“THE IMPORTANCE OF
UNDERSTANDING THE CONSUMER
BUYING DECISION MAKING
PROCESS AND UNDERSTANDING
THE ROLE AND IMPORTANCE OF
MARKETING RESEARCH TO
IDENTIFY CUSTOMER INSIGHTS IN
ORDER TO SATISFY TARGET
CUSTOMER BY DEVELOPING
APPROPRIATE MARKETING MIX
ELEMENTS FOR ORGANIZATION
SUCCESS”
Prepared by
R.P.M.Hansani
0000052253
Study Center – Colombo
1
July 2022
Professional Certificate in Marketing
SRI LANKA INSTITUTE OF MARKETING
Assignment Marking Scheme –
PCM II - 2022
Programme Professional Certificate in Marketing
Examination PCM II 2022
“The importance of understanding the Consumer Buying
Decision Making Process and understanding the Role and
Importance of Marketing Research to identify customer
Assignment Topic insights in order to satisfy target customers by developing
appropriate Marketing Mix elements
for organisation success.”
Student Registration Number
(To be filled by the students)
Allocation of marks (Please Use only a RED PEN from this point onwards)
Area of evaluation Weightage Marks Awarded
Task 01 10%
Task 02 25%
Task 03 30%
Task 04 15%
2
Following assignment guidelines 20%
Total 100
%
Final marks of evaluation
Overall comments by the examiner
100
Signature of Examiner Signature of
& Date Education officer
3
4
ASSIGNMENT TOPIC
“The importance of understanding the Consumer Buying Decision Making Process
and understanding the Role and Importance of Marketing Research to identify
customer insights in order to satisfy target customers by developing appropriate
Marketing Mix elements for organisation success.”
CONTENT
Marketing is a very important process in any business organization irrespective of whether
the organization is profit or non-profit centered since Marketing contributes greatly to the
success of the organization’s survival, well-being, profits etc. Simply, Marketing is the
process of exploring, creating, and delivering value to meet the needs of a target market in
terms of goods and services.
Marketing is not simply an important part of business success – it is the business. Everything
else in the business depends upon marketing. Mark Cuban, the owner of the Dallas
Mavericks and several media and entertainment companies, puts it as succinctly as possible:
"No sales. No company."
“Business success is not determined by the producer but by the customer” – Peter Drucker.
“There is only one boss. The customer. And he can fire everybody in the company from the
chairman on down, simply by spending his money somewhere else” - Sam Walton – Founder
Wal-Mart Stores.
Effective Marketing starts with a strong knowledge of your customers: the kind of knowledge
that gives you unique insights into what they want and how to satisfy them better than the
competition. The most reliable source of fresh customer insights is good marketing
information. Useful marketing information may come from a variety of sources both inside
and outside your organization.
TASK ONE
Select an FMCG Organization of your choice and give a brief introduction about the
Organization and three product categories it markets .(10 Marks)
TASK TWO
With reference to the selected organisation in task one, select one product/brand of your
choice and carry out a detailed analysis of the Marketing Mix elements and list the key
characteristics of an Effective Marketing Mix. (25 Marks)
TASK THREE
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Discuss the importance of Marketing Research and briefly explain the key stages of the
Marketing Research Process the selected organisation should undertake in order to develop a
formal market research study on its Target Market. (30 Marks)
TASK FOUR
Briefly carry out an analysis of “Consumer Buying Decision Process” with reference to
the
product you have selected in Task Two. (15 Marks)
Acknowledgment
I owe debt of gratitude to the following persons who have contribute success of my
assignment. Firstly, I would like to thank all the lecturers of SLIM who helped to make this
project a success. Secondly, I would like to thank my family to take me a time for success
this assignment and I would like to thank all those who helped to make this assignment a
success.
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Table of Content
Task
1…………………………………………………………………………………………………
…….
Introduction of
Maliban………………………………………………………………………………….
Task
2…………………………………………………………………………………………………
…….
Marketing
Mix…………………………………………………………………………………………..
Product
…………………………………………………………………………………………………
Place……………………………………………………………………………………………
……….
Price……………………………………………………………………………………………
……….
