ASSIGNMENT

Course Name: Business Marketing (MKT5103)

Submitted to:

Dr. Mohammad Abdullah Mahfuz

Professor

Department of Marketing

Jagannath University

Submitted by:
Group: 3

MBA, 2024 Batch

Group details
Maisha Bente Ziad Tazvi 24253505001

Israt Jahan Tanni 24253505004

Lutfun Nahar 24253505005

Shibly Mostafa Khan 24253505012

Sabera Sultana Suchona 24253505016

Md Tanjil Islam 24253505017

Shakib Ahmed 24253505021

Rakib Ahmed Roni 24253505022

1. When does gift giving become unethical? Are there any times when a salesperson accepting
a gift from a purchasing agent could be construed as unethical?
Answer:
Gift-giving becomes unethical when it influences decisions, creates a conflict of interest, or
violates policies. For example, if a purchasing agent gives a salesperson an expensive watch in
exchange for prioritizing their company’s orders, this would be unethical.
A salesperson accepting such a gift could be construed as unethical if it compromises fairness or
gives the appearance of impropriety.

2. Assume that graduation is here and you’ve been offered a job with the choice of
two cities. Create a multiattribute matrix listing all of the factors that would influence your
decision and the appropriate weights for those factors. Please don’t read ahead on this
question; it is important that you create the chart before you find out what cities you are to
rate. Rate Atlanta and St. Louis and calculate the scores for each city. Is the final decision
what you thought it would be? Did you feel like you fudged any numbers (ratings or weights)
so that the model’s outcome would match your original feeling about each city?
Answer :
Factor Weight (%) Atlanta (Rating) St. Louis (Rating)

Cost of living 30 6 8

Job opportunities 20 9 7

House Affordability 15 5 8

Quality of Live 15 8 7

Weather 10 9 6
Proximity to Family / Friends 5 7 7

Cultural / Recreational 5 8 6
Activities

Weighted Score :
Atlanta :7.2
St. Louis :7.3
Decision: St. Louis wins by a narrow margin. The result may differ from initial expectations, and
there's potential to unconsciously adjust numbers to align with preferences.

3. Assume you are the purchasing agent for PPG. The company is anticipating the purchase
of a new computer system that will integrate purchasing, production, and accounting
activities. Your job is to create the specifications for the new system using a multi attribute
matrix. How would you go about it?

Answer:
Creating specifications for a new computer system using a multi-attribute matrix involves several
steps. Here’s a structured approach you can follow:

1. Identify Key Attributes

First, determine the key attributes that the new system must have. These could include:

● Functionality: Integration capabilities, user interface, reporting features.

● Performance: Speed, reliability, scalability.
● Cost: Initial purchase cost, maintenance, and operational costs.
● Vendor Support: Training, customer service, warranty.
● Compatibility: Integration with existing systems, hardware requirements.
● Security: Data protection, compliance with regulations.

2. Assign Weights to Attributes

Assign a weight to each attribute based on its importance to your organization. For example:

● Functionality: 30%
● Performance: 25%
● Cost: 20%
● Vendor Support: 15%
● Compatibility: 5%
● Security: 5%
System Function Performa Cost Vendor Compatible Security Total
ality nce (20%) Support ility (5%) (5%) Score
(30%) (25%) (15%)

System A 4 (1.2) 5 (1.25) 3 (0.6) 4 (0.6) 5 (0.25) 4 (0.2) 4.1

3. Evaluate Potential Systems
List the potential computer systems you are considering and evaluate each one against the
identified attributes. Use a scale (e.g., 1 to 5) to rate each system on each attribute.

4. Create the Multi-Attribute Matrix

Construct a matrix where each row represents a potential system and each column represents an
attribute. Fill in the matrix with the ratings you assigned.
System B 5 (1.5) 4 (1.0) 4 (0.8) 3 (0.45) 4 (0.2) 5 (0.25) 4.2

System C 3 (0.9) 4 (1.0) 5 (1.0) 5 (0.75) 3 (0.15) 3 (0.15) 3.95

5. Calculate Total Scores

Multiply each rating by the corresponding weight and sum the results for each system to get the
total score.

6. Make a Decision
Choose the system with the highest total score, as it best meets your specified criteria. In this case
System B has the highest score.

Qus-4. In this chapter, we discussed a number of trends and how they affect purchas- ing.
Which trend do you think is most important? Why? Which is least impor- tant and why?
What trends do you think we've overlooked?
Answer: To provide a thoughtful answer, it would be helpful to know which trends were discussed
in the chapter. However, I can provide a general response based on common purchasing trends.
Most Important Trend:
One of the most important trends in purchasing today is e-commerce and digital transformation.
The rise of online shopping, mobile purchasing, and the use of artificial intelligence (AI) for
personalized recommendations has significantly changed how consumers buy products. This trend
is particularly important because it has a global reach, offers convenience, and influences a wide
range of industries from retail to logistics. Businesses that do not adapt to this shift may risk losing
customers to more agile, digital-first competitors.

