4.1 The role of marketing

Question 1

Ethical code of practice

Answer 1

It refers to guidelines that help businesses to act in a moral way by considering what is ethically right or wrong (from society’s point of view).

Question 2

Market

Answer 2

It is a place or process whereby customers and suppliers trade. A market exists where there is a demand for a particular product and where there is a willingness from businesses to supply these products.

Question 3

Market concentration

Answer 3

It measures the degree of competition that exists within a market by calculating the market share of the largest few firms in the industry.

Question 4

Market leadership

Answer 4

It refers to firms with the largest market share in a particular market.

Question 5

Market orientation

Answer 5

It is a marketing approach adopted by businesses that are outward looking by focusing on making products that they can sell, rather than selling products that they can make.

Question 6

Market share

Answer 6

It measures the value of a firm’s sales revenues as a percentage of the total sales revenue in the industry.

Question 7

Market size

Answer 7

It refers to the magnitude of an industry, usually measured in terms of the value of sales revenue from all the businesses in a particular market, per time period.

Question 8

Marketing

Answer 8

It is the management process of predicting, identifying and meeting the needs and wants of customers in a profitable manner.

Question 9

Marketing objectives

Answer 9

They are the specific marketing goals of an organization. The marketing objectives of for-profit (profit-seeking) organizations include increased sales revenue, market leadership and greater market share.

Question 10

Marketing strategies

Answer 10

They are the medium to long term plan to achieve a firm’s marketing objectives.

Question 11

Needs

Answer 11

They are the essential necessities that humans must have to survive. Examples include food, shelter, warmth, and water.

Question 12

Product orientation

Answer 12

It is a marketing approach used by businesses that are inward looking as they focus on selling products that they can make, rather than making products that they can sell.

Question 13

Social marketing

Answer 13

It refers to any activity that seeks to influence social behavior to benefit the target audience and society as a whole.

Question 14

Wants

Answer 14

They are human desires. Things that people would like to have. Irrespective of a person’s income or wealth, all people have infinite wants.

Question 15

Commercial marketing

Answer 15

It is the use of marketing strategies to meet the needs and wants of customers in a profitable way.