Introduction to Marketing L1

Question 1

What types of marketing exist?

Answer 1

• Telemarketing
• Public relations
• Advertising
• Branding
• Social media
• Pricing
• Selling

Question 2

What is the economic definition of marketing according to Kottler (1967)?

Answer 2

The analysing, organising, planning and controlling of the firm’s customer impinging resource, policies and activities, with a view to satisfying the needs and wants of chosen customer groups at profit

Question 3

What is the social definition of marketing according to Doyle (1994)?

Answer 3

As philosophy for the whole business. It defines the primary goal of everyone in the organisation as meeting the needs of customers.

Question 4

How does the CIM (2001) define marketing?

Answer 4

The management process of anticipating, identifying and satisfying consumer requirements profitabily.

Question 5

How does the AMA (2007) define marketing?

Answer 5

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

Question 6

What is the difference between a customer and consumer?

Answer 6

Buyer = customer
User = consumer

Question 7

What does the save acronym refer to?

Answer 7

Solution
Access
Value
Education

The purpose of a brand

Question 8

What is a brand?

Answer 8

A set of differentiating promises that link a product to its customers.

They are defined by the sum of experiences that are created between consumers and the company or product/

They communicate instantly what would take too much time and effort to explain.

They lead to trust and a relationship.

Question 9

What are the benefits of brands to consumers?

Answer 9

Image benefit: brands have an idea - finale value: self realisation, self representation, identification

Risk reduction: brands reduce the risk of making the wrong decisions - safety, continuity, trust

Information efficiency: brands facilitate information processing - provenance, orientation, interpretation, recognition

Question 10

What are examples of marketing exchanges?

Answer 10

a) the fire service provide protection and the public give funds and cooperation
b) retailer gives offerings and customer service and customer pays retail price
c) manufacturer gives goods, credit facilities etc and retailer pays at wholesale price

Question 11

What is the modern exchange process?

Answer 11

Individual larger operators take out the wholesaler and retailer sections meaning it is:

producer –> e.g Amazon –> consumer

Question 12

What is a simple exchange system?

Answer 12

Need –> money + information –> design + produce –> product/place/price/promotion

Question 13

What are the four different management philosophies that facilitate change?

Answer 13

• Product concept
• Production concept
• Selling concept
• Marketing concept

Question 14

What is the product concept?

Answer 14

Consumers prefer products that offer quality, performance, or innovative features, craftsmen make high quality artisan product

Question 15

What is the production concept?

Answer 15

Consumers prefer products that are widely available and inexpensive firms mass produce inexpensive products

Question 16

What is the selling concept?

Answer 16

Consumers buy products only if the company actively promotes or sells it to them, firms engage in high pressure selling tactics

Question 17

What is the marketing concept?

Answer 17

Consumer buy and prefer products which focus on their needs/wants and deliver better value then competitors, firms focus on consumer needs, wants and values

Question 18

What are the elements of the selling concept as opposed to the marketing concept?

Answer 18

Production –> existing products –> selling and promotion –> profits through sales volume

Question 19

What are the elements of the marketing concept as opposed to the selling concept?

Answer 19

Target market –> customer needs –> integrated marketing –> profit through customer satisfaction

Question 20

What can the key inputs for successful marketing be?

Answer 20

• Tangible and intangible
• Rational or emotional
• Existing (identified and satisfied)
• Latent (not yet satisfied)
• Incipient (not yet known)
• Market driving (creating) vs market driven (from the market)

Question 21

What is integrated marketing?

Answer 21

Coordinating all the marketing activities affecting customers “marketing is too far important to be left only to the marketing department” (David Packard)

Question 22

How do consumers choose between products and services?

Answer 22

Customer value

Customer satisfaction

Customer loyalty

Question 23

What is customer value?

Answer 23

Value is the difference between the perceived benefits of owning and the perceived sacrifices of acquiring e.g product/service/image benefits vs monetary/time/energy/psychological costs

Question 24

What is customer satisfaction?

Answer 24

Balance between expected/reputed performance vs perceived/experimental performance

Question 25

What is customer loyalty?

Answer 25

The habitual use of your products or services arising from experimental value and satisfaction but also arises from inertia or unavailability, easier to retain a customer than get a new one