2.1 Introduction to marketing

Question 1

Define the term marketing

Answer 1

Marketing is the anticipation and identification of consumer wants and needs. Marketing must satisfy these wants in order to make profit.

Question 2

Outline roles of the marketing department

Answer 2

Product marketing: Planning for new products and analysing existing ones

Digital marketing: Working on websites, social media, SEO and paid search advertising

Content marketing: Creating blogs, e-books, videos and other informative material relating to the products

Customer marketing: Engaging with the current customer base

New business marketing: Focusing on getting the attention of new potential customers

Market research: essential to identify and analyze customer needs. strategic decisions about product design, pricing, promotion and distribution are taken.

After sales service and customer service: gain customer loyalty.

Question 3

Explain key marketing terminology including:
Market share

Answer 3

Market share: is the percent of total sales in an industry generated by a particular company.

Question 4

Market growth

Answer 4

Market Growth: The percentage change in the total size of a market (volume or value) over a period of time

Question 5

Market segmentation

Answer 5

Market segmentation: dividing the market into distinct groups of consumers who share common tastes or requirements

Question 6

Ease of entry into the market and competitors

Answer 6

Ease of entry into the market and competitors: The level of difficulties competitors have when entering a market.

Question 7

Differentiated and homogeneous products

Answer 7

Differentiated or homogeneous products: goods that are physically identical or viewed as identical by consumers, e.g. milk, petrol

Question 8

product-led

Answer 8

product-led: when a business focus on the product and the production process rather than the wants of the consumer

when:
- lack of competition
- innovation
- product is of a high quality
- consumer demand

Question 9

market-led

Answer 9

market-led: identifies, reviews and analyses consumers’ needs. Costumers oriented

more able to:
- anticipate changes in market
- respond to changes in market
- be confident about success of new product launch
- less likely to fail as the product is based on consumer needs

Question 10

Calculate market share and explain the importance

Answer 10

Market share is the percentage of sales in a particular market held by a product/business

The business with highest market share is the market leader.

Market share % = Firms sales in time period x 100
Total market sales in time period

Question 11

explain the importance of market leadership

Answer 11

• Create brand loyalty
• Economies of scale - strong bargaining position with suppliers
• Retained profits
• Recruitment of high class employees

Question 12

Explain the difference between marketing objectives for the private sector

Answer 12

Private sector:
- Increase market share
- Increase total sales
- Build customer loyalty
- Increase the average number of items bought per visit
- Attract new customers

Question 13

Explain the difference between marketing objectives for the public sector

Answer 13

Public sector:
- Maximize revenue
- increase recognition of society