TOPIC 10

MARKETING MANAGEMENT
DECEMBER 2023 QUESITON FOUR B
QUESTION 1
Discuss FIVE elements of the marketing mix.

ANSWER 1
The five elements of the marketing mix are:

1. Product:
- This refers to the goods or services that a company offers to its customers.
- It includes factors such as product design, features, quality, packaging, and
branding.
- The product should be designed to meet the needs and preferences of the target
market.

2. Price:
- This is the amount that customers pay for the product or service.
- Pricing decisions should consider factors such as production costs, market
demand, competition, and the perceived value of the product.
- Pricing strategies can include penetration pricing, skimming pricing, or value-
based pricing.

3. Place:
- This refers to the distribution channels and logistics used to make the product
available to the target market.
- It includes decisions about where the product will be sold (e.g., retail stores,
online, or through distributors) and how it will be transported and stored.
- The goal is to ensure that the product is accessible and convenient for the target
customers.

4. Promotion:
- This includes all the communication activities used to inform, persuade, and
remind customers about the product.
- It can involve advertising, personal selling, sales promotions, public relations,
and digital marketing.
- The goal is to create awareness, generate interest, and encourage customers to
purchase the product.
5. People:
- This refers to the employees and customer service representatives who interact
with customers.
- It includes factors such as employee training, customer service, and the overall
customer experience.
- The goal is to ensure that the people involved in the marketing process provide
a positive and consistent experience for customers.

These five elements of the marketing mix work together to create a comprehensive
marketing strategy that can effectively reach and engage the target market

AUGUST 2023 QUESTION TWO B

QUESTION 2
Discuss the process of developing marketing information for a new product.

ANSWER 2
The process of developing marketing information for a new product typically
involves the following steps:

1. Market Research:
- Conduct market analysis to understand the target audience, their needs,
preferences, and buying behavior.
- Gather information about the competition, their products, pricing, and marketing
strategies.
- Identify potential market segments and their characteristics.

2. Product Concept Development:

- Translate the product idea into a tangible concept that addresses the identified
market needs.
- Refine the product features, benefits, and positioning based on the market
research findings.
- Develop a prototype or mockup of the product to gather feedback from potential
customers.

3. Pricing Strategy:
- Analyze the production costs, distribution channels, and competitor pricing to
determine the optimal pricing for the new product.
- Consider factors such as perceived value, market demand, and pricing elasticity
to set a competitive and profitable price.

4. Promotional Strategy:
- Develop a comprehensive marketing communication plan to create awareness,
generate interest, and drive sales for the new product.
 - Identify the most effective marketing channels (e.g., advertising, social media,
events, direct marketing) to reach the target audience.
- Create compelling promotional materials, such as brochures, advertisements,
and digital content, to showcase the product's features and benefits.

5. Distribution and Logistics:

- Determine the most suitable distribution channels (e.g., retail stores, online
platforms, wholesalers) to make the product accessible to the target market.
- Establish efficient logistics and supply chain processes to ensure timely delivery
and availability of the product.
- Collaborate with distribution partners to optimize the product's reach and
visibility.

6. Launch and Monitoring:

- Implement the marketing plan and launch the new product to the target market.
- Monitor the product's performance, customer feedback, and market response to
identify areas for improvement or adjustment.
- Continuously gather and analyze data to refine the marketing strategies and
make informed decisions about the product's future.

The process of developing marketing information for a new product is an iterative

and collaborative effort that involves market research, product development,
pricing, promotion, and distribution strategies. By following this process,
organizations can increase the chances of successfully introducing a new product
that meets the needs of the target market and achieves the desired business
objectives

APRIL 2023 QUESTION THREE B

QUESTION 3
Examine five pricing strategies that an organization could employ in a competitive
market environment.

ANSWER 3
Pricing strategies that an organization could employ in a competitive market
environment are:
 Penetration pricing: This is a pricing strategy where an organization sets a
low initial price for its product or service to attract customers and gain
market share. The organization may increase the price once it has
established a customer base.
 Skimming pricing: This is a pricing strategy where an organization sets a
high initial price for its product or service to maximize profits from early
adopters who are willing to pay a premium price. The organization may later
reduce the price to attract more price-sensitive customers.
 Price bundling: This is a pricing strategy where an organization offers
several products or services together as a bundle at a lower price than if the
 products or services were purchased separately. This can increase sales and
customer loyalty.
 Psychological pricing: This is a pricing strategy that uses psychological
cues, such as odd pricing (Kshs9.99 instead of Kshs10), to make the price
seem lower and more attractive to customers.
 Dynamic pricing: This is a pricing strategy where an organization adjusts
the price of its product or service in response to changes in demand,
competition, or other market factors. This can help the organization maximize
revenue and profitability.

AUGUST 2022 QUESTION FOUR C

QUESTION 4
Enumerate three types of marketing strategies.

ANSWER 4
The three main types of marketing strategies are:

1. Differentiation Strategy:
- This strategy focuses on creating a unique and distinctive product or service that
sets the company apart from its competitors.
- The goal is to make the product or service perceived as superior and more
valuable, allowing the company to charge a premium price.
- Examples include Apple's focus on design and innovation, or luxury brands
emphasizing exclusivity and prestige.

2. Cost Leadership Strategy:

- This strategy aims to become the lowest-cost producer in the industry, allowing
the company to offer products or services at the lowest prices.
- The focus is on achieving economies of scale, efficient operations, and cost-
cutting measures to undercut competitors.
- Examples include Walmart's focus on low prices and operational efficiency, or
budget airlines like Spirit Airlines.

3. Focus Strategy:
- This strategy involves targeting a specific market segment or niche, rather than
trying to appeal to the entire market.
- The company concentrates its efforts on serving the needs of a particular
customer group or geographic area.
- Examples include Harley-Davidson's focus on the motorcycle enthusiast market,
or specialty coffee shops catering to a specific demographic.

These three strategies, known as the generic strategies, provide a framework for
companies to position themselves in the market and gain a competitive advantage

NOVEMBER 2017QUESTION FIVE B

QUESTION 5
The decline stage in the life cycle of product occurs when industry sales and profits
begins to fall.
With reference to the above statement, assess four strategies available to
companies during the decline stage.

ANSWER 5
The decline stage in the product life cycle occurs when industry sales and profits
begin to fall. During this stage, companies have several strategies available to
them:

1. Harvest Strategy: This involves reducing costs and investments in the product
while trying to maximize short-term profits. The company may reduce marketing,
R&D, and other expenses to milk the remaining cash flow from the product.

2. Divestment Strategy: The company may choose to sell or liquidate the product
if it is no longer profitable or strategically important. This allows the company to
redeploy resources to more promising products or business areas.

3. Market Penetration Strategy: The company may try to extend the product's
life cycle by finding new market segments or applications for the product. This could
involve aggressive pricing, promotions, or bundling the product with
complementary offerings.

4. Product Modification Strategy: The company may attempt to revitalize the

product by making changes to its features, design, or packaging to make it more
appealing to customers. This could involve upgrading the product, introducing new
variants, or repositioning it in the market.

The choice of strategy will depend on factors such as the company's overall
business objectives, the competitive landscape, the product's remaining market
potential, and the resources available to the company.