Least Important Trend: While all trends are valuable depending on the context, a trend that
might be considered least important in certain contexts could be traditional brick-and-mortar retail.
As more consumers prefer online shopping due to convenience, speed, and variety, the traditional
retail model is less central to purchasing decisions in many sectors. However, this is not to say it
is entirely unimportant—physical stores still offer experiences that some consumers value, but in
terms of purchasing influence, e-commerce generally takes precedence.
Overlooked Trends:
1. Sustainability and Ethical Purchasing: Consumers are increasingly concerned with the
environmental and social impact of their purchases. Sustainability in sourcing, packaging, and
business practices is becoming a key factor in decision-making.
2. Subscription-based Models: The growing popularity of subscription services in sectors like
food, entertainment, and even clothing (e.g., subscription boxes) can be a powerful driver of
purchasing behavior.
3. Augmented Reality (AR) and Virtual Reality (VR): With advancements in technology, AR
and VR are being used to enhance online shopping experiences, allowing customers to virtually
try products before purchasing.
4. Influencer Marketing: As social media continues to shape buying behavior, the role of
influencers in driving purchases may be growing, particularly in niche markets.
If you'd like to narrow it down to a specific context (a particular industry), feel free to provide
more details.

Question 6: Assume that you are the out-supplier for MRO items. How would you get that
purchase changed from a straight rebuy to a modified rebuy? Would it make a difference to
your ability to create a partnership if the purchase was made by the purchasing department
or the maintenance department? Justify your answer.
Answer: To change the purchase of MRO (Maintenance, Repair, and Operations) items from a
straight rebuy to a modified rebuy as an out-supplier, I would focus on identifying and addressing
pain points, highlighting value-added services, and positioning my offerings as superior
alternatives to the existing supplier. Here's how I would approach it:
Strategies to Shift from Straight Rebuy to Modified Rebuy
1. Conduct Research and Identify Weaknesses in the Current Supplier: Identify any gaps or
dissatisfaction in the current supplier's offerings (e.g., delivery delays, quality inconsistencies, or
lack of technical support). Engage with end-users and decision-makers to understand their needs
and challenges better.
2. Introduce Value-Added Services: Highlight unique offerings like better pricing, faster delivery,
more durable products, extended warranties, or technical support. Provide data-driven evidence
(e.g., cost-benefit analysis or case studies) to showcase the benefits of switching to my products.
3. Offer Trials or Pilots: Offer a no-risk trial period to allow the buyer to evaluate the quality and
performance of my products. Use the pilot program to demonstrate measurable advantages, such
as reduced downtime or lower maintenance costs.
4. Build Relationships with Key Decision-Makers: Establish rapport with stakeholders in both the
purchasing and maintenance departments. Understand their priorities whether it's cost reduction,
operational efficiency, or vendor reliability.
5. Differentiate Through Customization: Tailor solutions to specific operational needs, showing
how a modified order could improve processes compared to a straight rebuy.
Impact of the Purchasing vs. Maintenance Department
If the Purchasing Department Makes the Decision: Cost savings and supplier reliability.
Emphasize financial advantages such as discounts, bulk-order savings, and favorable payment
terms. Highlight supplier performance metrics like on-time delivery rates and lower total cost of
ownership. Purchasing departments often prioritize budgets over operational nuances, making it
slightly harder to pitch a modified rebuy unless cost savings are evident.
If the Maintenance Department Makes the Decision: Performance, quality, and operational
efficiency. Highlight the technical superiority of my products and how they reduce maintenance
downtime or extend equipment lifespan. Provide testimonials or success stories demonstrating
operational benefits. Maintenance departments are more receptive to modified rebuys if they see
tangible improvements in performance or reduced operational disruptions.
Justification: Building Long-Term Partnerships
If the purchase is made by the purchasing department, it’s crucial to align my offerings with
financial metrics and procurement goals. However, building a partnership might be harder as their
focus is transactional. In contrast, if the maintenance department influences the purchase, the focus
shifts to operational outcomes, making it easier to establish a consultative, long-term relationship
based on shared goals like reliability and efficiency. Ultimately, creating a partnership depends on
addressing both departments' concerns and fostering cross-functional collaboration to showcase
the comprehensive value of my offerings.

7. Identify three marketing strategies influenced by purchasing strategies, as described in

the chapter. Is there any consistent theme in these marketing strategies? How would you
design a communication campaign (what theme would you use, what would your ads or
letters say, etc.) to promote such strategies to purchasing professionals?
Answer:

Three Marketing Strategies Influenced by Purchasing Strategies:

1. Cost Leadership Strategy:

o Influence: Purchasing focuses on sourcing at the lowest cost to drive down prices.
o Marketing Focus: Emphasize affordability and value for money.
2. Differentiation Strategy:
o Influence: Purchasing ensures high-quality or unique materials to support premium
features.
 oMarketing Focus: Highlight the product's unique features and quality.
3. Supply Chain Optimization:
o Influence: Purchasing ensures efficient procurement and smooth delivery.
o Marketing Focus: Promote reliability and timely delivery.

