General

Question 1

What is marketing?

Answer 1

The process by which companies engage with customers, build strong customer relationships, and create customer value in order to capture value from customers in return.

Question 2

What is value proposition?

Answer 2

The set of benefits or values a company promises to deliver to consumers to satisfy their needs

Question 3

How to deliver value?

Answer 3

Through the 4 P’s

Question 4

What are the 4 P’s

Answer 4

1. Product - aspects includes all aspects of the product design, its packaging, and any associated aspects (such as warranty, free delivery, etc.).
2. Promotion - Includes all activities marketers undertake to inform consumers about their product. Many marketers now refer to promotion as marketing communication.
3. Price - the amount the consumer must exchange in order to receive the product or service offering.
4. Place - key to making the product available to consumers at the desired time and location.

Question 5

Benefits of marketing to society?

Answer 5

• Improved living standards
• Innovations
• Job creation
• Availability of wide range of products & services
• Exert pressure to improve domestic products
• Expand customer choices
• Allow for economies of scale

Question 6

Dark side of marketing?

Answer 6

• Marketing corrupts society because it encourages pursuit of hedonistic pleasures.
• Marketing and advertising are unnecessary, as they foster materialism among consumers.
• Marketing promises miracles and manipulates consumers.
• Illegal actions occur such as bait and switch (luring consumers with the promise of a sale or inexpensive item that is out of stock, only to sell them something more expensive.)
• “sin” products such as tobacco or alcohol in neighbourhoods where known problems with substance abuse or smoking exists.
• consumer addiction is a physiological or psychological dependency on goods or services.
• “Shopaholics” turn to shopping much the way addicted people turn to drugs or alcohol.
• take advantage of vulnerable populations through illegal and immoral practices.
• aggressive promotional practices.
• consumers trust marketers to sell products that perform as expected, and price and distribute them fairly.
• Stressing ethical or socially responsible decisions is often good business in the long run, though some find out the hard way. E.g. BPs handling of the massive Gulf oil spill in 2010 eroded its image in the marketplace, and consumers boycotted the firm’s gas stations.