Chapter 17: The Nature Of Marketing

Question 1

Define marketing

Answer 1

Marketing: the management task that links the business to the customer by identifying and meeting the needs
of customers profitably – it does this by getting the right product at the right price to the right place at the right time.

Question 2

Define marketing objectives

Answer 2

Marketing objectives: the goals set for the marketing department to help the business achieve its overall objectives.

Question 3

Define marketing strategy

Answer 3

Marketing strategy: long-term plan established for achieving marketing objectives.

Question 4

Define market orientation

Answer 4

Market-orientation: an outward-looking approach basing product decisions on consumer demand, as established by market research.

Question 5

Define asset led marketing

Answer 5

Asset-led marketing: an approach to marketing that bases strategy on the firm’s existing strengths and assets instead of purely on what the customer wants.

Question 6

Define product orientation

Answer 6

Product-orientation: an inward-looking approach that focuses on making products that can be made – or have been made for a long time – and then trying to sell them.

Question 7

Define social marketing

Answer 7

Societal marketing: this approach considers not only the demands of consumers but also the effects on all members of the public (society) involved in some way when firms meet these demands

Question 8

Define demand

Answer 8

Demand: the quantity of a product that consumers are willing and able to buy at a given price in a time period.

Question 9

Define supply

Answer 9

Supply: the quantity of a product that firms are prepared to supply at a given price in a time period.

Question 10

Define equilibrium price

Answer 10

Equilibrium price: the market price that equates supply and demand for a product.

Question 11

Define market size

Answer 11

Market size: the total level of sales of all producers within a market.

Question 12

Define market growth

Answer 12

Market growth: the percentage change in the total size of a market (volume or value) over a period of time.

Question 13

Define market share

Answer 13

Market share: the percentage of sales in the total market sold by one business.

Question 14

Define direct competition

Answer 14

Direct competitor: businesses that provide the same or very similar goods or service

Question 15

Define (USP) unique selling point

Answer 15

USP−unique selling point (or proposition): the special feature of a product that differentiates it from competitors’ products.

Question 16

Define product differentiation

Answer 16

Product differentiation: making a product distinctive so that it stands out from competitors’ products in consumers’ perception.

Question 17

Define niche marketing

Answer 17

Niche marketing: identifying and exploiting a small segment of a larger market by developing products to suit it.

Question 18

Define mass marketing

Answer 18

Mass marketing: selling the same products to the whole market with no attempt to target groups within it.

Question 19

Define consumer profile

Answer 19

Consumer profile: a quantified picture of consumers of a firm’s products, showing proportions of age groups, income levels, location, gender and social class.

Question 20

Define market segment

Answer 20

Market segment: a sub-group of a whole market in which consumers have similar characteristics.

Question 21

Define market segmentation

Answer 21

Market segmentation: identifying different segments within a market and targeting different products or services to them.