Promotion………………………………………………………………………………………
………
Task 3
Introduction to Marketing Research
……………………………………………………………….
Marketing Research
Process…………………………………………………………………………
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Task 4
Consumer Buying Decision
Process…………………………………………………………………..
Conclusion……………………………………………………………………………………
……………
Recommendation………………………………………………………………………………
………….
Appendix…………
Reference List
……………………………………………………………………………………………
Executive summary
To : The examiner
From : PCM student
“Topic of Assignment: The importance of understanding the Consumer Buying Decision
Making Process And understanding the Role and Importance of Marketing Research to
identify customer insights in order to
Satisfy target customers by developing appropriate Marketing Mix elements for organization
success.”
In task one I have given an Introduction about the Maliban biscuits manufactories (PVT)
Limited as my chosen FMCG company and described it’s three product categories that they
market.
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In task two I have explained the detail analyzes of the Marketing Mix elements which they
have used effectively for Cream Cracker product and Key Characteristics of an Effective
Marketing Mix.
In task three I have explained the importance of Marketing research and briefly explain the
key stages of marketing research process and described about formal market research study
on Maliban biscuits (PVT) Limited’s target market.
In task four I have explained how to analyzing consumer buying decision process with
reference to the Maliban cream cracker biscuits which I selected in task two.
Introduction
In this assignment I will to found that the importance of using the main Marketing Mix
Elements (product, price, place, promotion) a company can be able to succeed at the
development of products and the development of products and the development of the
company.
Maliban is one of the largest FMCG companies in Sri Lanka . I have explain how the
Marketing Mix Elements and Key Characteristics of Effective Marketing Mix , Consumer
Buying Decision Process has impacted that company and looking to clarify where the
company will be in the future by improving it.
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Task One
Introduction of Maliban.
Maliban manufacturing company is one of a heritage brand which consist of values and
beliefs held by visionary leader Angulugaha Gamage Hinnyappuhamy. The journey of
Maliban is very inspirational which had a simple foundation in the year of 1954, which caters
to the industry line of the country. The company was diversified into three sperate business
categories which are milk, biscuits and subsequently release the innovation Maliban
Yahaposha. The company is diversified into a successful path which ranged in the years of
2013 to 2018.The company was able to subsequently achieve enhanced volumes and
increased gain due to customer satisfaction and the faith they have kept on the company. This
company subsequently stirred into success with the guidance provided by very new
leadership, and it showed how a leader would convert a business into a continuous business
growth.
Maliban have three product categories as Maliban
biscuits, Maliban Kiri and Maliban Agri. Maliban Kiri which was started lately is also
currently a leading milk producer within the country (Maliban, 2022). Maliban Agri which
has Maliban Tea and Yaha Posha is also have a considerable demand. This introduction of
the organization confirms the importance of marketing for Maliban as according to Milan
Kundera a business has only two functions which are marketing and innovation. Product
Maliban strives at the best to provide the customers with utmost satisfaction and Maliban
always produces different sets of products as mentioned earlier such as milk powders
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however Maliban gives a large focus on the biscuits industry which is conducted
internationally. There have been certain limitations done time to time with the products
having sufficient control of their products selling criteria without reaching uncontrollable
state in the market. Maliban identified the behavior of the Sri Lankan consumer and brought
in steps to put in a totally different menu comparing to the competitors and unique tastes of
the consumers of Maliban. There are many certificates and awards gained by Maliban for its
products as follows.
1.2 Company Vision and Mission
(Vision)
“To be the most successful and respected food company in Sri Lanka.”
(Mission)
“To win the hearts and minds of consumers by delivering food proposition with exceptional
quality, safety and value whilst being environmentally and socially responsible, creating
employee satisfaction and returning optimum value to stakeholders.”
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1.3 Key milestones of Maliban Biscuits Manufactories (PVT) Limited.
Products Categories
Maliban Biscuits Maliban Agri Maliban Milk Powder
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Task 2.
Marketing Mix.
