Lecture 1 - The Nature of Marketing

Question 1

What is good marketing?

Answer 1

1- Not just about advertising.
2- Not about persuading people to buy things that they do not need.
3- Concerned with identifying and satisfying customers wants and needs.

Question 2

What is a common mistake that people make when thinking about marketing?

Answer 2

They often just think that marketing is about making adverts and manipulating customers into buying things that they don’t need.

Question 3

What is a vital process to ensuring that customers needs and wants are identified and the satisfied?

Answer 3

Market research.

Question 4

What is a good definition of marketing?

Answer 4

The management process which identifies, anticipates and supplies customer requirements efficiently and profitably.

Question 5

Where is emphasis placed in marketing?

Answer 5

On the customer.

Question 6

What is the marketing concept?

Answer 6

The achievement if corporate goals through meeting and exceeding customer needs better than the competition.
(Fahy and Jobber, 2012)

Question 7

What did Procter & Gamble state that the two moments of truth were with a customer.

Answer 7

1st in the shop when a customer selects a brand.

2nd at home when the customer uses the products.

Question 8

What does the Procter & Gamble, 2 moments of truth statement suggest?

Answer 8

That customer satisfaction should be the driving force. It’s one thing winning a customer in the store but it is also important that the products works well when the customer uses it at home.

Question 9

What is a customer orientation to marketing?

Answer 9

When corporate activities are focused upon providing customer satisfaction.

Question 10

What is an integrated effort to marketing?

Answer 10

When all staff accept responsibility for creating customer satisfaction.

Question 11

What is goal achievement in marketing?

Answer 11

It’s the belief that corporate goals can be achieved through achieving customer satisfaction.

Question 12

What are the traditional alternative business orientations.

Answer 12

1- Sales orientation.
2- Product orientation.
3- Production orientation.

Question 13

What is sales orientation?

Answer 13

The view that aggressive selling can sell any product.

Question 14

What is a product orientation?

Answer 14

The view that a good product will sell itself. This is highlighted by the excessive focus upon the products features.

Question 15

What is a production orientation?

Answer 15

It is when the organisation almost exclusively focuses upon production efficiency and effectiveness.

Question 16

What is key to successful marketing within a company?

Answer 16

When it is viewed as a philosophy in a company and everyone becomes a “part time” marketer.

Question 17

What did Drucker, 1973 suggest?

Answer 17

Marketing is so basic that it can not be considered to be a separate function. It is the whole business viewed from the point of view of its final result, that is, from the customer’s view point.

Question 18

Jobber & Fahy reduce the marketing orientations into 2. What are their names.

Answer 18

1- Production Orientation (Traditional)

2- Marketing Orientation (Customer)

Question 19

What are the stages of a production orientation?

Answer 19

Products and services - Aggressive sales effort - Customers

Question 20

What are the stages of a marketing orientation?

Answer 20

Customers needs - Potential market opportunity - Marketing products and services - Customers

Question 21

What are some of the aspects of a market driven business?

Answer 21

• Customer concern throughout the business.
• Match the marketing mix to the customer choice criteria.
• Segment customers by their differences (One size doesn’t fit all)
• They invest in marketing research and track market changes, marketing is seen as an investment.
• Embrace change, are fast changing and try to understand the competition.
• Innovation is rewarded as they strive for a competitive advantage.

Question 22

What are some of the aspects of a internally orientated business?

Answer 22

• Convenience comes first, why rush attitude.
• Have the assumption that price and product performance are what makes sales thus, ignoring the competition.
• Segments by product.
• Rely on anecdotes and received wisdom, cherish the status quo.
• Innovation can be punished, sticks with the same, happy to “me too”.

Question 23

What is the formula to work out customer value?

Answer 23

Perceived Benefits - Perceived Sacrifices

Question 24

Discuss ‘must be’, ‘more is better’, ‘delighters’ model set out by Kano.

Answer 24

This model suggests that in order to satisfy customers a product or service must have the ‘must be, characteristics met or it will lead to dissatisfaction. ‘More is better’ can help elevate satisfaction for example a quicker than usual service. ‘Delighters’ on the other hand are characteristics that surprise the customer therefore their absence doesn’t create dissatisfaction but rather elevates it even higher.

Question 25

What are the 4Ps in The Marketing Mix?

Answer 25

• Product
• Price
• Place
• Promotion

Question 26

What are the other 3 Ps that are added to form the Service Extended Marketing Mix?

Answer 26

• People
• Processes
• Physical Evidence

Question 27

What are the characteristics if an effective Marketing Mix?

Answer 27

• Matches the customer needs.
• It is well balanced.
• It creates a competitive advantage.
• Matches corporate resources.

Question 28

Describe what is meant by an efficient company..

Answer 28

An efficient company is one that produces its good economically. The benefits of this are that they can achieve a low cost per unit on their output.

Question 29

Describe what is meant by and effective company..

Answer 29

It is a company that does things right. They operate in attractive markets and make products that customers want to buy.

Question 30

Why has their been an increase in marketing within not for profits and charities?

Answer 30

• The users of these organisations have rising expectations.
• The environment that they find themselves in is becoming more competitive.