M1 Part 2: Marketing Framework

Question 1

What is stage 1 of the marketing framework?

Answer 1

Understanding the Marketplace and Customer Needs

Question 2

What are Needs, Wants and Demands?

Answer 2

Needs - States of Deprivation (Physical, Social, Individual)

Wants - Needs that are shaped by culture and individual personality

Demands - Wants backed by buying power

Question 3

What is a Market Offering? What is Marketing Myopia?

Answer 3

• Combination of products, services, information or experiences offered to a market to satisfy a need or want
• Focusing only on existing wants and not consumer needs

Question 4

What is the Relationship of Exchanges and Relationships to Marketing?

Answer 4

Exchange - obtaining a product from someone by giving something in return

Relationships - marketing consists of actions and to build and maintain desirable relationships

Question 5

What is a marketing system?

Answer 5

Consists of all the actors affected by major environmental forces

Actors:
- Suppliers
- Company
- Competitors
- Intermediaries
- End users (products’ targeted profile)

Forces:
- Demographic
- Economic
- Physical/Environmental
- Technological
- Political/legal
- Socio-cultural

Question 6

What is stage 2 of the marketing framework?

Answer 6

Designing a Customer Driven Marketing Strategy

Question 7

What is Marketing Management?

Answer 7

• Art and science of choosing target markets and building profitable relationships with them

Can be addressed with two questions:
- What customers will we serve?
- How can we best serve these customers?

Question 8

What is Market Segmentation and Target Marketing?

Answer 8

Market Segmentation: Dividing market into segments of customers

Target Marketing: Selecting the segments to go after

Question 9

What is De-Marketing?

Answer 9

De-Marketing: marketing to reduce demand temporarily or permanently but not destroy

Question 10

What is a Value Proposition?

Answer 10

• Set of benefits or values a company promises to deliver to satisfy customer needs
• Ex. Statements that identifies the benefits a company’s services and products will deliver to its customers

Question 11

What are the various Marketing Management Orientations?

Answer 11

• Production Concept: consumers favor products that are available or highly affordable
• Product Concept: consumers will favor products with the highest quality, performance and features
• Selling Concept: consumers will not buy company products unless company undertakes a large selling and promotion effort
• Marketing Concept: achieving organizational goals relies on knowing needs and wants of the target market and satisfying said market better than competitors
• Societal Marketing Concept: good marketing decisions are made by considering consumer wants and long term interests, society’s own long term interests, and company requirements