OU-BBA-1 Semester-Basic of Marketing Model Paper – 20241


Marketing philosophies refer to the various approaches a company adopts to market its products or services. They guide the company’s strategy, customer interactions, and overall marketing decisions. There are five key marketing philosophies:

  1. Production Concept: The focus is on improving production efficiency, reducing costs, and mass-producing products. The idea is that customers will prefer products that are widely available and affordable. This philosophy works well when demand exceeds supply.
  2. Product Concept: This approach emphasizes improving product quality, features, and performance. The belief is that consumers will choose products based on their superior features, hence the company focuses on innovation.
  3. Selling Concept: This concept revolves around aggressive sales and promotion efforts to persuade customers to buy the product. It assumes that consumers will not buy enough unless they are persuaded through advertising or personal selling.
  4. Marketing Concept: This philosophy centers on understanding customer needs and wants and delivering satisfaction better than competitors. It focuses on customer-centric strategies, aiming to create value for customers through a tailored marketing mix.
  5. Societal Marketing Concept: This extends the marketing concept by emphasizing the well-being of society. Businesses are expected to balance profit-making with a commitment to social and environmental causes.

Repositioning is the process of changing the place a brand occupies in the minds of consumers. This strategy is used when a company wants to shift how its brand is perceived in the market to appeal to a different target audience or differentiate itself from competitors. Repositioning might be necessary due to:

  1. Market Evolution: If a product or brand becomes outdated or irrelevant in a changing market.
  2. Competitive Pressures: When competitors introduce new products or brands that capture market share.
  3. Consumer Preferences: If there is a shift in consumer behavior or attitudes that demands a new image.
  4. Innovation or Improvement: When a product has undergone improvements or innovations, it might require a new positioning strategy to highlight these changes.

The process involves identifying the target market, redefining the brand’s identity, and using marketing tactics like advertising, product changes, or pricing adjustments to communicate the new positioning.


A drop error refers to a situation in marketing where a potential sale is lost due to some mistake or inefficiency in the marketing or sales process. This term is often used in the context of distribution channels or customer service. For example:

  1. In a Distribution Channel: A product might fail to reach a customer on time due to a logistics error, resulting in the customer purchasing from a competitor.
  2. In Customer Service: A company might lose a customer because of poor service, unavailability, or unmet expectations.

The “drop error” typically indicates a failure in communication, fulfillment, or satisfaction that results in the loss of an opportunity or potential revenue.


Specialty products are those that are unique and highly differentiated, often involving a high degree of consumer loyalty. These products have distinct characteristics that make them different from other products, and consumers are often willing to pay a premium for them. Characteristics of specialty products include:

  1. High Customer Involvement: Consumers are highly involved in the purchasing decision process. They research extensively before buying.
  2. Brand Loyalty: Consumers are brand-specific and prefer only one brand, no matter the price.
  3. Limited Distribution: Specialty products are sold in limited outlets or exclusive stores.
  4. Unique Features: These products have unique qualities or status, such as luxury cars, designer clothing, or high-end electronics.

Examples include high-end cars (like Rolls-Royce), luxury watches (like Rolex), or designer perfumes.


A Zero-Level Channel refers to a direct distribution channel where the product moves directly from the manufacturer to the consumer without involving any intermediaries. This is also known as a direct selling model. Companies like Apple, Tesla, or Dell use a zero-level channel by selling directly to customers via their websites, retail stores, or branded outlets.

Advantages of a zero-level channel include:

  1. Control: The company has more control over the brand image and customer experience.
  2. Higher Margins: Without intermediaries, companies can capture the full retail price.
  3. Direct Customer Feedback: Direct interaction with customers helps in gathering valuable feedback for improvements.

However, the main disadvantage is that it requires significant investment in infrastructure and customer service capabilities.


A Go-error refers to a mistake made in the decision-making process, specifically when an action is taken that leads to a missed opportunity. In marketing, a Go-error happens when a company enters a new market, launches a new product, or pursues a strategy that does not produce the expected results.

