4.1 The role of marketing

Question 1

Needs

Answer 1

essential necessities that all humans must have to survive

Question 2

Wants

Answer 2

human desires

Question 3

Marketing

Answer 3

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

Question 4

Four main goals/objectives of marketing

Answer 4

the right PRODUCTS are supplied
the correct PRICE
the correct distribution/PLACE of products
adequate and effective PROMOTION

Question 5

How does marketing work with operations management?

Answer 5

prepare production schedules

Work directly with each other to research, develop and launch products

Question 6

How does marketing work with human resources?

Answer 6

marketing helps HR identify staffing needs

Question 7

How does marketing work with finance?

Answer 7

set appropriate budgets

Question 8

The differences between marketing of goods and services

Answer 8

intangibility
inseparability
price strategy 
promotional strategy
place strategy
product strategy

Question 9

Market orientation

Answer 9

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

Question 10

Market orientation ads + disads

Answer 10

ads:
greater flexibility
lower risk

disads:
market research is expensive

Question 11

Product orientation

Answer 11

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 12

Product orientation ads + disads

Answer 12

ads:
quality can be assured
the firm has more control over its operations

disads:
high risk/failure rate of businesses
expensive

Question 13

Commercial marketing

Answer 13

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

Question 14

Social marketing

Answer 14

any activity that seeks to influence social behaviour to benefit the target audience and society as a whole

Question 15

Differences between social marketing and commercial marketing

Answer 15

purpose:
c - Sell physical goods and intangible services for a profit
s - Influence or persuade a desired change in social behaviour or attitudes

benefits
c - Satisfy individual needs and wants, thus reaps profit for the business
s - Satisfies the needs and desires of the general public, thus reaps benefits for communities

main users
c - private sector businesses
s - the government and non-governmental organisations (NGOs)

Question 16

Market

Answer 16

a place or process whereby customers and suppliers trade

Question 17

Customer markets

Answer 17

markets that cater for private individuals

Question 18

Industrial markets/producer markets

Answer 18

markets that cater for organisations

Question 19

Characteristics of the market

Answer 19

Market size - markets differ in their sie as measured by sales revenue
Customer base - (alternative measure of market size) the total potential number of customers
Barriers to entry - obstacles that determine the number of suppliers in the market
Competition - degree of rivalry within a market
Geographic characteristics - some markets focus on a particular area, country or region
Demographic characteristics - characteristics of consumers (gender, age, ethniticity and religion)
Market growth rate - increase in the size of a market per period of time
Seasonal and cyclical characteristics - some markets are constrained by seasonal factors

Question 20

Market share

Answer 20

an organisation’s portion of the total value of sale revenue within a specific industry

Question 21

Formula for market share

Answer 21

firm’s sales revenue / industry’s sales revenue x 100

Question 22

How to increase market share

Answer 22

Promotion of their brands
Product development, improvements and innovation
Motivation and training of the workforce
Establishing property rights (i.e. the use of trademarks, copyrights and patents)
Use of more efficient channels of distribution

Question 23

Market concentration

Answer 23

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

Question 24

Marketing objectives of for-profit organisations

Answer 24

Increased sales revenue
Higher market share
Increased market leadership
Improved product and brand awareness
Developing new products
Enhanced brand perception (product positioning)

Question 25

The objectives of social marketing

Answer 25

To build membership (support) and to connect with new donors
To generate awareness of the NPO’s cause
To improve brand recognition of the NPO
To create positive attention to the NPO’s operations
To demonstrate the value of the NPO to the local community of society in general

Question 26

What do successful global businesses do to their marketing strategies?

Answer 26

evolve their organisation and marketing strategies to suit changes in customer preferences.

Question 27

Why do marketing strategies evolve?

Answer 27

Changing consumer tastes
Shorter product life cycle
Internet and mobile technologies - customers have more choice due to e-commerce
Competitive rivalry - markets are force to adapt and avolve their strategies
Globalisation - businesses and countries are now more interdependent with consumer tastes more integrated