BITM Fundamentals of Marketing

Differentiate between production and product concept.

Enlighten the 7Ps of marketing mix with an example.

State the core concepts of marketing.

Point out the components of micro environment.

Elaborate on the marketing environment in the Nepalese context.

Differentiate between reactive and proactive marketing.

Differentiate between micro and macro environment with relevant examples.

Analyze the following case carefully and answer the questions that follow:

Nepal's automotive landscape is undergoing a notable transformation as electric vehicles (EVs) has increasingly captured the market attention. This shift was prominently highlighted at the NADA Auto Show 2024, where electric vehicles outpaced traditional fuel-powered cars in bookings, illustrating a broader global trend towards sustainable energy solutions.

The NADA Auto Show 2024, one of Nepal's leading automotive exhibitions, showcased a dramatic surge in EV bookings. Out of the total vehicles reserved during the event, around 70% were electric, signaling a significant shift in consumer preference. According to Prabin Sharma, the organizer of the NADA Auto Show 2024, "Today's auto market is increasingly leaning towards alternatives to fuel-consuming vehicles."

Among the highlighted models were the Tata Punch EV and the Tiago EV, which collectively saw 700 units booked. The Tata Punch EV, an electric SUV, was offered in three variants, ranging in price from Rs 3.39 million to Rs 3.89 million. Additionally, the BYD ATTO 3, presented by Cimex Inc., garnered significant interest, with approximately 5,000 units sold to date. Other BYD models, such as the Dolphin and Seal, also attracted substantial buyer interest.

The shift in bookings from traditional fuel-powered vehicles to electric ones marks a pivotal change in Nepal's automotive sector. Historically, the Nepali market has been dominated by fuel-based vehicles, which have been burdened by high fuel costs and growing environmental concerns. In contrast, electric vehicles offer several advantages, including lower operating costs, reduced emissions, and a growing alignment with global sustainability trends.

Globally, there is a clear movement towards alternative energy sources, driven by the need to combat climate change. Countries around the world are heavily investing in renewable energy and electric mobility as part of their environmental strategies. Nepal's increasing adoption of EVs reflects this global trend, highlighting both a growing environmental consciousness and the practical benefits of reduced reliance on imported fuels.

The Nepalese government has supported this transition through various initiatives, including financial incentives, infrastructure development, policy support, and public awareness campaigns. These measures aim to lower the cost of EVs, improve charging infrastructure, and create a favorable regulatory environment, further accelerating the shift towards electric mobility.

Questions:

a. What factors in your opinion might be contributing to the high demand for electric vehicles at the NADA Auto Show 2024? Discuss.

b. In what ways do electric vehicles differ from traditional fuel-powered vehicles in terms of cost, environmental impact, and consumer preferences? Give your arguments.

c. What specific government policies and incentives in Nepal are designed to promote electric vehicle adoption, and how effective have these measures been? Explain.

d. How might the rising popularity of electric vehicles influence the future of fuel-based vehicles and the broader automotive industry in Nepal? Give your opinion.

Briefly write about marketing decision support system.

Enumerate the process of marketing research.

Analyze the following case carefully and answer the questions that follow:

Marketing environment in Nepal has been witnessing radical changes. The trend in governance has taken many turns since 1991. Priorities have been changing – from emphasis on public enterprises to private ones.

The Nepalese market has become highly competitive due to open door for international companies through foreign investment policy. A variety of joint ventures are operating both at service and manufacturing sectors. To remain most competitive in challenging market, the Nepalese manufacturers realize quick and right decisions in right time through different components of marketing Information System (MKIS). Surya Nepal Pvt. Ltd. (SNPL), the largest private sector cigarette manufacturer has vigorously used MKIS to sustain even in critical situation.

One study shows that SNPL basically uses managerial personnel and supervisors to obtain marketing information. Those personnel supply important, relevant, timely and adequate information about the market and environmental dynamism. Besides, the company uses the internet for data bank and model bank information to receive. In fact, SNPL collects primary data conducting survey mainly through personal interview and mailed questionnaire. But it collects secondary data from different publications. It stores collected data and information in computers and uses and / or reuses whenever needed for making decision. It analyzes and synthesizes the stored data for reaching to point of problem – decision.

The information collected and analyzed helps for developing evaluating and controlling different marketing plans and programs. As per survey, MKIS has helped SNPL also in meeting new challenges to build long-term and short – term strategies. The company has also maintained the following:

• The received information is forwarded to the top level, operative level and /or lower level depending upon the nature of the problem.
• It has the practice of preparing five copies of order –to- payment cycle and sales reports and sending one copy each to accounting, administrative, marketing, production department and to the tax office.
• It mostly focuses on product research, advertising research, sales research and consumer attitude research.

Questions:

a. Highlight the major issues of the case.

b. What made SNPL vigorously use MKIS? Give your opinion.

c. What procedures does SNPL use to run an MKIS? Discuss.

d. Describe the key macro environmental forces affecting SNPL.

Define marketing information system.

Describe the areas of marketing research.

State the major types of buying situation.

Briefly explain the factors influencing business buying behavior.

What are the major types of buying situation?

Elucidate the factors influencing business buyer behavior.

What is product positioning?

Discuss the bases for segmenting consumer markets.

What do you understand by segment evaluation?

Discuss the bases for segmenting consumer markets.

Define brand equity.

Describe the key functions of packaging.

Elucidate the new product development process.

Critically examine different branding strategies and also clarify which is the most appropriate strategy for global market coverage.

State the levels of packaging.

Briefly explain the types of brand.

Why is 'physical evidence' important in the context of service product? Give your views.

Enumerate the steps involved in the new product development process leading up to the commercialization phase.

Write down the importance of pricing.

Describe internal and external factors affecting pricing strategy of a firm.

Point out the factors affecting pricing decisions.

Elaborate on the pricing practices adopted by business hubs in Nepal.

Mention the mode of transportation commonly used in Nepal.

State the objectives of distribution.

Describe the distribution practices in Nepal.

Write down the key factors to be considered in channel selection.

Critically examine the components of marketing logistics.

Define direct marketing.

Elucidate the factors affecting determination of promotion mix with relevant examples.

Give the concept of direct marketing.

List down the major objectives of advertising.

Describe the components of promotion mix.

Explain in brief the major sales promotion tools in promotion decision.