Basic Concepts (1) Flashcards
What are the most common marketing activities?
- identifying customers and prospects;
- predicting customers’ needs;
- providing a product or service to meet these needs;
- establishing a sustainable competitive advantage and profitability;
- ensuring a holistic focus on all marketing efforts; and
- committing to social and ethical responsibility.
Explain in more detail the common marketing activities?
- Determine Prospects and customers
- Over products that meet the needs
- Create a holistic focus on marketing
- Anticipate customer’s needs
- Become competitive and profitable
- Become socially and competitively responsible
- Determine Prospects and customers
- Over products that meet the needs
- Create a holistic focus on marketing
- Anticipate customer’s needs
- Become competitive and profitable
- Become socially and competitively responsible
- Determine Prospects and customers (Prospects are targeted as future customers, while customers are those that are sold the goods and services.)
- Over products that meet the needs (Companies must provide products or services that provide value and utility to their customers.)
- Create a holistic focus on marketing (All employees at a company are responsible for meeting customer needs, not just the marketers.
- Anticipate customer’s needs (Wants are limitless, while customers’ higher and lower order needs are determined using Maslow’s hierarchy.)
- Become competitive and profitable (Companies gain and maintain a competitive advantage using cost and differentiation advantages)
- Become socially and competitively responsible (Companies must act socially and ethically responsible and not only act in the interests of making a profit.)
Explain the difference between the following types of needs in Maslow’s hierarchy of needs?
- Physical needs – These are the very basic needs such as air, water, food, sleep etc.
- Safety needs – These needs refer to achieving stability and consistency in a chaotic world.
- Love and belongingness needs – Humans have a desire to belong to groups: clubs, work groups, religious groups, family, gangs etc. We want to feel loved and accepted by others. We need to be needed.
- Self-esteem needs – There are two types of esteem needs. The first is the self-esteem need which is satisfied by achieving competence or mastering a task. Secondly there is the attention and recognition that comes from others. This is similar to the belongingness level; however, wanting admiration is related to the need for power.
-The need for self-actualisation – This is the desire to become more and more what one is; to become everything that one is capable of becoming. People who have all the possessions they need can still strive to maximise their potential. They can seek knowledge, peace, esthetic experiences, self-fulfilment etc
Explain customers ‘needs’ and ‘Wants’?
- Customer needs
- Rational (I need transport)
- Limited
- Universal
- Based on facts
- Customer wants
- Emotional (I want the feeling of owning a VW)
- Unlimited
- Culture bound
- Based on perception
What are the differences between goods and services?
Goods
* Tangible (can be touched, seen, smelt, tasted or heard)
* Can be stored, owned or become a possession
* Produced beforehand & can be separated from the producer
* Production and distribution are separated from consumption
Services
* Intangible
* Only a memory or experience in the mind of the consumer
* Cannot be separated from the producer
* Production, distribution & consumption occur simultaneously
What are the five utilities that need to be met in order to provide consumer satisfaction?
- Form
- Task
- Time
- Place
- Possession
- Form: The product must be useful and suited to the purpose for which it was purchased.
- Task: The way in which the product is delivered must be of a certain standard.
- Time: The product must be available when people need it.
- Place: The product must be easily accessible or deliverable.
- Possession: The customer must be able to take possession of the product.
An expert in the field of business strategy, Professor Michael Porter from Harvard Business School, states that there are two ways to maintain a competitive advantage?
- Cost advantage
- Differentiation advantage
- Cost advantage: To have a cost advantage, an organisation will provide their customers with the same products as their competitors, but at a lower cost. This incentivises customers to buy their products rather than the products of their competitors.
- Differentiation advantage: To have a differentiation advantage, an organisation will provide their customers with goods and/or services that cannot be obtained from the organisation’s competitors. This may be because their services go above and beyond all their competitors’, or because they have found a niche market and cater for the very specific needs of consumers in that market.
Explain what is meant by Cost advantage?
To have a cost advantage, an organisation will provide their customers with the same products as their competitors, but at a lower cost. This incentivises customers to buy their products rather than the products of their competitors.
Explain what is meant by Differentiation advantage?
To have a differentiation advantage, an organisation will provide their customers with goods and/or services that cannot be obtained from the organisation’s competitors. This may be because their services go above and beyond all their competitors’, or because they have found a niche market and cater for the very specific needs of consumers in that market.
Explain a Command economy?
- Level of competition - No competition
- Ownership of -Everything is state-owned property
- Management - Management vests in the state freedom
- Consumers and Choice - Product rationing choice
- Labour force - Limited choices regarding careers and movement between jobs freedom
- Role of profit - Profit not allowed
Explain a Mixed economy?
- Level of competition (Limited because of state institutions)
- Ownership of (Basic industries owned by the state)
- Management (Restricted to government policy)
- Consumers and Choice (Freedom of choice outside of state goods and service)
- Labour force (Free to move and Some state limitations)
- Role of Profit (Profit motive recognised and State pays based on needs)
Define a Free market economy?
- Level of competition - Free competition
- Ownership of - Private ownership of production factors
- Management - Individualism and Free to choose
- Consumers and Choice - Freedom of choice and Spending limited by income
- Labour force - Freedom of movement
- Role of Profit - Based on individual ability, skills and opportunity
- Freedom of movement
Name the legislative and regulatory environments that are directly applicable to marketing?
- The Advertising Standards Authority of South Africa (ASA) is an independent body set up to regulate advertising in the public interest through a system of self-regulation.
- The Estate Agency Affairs Board (EAAB) regulates the estate agency industry
- The objectives of the Public Relations Institute of South Africa (PRISA) are to promote a general understanding of public relations and communication management, and of the value of its practice;
- The Southern African Marketing Research Association (SAMRA) is a professional body of people involved in all aspects of market research
- The purpose of the Marketing Association of South Africa (MASA) is to represent the needs of marketers in order to promote an environment that will enable companies and individuals to operate optimally in their marketing business and to sustain and develop the credibility of marketing as a professional discipline.
- ## The Direct Marketing Association of South Africa (DMASA) has made tremendous progress in mobilising the industry after the dissolution of the Marketing Federation of South Africa (MFSA).
Marketing management refers to?
Marketing efforts that are carried out to achieve a single organization goal
A marketing orientation approach is?
the ‘foundation of contemporary marketing philosophy’
