1. Introduction to MKT

Question 1

Why are Marketing decisions important? 6

Answer 1

1. • Anticipate needs and wants
2. • Target consumers in line with the company
3. • Be better than competitors
4. • Products and services available
5. • Develop customer awareness and appreciation
6. • Obtain market feedback - Create long term relationships

Question 2

Marketing: 7

Answer 2

1. • Identifying a need
2. • The organisation satisfies needs
3. • Through the process of exchange
4. • Providing value to the customer
5. • Or/and making profit
6. • About products, services, ideas, people, places
7. • Can raise awareness, inform, remind, reinforce, educate

Question 3

How does marketing help an organization? 5

Answer 3

1. • Develops product that people want at the price they are willing to pay
2. • Tells people about the product
3. • Makes it available
4. • Collects market data to improve product offering, competitor information and customer satisfaction
5. • Build customer loyalty

Question 4

What Factors Are Necessary for a Successful Exchange Relationship? 4

Answer 4

1. • Identifying potential exchange partners
2. • Developing offerings
3. • Communicating information
4. • Delivering products, and collecting payments

Question 5

The Parties in an Exchange 3

Answer 5

1. • Individuals and organizations
2. • Ultimate customers
3. • Organizational customers

Question 6

Ultimate customers:

Answer 6

They buy goods and services for their own personal use or the use of others = consumer goods and services

Question 7

Organizational customers:

Answer 7

They buy goods and services—known as industrial goods and services.

For resale As inputs to the production

For use in the day-to-day operations of the organization .

Question 8

Relational marketing identifies stakeholder groups 6

Answer 8

1. • Supplier market
2. • Employer market
3. • Customer market
4. • Internal market
5. • Influencer market
6. • Referal market

Question 9

Products and Services

Answer 9

• Products: tangible physical objects
• Services: Less tangible

Question 10

How Exchanges Create Value 4

Answer 10

1. • Customers buy benefits, not products
2. • Value is a function of intrinsic product features, service, and price
3. • Perceived benefits derived from acquisition, use or consumption
4. • This value means different things to different people

Question 11

Customers Buy Benefits, Not Products

Answer 11

Need -> Benefits -> Choice criteria -> Product/service features -> Brand / supplier chosen

Question 12

How Exchanges Create Value 2

Answer 12

1. • Lifetime customer value
2. • Brand equity

Question 13

Lifetime customer value:

Answer 13

The present value of a stream of revenue that can be produced by a customer over time

Question 14

Brand equity: 2

Answer 14

1. • The assets linked to a brand’s name and symbol constitute the brand’s equity
2. • Reflects a brand’s value to the company depends on how much value customers think the brand provides for them; value creation cuts both ways

Question 15

Defining a Market

Answer 15

Consists of individuals and organizations who:

• Are interested and willing to buy a particular product to obtain benefits that will satisfy a specific need or want
• Who have the resources to engage in such a transaction

Question 16

Market Macro 5

Answer 16

(uncontrollable)

1. Political
2. Economic
3. Social
4. Technological
5. Legal

Question 17

Market Micro 4

Answer 17

(controllable?)

1. Customer
2. Suppliers
3. Competitors
4. Internal market

Question 18

Market Situation 5

Answer 18

1. Developmental
2. Introduction
3. Growth
4. Mature
5. Declining

Question 19

Competitive position 4

Answer 19

1. Leader
2. Challenger
3. Follower
4. Niche

Question 20

Market Size 4

Answer 20

1. Volume
2. Value
3. Growth
4. Market share