Marketing Fundamentals

Question 1

What is the definition of marketing?

Answer 1

The management process responsible for identifying, anticipating and satisfying customer requirements profitably.

Question 2

Why is marketing so important?

Answer 2

. Marketing creates employment
. Helpful In Raising And Maintaining The Standard Of Living Of The Community:
. Regardless of what career path you take, no firm survives for long if it can’t satisfy some group of
customers.

Question 3

What are the marketing management philosophies companies take?

Answer 3

Marketing orientation
Sales orientation
Product orientation

Question 4

What is product orientation?

Answer 4

This philosophy has limited interest in the customer. Management is cost-effective by trying to reduce the range of products and minimizing production costs. The company also tends to define itself regarding its production facilities.

Question 5

What is an example(s) of product orientation?

Answer 5

A facet of many companies of 1950/60s. e.g HENRY FORD produced one car in one colour to minimize costs
e.g Kodak failed to adapt to the market of smartphones

Question 6

What is a sales orientation?

Answer 6

Occurred in the 1980/90s where sales are based on pricing resulting in short-term gains in profits from price changes.

Question 7

What is market orientation?

Answer 7

This philosophy focuses on customer needs. Major facet is adaptation and change of the products based on the needs and problems of the customer. This results in long run profits through customer satisfaction.

Question 8

What is an example of market orientation?

Answer 8

Toyota:
1992-97: sales orientation-short term success
post 97: market orientation leading to sustainability and increased profits
e.g Yaris designed for European market

Question 9

What are the three conditions needed to achieve the marketing concept?

Answer 9

Customer orientation, integrated effort and goal achievement

Question 10

What is the integrated effort of the marketing concept?

Answer 10

All staff accept the responsibility of creating customer satisfaction

Question 11

What is the goal achievement of the marketing concept?

Answer 11

The belief that corporate goals can be achieved through customer satisfaction.

Question 12

What are the key points needed to create customer orientation?

Answer 12

. Define target market
. Find out customerrs needs and wants
. Produce quality products as per their expectations
. Establish and maintain long term relationships
. Act on customer suggestions and tackle complaints

Question 13

What are the marketing managers view and aims?

Answer 13

Senior Management and staff commitment to marketing
philosophy
. All staff to understand the importance of placing the
customer are the center of business activity
. Cross functional process
. Effective internal communications (Internal marketing)
. Effective and fully integrated MkIS

Question 14

What is a MkIS?

Answer 14

Marketing Information System

Question 15

What is market planning?

Answer 15

Marketing planning is the structured process of determining how to provide value to customers, the organisation, and key stakeholders

Question 16

How is market planning achieved?

Answer 16

. Researching and analyzing the current situation.
. Audit PEEST, SWOT
. Developing and documenting the firm’s objectives, strategies & programs.
. Implementing, evaluating, and controlling marketing activities.

Question 17

What is a strategic marketing plan?

Answer 17

A document drawn up by the senior team in an organisation to inform the company what to
do and how they are performing.

Question 18

What is customer orientation?

Answer 18

Refers to a group of actions taken by a company to support the needs of its clients by engaging sales and support staff in order to ensure customer satisfaction is the major priority.

Question 19

What is the marketing mix?

Answer 19

A marketing tool for identifying the right balance
for a brand’s product or service offering to ensure that the business sells the right product, at the right price, in the right place and the right time for its market.

Question 20

What are the 7 P’s of the marketing mix?

Answer 20

. Product/service
. People
. Process
. Physical evidence
. Place
. Promotion
. Price

Question 21

What are the benefits of a marketing plan?

Answer 21

Examination of opportunities and threats
. Framework for evaluating possibilities/priorities
. Focus on customers in context of competition/environment
. Rationale for allocating resources to achieve results
. Specific yet flexible guide for future
. Minimise Risk

Question 22

What are the characteristics of new market thinking?

Answer 22

. The future is very uncertain
. Almost all markets today are
international or global
. Customers expect more and
more for less and less
. Strategies & propositions have
to be sustainable
. Environments are so complex

Question 23

What are the consequences of new market thinking?

Answer 23

. No place for long term strategies. Pace of change.
. Firms have to take into account international competitors even if they are not seeking international customers
. companies have to get the right customer prefernece at the price theyre willing to pay
. Continuous innovation is vital stay ahead of the game
. Organisations can no longer afford the luxury of consensus on all the issues. Ethical and Social Responsibilityconcerns