Examples include:

  1. Entering a new market without sufficient research.
  2. Investing in a product that does not meet customer needs or preferences.

The go-error contrasts with a Drop error—where an opportunity is missed due to inaction—because in a go-error, the company acts but the result is negative.


The growth stage is the second phase of the product life cycle (PLC), following the introduction stage. In this stage, sales of the product increase rapidly, and the product gains broader market acceptance. Key characteristics include:

  1. Increase in Sales: Due to broader market acceptance and growing consumer awareness.
  2. Profitability: As economies of scale kick in, production costs decrease, leading to higher margins.
  3. Increased Competition: Competitors start entering the market, copying the successful product or offering similar products.
  4. Brand Differentiation: Companies may engage in differentiation strategies, improving product features, or adding variants to attract new customer segments.

Marketing strategies during this phase focus on promoting brand loyalty, expanding distribution channels, and strengthening the product’s position in the market.


Publicity refers to the non-paid, external communication efforts that increase awareness and visibility of a product, service, or organization. Unlike advertising, which is paid, publicity is gained through media coverage, press releases, and word of mouth.

Types of publicity include:

  1. Media Coverage: Getting featured in news outlets, television, or radio.
  2. Public Relations: Managing the company’s image and relationships with the public through events, speeches, or social media.
  3. Social Media Buzz: Generating organic discussions or viral content related to the brand.

Publicity can significantly affect consumer perceptions and often carries more credibility than paid advertising. However, the downside is that it is not controllable, and negative publicity can damage a brand’s reputation.

Marketing Concept refers to a business philosophy that emphasizes meeting the needs and wants of customers while achieving the company’s objectives. It is based on the idea that the key to achieving organizational goals is to understand and satisfy the needs of target customers better than competitors. It shifts the focus from selling products to creating customer satisfaction through tailored products and services.

The elements of the Marketing Concept include:

  1. Customer Orientation: The focus is on identifying and meeting the needs and desires of customers. Businesses must research and understand consumer preferences to deliver value.
  2. Integrated Marketing: Every department within the organization, not just the marketing department, works together to create customer value. This means aligning production, research, sales, and service with the customer’s needs.
  3. Profitability: The goal is not only to satisfy customers but to do so in a way that is profitable for the company in the long term. The focus is on building long-term relationships with customers.
  4. Target Market Focus: Companies should identify specific segments of the market to serve. It’s about serving the right customer with the right offering, not trying to be everything to everyone.
  5. Customer Satisfaction: The ultimate aim is to ensure customer satisfaction. Companies must ensure that their products and services are of high quality and meet customer expectations to retain their market position.

Micro-environmental forces refer to factors that affect a company’s ability to serve its customers, and they are specific to the company’s immediate environment. These forces are within the company’s control or influence. The major micro-environmental forces include:

  1. The Company: Internal factors such as company culture, resources, capabilities, and operational efficiency can influence marketing decisions. Coordination between different departments like finance, R&D, and HR can impact the marketing efforts.
  2. Suppliers: Suppliers provide the resources needed by the company to produce goods and services. The quality, reliability, and cost of suppliers can affect the company’s production and delivery capabilities.
  3. Intermediaries: These are the agents, wholesalers, retailers, and distributors who help the company promote, sell, and distribute its products to end customers. The relationship with intermediaries can impact the product’s reach and sales.
  4. Customers: The consumer is the heart of the micro-environment. The behaviors, preferences, purchasing power, and needs of customers influence the company’s marketing strategies.
  5. Competitors: Competitors in the market also play a major role in shaping a company’s marketing decisions. The company must constantly analyze competitor behavior and strategies to stay competitive.
  6. Publics: Publics are groups that have an interest in or impact on the company’s ability to achieve its objectives. This includes media, government, local communities, and special interest groups. Negative publicity or regulatory changes can affect the company’s image and operations.

i) Mobile Phone ii) Laptop

Market Segmentation is the process of dividing a broad consumer or business market, typically consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics. The goal is to identify the groups most likely to respond to different marketing strategies.

