has.
The ability to apply and contextualise the models, theories and frameworks is clearly recognisable.
The analysis and the use of research data, as well as the ability to use the data to reach acceptable
and accurate conclusions, is exceptional.
Answers show independent thought and clarity of the learner has led to an overall focused and
evaluative answer.
The answer has followed proper Harvard referencing.
The answer shows an above average standard with few errors.
The answer shows a decent level of knowledge and fairly clear understanding of related models,
theories and frameworks. There is a very good level, and use of, analytical techniques that is obvious
throughout the answer.
The ability to apply and contextualise the models, theories and frameworks is of a good standard.
The analysis and the use of research data, as well as the ability to use the data to reach acceptable
and accurate conclusions, is above average level.
Answers show independent thought and clarity of the learner answer has led to an overall focused
and evaluative answer with little inconsistency.
The answer has followed proper Harvard referencing.
The answer shows an above average standard with errors.
The answer shows a general level of knowledge and a fairly clear understanding of related models,
theories and frameworks. There is a good level, and use of, analytical techniques that is obvious
throughout the answer.
The ability to apply and contextualise the models, theories and frameworks is of a reasonable
standard. However, the link between theory and practical knowledge appears to be
restricted/limited.
The answer shows more assumptions than conclusive deductions/evidences and valid arguments.
However, the ability to interpret and evaluate is evident.
Answers show independent thought and clarity of the learner answer has led to an overall focused
and evaluative answer with some inconsistencies.
The answer has followed Harvard referencing at an acceptable level.
There are several shortcomings throughout the answer.
The knowledge level reflected in the answer is limited, especially in understanding of related models,
theories and frameworks.
The case material has been repeated instead of evidencing knowledge.
The use of analytical techniques is inadequate.
A certain level of relevance is evidence in Harvard referencing.
Answer submitted is quite weak and lacks proper focus.
The answer shows a number of spelling errors and/or poor grammar/syntax.
The lack of understanding in subject knowledge, related models, theories and frameworks is evident.
Contextualisation, interpretation, and evaluation are of a poor standard.
Reflects only basic levels of Harvard referencing.
Requires more work on answering skills; overall output is well below the required standard. Answer
has little relevance to the assignment briefs. Spelling/syntax poor.
Little or no evidence of appropriate subject knowledge.
Use of models, theories and frameworks is quite poor.
Little to no evidence of, and/or unacceptable mistakes in, Harvard referencing.
A mark of 40% or greater can only be given where all assignment learning outcomes for
all tasks have been met.
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BMM Combined Assignment 1: Business Accounting,
Business Analysis and Principles of Marketing (SCQF), Issue 1.0, March 2017
Copyright © EduQual Ltd. 2016
PRINCIPLES OF MARKETING
1|Page
© LONDON SCHOOL OF INTERNATIONAL BUSINESS. ALL RIGHTS RESERVED
CONTENTS
Sl No
Description
PART-I
Page No
MARKETING CONCEPTS AND PROCESSESS
1
ELEMENTS OF MARKETING CONCEPT
1.1
Introduction to Marketing
1.2
Marketing Orientations
1.3
Social Issues and Emergent Philosophies
1.4
Customers and Competitor Orientation
1.5
Efficiency and Effectiveness
1.6
Satisfying Customers’ Needs and Wants
1.7
Value and Satisfaction
1.8
Exchange Relationships
1.9
Development of Marketing Function Over the Years
1.10 Limitations of the Marketing Concept
6
6
7
7
7
8
8
9
9
10
10
2
ELEMENTS OF MARKETING PROCESS
2.1
Marketing Objectives
2.2
Constraints
2.3
Options
2.4
Business Environment
2.5
SWOT Analysis
2.6
Plans to Include Target Markets and Marketing Mix
2.7
Scope of Marketing
2.8
Integrated Marketing
2.9
Marketing Audit
11
11
11
12
12
13
13
14
14
14
3
BENEFITS AND COSTS OF MARKETING ORIENTATION FOR A SELECTED
ORGANISATION
3.1
Marketing and Competitive Advantage
3.2
Building Customer Satisfaction
3.3
Desired Quality
3.4
Service and Customer Care
3.5
Relationship Marketing
3.6
Customer Retention
3.7
Customer Profitability
16
16
17
17
18
18
18
19
2|Page
© LONDON SCHOOL OF INTERNATIONAL BUSINESS. ALL RIGHTS RESERVED
PART-II
4
5
BUSINESS ENVIRONMENT & INTERNATIONAL MARKETS
MACRO AND MICRO ENVIRONMENTAL FACTORS INFLUENCING
MARKET DECISIONS
4.1
The Business Environment
4.2
Internal and External Environment
4.3
Composition of External Environment
4.3.1 Economic Environment
4.3.2 Socio-Cultural Environment
4.3.3 Political Environment
4.3.4 Legal Environment
4.3.5 Technological Environment
4.4
Techniques for Environmental Analysis
4.4.1 Competitors’ Analysis
4.4.2 Customers’ Analysis
4.4.3 Porter’s “Five Forces Method” for Competitive Analysis
