Class 1 | Chap 1 | Marketing introduction

Question 1

What is the definition of Marketing?

Answer 1

“Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”

Question 2

What is the value of marketing?

Answer 2

• To deliver values and profits in an unforgiving economic environment, unprecedented changes in business, growing globalisation and growing digital advancement.
• To create Financial succes: often depends on marketing ability.
• Social benefits

Question 3

What does Peter Drucker say about the purpose of business and marketing?

Answer 3

“The purpose of business is to create a customer. The business has two – and only two – functions. Marketing and Innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”

Question 4

What place should the customer have in marketing?

Answer 4

To have the customer in the centre of the organisation. ‘‘to think customer’’

Question 5

How does the book explain marketing as an activity?

Answer 5

Marketing is an activity, set of institutions, and the process for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.

Question 6

How does the book describe marketing management?

Answer 6

As the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.

Question 7

There is a difference when it comes to the definition of marketing. What is it?

Answer 7

Social and Managerial definition.
Social: shows the role of marketing in society. Societal process by which individuals obtain what they need.
Managerial: Selling products, but that is only one tip of the iceberg.

Question 8

The aim of marketing is…

Answer 8

To know and understand the customer so well that the product or service fits him and sells itself.

Question 9

Marketing during challenging economic times:

Answer 9

it had a beginning an middle but no ending. As economies change marketers need to rethink their marketing practice to stay aligned to customer needs.
Skilful marketing is a never-ending pursuit

Question 10

Marketing’s role in creating demand:

Answer 10

Stimulating and managing demand. Both willingness and ability must be present; if either is missing there is no demand.

Question 11

For the demand…

Answer 11

Marketers must identify the underlying cause(s) of the demands (linked to needs and wants) state and determine a plan of action to shift the demand to a desirable state.

Question 12

What type of needs are there?

Answer 12

• Stated needs (customer wants an inexpensive car)
• Real needs (customer wants a car whose operating cost are low)
• Unstated needs (Customer expects goods service from dealer)
• Delight needs (customer would like onboard GPS)
• Secret needs (customer wants friends to see him as a savvy customer)

Question 13

What are three transformative forces for marketing:

Answer 13

1) Technology
2) Globalisation
3) Social responsibility (consider ethics, environment, law and social)

Question 14

Technology, globalisation and social responsibility dramatically changed the marketplace partly because…

Answer 14

Bringing customers and companies new capabilities and heightening competition

Question 15

What are the new customer capabilities? (5)

Answer 15

• Can use the internet as a powerful information and parchasing aid
• Can search, communicatie and purchase on the move
• Can tap into social media to share opinions and express loyalty
• Can actively interact with companies
• Can reject advertising they find inappropriate

Question 16

Wat are the new company capabilites? (5)

Answer 16

• Can use the internet as a powerful information and sales channel, and for customisation
• Can collect fuller and richer information about markets, customers, prospects and competitors
• Can reach customers quickly and efficiently with location-dependent info
• Can improve purchasing, recruiting, training internal and external communications
• Can improve cost efficiency

Question 17

Retailing in EU has changed in 5 ways:

Answer 17

1) growth of own brands
2) Retail internationalisation
3) Fragmentation of the retail market in EU
4) Internet retailing and blurring of digital and real stores
5) Proliferation of stores (many stores per square mile)

Question 18

What hightend the competition?

Answer 18

1) Mega-brands (extended in related categories)
2) Deregulation
3) Privatisation

Question 19

What is the evolution of the marketing philosophies?

Answer 19

1) Production philosophy: the oldest. Consumers prefer products that are widely available and inexpensive (mass production or expand market)
2) Product philosophy: consumers favour products offering the most quality, performance or innovative features
3) Selling philosophy: consumers won’t buy enough if left alone -> selling strategy
4) Marketing philosophy: (mid-1950’s) a total company effort to achieve customer satisfaction at a profit.
5) Holistic marketing philosophy: (21st century) everything matters in marketing (development, design, etc).

Question 20

What types of holistic marketing are there?

Answer 20

1) Relationship marketing: develop deep, enduring relationships with people and organisations that directly or indirectly affect the success of firms marketing activities.
2) Integrated marketing: create, communicate and deliver value for consumers such that ‘the whole is greater than parts’
3) Internal marketing: core aspect of holistic marketing. Focused internally on employees.
4) Performance marketing: understanding the financial and non-financial returns to business and society from marketing activities. Cust. satisfaction, quality, market share etc.

Question 21

What are the 4 P’s and 7P’s?

Answer 21

Marketing mix:
product, price, place and promotion (McCarthy)

More holistic approach -> 7P’s
Product/service, price, place, promotion, physical evidence, process, people

Question 22

What term is used to distinguish online stores from the traditional format?

Answer 22

Bricks-and-Mortar store

Question 23

Four key constituents of Relationship Marketing include:

Answer 23

Customers
Employees
Marketing Partners (suppliers, distributors, agencies)
Financial Community (shareholders, investors, analysts)