Chapter 10 Marketing, competition and the customer

Question 1

What is marketing

Answer 1

Identifying customer wants and satisfying them profitably

Question 2

Who is a customer

Answer 2

a person, business, or other organization which buys goods or services from a business.

Question 3

The teams that make up the marketing department

Answer 3

Sales
Distribution
Promotions
Research

SD PR

Question 4

Role of sales team

Answer 4

Responsible for the sales of the product(s).

Question 5

Role of Research team

Answer 5

Find out what customers want/their preferences,
Find out what their competition, the rest of the market is doing. (market share, product features, etc)

Question 6

Role of the Promotions team

Answer 6

Promote the product using advertisements that would make the product attractive to customers/raise awareness

Question 7

Role of the distribution team

Answer 7

Responsible for distributing the product - how, what, and where to distribute the product.

Question 8

What is the role of marketing

Answer 8

Identifying the customers’ wants
Satisfying customer wants
Maintaining customer loyalty
Increase market share/image of the business
Build customer relationships
Anticipating changes in customer needs

MISMRA

Question 9

What is costumer loyalty

Answer 9

When existing customers continually buy products from the same business

Question 10

What are customer relationships

Answer 10

Communicating with customers to encourage them to become loyal to the business and its products.

Its much cheaper to keep a customer rather than getting a new one.

Question 11

What is market share

Answer 11

Percentage of total market sales held by one brand/business.

Question 12

Successful marketing could lead to

Answer 12

Increased awareness
Increased/maintained market share
Increase in profit and revenue
Improve/maintain the image of the brand

Question 13

Why costumers may shift from one product to another

Answer 13

Changes in technology
Ageing population
Changes in income
Changes in preft/taste

Question 14

What is a market

Answer 14

Consists of customers who demand a particular product and sellers who sell those products.

Question 15

What is mass marketing

Answer 15

Product has a large number of sales and is sold to the general population

Question 16

Advantages of mass marketing

Answer 16

High sales
Risks can be diffused since the business sells serval variations of products, so if one product slows down/fails the business won’t be heavily impacted

Question 17

Disadvantages of mass marketing

Answer 17

High costs of advertising
Standardized products may not meet all the needs of the customer which could lead to loss of sales (could drive customers to competitors)

Question 18

What is niche marketing

Answer 18

Products sold to very small number of customers who form a small segment of a large market.

Question 19

Advantages of niche marketing

Answer 19

Needs of customers are more closely focused on and met.
Better customer loyalty and customer relationships
less competition

Question 20

Disadvantages of nice marketing

Answer 20

Relatively small - limited sales
Less room for growth and profitability
Product risk - usually business in a niche market specialize in one product, if that product is no longer demanded then the entire business is at risk.
Need more market research

Question 21

What is a market segment (like what the segment is itself)

Answer 21

Identifiable sub-group of a whole market in which consumer have similar characteristics or preferences.

Question 22

What is market segmentation

Answer 22

The process of dividing a market into market segments.

Question 23

Ways to segment a market

Answer 23

Income
Age
Gender
Interests/preferences
Region/location

Question 24

How can segmenting a market help the business

Answer 24

Makes marketing more cost effective. Only advertising to your target audience/market segment

Leads to higher sales and profits because of the cost-effective marketing