4.4.4 Boston (BCG) Growth/Market-Share Analysis Matrix
4.4.5 Analysis of External Environment: PESTEL Analysis
4.4.6 SWOT Analysis to Identify Organisational Competencies
21
21
21
22
22
23
23
23
23
24
24
24
25
26
27
28
INTERNATIONAL MARKETS & GLOBALISATION
5.1
Development of International Markets
5.2
Concept of Global Business
5.3
Globalisation of Business
5.4
Conduct of International Business
5.5
Entering and Competing in Different Markets
5.6
Trade Partnerships for Entering the International Market
5.7
Policies & Regulations
30
30
31
31
31
32
33
34
3|Page
© LONDON SCHOOL OF INTERNATIONAL BUSINESS. ALL RIGHTS RESERVED
PART-III
MARKETING PRACTICES
6
MARKETING MIX: McCARTHY’S 4Ps
6.1
The Changing ‘Marketing-Thrust’
6.1.1 The Customer Concept
6.1.2 The Societal Marketing Concept
6.1.3 The Changing ‘Marketing-Thrust’
6.1.4 The Customer Concept
6.1.5 The Societal Marketing Concept
6.2
4Ps – the Four Pillars of Marketing
6.3
B2C and B2B Markets
6.4
Service and Product Marketing
6.5
Additional 3Ps of Marketing Mix
36
36
37
37
38
38
38
39
40
41
41
7
MARKET SEGMENTATION, TARGETTING AND POSITIONING
7.1
Introduction to Market Segmentation
7.2
Basis for Segmenting the Markets
7.3
Market Segmentation Process
7.4
Benefits of Segmentation
7.5
Market Targeting
7.6
Target Marketing Strategies
7.7
Product Positioning
7.7.1 Definition and Meaning
7.7.2 Relationship to Segmentation and Positioning
7.7.3 Influence Over Marketing-Mix Factors
7.7.4 Repositioning
43
43
43
44
45
46
46
47
47
47
48
49
4|Page
© LONDON SCHOOL OF INTERNATIONAL BUSINESS. ALL RIGHTS RESERVED
PART-I
MARKETING CONCEPTS AND PROCESSESS
5|Page
© LONDON SCHOOL OF INTERNATIONAL BUSINESS. ALL RIGHTS RESERVED
UNIT 1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
ELEMENTS OF MARKETING CONCEPT
Introduction to Marketing
Marketing Orientations
Social Issues and Emergent Philosophies
Customers and Competitor Orientation
Efficiency and Effectiveness
Satisfying Customers’ Needs and Wants
Value and Satisfaction
Exchange Relationships
Development of Marketing Function Over the Years
Limitations of the Marketing Concept
Marketing is an important business function of an organisation. It is the marketing function which
identifies potential customers in various markets for the goods and services produced by the
organisation. A business organisation earns revenue for profit generation through its marketing of
goods and services.
Marketing deals with ‘identifying’ and ‘meeting’ requirements of the customers for products and
services. In old times, the market team used to go directly to the customers. But over period of time,
professional function of marketing developed, where the customers used to be contacted through
middlemen and the retailers. Basically, marketing today means identifying and reaching out to the
potential customers and influencing them to buy the goods and services produced by the business
organisation.
1.1
Introduction to Marketing
Marketing is basically a group of activities undertaken for designing/creating the goods & services,
promoting, creating demand and finally delivering the goods and services to the customers needing
these in exchange of money. Marketing persons are responsible for promoting the goods & services
created by the business organisation, and creating demand for these among the people.
The people who need such goods and services to meet their requirements, and who are willing to
buy these in exchange of money are called the customers. There may be more than one business
organisation to provide same or similar products/services for meeting the requirements of the
customers. Each of such organisations tries to attract their customers to buy their products/services.
Such organisations are called the competitors.
In simple words, the sum total of (i) customers and (ii) competitors supplying the goods and services
to the customers is called the market. Generally, the marketing organisations (the competing
organisations) quote a fixed money value for their goods and service, which is called their price.
Some marketing organisations may offer some discount over such price, in certain conditions.
According to Peter Drucker, “aim of marketing is to know and understand the customers so well that
the products or services fit him and sell on their own”. Objective of marketing is to understand the
customers so well that the goods and services may be created very close to what they desire to buy.
6|Page
© LONDON SCHOOL OF INTERNATIONAL BUSINESS. ALL RIGHTS RESERVED
1.2
Marketing Orientation
Business organisations are established for generating revenue and profit by providing goods and
services to the customers for meeting their needs and wants. Therefore, the business management
has an orientation for meeting customers’ requirements when numbers of competing organisations
are attempting to address to the customers’ needs and wants.
Thus, the business is planned, organised and managed with marketing orientation. Goods and
services are created based on market information regarding customers’ requirements. Business
strategies are planned keeping in view the marketing environment and competitors’ business plans.
