Marketing Function

Question 1

Meaning of marketing

Answer 1

Activities A business undertakes to promote buying of a good or service

Question 2

Role of marketing

Answer 2

• identifies needs of customers and satisfies them
• shares information from customer with production function to meet expectations of customers
• promote the goods and services to potential customers
• Provide feedback from customer about good and services

Question 3

Standardization and grading

Answer 3

• Business ensures all products are produce to same standard
• Standard of products shouldn’t be difterent

Question 4

Storage

Answer 4

Goods are stored at a facility for safekeeping
The bridge between production and consumption

Question 5

Transport

Answer 5

Moving the product from one place to another
Ensures final product reaches consumer

Question 6

Financing

Answer 6

Obtaining funds to ensure the business can operate in pursuit of its goals
Acquired from investors

Question 7

Risk bearing

Answer 7

Investing into a business opportunity is a always a risk
First risk bearers are entrepreneurs and shareholders

Question 8

Buying & selling

Answer 8

Act of providing goods and services in exchange for money
Integral part of business activity

Question 9

Convenience Goods

Answer 9

Cheap and customers purchase it with little thought
Bread,milk,drink

Question 10

Shopping goods

Answer 10

Consumers spend time and effort going to various shops to ensure they’re getting the best value for their money
Cars, TV, clothes

Question 11

Speciality Goods

Answer 11

Goods with a specific name brand
Jewellery,branded clothes

Question 12

Services

Answer 12

Non tangible and are rendered by a service provider to a customer

Question 13

Unsought Good

Answer 13

Goods customers wouldn’t think of unless the need for them came up
Masks, funeral goods, fire extinguishers

Question 14

Importance of product development

Answer 14

Used to design goods suitable for customer needs
If not suitable for target market , demand will be little
Allows business to remain competitive and stay on the look out for new improvements
Differentiates products from competitors

Question 15

8 steps in product design process

Answer 15

1. Generate ideas- b must identify opportunities the competitors haven’t done yet
2. Evaluate ideas- seeing if there’s a need in the market and if it’s profitable for business
3. Test concept- market will be tested
4. Business analysis- process of metrics to evaluate products success
5. Market testing- Sample is given to market and responses are used to make adjustments
6. Technical implementation- process are put into production planning and control process
7. Commercialisation- product is launched, advertised and marketed
8. Products review & price adjustments- development of product’s efficiency is review

Question 16

Product packaging

Answer 16

Type of packaging depends on the product
Should have information of the product
Can be a marketing tool if packaging is eye catching
Can have trademark of product

Question 17

Purpose of packaging

Answer 17

Physical protect the product from harm
To identify product
Promote marketing of product
Prevent tampering or theft

Question 18

Resale packaging

Answer 18

Retailers buy products in bulk from suppliers

Question 19

Immediate use packaging

Answer 19

Needs to be cheap bc it’s gonna be thrown away once contents are finished

Question 20

Double use packaging

Answer 20

Packaging is reusable and not only for original contents

Question 21

Kaleidoscopic

Answer 21

Details change to promote sport events

Question 22

Kaleidoscopic

Answer 22

Details change to promote sport events

Question 23

Speciality Packaging

Answer 23

Packaging needs to suit the product

Question 24

Combination Packaging

Answer 24

Products usually bought together are packaged together

Question 25

Meaning of trademarks

Answer 25

Name,symbol,logo that differentiate business from competition

Question 26

Importance of trademarks to business

Answer 26

Establishes identity of product Registered trademark protects product from competition Well known trademark makes brand instantly recognisable Business uses it to market product

Question 27

Importance of a trademark for customer

Answer 27

Creates a sense of security and consistency for them Promotes loyalty towards trademark Represents the standard of quality and price Customer is likely to purchase new products from a well known brand

Question 28

Requirements of a good trademark

Answer 28

Must be attractive to consumers To suit product Must have business name and contact details of manufacturer Different from competitors

Question 29

Meaning of price

Answer 29

Needs to be affordable for customers and still cover costs and contribute to profit

Question 30

Importance of pricing

Answer 30

If too high , the sales will decrease If too low , consumers might think the quality is poor Makes provision for transport cost Takes VAT into account