Chapter 1: Introduction To Marketing

Question 1

What is marketing all about

Answer 1

Selling, advertising, making products available, arranging product displays, maintaining inventories for future sales

Question 2

What are the two facets for marketing

Answer 2

1. A philosophy that stresses on customer satisfaction
2. A set of activities and managerial processes used to implement the philosophy

Question 3

Define marketing

Answer 3

The set of activities and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients and society at large.

Question 4

Marketing therefore means anticipating and…

Answer 4

Satisfying customer needs and by doing so profitably and more efficiently than competitors.

Question 5

What is the primary goal of marketing

Answer 5

Customer satisfaction

Question 6

Marketing is about providing the right product…

Answer 6

To the right customer segment, in the right place, at the right time, at the right price, with the right level of communication profitably

Question 7

What is customer satisfaction

Answer 7

Customer satisfaction is a customer response to a product or service to the extent of which performance meets the customers expectations

Question 8

Explain the relationship between performance and expectations

Answer 8

If performance:
- exceeds expectation there is positive disconfirmation which leads to satisfaction
- equals expectations there is confirmation which leads to satisfaction
- falls short of expectations there is negative disconfirmation which leads to dissatisfaction

Question 9

True or false: market research plays a crucial role in properly understanding customer needs and expectations

Answer 9

True

Question 10

Name ways that customer satisfaction can be measured

Answer 10

• formal research surveys
• analysis of customer complaints data
• staff interviews
• collecting information about customer needs and expectations from intermediaries such as retailers and sales agents

Question 11

True or false measuring customer satisfaction can be both formal and informal

Answer 11

True

Question 12

Measuring customer satisfaction can take the form of which two approaches

Answer 12

Quantitative and qualitative

Question 13

What are the benefits of customer satisfaction and loyalty

Answer 13

• lower acquisition cost
• base profit
• revenue growth
• cost saving
• referrals
• price premium

Question 14

How can we keep customers satisfied and loyal

Answer 14

By offering superior value

Question 15

Define exchange

Answer 15

Exchange is between a seller and a buyer. The buyer gives up money to get products or services from a seller who inturn gives up product or services to get the money.

Question 16

What five conditions must be satisfied for an exchange to take place

Answer 16

1. Two parties
2. Each party has something of value
3. Must want to deal with other party
4. Communicate with other party
5. Free to accept or reject.

Question 17

What are the six competing philosophies that can influence and organisations activities

Answer 17

• Production orientation
• Product orientation
• Sales orientation
• Consumer orientation
• Societal marketing orientation
• Relationship marketing orientation

Question 18

Explain production orientation

Question 19

Explain product orientation

Question 20

Explain sales orientation

Question 21

Explain consumer orientation

Question 22

Explains society marketing orientation

Question 23

Explain relationship marketing orientation

Question 24

What is a competitive advantage

Answer 24

Competitive advantage is something an organisation has that competing organisations do not have. Also called a unique selling proposition (usp)

Question 25

Main ways in which organisations can differentiate themselves to establish a competitive advantage

Question 26

Name the activities of the marketing function

Answer 26

- understanding mission - setting marketing objectives - collecting analysing and interpreting information - developing marketing strategy - implementing marketing strategy - designing marketing performance measures - evaluating marketing efforts

Question 27

Why is a marketing strategy formulated

Answer 27

To pursue a marketing opportunity which includes marketing objectives, market description, competitive advantage, brand positioning and marketing mix

Question 28

What is a marketing plan

Answer 28

The marketing plan consists of a marketing strategy and also involves resource allocation, responsibility for implementation and control measures, and is a written document

Question 29

What is a marketing programme

Answer 29

It is a combination of different marketing plans

Question 30

List basic management tasks

Answer 30

- Planning (identifying marketing opportunities, setting objectives) - Organising (assigning specific responsibilities to staff) - Leading (leadership in planning and implementing marketing strategies) - Control (evaluation of the marketing strategy against marketing objectives)

Question 31

Why study marketing

Answer 31

1. Influences your everyday life 2. Plays an important rule in society 3. Is important to businesses 4. Offers good career opportunities

Question 32

What is digital marketing

Answer 32

The use of technologies that form online channels to market and support marketing activities aimed at achieving profit and customer retention