“Marketing Mixes have to be changed from time to time in response to new
factors in the marketing picture. The firm can react to environmental
changes in an expedient or a systematic fashion”
(Philip Kotler)
Marketing mix is the set of controllable, tactical, marketing tools that the firm blends to
produce the response it wants in the target market. The marketing mix is often known as the 4
‘P’s which is later expanded to 7’P’s. This consist of Product, Price, Place and Promotion.
Lately extended with People, Process and Physical evidence.
Product.
This is anything that can be released to the market for attention, use, consumption, or
acquisition which might satisfy needs or want of the society. It is important to consider the
Design, Quality, Features, Brand Name, Packaging, Sizes and Services. Maliban brand have a
range of biscuits which satisfy customer needs as a great brand of Sri Lanka. This offers
different types of biscuits which attracts customers.
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(b) Maliban Cream Cracker
Maliban called this product (Maliban smart cream cracker). Introduced this product to the
market as firstly senior citizens and patients , after that they introduced this biscuit can eat
people who are in all ages. They develop their product crispy ,crunchy texture and milk taste.
and persuade to customer the cream cracker is excellent when use with butter, jam or eaten
with cheese.
Product Level
Basic Product - Maliban Cream Cracker is to satisfy hunger of the consumer.
Expected Product – the consumers expect the product to have good taste and crunchy.
Augmented product - adding cheese to the normal cracker, adding to the spicy normal
cracker, adding to the bran normal cracker, adding to the veggie cracker enhance the
appetite of the consumers.
Place /distribution analysis
This implies all the activities done to make the product available to the target customers of
the market at the right place and at the right time. Here it is important to consider variety,
channels, coverage, assortments, locations, inventory, and transportation of the organizations
functioning. As a large-scale company in biscuit manufacturing of the country, Maliban has a
effective and on time delivery network while having required storage facility for the
distribution of products to its outlet network which is approximately 70,000 outlets across the
country. To cater the demand of the products the firm has develop its warehouses and
factories near ports and airports. Due to the Modern and efficient manufacturing facilities of
Maliban it is manufacturing 25 million packets of biscuits monthly under stringent hygienic
conditions within the factories located in Mount Lavinia, Ranala and few other places. The
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competitors also imitating the same distribution and manufacturing approaches undertaking
by Maliban.
Price.
This is the amount of money charged for product or service, or the sum of all the values that
consumers exchange for the benefit of having or using the product or service. It is important
to consider list price, discounts, strategies, allowances, payment terms and credit terms in this
category. Maliban has a positive retail price which is bearable by the local consumers and
also the firm offer discounts for its retailers with a 30-day credit periods aiming extension of
retailer network.
Maliban uses a competitor – based pricing method to determine the price of their Maliban
cream cracker product.
Competitor’s – based pricing is a pricing method that makes use of competitor’s prices for
the same or similar product as basic in setting a price. This pricing method focuses on
information from the market rather than production costs. They may be more or less than
major competitor’s by using this method, Maliban tries to keep their customers purpose of
purchasing on their products by determining a higher price than their competitors. Maliban
major competitor is munchee biscuit.
Promotion.
This is where an organization attempt directly or indirectly to inform, persuade, and remind
consumers about the products they sell. In promotion it is important to consider Advertising,
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Personal selling, Public Relation, Sales promotion, and Direct marketing. Maliban uses
several promotional campaigns through sales promotions, Advertisements and Public
relations. They use TV advertisements and also paper advertisements to promote their
products. Maliban to promote its infamous 3 cracker used infamous singer Sunil Perera for
the advertisements.
The company through many CSR Products around the country promotes it products in the
market. Maliban came up with a decision to link with banana cultivators from the Embilipitya
Village of Sabaragamuwa Province to get the supply of bananas to its Banana Cracker. This
led to increase the income of the farmers which resulted increase of the good name of the
brand. Also, through Water Projects in Welikanda and other rural areas and Buddhi
Prabhodhaya program which offered computers to rural schools helped Maliban to increase
its public relations which is vital in marketing. (Biscuit & Milk Manufacturers | Maliban
Group Sri Lanka, 2022)
Characteristics of Marketing Mix.
Marketing mix is very important in developing efficient and effective marketing strategy.
