4.1 Introduction to marketing

Question 1

Marketing

Answer 1

The management proces of getting the right product to the right customer at the right price, the right place and the right time

Question 2

Market orientation

Answer 2

first establishing consumer demand through market research before producing and selling a product, market-led focused on consumer demand

Question 3

Benefits of market orientation

Answer 3

1. confidence that products will sell
2. reduces risk of failure
3. anticipate and respond quickly to changes in the market
4. feedback allows to meet challenges of new competitors

Question 4

Limitations of market orientation

Answer 4

1. costly
2. consumer tastes change frequently
3. uncertainty about the future

Question 5

Product orientation

Answer 5

focuses on making the product first before attempting to sell it, innovative products and tempot customers to buy them

Question 6

Benefits of product orientation

Answer 6

1. high-quality products
2. success in markets with slow speed of change
3. good for firmss with an already good reputation
4. control over its activities

Question 7

Limitations of product orientation

Answer 7

1. market needs ignored, high risks
2. money spent on research without considering consumer needs can be costly without promising results

Question 8

Market share

Answer 8

Percentage of total sales that a business has within an industry

Question 9

Market share by volume

Answer 9

measures the number of goods bought by customers

Question 10

Market share by value

Answer 10

measures the amount spent by customers on the total number of goods sold

Question 11

Market growth

Answer 11

percentage change in the market size over a given period of timee

Question 12

Market size

Answer 12

the total sales of all firms in a market

Question 13

Benefits of knowing market share

Answer 13

1. provides insights into the firms revenues, growth and profit margins
2. larger market share can enable to produce goods efficiently in a lower cost due to economies of scale
3. higher market share can allow increased pricing power
4. attracting new customers
5. indicators of market leadership

Question 14

Benefits of being a market leader

Answer 14

1. first mover advantage
2. increased sales and profit
3. economies of scale
4. customers would like to be associated with popular brands
5. attract highest quality development partners

Question 15

Market leaders limitations

Answer 15

1. need to be cautious about how they obtain their market share, not abusing their position
2. not necessarily the most porfitable business for an investor as it might have high total expenses