Marketing

Question 1

Marketing

Answer 1

Marketing is the management process involved in identifying, anticipating and satisfying customer requirements profitably

Marketing involves a wide range of activities
- Researching the market
- Analysing the market
- Setting of marketing goals
- Developing a marketing strategy (marketing mix)

Question 2

Market Orientation marketing

Answer 2

When a business bases its marketing mix on its perception of what the market wants. It will attempt to meet the needs of the market with little reference to internal strengths of the business.

Advantages
- Flexible to changes in taste and fashion
- New products designed to meet customer needs
- Decisions based on effective market research.

Disadvantages
- High cost of market research
- Unpredictability of the future
- Abandonment of earlier product investment
- Constant internal change as the needs of the market are met

Question 3

Product Orientation Marketing

Answer 3

When a business bases it’s marketing mix on what the business sees as it’s internal strengths. They try to sell whatever they can make, without trying to find out if it is what the customers want.

Advantages
- Increased economies of scale
- Focus on product development
- Focus on quality
- Easier to apply production management methods

Disadvantages
- Changes in market structure will not be adapted to
- Fashion and taste are not accounted for in the product mix

Question 4

Asset-Led Marketing

Answer 4

When marketing decisions are based on the needs of the consumer and the strengths of the business. Businesses identify what they are good at and relate this to the customer needs.

Advantages
- Quality of Output
- Progressive change
- Strengths linked to the market needs
- Maximising return from assets