There are key characteristics of an effective marketing mix. Effective marketing mix matches
customer needs. Having a proper knowledge and strategy to cater the customer need is very
important for the business. Marketing mix creates competitive advantage. When engaging in
a highly competitive market it is difficult to carry out business functions in a smoothy
manner. But with the marketing mix the firm can face this successfully. Well Blended is also
a key characteristic of a marketing mix. Matching corporate resources is another significant
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feature of marketing mix. These characteristics shows the significant of a marketing mix to
an organization.
Task 3.
Introduction to Marketing Research.
According to Dan Zarrella ‘Marketing without marketing research is like driving with your
eyes closed’. Manage a business is managing the future and manage the future is to manage
information where marketing research plays a vital role. Marketing research is the systematic
gathering, recording, and analyzing of data about problems relating to the marketing of goods
and services. Marketing Research covers all the information relating to the marketing mix,
markets customers, competitors, etc.
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There are several advantages in conducting continuous marketing research. Marketing
research pave the way to improve the ability of marketers to make right decisions. Through
this marketer can monitor changing values and behavior of customers constantly. Can
identify the strategies develop on competitor’s side. Marketing research help to evaluate the
effectiveness of current strategies and tactics used by the organization and helps to identify
the changes in the external business environment. Maliban company has go through several
marketing research which led them to gain the current position in the market.
Marketing Research Process.
The marketing research process is very important to consider in making marketing research.
(Innovation in Marketing Research: Quantitative and Qualitative Analysis | №1, 2020 |, 2022)
The process is as follows, Defining the problem and setting specific objectives, Designing the
research plan, collection of data, Data analysis and interpretation and presentation of research
findings. Firstly, the marketers should define the problem and set a specific objective. For
example, if the Maliban company find target market of Maliban Cream Cracker then it should
set as a specific objective. If the Maliban can lay the foundation for the marketing research
hardly it can reap the successful results.
Designing the research plan is the second stage of the process. In designing the marketing
research Maliban should consider the Types of data required, selection of data required,
selection of research
instruments, designing the sampling plan and the selection of contact method. For example,
in this situation Maliban should understand the required data as to why it reduces the demand
for Gold Marie. There are 3 types of questionnaires that can be used to find out data in the
marketing research. They are Dichotomous questions, Multiple – Choice questions and Open
– ended questions.
Collection of data for the marketing research can be done through in house and external
research agencies. If Maliban get in house data, it has confidentiality and knowledge of
internal parties. Employees can be the best source of consumer likes and dislikes. But if
Maliban choose external agency it has more experience and also faster. External knowledge
can be more important to Maliban if the research is relating to a failure of a product. Data
analysis and interpretation is also a significant stage of marketing research. Analyzing and
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interpretating data in a rational manner is very important for Maliban to have a successful
marketing Research. During this step Maliban has to transfer its raw data into information
which is beneficial in the decision-making process. This is done with vigilant analysis and
evaluation. For a effective data analysis and interpretation it is vital to have better analytical
skills, intuitive understanding skills and
communicating skills.
The final stage of the marketing research process is presenting of the research findings. Here
the marketers of the Maliban should keep the reports simple and brief. Keep remember of the
target customers for the report is very important.
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Task 4.
Consumer Buying Decision Process.
Consumer is individuals or households who buy goods or services for their consumption.
Buying behavior is the decision process and actions of consumers who are involve in buying
and using the products. There are 5 stages in consumer buying Decision Process Marketing
Theories – Explaining the Consumer Decision Making Process, 2022) . They are problem
recognition, Information search, evaluation of alternatives, purchase decision and post
purchase evaluation. This occurs when the consumer becomes aware that there is a difference
between the current state and expected state big enough to trigger as action.
