Core Marketing Function, Value Surplus, 5Cs, SWOT, 4Ps

Question 1

What is a market?

Answer 1

Entities with complementary surpluses and deficits

Question 2

Does presence of an exchange rate mean the exchange will actually take place?

Answer 2

No, there are political/legal/ethical reasons. 1. Exchange is costly. 2. Marketing make the exchange possible

Question 3

Surpluses are

Answer 3

value offerings

Question 4

Deficits are

Answer 4

unfulfilled goals

Question 5

What does a market potential consist of?

Answer 5

entities that cannot fulfil their goals with the surplus resources they have.

Question 6

When is a market realized?

Answer 6

When entities that have complementary surpluses and unfulfilled goals exchange with each other to bring everyone together to higher plane of utility.

Question 7

Foundation of Marketing Success is

Answer 7

Customers share of value surplus = Sellers share of value surplus

Question 8

Value Surplus

Answer 8

1. Core reason why markets exist (markets fail when value surplus is negative
2. Too high a price reduces customers share of VS increases firms share (Sellers Market)
3. Too low a price increases customers share of VS, but reduces firms share or profit (Buyers Market)

Question 9

Factors that affect Value Surplus

Answer 9

1. Product quality
2. Manufacturing capability, marketing efficiency
3. Competition decreases Value Surplus
4. High Value Surplus attracts competition

Question 10

Barometer of Marketing Plans or Value Surplus Test

Answer 10

1. Is the marketing activity
   - increase VS or protect the VS
2. Bad marketing activities fail the Value Surplus test

Question 11

What is Marketing

Answer 11

Activities that realize the market potential by trigger an exchange of products for resources by influencing (what, whom, how) All Parties Better Off

Question 12

What does the Market Consist of?

Answer 12

Firm as the Core

Agents include: Investors, Vendor, Customer, Employee

Question 13

Marketing Activities Consist of?

Answer 13

Advertising, selling, promoting, creating products, distributing them, finding an exchange rate
Exchange is the essence of marketing!

Question 14

A society is

Answer 14

Essentially a marketplace and is the glued together by marketing activities

Question 15

Two Perspectives to Marketing

Answer 15

1. Econ System or Macro- How to optimize the output of the system.
2. Organizational or Micro-How to trigger exchange in a profitable and satisfactory manner

Question 16

What does the Micro consist of?

Answer 16

Organizational decisions to facilitate exchange so that the organizations profit and consumer society benefit

1. Short hand for org decisions is STP
2. Executional element of stp are the 4 P’s(Place, Product, Promotion, Price)
3. Decided by the 5C’s (Company, Collaborators, Customers, Competitors, Climate) and SWOT analysis

Question 17

Markets are

Answer 17

collection of entities with simultaneous complementary surpluses and deficits.