Lecture 2.1 Marketing Environment - Part 1.

Question 1

What is the definition of marketing?

Answer 1

Marketing is a set of strategies by which companies acquire and engage customers, build strong customer relationships and create superior customer value in order to capture value from customer in return.

Question 2

Who are the CIM and what does CIM stand for?

Answer 2

The chartered institute of marketing.

Is a community of marketers that supports, represents and develop marketers, teams, leaders and then the marketing profession as a whole.

Question 3

Who is AMA and what does AMA stand for?

Answer 3

American Marketing Association.

Is a community of future marketers and dedicated professionals who work, teach and study in the field.

Question 4

CIM definition of marketing?

Answer 4

Marketing is the management process responsible for identifying, anticipating and satisfying customer needs.

Question 5

AMA definition of marketing?

Answer 5

Marketing is the activity and process for creating, communicating and delivering and exchanging offerings that have value for customers and society at large.

Question 6

Some examples of different types of marketing activities:

Answer 6

• Pricing
• Distributing
• Selling
• Engaging customers and understanding their needs.
• After sales servicing

Question 7

Marketings focus and activities:

Answer 7

Focus: Customer engagement, product promotion and market reach.

Activities: Advertising, social media promotion, public relations and event activities.

Question 8

Marketing management focuses and activities:

Answer 8

Focuses: Strategic planning, resource allocation and performance analysis.

Activities: Building marketing campaigns, tracking marketing campaigns and getting feedback from customers.

Question 9

What is a market?

Answer 9

Group of customers with different needs and wants.

Question 10

What is the marketing process?

Answer 10

The process marketers use to create and capture customer value. It is the process of making people aware of what a business sells and them trying to convince them to buy from them.

Question 11

5 steps to the marketing process:

Answer 11

1) Understand customers
2) Create a customer driven marketing strategy.
3) Create an integrated marketing plan.
4) Foster long term sustainable customer relationships.
5) Capture value from customers

Question 12

What is the marketing mix?

Answer 12

Are the controllable variables the company puts together to satisfy this target group.

Relevant terms: Marketing program, marketing tactics and marketing plan.

Question 13

4 p’s of the marketing mix are:

Answer 13

• price
• product
• place
• promotion

Question 14

3p’s (extended mm)

Answer 14

• People
• Process
• Physical evidence.

Question 15

Marketing 4ps and 7ps, greater detail and background:

Answer 15

4ps developed in the 60s. (Borden 1964).

The framework is still very useful and relevant today in helping businesses solve issues related to market segmentation market positioning and differentiation.

Booms and Bitner (1981) extended the marketing mix with the 3Ps

Question 16

Product:

Answer 16

Refers to the physical product, service or idea a company produces.

Also includes warranties, customer service and other decisions which has helped it gain greater perceived value.

Question 17

Price:

Answer 17

Activities and strategies relating to the product or service.

Conducting research on demand and how much the target demographic is willing to pay.

Question 18

Place:

Answer 18

Where the company’s products are available to the customers.

Also includes logistical concerns like how the product is transported to consumers.

Question 19

Promotion:

Answer 19

How you advertise or promote your product/service.

Question 20

People:

Answer 20

refers to everyone involved in the marketing and sales of a business.

Question 21

Process:

Answer 21

Includes the process and activities involved in delivering a product or service.

Question 22

Physical evidence:

Answer 22

Physical signs evident to customers about the quality of a product or service.

Involves promoting a businesses brand image and reputation.

Question 23

What is the definition of the marketing environment?

Answer 23

Actors and forces outside marketing that affect market managements ability to build and maintain successful and profitable relationships with target customers.

Question 24

The marketing environment branches:

Answer 24

Marketing environment
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Internal and external environment
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External environment
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Micro environment and Macro environment.

Question 25

Internal environment:

Answer 25

Is directly controllable by an organisation.

Question 26

External environment:

Answer 26

Factors and influences which exist outside the company’s boundaries and controls. They influence the performance, profitability and survival of the business.

Question 27

Key differences between the internal and external environments:

Meaning, nature, compromise of, affects and influences.

Answer 27

Internal.
- directly controllable by organisation
- Controllable
- Strengths and weaknesses
- Just the business
- Business strategy, functions and decisions.

External:
- Exogenous factors
- Uncontrollable in most cases
- Opportunities and threats
- All companies operating within an industry
- Business survival, growth and reputation.