Question 1: Consumers do not buy drill bits-they buy ways to make

holes. Assuming that this is true, what are consumers really

purchasing when they buy the following four items?

a. A pair of sneakers - comfort

b. Lipstick protection, statement, style
c. A life insurance policy - intelligence, farsightedness
d. Wrangler jeans - brand, statement, attitude

Question2: You are the marketing manager of HDFCs Online Banking

Division. How would you apply the concepts of providing value and
customer satisfaction and retention to designing and marketing
effective online banking?

1) The website should be easy to use, not overloaded with stuff.

2) The website should provide a single sign on to all the products that the HDFC bank
provides to a customer i.e. all the products/services opted by the customer should be
available through a single username/password. Like details regarding CASA, credit
cards, debit cards, insurance etc should be linked to the same online account.
3) The website should be such that it provides the customer everything without
physically going to the bank. Like the customer wants to order a demand draft,
he/she doesnt need to go to the bank. They can order online and reaches to them at
the specified time frame. Value comes in the form of no charges for making DD, no
psyche costs, no transportation costs, etc.
4) Certain offers should be available through online usage only like credit points for
paying bill through their website and not by giving cash at the retail counter.
Receiving account statements on the online account rather than receiving paper
based statements. Doing this they would receive points for shopping etc. These are
the win-win situations for both i.e. bank and the customer.
5) All the user preferences should be remembered by the website so as to make it a
unique experience, a customized/personalized feeling.
6) The website should provide a strong customer complaint system which is very
responsive. In case the customer is finding some kind of difficulty, then the website
should provide proper mechanism to help the customer. This greatly helps bank to
retain the customer and provide high customer satisfaction.
7) Create customer tiers based on based on volume and consumption patterns like
silver or gold account members.
8) Linking all the products available on the website tends to make customer highly
dependable on website of HDFC bank. This makes the customer to get retained with
the bank.
9) Summing all the above points, the value provided to the customer as the perceived
benefits are very high as compared to the costs.
Question3: Locate two examples (e.g., advertisements, articles, etc.)
depicting practices that are consistent with the societal marketing
concept and two examples of business practices that contradict this
concept. Explain your choices.

The societal marketing concept requires that all marketers adhere to principles of social
responsibility in the marketing of their goods and services; that is, they should endeavor to
satisfy the needs and wants of their target markets in ways that preserve and enhance the
well-being of consumers and society as a whole. The societal marketing concept advocates a
long-term perspective, recognizing that all companies would be better off in a stronger,
healthier society, and that companies that incorporate ethical behavior and social
responsibility in all of their business dealings attract and maintain loyal consumer support
over the long term. Ethical and socially responsible practices are simply good business,
resulting not only in a favorable image, but ultimately in increased sales.

The societal marketing concept

1: Body Shop: Body Shop is a cosmetic company found by Anita Roddick. The company uses only
vegetable based materials for its products. It is also against Animal testing, supports community trade,
activate Self Esteem, Defend Human Rights, and overall protection of the planet. Thus it is completely
following the concept of Societal Marketing.

2: Ariel: Ariel is a detergent manufactured by Procter and Gamble. Ariel runs special fund raising
campaigns for deprived classes of the world specifically the developing countries. It also contributes part
of its profits from every bag sold to the development of the society.

Contradicting the societal marketing concept

1. Tobacco Ads
2. Alcohol Ads

Question 4: How are market segmentation, targeting, and positioning

interrelated? Illustrate how these three concepts can be used to
develop a marketing strategy for a product of your choice.
Segmentation, targeting, and positioning together comprise a three stage process. We first
(1) determine which kinds of customers exist, then (2) select which ones we are best off
trying to serve and, finally, (3) implement our segmentation by optimizing our
products/services for that segment and communicating that we have made the choice to
distinguish ourselves that way.

Market Segmentation

1. Identification of customer needs and market segments

2. develop profiles of resulting market segments

Identification of target markets

3. Evaluation of activity of each segment

4. selection of target segments

Positioning

5. Identification of advantages in each segment

6. developing and selection of positioning concepts
 Marketing Plan

7. Developing of marketing mix

for each segment according to chosen position

Example

Segmentation: non-geeks and geeks

Targeting: non-geeks

Positioning: user-friendly computers, advertising to promote itself, through its

unintimidating icons, the logo itself shows that it is so easy to use an Apple product as you
are eating an apple

Question 5: Many marketers have found that a relatively small group of

heavy users account for a disproportionately large amount of the total
product consumed. What are the advantages and disadvantages of
targeting these heavy users?

Advantage More profitable than targeting other user categories, low operational costs,
focused promotion

Disadvantage Requires more cost to attract them, less visibility

Question6 : Under which circumstances and for what types of products

should a marketer segment the market on the basis of (a) awareness
status, (b) brand loyalty, and (c) usage-situation?

(a) awareness status Specially related to lives mothers of new born babies, and baby
products like Johnson & johnson

(b) brand loyalty where the brand can go on for ages and cater to all kinds of age groups.
e.g. Raymonds

(c) usage-situation Marketers recognize that the occasion or situation often determines
what consumers will purchase or consume, they use it as a segmentation variable. Like
greeting cards for almost every occasion
Question 7: How can a marketer for a chain of health clubs use the
VALS segmentation profiles to develop an advertising campaign? Which
segments should be targeted? How should the health club be positioned
to each of these segments?

The segments to be targeted in order of preference are

Maker : as they look at value additions and are essentially outdoor people would
becomfortable with paymentsHealth club would be positioned a lifetime membership home
comforts personal attentionand basic regular health packages

Visualization: a person who is instructed by a personal coach in swimming, then explained

about complete body exercise in large comfortable uncluttered surroundings

Achievers: as they are attracted t the premiumness of the club The health club would be
positioned as a chain brand with premium offerings on various health related activities

Visualization: a personal pampering session at the club

Experiencers: as they are action oriented and ready to try new things also would have the
income to support club membership Health club to be pitched as a hot and happening place
where all fashion icons come to get in shape

Visualization: Celebrity endorsement to be used

Strivers: as they spend the most on the personal care even at the cost of taking credit
Health club to be positioned as a complete personal care center

Visualization: before and after experience sharing

Actualisers: as they have the most resources and would be drawn to any exclusivity of the
club Hype the luxury and the exclusivity

Visualization: health club luxury video

Question 8: For each of the following products, identify the

segmentation base that you consider to be the best one for targeting
consumers: (a) coffee, (b) soups, (c) cell phones, and (d) designer
sunglasses. Explain your choices.

(a) coffee - Consumption Specific/Facts

(b) soups Consumption Specific/Facts

(c) cell phones Consumption specific/cognitions

(d) designer sunglasses Consumer rooted/cognitions