4.1 Introduction to marketing

Question 1

Define marketing

Answer 1

Marketing is getting the right product to the right people at the right space at the right time

In other words, it is identifying, anticipatinng, satisfying consumer needs profitably

Question 2

Distinguish between market orientation and product orientation

Answer 2

Market orientation - Developing a product based on an evaluation of the consumer’s needs and wants

Product orientation - Developing a market for a product.
- uses Say’s Law

Market orientation - you make something that the consumers want

Product orientation - you make the consumers want something

Question 3

Distinguish between market share and market growth

Answer 3

Market share - the portion of the market that a business owns

Market growth - How much the market has increased in sales/market size

Question 4

Compare market share and market growth

Answer 4

• Market share and market growth both use sales for measurement
• So they both use currency i.e. the value and number of units sold i.e. the volume

Question 5

Explain Say’s Law

Answer 5

• Say’s Law states that supply creates its own demand
• “production drives demand, as the production and sale of goods creates the income that makes the purchase of other goods possible.”

Question 6

Benefits of a market oriented business

Answer 6

• less risk of failure (know what the consumer wants -> safe)
• can anticipate to market changes via market research
• regular feedback from consumers due to market research (stronger against new competitors who came into the market)

Question 7

Limitations of a market-oriented business

Answer 7

• Conducting market research can be costly
• Frequent change in consumer taste, can be difficult to meet every consumer’s needs with resources
• Uncertainty about the future could have a negative influence on the market-planning strategy

Question 8

Benefits of a product-orientated business

Answer 8

• associated with the production of high-quality products such as luxury brand cars or safety products like crash helmets
• Can succeed in industries where the speed of change is slow and the firm has already built a good reputation

Question 9

Define market leader

Answer 9

A firm with the highest market share

Question 10

Define market challenger

Answer 10

The firm with the second-most amount of market share.