  1. Demographic Segmentation: Target based on age, income, education, and occupation. For example, premium smartphones can target high-income, young professionals, while budget smartphones may target students or low-income groups.
  2. Geographic Segmentation: Divide the market based on regions, urban vs. rural areas, or climate. Mobile brands can customize features like battery life or screen size based on geographic preferences (e.g., large batteries for rural areas with less access to charging facilities).
  3. Psychographic Segmentation: Segment based on lifestyle, personality, or values. For instance, a brand like Apple may target users who prioritize design and status, while Xiaomi might target tech-savvy users looking for the best value for money.
  4. Behavioral Segmentation: Segment based on consumer knowledge, usage rate, or loyalty. For example, offer loyalty programs to frequent customers or tailor marketing for first-time mobile users.
  1. Demographic Segmentation: Segment by age, income, or profession. High-end laptops could target professionals or students in fields like design and gaming, while low-cost laptops might target budget-conscious individuals or educational institutions.
  2. Geographic Segmentation: Offer different models or configurations depending on the region. For instance, feature-rich laptops may be targeted in urban areas, while more affordable models are pushed in rural areas.
  3. Psychographic Segmentation: Target users based on their lifestyle and personality. For instance, a company like Alienware targets gamers who prefer high-performance systems, while HP’s Spectre line targets creative professionals.
  4. Behavioral Segmentation: Segment based on purchasing behaviors, such as heavy users (gamers, professionals) or casual users (students, general home users). Laptops with higher processing power would appeal to heavy users, while basic models could cater to casual or light users.

Product positioning refers to the process of creating a unique image or identity for a product in the minds of consumers, relative to competing products. It involves identifying and highlighting the product’s unique benefits, features, or advantages to make it stand out in the marketplace.

Key steps in product positioning:

  1. Identify Competitors: Understand the competitive landscape and analyze where your product stands in relation to similar products.
  2. Determine Unique Selling Proposition (USP): Highlight the key feature or benefit that differentiates your product from competitors.
  3. Create a Positioning Statement: Craft a statement that summarizes the product’s value proposition, target audience, and how it solves customer problems better than competitors.

Examples of Product Positioning:

  1. Apple iPhone: Positioned as a premium smartphone focused on quality, design, and user experience, Apple targets high-income consumers who value aesthetics and functionality over price.
  2. Tesla: Positioned as a leader in electric vehicles, Tesla is marketed as the “sustainable” and “innovative” choice for tech-savvy, environmentally-conscious consumers.

Stages of New Product Development (NPD):

  1. Idea Generation: The first stage involves brainstorming new ideas from various sources like R&D, customers, competitors, or employees.
  2. Idea Screening: This stage involves evaluating the ideas to identify those that are most viable and align with the company’s strategy.
  3. Concept Development and Testing: The best ideas are then developed into product concepts and tested with potential customers for feedback.
  4. Business Analysis: At this stage, the financial feasibility of the product is assessed. This includes estimating costs, pricing strategies, and expected profits.
  5. Product Development: This is the actual design and creation of the prototype. Engineers, designers, and marketing teams work to finalize the product.
  6. Test Marketing: The product is launched in a small test market to assess customer responses and make any necessary adjustments.
  7. Commercialization: After successful test marketing, the product is launched on a larger scale.

Importance in India: In India, new product development is crucial due to its large and diverse consumer base, rapidly changing technological trends, and competition. Localizing products to meet specific needs of the Indian market, such as affordability, language, and cultural preferences, is vital for success.


i) Consumer Adoption Process: The Consumer Adoption Process refers to the mental stages that a consumer goes through when deciding whether to adopt a new product or innovation. These stages include:

  1. Awareness: The consumer becomes aware of the new product but lacks information about it.
  2. Interest: The consumer seeks more information and becomes interested in the product.
  3. Evaluation: The consumer assesses whether the product meets their needs or offers value.
  4. Trial: The consumer tries the product on a limited basis to evaluate its performance.
  5. Adoption: The consumer fully integrates the product into their life and continues to purchase it.

ii) Reasons for New Product Failures: New products fail for various reasons, including:

  1. Lack of Market Research: Failure to understand the target market’s needs, preferences, and behaviors.
  2. Poor Marketing Strategy: Ineffective marketing communication or mispricing can prevent products from reaching their audience.
  3. Overly Complex Product: If the product is too complicated for consumers to understand or use, it can fail.
  4. Inadequate Distribution: Failure to effectively distribute the product in the right channels can limit accessibility.
  5. Competition: Strong competition that offers similar or better products can cause new products to fail.

