Marketing topic 1 - Fundamentals of marketing

Question 1

Stages of a business

Answer 1

1. Production
2. Product
3. Sales
4. Marketing

Question 2

Production theory

Answer 2

The idea that consumers will favour products that are affordable therefore focus on improving the efficiency of production and distribution.

Question 3

Product theory

Answer 3

The idea that consumers will favour products that offer the highest quality, best performance and most innovative features. Therefore, the company should focus on making continuous product improvements.

Question 4

Sales theory

Answer 4

The idea that consumers will not buy enough of the company’s products unless the company undertakes a large-scale sales and promotion effort. Focus with customers on sales transactions vs long-term profitable relationships. Sell what you make vs making what the market wants

Question 5

Marketing theory

Answer 5

Philosophy in which the achievements of marketing goals depends on knowing the needs and desires of the target market and delivering the desired satisfiers in a better way than competitors. Customer focus and value are the routes that lead to sales. The key is to find the right products for the customers and not the other way round

Question 6

Stages of sales approach

Answer 6

1. factory
2. existing products
3. Sales and promotion
4. profits through sales volume

Question 7

Stages of marketing approach

Answer 7

1. Market
2. Customer needs
3. Integrated marketing
4. Profits through customer satisfaction

Question 8

Marketing definition - Kotler 1960

Answer 8

Marketing is the set of human activities focused on facilitating and carrying out exchanges

Question 9

Marketing definition - Kotler 1988

Answer 9

The social and administrative process by which individuals and groups obtain what they need and want by creating and exchanging products and values with others

Question 10

Marketing definition A.M.A 1985

Answer 10

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy the objectives of individuals and organisations

Question 11

Marketing today what have been the most important changes

Answer 11

1. Environment
   - New technological advances
   - New channels of information
   - New ways of communication
   - New ways of working with each other
2. Socioeconomic and demographic changes
   - Increase in labour force in tertiary countries
   - rising world population
   - change in population pyramid
3. Sustainability and social responsibility
   - Sustainable development goals
   - ESG
4. Company
   - Increase in competition
   - Increase in the number of business groups
   - globalisation
   - increase in services accompanying products
   - need for information in the face of change

Question 12

Today’s customer characteristics - Market

Answer 12

• Buys more impulsively
• More demanding
• Capable and prepared for a more active and participative relationship with the company
• Values advertising and marketing as it adds more credibility

Question 13

Relational Marketing - Berry 1983 - Market

Answer 13

Attract, maintain and intensify relationships

Question 14

Relational marketing - Gronroos 1989 - Market

Answer 14

Establish, develop and market long-term relationships with clientele so that the objectives of the parties are available. This is done through the exchange and maintenance of promises

Question 15

Social marketing definition - Kotler 2004 - Market

Answer 15

The marketing strategy must deliver value to customers in a way that maintains or improves the well being of both consumers and society

Question 16

Market orientation Definition - Market

Answer 16

Satisfy the customer by creating value. It organically translates this philosophy into the form of an organisational culture

Question 17

Stages to create value for customers - Market

Answer 17

1. Understanding the market and customer needs and desires
2. Design a customer focused marketing strategy
3. Build an integrated marketing program that delivers superior value
4. Build profitable relationships and delight customers
5. Capture customer value to generate profit and customer equity value

Question 18

How to build customer loyalty

Answer 18

1. Capture
2. Retain
3. Grow

Question 19

Moving from the short-term to the long-term customer relationships in marketing

Answer 19

1. Profitability is in the relationship not the transaction
2. Switches to capture, retain and grow
3. Customer confidence is sought
4. Treat the customer by name
5. Continuous dialogue

Question 20

Keys to today’s marketing

Answer 20

1. Customer focus
2. Digitalisation
3. Data analysis (ability to act and collect customer and market data is essential as it allows for a more personalised experience)
4. Quality content
5. Multichannel (online, social media etc)
6. Social responsibility and sustainability
7. Automation and AI (these technologies make it possible to personalise the customer experience on a large scale and optimise different aspects of marketing)
8. Personalised experience
9. Adaptability
10. Stories and emotions
11. Ethics and transparency

Question 21

Actual definition of marketing - A.M.A 2017

Answer 21

Marketing is the activity, set of institutions, and processes for creating, communication, delivering and exchanging offers that have value for customers, clients, partners and society at large