4.1 The role of marketing

Question 1

What is Marketing?

Answer 1

1. Getting the right product to the right customers at the right price at the right time.
2. The management process involved in identifying, anticipating and satisfying consumer needs profitably.”
3. Value creation fo customers, ivolves answers to these questions:
   What tasks are enabled/simplified?
   What risks reduced?

• involves Working with other business functions to satisfy the needs to the customer.

Question 2

Marketing of goods vs marketing of services?

Answer 2

4 Ps of the marketing mix concerns goods while marketing of services involves 3 additional Ps of the marketing mix:
People
Physical evidence
Processes

Question 3

Product orientation vs market orientation

Answer 3

✓ Focuses on producing the product first before selling it

while market orientation involves carrying out market research before producing and selling the product.

Question 4

Commercial marketing vs Social marketing?

Answer 4

✓ Activities of commercial marketing determine consumer needs and wants before using appropriate strategies to market the product.

✓ Social marketing aims at influencing a positive change in individual behaviour and improvement in societal well-being, focuses on the use of the internet through social networking websites to market a firm’s product.

Question 5

Market size?

Answer 5

✓ Total sales of all firms of specified products in a market

Question 6

Market share?

Answer 6

The percentage of one firm’s share of the total sales (of pre-specified products) in the market.

Question 7

Marketing objective of for-profit organizations?

Answer 7

To identify, design and develop marketing strategies that are profitable to the business.

Question 8

Marketing objective for Not for profit organisations (NPOs)?

Answer 8

Mostly for social marketing reasons.

Question 9

Cooperation between marketing department and HR?

Answer 9

For example, an increase in the demand for a product as a result of improved marketing may require the recruitment of extra staff from the sales and production departments in order to meet this demand.

Question 10

Cooperation between marketing department and production?

Answer 10

Marketing staff have to ensure, that products developed meet customers needs/wants. These departments have also to coordinate R&D time available, best launch time etc.

Question 11

Cooperation between marketing department and finance department?

Answer 11

What should be the marketing budget?

What costs are justified to meet the customer needs/wants profitably?

Question 12

Goods (vs Services)?

Answer 12

Goods are:
    Tangible;
    Can be returned;
    Can be stored and consumed later;
    Will be owned after purchase;
    Can be more easily compared to competitors
    4 P's

Question 13

Services (vs Goods)?

Answer 13

Services are:
Intangible;
Can not be returned;
Can not be stored and consumed later;
It is not clear-cut what is now owned, after purchase;
Can be harder to be compared to competitors
7 P’s

Question 14

Limitations of market orientation?

Answer 14

Market research may be costly;

Customers needs/wants may change unpredictably, before the product is delivered or sold profitably

Question 15

Limitations of product oriantaiton?

Answer 15

High risks that there will be no market

Question 16

The advantage of product orientation?

Answer 16

The possibility to be the First enabling fast market recognition and strong competitive advantage;
If widely recognized, more profit generated due to income from patents, lower costs (due to no need to pay these same patents and economies of scale)

Question 17

Benefits of SMM?

Answer 17

Improved tageting;
Lower costs;
Constant feedback.

Question 18

Limitation of SMM

Answer 18

As these have lower costs, it is hard to stand out only by these tools. This is why SMM is regarded as a good supplement only by many successful firms.

Question 19

Types of market size?

Answer 19

By volume: sale of units of all firms (of pre-specified products)
By value: total revenue of all firms from sales of these pre-specified products.

Question 20

Market leader?

Answer 20

A company with the highest market share in the specified industry

Question 21

Market growth?

Answer 21

Percentage change over a period, usually a year;

May be a volume or value.

Question 22

Marketing vs Innovation

Answer 22

1. Marketing technologies are embracing innovation with accelerated pace. SMM, its Instant feedback, using Big Data to successfully target potential customers are all examples of innovations
2. It has become a trend to highlight the innovative features of products when describing them for the customers (in the slogans/massages), when explaining how this product creates value for the customers.

Question 23

Marketing vs Ethics

Answer 23

1. Ethical advertising is not only a a moral choice but also a pragmatic business decision – the reputation and sales of a business can be severely affected if advertising methods are found to be misleading or offensive.
2. Many countries have a regulating body to monitor advertising. In such a way some part of ethics adopted by the society is guarded by law.

Question 24

Marketing and cultural differences

Answer 24

Marketer have to be aware of cultural differences in order to avoid costly mistakes and target effectively. E.g. ADs in the west are changed to meet expectations or ethical norms of muslim world.
Different media may be differently effective with different segments, e.g. SMM being targeted on younger generations.