The Product Life Cycle (PLC) is a concept that describes the stages a product goes through from its introduction to its decline. The stages include:

  1. Introduction: The product is launched, and awareness is built. Sales are low, and marketing efforts focus on building awareness and generating interest.
    • Example: A new tech gadget launched with high marketing efforts.
  2. Growth: Sales increase as the product gains market acceptance. Competitors may enter the market, and differentiation strategies are used.
    • Example: Smartphones in the early 2010s when mobile penetration grew rapidly.
  3. Maturity: The product reaches its peak, with most of the target market aware and adopting it. Competition is intense, and marketing focuses on maintaining market share.
    • Example: Coca-Cola has reached maturity in the soft drink market.
  4. Decline: Sales decrease as the product becomes outdated or is replaced by new technologies or products. Companies may choose to discontinue the product or reduce its market investment.
    • Example: CD players or desktop computers in the face of smartphones and laptops.

Pricing Strategies used by Indian managers include:

  1. Penetration Pricing: Setting a low price initially to gain market share, common in the early stages of a product launch.
    • Example: Jio’s low-cost data plans in India to capture market share.
  2. Skimming Pricing: Setting a high price initially and then lowering it over time. This strategy is used for innovative or high-tech products.
    • Example: New smartphones or tech gadgets often follow this strategy.
  3. Psychological Pricing: Using pricing tactics that have a psychological impact on consumers, such as pricing something at ₹99 instead of ₹100.
    • Example: Pricing products at ₹199 instead of ₹200 to create a perception of value.
  4. Discount Pricing: Offering regular or seasonal discounts to attract customers, especially during festivals or sales.
    • Example: E-commerce platforms like Amazon offering Diwali discounts.
  5. Value-Based Pricing: Setting a price based on the perceived value of the product in the eyes of the customer, rather than on the cost of production.

The Promotion Mix refers to the combination of different promotional tools used by a company to communicate and promote its products or services. The elements of the promotion mix are:

  1. Advertising: Paid, non-personal communication through various media like TV, print, and digital platforms. Its objective is to reach a large audience to build awareness and persuade potential customers.
  2. Sales Promotion: Short-term incentives to encourage purchase or trial. Examples include discounts, coupons, samples, contests, or limited-time offers.
  3. Personal Selling: Direct interaction between a sales representative and a potential customer. This involves tailored communication to meet specific customer needs and close sales.
  4. Public Relations (PR): Activities aimed at building a positive image of the company and its products in the eyes of the public. This includes media coverage, events, press releases, and sponsorships.
  5. Direct Marketing: Direct communication with targeted customers through channels like email, telemarketing, or direct mail to encourage a response or action.

Advertisement refers to any paid form of communication that aims to promote a product, service, or organization to a targeted audience, with the intention of influencing their behavior.

To prepare an advertisement for corporate hospitals, you would follow these steps:

  1. Define the Target Audience: Identify the demographic and psychographic characteristics of the audience (age, income, health needs, geographic location).
  2. Develop a Clear Message: Focus on the unique services offered by the hospital (e.g., advanced medical technology, patient care, doctor expertise) and how they benefit the patient.
  3. Choose the Medium: Select appropriate advertising channels such as print (newspapers, magazines), digital (social media, website banners), or outdoor (billboards, transit ads) based on where your target audience is most likely to be.
  4. Create a Strong Call to Action (CTA): Encourage potential patients to book appointments, visit the website, or contact for more information.
  5. Highlight Trust and Credentials: Showcase certifications, awards, or patient testimonials to build trust in the hospital’s services.