Chapter 4.1 - The Role of Marketing

Question 1

Concentration ratio

Answer 1

An indicator of the degree of competition in an industry. Calculated by calculating the sum of the market share held by the largest specified number of firms in the industry

Question 2

Ethical code of practice

Answer 2

Refers to guidelines that help businesses to act in a moral way, by considering what society accepts as ethically right or wrong

Question 3

Market concentration

Answer 3

Measures the degree of competitiveness that exists within a market by calculating the market share of the largest few firms in the industry

Question 4

Market growth

Answer 4

Refers to the rate at which the size of a market is increasing, typically expressed as the percentage increase in the market size of an industry per year

Question 5

Market leadership

Answer 5

The position of a business that has the largest market share in a given market for a particular good or service

Question 6

Market orientation

Answer 6

A marketing approach adopted by businesses that are outward-looking by focusing on making products that they can sell, rather than selling products they can make

Question 7

Market share

Answer 7

Measures an organization’s portion of the total value of sales revenue in a specific industry

Question 8

Market size

Answer 8

Refers to the magnitude of an industry, usually measured in terms of the value of sales revenue from all the businesses in a particular market, per time period

Question 9

Marketing

Answer 9

A management process of predicting, identifying, and meeting the needs and wants of customers, usually in profitable ways

Question 10

Marketing objectives

Answer 10

The specific marketing goals of an organization
(increased sales revenue, greater market share, market leadership)

Question 11

Marketing strategies

Answer 11

The medium to long-term plan to achieve an organization’s marketing objectives

Question 12

Needs

Answer 12

Essential necessities that all humans must have to survive
(Food, shelter, warmth, and water)

Question 13

Product orientation

Answer 13

Marketing approach used by businesses that are inward-looking as they focus on selling products that they can make, rather than making products that they can sell

Question 14

Wants

Answer 14

Human desires, things that people would like to have
(humans have infinite wants)