Consistent Theme:

All strategies center around value creation, whether through cost efficiency, uniqueness, or
reliable delivery, with purchasing playing a key role in achieving these goals.

Communication Campaign Design:

Theme: "Building Success Together—Optimizing Value, Driving Growth"

Message:

 Headline: "Unlock the Power of Strategic Procurement"

 Body: "Your expertise in sourcing and supply chain management is critical to our success.
Let’s work together to deliver value and growth."
 Call to Action: "Join us in driving the next phase of success through strategic
collaboration."

Ad Formats:

 Email: Personalized messages showcasing the importance of purchasing in achieving

business goals.
 Social Media: Share success stories and tips on purchasing-marketing collaboration.
 Webinars: Host events discussing how purchasing strategies contribute to overall business
success.

8. Discuss how buying in the U.S. government is different from buying in for-profit
organizations. If you are a citizen of a country other than the United States, discuss how
buying by your government is different from for-profit organizations’ buying.
Answer:
Buying in the U.S. government is different from for-profit organizations in several ways. The
government typically follows strict procurement regulations, such as competitive bidding
processes, transparency, and adherence to legal and ethical standards. The focus is on fairness,
accountability, and public interest rather than profit maximization.
In contrast, for-profit organizations prioritize cost-efficiency, profit margins, and quick decision-
making to meet business goals. They have more flexibility in vendor selection and may use fewer
regulations compared to government procurement.
For citizens of other countries, government purchasing often follows similar regulatory
frameworks to ensure fairness and accountability, but the processes and rules can vary significantly
depending on local laws and the level of bureaucracy involved in each country's public sector.

10.Assume you are negotiating with the Air Force about developing a new weapon system.
Do you want a fixed-price or cost-plus agreement? Why? Now assume you are negotiating
for the annual toilet paper contract with the Air Force. Which type of agreement do you
want and why?
Answer :

Fixed-Price vs. Cost-Plus Contracts in Negotiations with the Air Force

When negotiating with the Air Force for a new weapon system, the choice between a fixed-price
and cost-plus agreement depends on factors like the project's complexity, risk, and development
uncertainties. Similarly, for a contract involving a predictable item like toilet paper, the contract
type choice is influenced by the nature of the product and associated risks. Below, the reasoning
for selecting each contract type for these scenarios is explained.

Developing a New Weapon System

Recommendation: Cost-Plus Agreement

A cost-plus contract reimburses the contractor for allowable costs and adds a fixed fee or incentive
based on performance. This type is preferred for projects with high levels of uncertainty and
technical risk, such as developing a new weapon system.

Reasons for Choosing Cost-Plus:

1. Uncertainty in Scope: Weapon systems often involve cutting-edge technologies, requiring

significant research and development. The exact costs are difficult to estimate upfront. A
cost-plus contract mitigates financial risk for the contractor, allowing flexibility in
managing unforeseen expenses.
2. Encourages Innovation: Developers are more likely to invest in innovative solutions if
they know their costs will be covered. This fosters creativity and reduces the pressure of
minimizing expenses at the cost of quality.
3. Risk Sharing: Cost-plus agreements distribute risk between the Air Force and the
contractor. The Air Force assumes some financial responsibility for cost overruns, which
is reasonable given the strategic importance of the project.

Challenges of Cost-Plus:

The main downside is the potential lack of cost discipline, as the contractor might have less
incentive to minimize expenses. However, implementing oversight mechanisms like regular audits
and performance milestones can mitigate this risk.
Annual Toilet Paper Contract

Recommendation: Fixed-Price Agreement

For a predictable, low-risk procurement like an annual toilet paper supply, a fixed-price contract
is ideal. In this agreement, the contractor provides goods or services at a pre-agreed price,
regardless of the actual cost incurred.

Reasons for Choosing Fixed-Price:

1. Low Uncertainty: The cost of producing and supplying toilet paper is well-established,
with minimal risk of unexpected changes. This predictability makes a fixed-price contract
suitable.
2. Cost Control: The Air Force benefits from budget predictability, as it knows the exact cost
of the contract in advance. Meanwhile, the contractor assumes the risk of any cost overruns.
3. Simplicity: Fixed-price contracts are straightforward to manage, requiring less oversight
and administrative effort compared to cost-plus agreements.

Challenges of Fixed-Price:

If unexpected costs arise (e.g., supply chain disruptions), the contractor bears the financial burden.
However, these risks are generally manageable for a commodity like toilet paper.