Purposes Of Marketing

Question 1

What is the purpose of marketing?

Answer 1

Helps businesses to develop and sell the goods and services that customers want.

Question 2

Anticipate demand

Answer 2

Aims to work out what customers might want in the future. This market research is used to ask customers questions about products and services, which helps to predict customers’ needs and wants.

For example, a tech company anticipates demand through historical data for faster smartphones by developing a new model with a more powerful processor before customers start asking for it.

Question 3

Recognise demand

Answer 3

Can help identify customer needs and wants that are not being met at the moment, and the sort of product or service that might fulfil these needs and wants.

For example, a coffee shop notices increasing requests for plant-based milk and starts offering almond and oat milk to meet demand.

Question 4

Stimulate demand

Answer 4

Businesses often use advertising and social media to persuade customers that they really want or need a product or service.

For example, a restaurant stimulates demand by offering a limited-time discount on new menu items, encouraging customers to try them and increasing sales.

Question 5

Satisfy demand

Answer 5

Businesses carry out market research to find out what customers think of their products and services so that they can adapt and improve them.
They also use marketing to make sure customers know where they can buy a product or service.

For example, an online store satisfies demand by restocking a sold-out product that customers have been requesting.

Question 6

List the four principles of marketing

Answer 6

Anticipate demand
Recognise demand
Stimulate demand
Satisfy demand

The whole list represents the entire role of what marketing is.

Question 7

Market

Answer 7

A market is a place where buyers and sellers come together to exchange goods or services for money. The grooming market has businesses who sell skincare, razors, hair care, shower products, etc. It can be a physical location, like a store, or online, representing that specific market or industry.

Question 8

Value share

Answer 8

The percentage of total sales revenue that a company or product earns in a market.

Question 9

Identify the starting point for a business. Where should a business begin? Explain whether it should anticipate, recognise, stimulate or satisfy demand first.

Answer 9

Starting Point for a Business:

Recognise Demand: Research market trends to find that there’s a high demand for eco-friendly products. For example, a new business identifies that consumers are seeking sustainable packaging options, so it decides to produce biodegradable packaging.