Chapter 3.2

Question 1

Explain the quantity gap

Answer 1

-Its when manufacturers prefer to sell large quantities yet consumers prefer to buy in small quantities

Question 2

Elaborate the assortment gap

Answer 2

Its when manufacturers make a limited line of products due to it being cost-effective and efficient however consumers prefer to have a wide variety to choose from

Question 3

List the marketing activities

Answer 3

-Primary marketing activities
-Auxiliary marketing activities
-Exchange marketing activities

Question 4

Explain Primary marketing activities

Answer 4

Transport

-The purpose being to deliver the product to the consumer in the quickest and safest way

Question 5

Elaborate auxiliary marketing activities

Answer 5

-Obtaining and supplying information

The seller must know who and where the potential buyers are – Market Research

Supply information to potential buyers via advertising and personal selling

-Standardisation and grading
Facilitates the buying process, making it easier for the buyer to buy

-Storage
Activity that can close the time gap

-Financing
Costs incurred in the transfer of products and services from sellers to buyers
Costs usually financed by banks

-Risk-taking
Risk of loss or damage - insurance

Question 6

What is The concept of exchange

Answer 6

People give up something to receive something that they would rather have

Question 7

What are the exchange marketing activities

Answer 7

Buying and selling

Question 8

List the variables of the marketing process / The marketing mix

Answer 8

-Product
-Place
-Promotion
-price

Question 9

What is the main objective of the marketing mix or the variables of the marketing process (offering)

Answer 9

It is the maximisation of profitability in the long term

Question 10

What is the main objective of the target market

Answer 10

-Total need satisfaction

Question 11

Why is it important for management to be involved in the interaction of the market offering and its environment

Answer 11

The business product development and its market fall within the domain of marketing which necessitates its involvement in the development of the business mission and strategy and its involvement with the external environment

Question 12

What are the requirements placed by the marketing concept on management?

Answer 12

The involvement in the interaction between the business and its environment

Top management is then required to determine the needs of the customer and satisfy them

Question 13

What are the requirements to setting the right price

Answer 13

-Similar products
-Other products in your line
-Profit for your dealers
-Reach set profit

Question 14

Define market price

Answer 14

price consumer is prepared to pay to be able to utilise the need-satisfying benefits a product or service can offer.

Question 15

What are the different marketing communication tools

Answer 15

Advertising
Sales promotion
Personal selling
Publicity

Question 16

List the goals of the marketing communication

Answer 16

Inform
Persuade
Remind

Question 17

What are the stages in the product life cycle

Answer 17

-Introduction
-Growth
-Maturity
-Decline

Question 18

Describe Marketing in the introductory
phase

Answer 18

Main objective: to generate awareness of the product in the target segment and to promote trial.

Question 19

List and describe the main pricing strategies

Answer 19

Rapid “skimming” – high price and aggressive marketing

Low “skimming” – high price and
low marketing expenditure

Rapid penetration – low price and high expenditure on marketing communication

Slow penetration strategy – low price and low expenditure on marketing communication

Question 20

Describe Marketing in the growth
phase

Answer 20

-Main objective: to build brand preference and loyalty, and increase the number of outlets stocking the product.

-Characterised by strong growth in sales in the target market due to an increase in repurchases and purchases by the early majority of consumers.

Also by an increase in the number of competitors so marketer has to take defensive steps.

Question 21

Describe Marketing in the maturity phase

Answer 21

-Sales growth and demand slow down

-Improved products that satisfy
the same needs are launched.

-Consider product differentiation and modification or expansion of product range

Question 22

Describe Marketing in the decline phase

Answer 22

-Rapid decline in sales in the target market.

-Management must decide
whether to:

-Withdraw marketing support
-Eliminate the product
-Initiate a phased withdrawal
-Sell the product