Nature, Purpose Of Marketing

Question 1

What is marketing perspectives?

Answer 1

The philosophy adopted by a business when they design marketing strategies that will build profitable relationships with targeted customers. The strategies designed are often guided by the orientation and perspectives of the business and mgt

Question 2

What is product concept?

Answer 2

Holds the idea that consumers will prefer products that offer the best quality, performance and innovative features

Question 3

What is the disadvantage of using product concept?

Answer 3

Solely focusing on the product itself will lead to marketing myopia.

Question 4

What is production concept?

Answer 4

Holds the idea that consumers prefer products that are widely available and highly affordable -> biz focus on achieving high production efficiency, low cost and mass distribution

Question 5

What is the disadvantage of using production concept?

Answer 5

Face the risk of overly focusing on their own operations, and neglect the satisfaction of customer needs and building better customer relationships

Question 6

What is marketing concept?

Answer 6

Holds the idea that achieving biz objectives depends on understanding the needs and wants of customers and delivering the desired satisfaction better than competitors do

Question 7

What are the benefits of adopting marketing concept?

Answer 7

1. The risks of new products failing in the mkt is much reduced, esp if effective mkt research is undertaken
2. Bizs are likely to perform better and make higher profits if they are able to meet customer needs with appropriate products
3. Continuous market research allows for constant feedback from customers and this means that bizs could adapt and improve their pdts according to the changing tastes and preferences of customers

Question 8

What are the benefits of marketing objectives?

Answer 8

1. Provide a sense of direction for the mkting dept
2. Regional and pdt sales target could be set based on mkting objectives. The performance and progress of mkting dept can be monitored against the target set
3. The mkting objectives form the basis of the mkting strategies as well as decision-making on mkting-related matters

Question 9

What are the types of mkting objectives?

Answer 9

1. Mkt share
2. Profitability
3. Brand awareness
4. Attitude of customers

Question 10

What are the benefits of branding?

Answer 10

1. Recognition -> gives pdt identity that can be recognised by consumers -> ppl would buy pdts from well-known brands instead of unfamiliar ones
2. Ability to command a higher price -> branding is an assurance of quality -> customers are willing to pay a premium for a well-established brand

Question 11

What are the benefits of being a mkt leader with the highest mkt share?

Answer 11

1. Sales are higher as compared to competitors -> gain higher profits -> use these profits for R&D
2. Retailers will be keen to stock up and promote the best selling Brand’s. The brand leaders are likely to be displayed at eye-levels on shelves or at prominent positions in shops -> reach more consumers
3. Use it in advertising and promotional materials -> customers often keen to buy the most popular brand - reduce advertising expenses