Chapter 1

Question 1

What are the 5 marketing concepts ?

Answer 1

Product
Needs
Wants
Value
Exchange

Question 2

Why is the mission, vision, values and objectives important in MCB?

Answer 2

Guides the company in its ways of operations and strategies

Question 3

Production philosophy

Answer 3

Consumers prefer product that are widely available and inexpensive = high production, low cost

Question 4

Problem of production philosophy

Answer 4

Marketing myopia - do not know what the market really needs

Focused too much on production that it forgets the needs and wants of the customers

Question 5

Selling Philosophy

Answer 5

Selling what they make and not what the market wants

Objective: sell to meet sales target

Question 6

Problems of selling philosophy

Answer 6

1. Short-term sale - focuses on what the customer favours
2. Overcapacity - sell what they make not what the market wants
3. Hard selling - high risk

Question 7

Marketing philosophy

Answer 7

4P’s

Determining the needs and wants of the target market

Delivering desired satisfaction more effectively and efficiently than competitors do = striving to be the market leader

Also to meet the mission,vision, values, objectives of an organisation

Defines target market - focus on customer needs
Diff target audience = diff needs

Question 8

Marketing philosophy is a…

Answer 8

Process:

1. Concentrate on a target market
2. Focus on the needs of consumer
3. Co-ordinate marketing activities = marketing elements (4P’s)
4. Contribute to profits
5. Create long term relationships = brand loyalty
6. Customer value and satisfaction
7. Competitor orientated

Question 9

Societal Philosophy

Answer 9

Determine the needs, wants and interest of target markets

Improves the consumer’s and society’s well being

Question 10

Implications of marketing when using societal philosophy

Answer 10

What societal problems to use e.g. environmental problem, resource shortage, raid growth rates etc.

Serves and satisfies individuals wants = doing what’s best for the consumers and society in the long run

Balancing the 3 considerations: company profit, consumer wants, society’s interest

Question 11

What are the 5 marketing philosophies

Answer 11

Production philosophy 
Product philosophy 
Selling philosophy 
Marketing philosophy 
Societal philosophy