MARKETING PT1

Question 1

what is marketing

Answer 1

the management process of identifying and satisfying customer needs profitably

Question 2

what is marketing objectives

Answer 2

goals set for the marketing department to help the business achieve its overall objectives

Question 3

why are marketing objectives important

Answer 3

-provide sense of direction
-help achieve corporate objectives
-can use as a means of measuring
-

Question 4

examples of marketing objectives

Answer 4

increase in:
market share
total sales
customer satisfaction
returning customers
etc

Question 5

other departments that marketing should coordinate with

Answer 5

finance: - use sales forecast of marketing for overall cash flow forecast
- ensure there is capital for promotional expenditure
Human Resources:
-ensure recruitment and selection of qualified workers
Operations:

Question 6

Demand and supply (determinants and all)

Answer 6

you already know hopefully

Question 7

what is a market

Answer 7

where buyers and sellers meet to engage in exchange

Question 8

what is a market segment

Answer 8

a subgroup of a whole market in which consumers have similar characteristics

Question 9

what is an industrial market

Answer 9

B2B selling of products by a business to other businesses

Question 10

what is a consumer market

Answer 10

selling of products by businesses to the final end user B2C

Question 11

what is consumer (market) orientation

Answer 11

an outward looking approach that bases product decisions on consumer demand

Question 12

benefits on consumer orientation

Answer 12

-chances of newly-developed products failing is reduced
-longer product lifestyle an
-continuous market research

Question 13

what is Product orientation

Answer 13

and inward-looking approach that focuses on making products that can be made or have been made for a long time and trying to sell them

Question 14

what is market size

Answer 14

the total value(quantity) of sales of all producers within a market in a given time period

Question 15

what is market growth

Answer 15

percentage change in the total size of a market (volume or value) over a time perido

Question 16

factors affecting market growth

Answer 16

-rate of economic growth
-changes in consumer incomes
-technological changes
-market saturation

Question 17

Implications of increased market growth

Answer 17

-sales increase if business market share remains the same
-sales increase lead to cost saving
-more businesses may be attracted to the market

Question 18

implications of decrease in market growth

Answer 18

-sales increase more slowly if market share stays the same
-competitors might reduce prices to increase sales
-businesses might consider expanding into other faster growing markets

Question 19

what is a brand leader

Answer 19

brand with the highest market share

Question 20

what is market share

Answer 20

sales of business in time period/ total market sales in time period
x 100

Question 21

implications of market share increase

Answer 21

-sales rising faster compared to competitors(higher profits)
-retailers will be keen to sell and stock best selling brands
-consumers keen on buying most popular brands

Question 22

implications of decrease in market share

Answer 22

-sales likely to fall unless rapid market growth occurs
-retailers less keen to stock and promote product
-larger discount to retailers may have to be offered

Question 23

what are consumer products

Answer 23

goods and services sold to end users

Question 24

what are consumer product classified into?

Answer 24

-convenience products- often impulse buying(sweets)
-shopping products- not frequent, requires beforehand planning
-specialty products- expensive infrequent

Question 25

what are undustrial products

Answer 25

goods or services sold to businesses

Question 26

what are industrial products classified into

Answer 26

-materials and components: for production

-capital items: equiment machinery

-services and utilities

Question 27

difference between industrial and consumer markets

Answer 27

-industrial buyers are more informed
-industrial buyers rarely buy on impulse