4.1|Introduction to marketing

Question 1

human needs and wants

Needs vs Wants

Answer 1

Needs are things human need to survive
exp: food, clothing
Wants are human desires
exp: luxurious car

Question 2

Function of marketing to business

Answer 2

to provide market with:
1. right products
2. at right prices
3. effective promotion
4. efficient distribution

Question 3

ways of measuring market size

Answer 3

1. the potential customers
2. sales revenue
3. number of competitor (byk competitors means banyak demand, thus big market size)
4. sales volume

Question 4

what is market orientation?
how it gathes information?
what is the common marketing strategy use by firms?

Answer 4

focuses on meeting customers specific demands (desires and needs) of customers

prioritise customers above everything else

gather information through market research

usually use promotional strategies such as television advertisment

Question 5

advantages of market orientation

Answer 5

1. New product launches is likely to success because it is based on market research
2. Market research can help business to access to latest market information so business can change accordingly to circumstances
3. Reduce financial risks associated to product development by focusing on the changing customers preference

Question 6

disadvantages of market orientation

Answer 6

1. market research data from secondary resources are accessible to rival company.
2. some secondary resources are outdated.
3. gathering market information can be expensive (such as survey) affecting business finance.

Question 7

what is product orientation?
what it priorities? (Rnd or customer feedback)
which industry adopt this?

Answer 7

focuses on what business knows how to make well

prioritise RnD

adopt by tech-savvy manufactures e.g. Apple, microsoft

Question 8

what is market growth?
what does positve/negative value indicates?
how to calculate it?

Answer 8

Increase in the market size

If the market growth rate is positive, it means the market size is growing vv.

=(market size period 2 - market size period 1)/ market size period 1 * 100

expressed in percentage

Question 9

advantages of product orientation

Answer 9

1. Business having USP
2. Gain positive corporate image of being innovative, thus strengthen customers loyalty
3. Hard for competitors to copy an innovation through RnD.

Question 10

disadvantages of product orientation

Answer 10

1. Need skilled workers thus increasing cost (salary)
2. Carry a risk of ignoring market demand especially if competitors are market oriented.
3. Although investing a lot of money, there is no guarantee customers will buy the product.

Question 11

what is market size?

Answer 11

The total number of individual customers

expressed in absolute value

Question 12

what is market share?
what do we call business having highest market share?

Answer 12

Sales revenue that an organization accounts for within a market (total sales in the market)

market leader