Marketing

Question 1

Define marketing

Answer 1

The activities of a company associated with buying, advertising, distributing or selling a product or service

OR

CIM Definition: “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.

Question 2

Define customer requirements

Answer 2

Are what motivates consumers to purchase a product or service

Question 3

What are the customer requirements

Answer 3

Goods: Are physical entities that can be touched

Services: The action of paying someone to do something for you

Ideas: Concepts, philosophies, images or issues.

Question 4

Give an example of customer requirements for each category

Answer 4

Goods: Phone; toothpaste; shoes etc.

Services: Dry cleaning, banking, hairdressing etc.

Ideas: Charity; religion; political parties etc.

Question 5

What are the main categories of marketing?

Answer 5

Business to business (B2B) or industrial marketing: satisfying the needs of other business (e.g. Alibaba, Amazon)

Business to customer (B2C) or consumer marketing: creating and delivering products to satisfy consumers (e.g. Tesco, Asda etc.)

Customer to customer (C2C): Customers can trade with each other usually online (e.g. eBay, Gumtree etc.)

Question 6

Define market orientation

Answer 6

An approach that prioritises identifying the needs and desires of consumers and creating products & services that satisfy them.

Question 7

What are the types of other business/market orientation?

Answer 7

Product
Production
Sales
Marketing

Question 8

What is the focus of the other business orientations?

Answer 8

Product: Is an approach to business where activities are taken to improve or manufactured products

Production: Transforming resources into finished products in the form of G & S - improving efficiency

Sales: Efforts put into increasing turnover by selling more G & S

Marketing: Focus is continually on consumers and consumer demands

Question 9

What is the market research process?

Answer 9

Identify and define the research problem

Develop hypotheses

Collect data

Analyse and interpret

Report research findings

Question 10

What are the sources of marketing research?

Answer 10

Internal records

Marketing intelligence

Question 11

Give examples of the sources of marketing information

Answer 11

Internal records: Customer data, sales and order data, cost info, financial performance, quality statistics

Marketing intelligence: Micro & micro environ analysis, industry reports & analysis, market research, competitor analysis

Question 12

Define buyer behaviour

Answer 12

Refers to the decisions or acts people undertake to buy G or S for indiv or group use

Question 13

What are the 5 step decision making process of buyer behaviour?

Answer 13

Need recognition
Search for information
Compare/evaluate alternatives
Purchase decision
Post purchase evaluation

Question 14

What are one of the fundamental concepts of marketing?

Answer 14

To understand and address the needs, wants and demands of the target market

Question 15

Define needs, wants and demands

Answer 15

Needs: Are things that satisfy the basic requirement

Wants: Requests directed to specific types of items

Demands: Requests for specific product that the buyer is willing to and able to pay for

Question 16

Give examples of the need, wants and demands

Answer 16

Needs: Thirst, washing m/c, transportation/automobile etc.

Wants: better performance with their mobiles, convenience/control/comfort etc.

Demands: Concept of quality and quantity, cars in certain colours/specific safety ratings etc.

Question 17

What are the main types of marketing decisions?

Answer 17

Segmentation
Targeting
Positioning: the 4 P’s - price, product, place, promotion

Question 18

What are the focus points of the marketing decision types?

Answer 18

Segmentation: Who are the groups of customers who have the similar needs & demand for similar products

Targeting: Which segment will be targeted, matching & prioritising market segments

Question 19

What are the characteristics used for segmentation, targeting and marketing mix?

Answer 19

Segmentation: Gender, location, religion, price, age, interest etc.

Targeting: Segmented market size, growth potential, competitive dynamics of that sector

Positioning:

• Product (quality, variety, design, brand name, packaging etc.)
• Price (discounts, payment period, list price etc.)
• Promotion (advertising, personal selling, public tec.)
• Place (Locations, inventory, transport, coverage etc.)

Question 20

What are the additional P’s? (not really being focused on)

Answer 20

People
Process
Physical Evidence
Philosophy
Passion

Question 21

Define product lifecycle

Answer 21

Refers to the length of time a product is introduced to consumers into the market until it is removed from the shelves

Question 22

What are the four stages of product lifecycle?

Answer 22

Introduction
Growth
Maturity
Decline

Question 23

what happens in each stage of the product lifecycle

Answer 23

Intro: Substantial investment in advertising & marketing campaign - making consumers aware of the product and its benefits

Growth: Successful - characterised by growing demand, an increase in production, and expansion in its availability

Maturity: The most profitable stage while the costs of producing and marketing decline

Decline: Product takes on increased competition - other companies - enhancing or lowering prices - may lose its market share and begin to decline

Question 24

What is meant by product positioning?

Answer 24

the process of deciding and communicating how you want your market to think and feel about your product.

i.e. how your product can solve your customers problems, why it is a better solution than its competitors etc.