Question

(a) Explain the following functions of marketing:
(i) Product Designing and Development.
(ii) Standardisation and Grading
OR
(b) Explain the four important elements of marketing mix.

Hint:

Marketing mix questions often test the strategic integration of all 4Ps - never just one element.

Answer 1

(a) (i) Product Designing and Development:
Process: Idea generation → Concept testing → Prototyping → Commercialization
Example: Dyson's 5,127 vacuum prototypes
Key Aspects: Aesthetics (Apple's minimalist design), Functionality (Tesla's over-the-air updates), Ergonomics (Microsoft's ergonomic keyboards), Sustainability (Adidas' recycled ocean plastic shoes)
Impact: 70 percent of buying decisions made at design stage, Reduces returns by 30-40%
(ii) Standardisation and Grading:
Standardization: Uniform quality specifications
Example: ISO certification processes
Benefits: Consistent customer experience
Grading: Classification by quality/size
Example: USDA beef grades (Prime, Choice)
Benefits: Price differentiation
(b) Marketing Mix (4Ps):
1. Product: Core benefit (smartphone = connectivity), Augmented features (warranty, accessories)
2. Price: Psychological pricing (dollar 9.99 effect), Premium pricing (Rolex watches), Value-based pricing (Starbucks experience)
3. Place: Distribution channels (direct/indirect), Market coverage (intensive/selective), Logistics management
4. Promotion: Advertising (TV, digital), Personal selling (B2B salesforce), Sales promotion (discounts)