The item of Maliban which is the most suitable to discuss the Maliban smart cream cracker
which kept in revolutionized throughout the whole biscuit planning procedure. This brand
kept momentarily progressing, consumers started welcoming this brand and the real fact is
that the consumers are very proud to associate with the smart cream cracker. The consumers
mostly investigate the fact that the level of sugar in the food they eat, will they unnecessarily
create any physical distortions later or there are any health implication resulting from the
ingredients included in the manufactured product. As for the product Maliban lemon puff
which is a natural lemon cream biscuit comprising constituting natural lemon oil which
resulted in the secret success of the business. Most of the customers prefer the product due to
this reason. House of Maliban has and will always be a brand entrenched in traditional values
with the correct mix of state-of-the-art technology, resulting in a brand name that all Sri
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Lankans appreciate and cherish. It is undeniable that Maliban Lemon Puff is one of Sri
Lanka's top Lemon Puff Biscuits. It should also be emphasized that Maliban lemon puff is
one of the most popular goods even in export industries, and Maliban is delighted to say that
90% of its exports travel to Europe. According to Mr. Gotabaya Attanayake, Maliban's Brand
Manager, "Maliban is prepared for innovations and has created new trends by addressing
customer demands and wants." The Maliban Strawberry Crunch, which is sold in
supermarkets, is becoming increasingly popular among customers because to its authentic
strawberry flavor. He remarked that this delectable biscuit is packed with strawberry cream
and has the most delectable strawberry jam filled centers.
Conclusion
Maliban biscuit manufacturing PVT LTD persist the main target to be successful and a
respected food company food company in Sri Lanka according to the prior vision in which
they have created. Its core founder has brought in strategies to bring the main purpose of
delivering better quality, a health and safe food products to the market by involving in ethical
business practices throughout. The Maliban company is the one of the main companies which
is interconnected with the Sri Lankan traditional values which is spread equally among the
nation. Due to this successful adherence towards the customer certificates such as the ISO
9001 and several others were obtained. The above context conveys that how Maliban was
able to introduce innovative business brands and categories named such as feel-good sugar
free biscuit under the set of ranging products of health and wellness products. Maliban was
able to successfully identify the demand change within the market and successfully manage
to change the management process by reducing the restrictions within that organization to
bring in innovation.
Recommendations
There are certain areas in which Maliban could strategically improve in order to achieve the
ultimate goals and objective. Maliban which is bit of a highly competitive business
environment where the main competitor is extremely using their advertising modes for
promotions. For this Maliban requires to advance a mode of advertising campaign to match
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with the competition. On the other side, Maliban had a lower product range when compared
with their main competitor. To have a preliminary defense to negate such an attack, it is more
recommended that they should expand the product range with some new products. usage of
blue ocean strategies would give a light of development to the Maliban company. They also
could try on new vertical or horizontal diversification strategies as well in while they oud
reduce their production cost
Appendix
The following report do consist of the outline of the Maliban Manufacturing PVT Ltd.
Momentarily there has been certain facts mentioned on the body of the company and the
strategies for development and certain recommendation which are useful to the business. The
360-degree discussion on regard to Maliban enterprises will be deeply inculcated further in
the context. Evaluation of the products that the enterprise consist of and the strategic effect
that do consist which subsequently aided in the development of the enterprise.
Reference List.
Anon. 2022., Maliban Biscuits Recognised Once Again For Superior Quality And
Excellence. Business Today [Online] 8th October. Available at:
http://www.businesstoday.lk/article.php?article=3435 [Accessed date 16th of June 2022]
Professionalacademy.com. 2022. Marketing Theories – Explaining the Consumer Decision
Making Process. [online] Available at:
<https://www.professionalacademy.com/blogs/marketing-theories-explaining-the-consumer-
decision-making-process/> [Accessed 18 June 2022].
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Malibangroup.com. 2022. Biscuit & Milk Manufacturers | Maliban Group Sri Lanka. [online]
Available at: <https://www.malibangroup.com/> [Accessed 18 June 2022].
Doi.org. 2022. Innovation in Marketing Research: Quantitative and Qualitative Analysis |
№1, 2020 | Маркетинг і менеджмент інновацій. [online] Available at:
<http://doi.org/10.21272/mmi.2020.1-10> [Accessed 18 June 2022].
Sri Lanka Institute of Marketing. 2012., Market research [Online] Available at:
http://www.slim.lk/slim-events/events/peoples-awards [Accessed date 16th June 2022]
Trading economics. 2016., Sri Lanka GDP Growth Rate 2003-2016 [Online] Availabla at:
http://www.tradingeconomics.com/sri-lanka/gdp-growth [Accessed 18 June 2022].
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