Marketing

Question 1

Marketing -

Answer 1

• provides the link between customer and business; mutually beneficial exchange process for the business and the customers

Question 2

The chain for marketing

Answer 2

Business makes profit <- marketing is mutually beneficial -> customers experience good value for money
(Marketing is about building the relationships between sides so that customers come back)

Question 3

Relationship marketing -

Answer 3

• approach to marketing in which a company seeks to build long - term relationships with its customers by providing consistent satisfaction; focuses on customer retention rather than one off sales.

Question 4

Market analysis -

Answer 4

• involves examining the particular characteristics of a market such as market size and growth

Question 5

Decision making to improve performance in marketing: (5)

Answer 5

1. Setting marketing objectives
2. Understanding what customers want and can afford
3. Understanding the conditions in the market
4. Understanding what the capabilities and strength of the business are relative to competitors
5. Understanding how best to deliver the benefits that customers are willing to pay for and in ways where the business earns suitable returns

Question 6

Marketing process: (5 + conclusion)

Answer 6

1. Set objectives
2. Analyse marketing data
3. Make decisions
4. Implement decisions
5. Review
   => Marketing will help identify the opportunities, develop the right offerings, ensure the benefits are communicated and that customers can access it -> ‘right product, at the right place, at the right place, at the right price and the right time’.

Question 7

Ethics and marketing -

Answer 7

• refers to whether the actions of a business decisions are perceived as morally right or wrong

Question 8

Examples of ethics and marketing: (4)

Answer 8

1. Promotion to children (?)
2. Harmful goods
3. New drugs and setting prices
4. Distribution of chocolate near school given the level of obesity in UK

Question 9

Marketing objectives -

Answer 9

• the targets set for the marketing activities of the business

Question 10

Marketing objectives: (5)

Answer 10

1. Sales volume - measures the level of sales in a given period of time in terms of the units sold
2. Sales value - measures the level of sales in a given period of time in terms of the amount spent
3. Sales growth - the percentage change is sales volume or value over a given period of time
4. Market share - measures the sales of one brand or business as a percentage of total market sales in a given period of time
5. Brand loyalty - when customers continue to purchase from the same brand over and over again, despite competitors offering similar products or services

Question 11

Market share formula = (objective)

Answer 11

= sales of this product/total market sales x 100
If an objective was set as maintaining market share it means that the sales need to be growing at the same level as competitors

Question 12

High market share (3)

Answer 12

1. Relatively high sales and possibly profit
2. Relatively high outputs; may give the business power over suppliers and other partners - this may enable it to negotiate better deals in terms of lower prices or better quality
3. Relatively high prominence in the market; this may raise the profile of the business; strengthen the brand and make launching new products easier

Question 13

Internal influences on market objectives: (6)

Answer 13

1. Overall strategy of the business
2. The ambitions of managers
3. Existing position of the business
4. The amount that business can produce
5. Finance
6. Employees of the business

Question 14

External influences: (5)

Answer 14

1. Political and legal environment
2. Economic change (including globalisation)
3. Social change
4. Technological changes
5. Competitive environment

Question 15

Sales value =

Answer 15

= price per unit x number of units sold

Question 16

Marketing mix (7)

Answer 16

1. Price
2. Product
3. Place
4. Promotion
5. People
6. Physical environment
7. Process

Question 17

Promotional mix (5)

Answer 17

1. Advertising: paid for communications
2. Public relations: unpaid for communication
3. Sales promotions
4. Sponsorship
5. Branding

Question 18

Marketing mix -

Answer 18

• the combination of marketing decisions that influence a customer’s decision to buy

Question 19

Product -

Answer 19

• anything that is capable of satisfying customer needs, needs to exist for other elements of marketing mix to take place

Question 20

Price -

Answer 20

• the amount of money that customer pays for the product

Question 21

Promotion -

Answer 21

• the main aim of promotion is to ensure that customers are aware of the existence and positioning of products. Promotion is used to persuade customers that the product is better than competing products and to remind customers about why they may want to buy it

Question 22

Place -

Answer 22

• place refers to where the product is sold and how a business gets its products to the customers (distribution)

Question 23

People -

Answer 23

• people involved in the transaction

Question 24

Physical environment -

Answer 24

• physical premises of the business(décor/cleanliness)

Question 25

Processes -

Answer 25

• how the product is actually bought (website/car park/payment method)

Question 26

Perceived benefits -

Answer 26

• the aspects of a product or service that will appeal to prospects and customers

Question 27

Porters Generic Positioning strategies -

Answer 27

• describe how a company pursues competitive advantage across its chosen market scope

Question 28

Cost leadership strategy -

Answer 28

• a term used when a company projects itself as the cheapest manufacturer or provider of a particular product or commodity in a competition

Question 29

Differentiation strategy -

Answer 29

• how the product can be changed from competitors (design/quality); businesses that aim to compete based on differentiation rather than price