1.3
Social Issues and Emergent Philosophies
As business is oriented towards meeting customers’ requirements, business have social relevance. It
is said that that every business organisation has responsibilities towards the society. Business firms
take their inputs and resources form the society, and sells their produce in the society. Therefore,
they must ensure that their activities do not cause any type of harm or adverse effect on natural
resources and to the environment.
Business is conducted through social network comprising of various stakeholders namely customers,
suppliers, employees/workers, financiers, and other segments of society. Therefore, business
organisations are expected to build social and ethical considerations in their marketing practices.
They are expected to create balance between (i) profit earned, (ii) customer satisfaction provided,
and (iii) other issues of societal interest.
It has been noticed that industrialisation and associated business have caused adverse effect on the
environment in form of ‘environmental pollution’ and ‘global warming’. Further, natural resources
have been exploited in a manner that there is now increased risks of floods, land-slides, and erosion
of glaciers etc.
Thus numbers of social issues and concerns are now being discussed openly where enough damaged
has been caused due to unplanned business activities. Henceforth, a common view is emerging
world-over that business companies firms have corporate social responsibilities (CSR) which they
must address and comply.
1.4
Customers and Competitor Orientation
As business runs around the customers, business firms make considerable efforts in understanding
customers’ needs and wants, which they wish to satisfy through their business efforts. Markets may
have other organisations who are providing same or similar goods and services for meeting the same
need and want of the customers. They are called the competitors operating in the market.
Thus, the business is organised in a particular market for meeting the needs and wants of the
customers, where other firms are also competing to satisfy the customers. This is shown in the figure
given on the next page.
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MARKETS
COMPETITORS
CUSTOMERS
Figure: Customer & Competitor Orientation in the Market
As seen in the figure above, markets are influenced by competitors and competitors. Market
provides a platform for business firms to supply their goods and services to the customers who are
interested to buy these in exchange of money. Other business firms also attempt to meet the same
‘wants and needs’ of the customers, and are therefore called the competitors. The customers have
choice to buy the good and services from any of the business firm. The competing firms try to
improve their offerings for the customers, by providing better quality and/or changing lesser price.
1.5
Efficiency and Effectiveness
In the marketing drive, the business firms compete on the basis of: (i) quality, and (ii) price. This dual
objective can be achieved only when business related operations are executed by eliminating the
avoidable efforts and activities. This refers to efficiency of business operations. Here efficiency
means doing the right things (and not doing the avoidable). Therefore, business firms must be
efficient in their marketing activities.
As market has competitors selling the same or similar goods and services. “Doing the right thing” is
not the complete answer for success. Business firms must ensure that their marketing efforts are
successful in attracting the customers to buy its goods and services. This is possible only if
customers find the “right things in business offering of a firm”, as required and valued by the
customers. This is called “being effective”. Therefore, business firms must also “do the things right”
for being effective in winning the customers.
Therefore, two attributes essential for business firms to succeed in marketing operations are:
 Efficiency in business operations and activities; and
 Ensuring effectiveness in attracting the customers, inspite of competitors’ efforts and
strategies.
1.6
Satisfying Customers’ Needs and Wants
The term “needs” refers to be “basic requirements of the customers as humans”. For example, the
customers need food, clothes, shelter etc to survive. There are other needs like needs for education,
relaxation, travelling and entertainment.
There may be many ways for satisfying a need. Different persons may prefer different ways for
need-satisfaction. Such preferred ways to satisfy a need is what a particular customer wants (to
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satisfy his needs). This becomes the “wants” of the customer. For example, food is what a customer
needs when hungry. But a customer may want “burger” to satisfy his hunger. Thus, food is the need
of the customer, but burger is what he wants. Thus, ‘wants’ are shaped by customers’ background,
social grouping/customs, nationality & ethnic habits. Wants are not fixed and may change over a
period of time.
Therefore, customers buy a product or service when they feel some need or unfulfilled want. As
marketing & sales are based on some goods & services, which must be created taking in view the
needs & wants of the customers. But different products and services may satisfy the needs & wants
of different persons in a different way. Therefore, business firms create their goods and services in
such a way that these satisfy the needs & wants of maximum number of the customers, among
whom their products/services are proposed to be sold. However, rather than using the term
“satisfying”, degree of satisfying is more relevant in real life situation. Therefore, business firms
aim at achieving maximum degree of “customer satisfaction” through their goods and services.
1.7
Value and Satisfaction
A customer likes to buy a product or service when, in his opinion, it delivers value (usefulness) to
him and provides adequate satisfaction of his needs and wants. The primary criteria is delivering
satisfaction to the customer or providing adequate degree of satisfaction.
Satisfaction refers to high degree of satisfaction to the customer. But relative satisfaction or degree
of satisfaction is not easy to determine or to measure. Therefore, another term “value” is used to
understand the customers’ perception with respect to the goods or services. Customers’ value is the
term used more often in this regard for purpose of clarity.
Value is measured through customer’s perception of quality, service, and price. Value is perceived
to be getting increased when higher level of quality and service are provided. It is perce