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 advantages + disadvantages

Answer 10

advantages:
greater flexibility
lower risk

disadvantages:
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 advantages + disadvantages

Answer 12

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

disadvantages:
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

Define Market size and how is it measured?

Answer 17

Market size refers to the magnitude1 of an industry, usually measured in terms of the value of sales revenue2 from all the businesses in a particular market, per time period.

Question 18

Define Market growth.

Answer 18

Market growth refers to an increase in the size of a market per period of time, usually a year and is measured by an increase in the value or volume of sales in the market. It is usually expressed as a percentage change to show the extent of market growth.

Question 19

Define Market share and how is it measured?

Answer 19

Market share refers to an organization’s portion of the total value of sale revenue within a specific industry1

It is measured by expressing the firm’s sales revenue as a percentage of the total sales revenue in the industry, per time period:

Question 20

How is market share increased?

Answer 20

Businesses is increase their market share by:

• Promotion of their brands.
• Product development, improvements and innovation
• Motivation and training of the workforce to deliver better customer services
• Establishing property rights, i.e. the use of trademarks, copyrights and patents
• Use of more efficient channels of distribution4.

Question 21

Why is market share important?

Answer 21

• There is a positive relationship between market share and profits, although the firm with the largest market share is not necessarily the most profitable.
• High market share has other benefits such as the status enjoyed from being a dominant market player.The ability to gain a range of economies of scale.
• Firms with high market share (market leaders) have better price-setting ability and are less threatened by competition

Question 22

Define market concentration.

Answer 22

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

Question 23

Define Marketing Objectives

Answer 23

Marketing objectives are the specific marketing goals of an organization.

Question 24

What are the marketing objectives for profit businesses?

Answer 24

The marketing objectives of for-profit (profit- seeking) organizations include:

• To make more sales revenue.
• To obtain a higher market share that suggests that the business is more competitive.
• To increase their market leadership.
• To Improve product and brand awareness
• To Develop new products
• To Enhance brand perception1

Question 25

What are the marketing objectives for non profit businesses?

Answer 25

The objectives of social marketing are not primarily profit related but include:

• To build membership (support) and to connect with new donors.
• To generate awareness of the Non profit organisation’s cause.
• To improve brand recognition of the Non profit organisation.
• To create positive attention to the Non profit organisation’s operations.
• To show the value of the Non profit organisation to the local community or society.