Study set from notes Flashcards
According to Peter Drucker, what is the ultimate aim of marketing?
The aim of marketing is to know and understand the customer so well that the product or service fits the customer and sells itself. The aim is to make selling superfluous.
Explain the difference between needs, wants, and demands in the context of marketing.
Needs are states of felt deprivation, wants are needs shaped by environment and individual preferences, and demands are wants backed by buying power.
What does ‘marketing myopia’ refer to, and why is it detrimental for businesses?
Marketing myopia refers to defining a business in terms of specific goods and services (wants) rather than the underlying customer needs. This is detrimental because it limits a company’s ability to adapt and innovate as customer needs evolve.
Briefly describe the four components of the marketing mix (4 Ps).
The four components of the marketing mix are: Product (the goods or services offered), Price (the cost to the customer), Place (distribution channels), and Promotion (communication and incentives used to market the product).
What is a mission statement, and what are two key characteristics of a market-oriented mission statement?
A mission statement is a clear, concise, and enduring statement of the reasons for an organization’s existence. It should be market-oriented and not product/technology-oriented.
What is a Strategic Business Unit (SBU), and what are the two main types of SBU portfolios discussed in the course?
A Strategic Business Unit (SBU) is a single business or collection of related businesses that can exist separately from the rest of the company. The two main types of SBU portfolios are specialized portfolios and diversified portfolios.
Explain how the Boston Consulting Group (BCG) matrix categorizes businesses based on market share and growth rate.
The BCG matrix categorizes businesses into four quadrants: Question Marks (low market share, high growth), Stars (high market share, high growth), Cash Cows (high market share, low growth), and Dogs (low market share, low growth).
Describe the four strategies of the Ansoff Matrix.
The four strategies of the Ansoff matrix are Market Penetration (existing products, existing market), Market Development (existing products, new market), Product Development (new products, existing market), and Diversification (new products, new market).
Explain the difference between primary and secondary data in marketing research.
Primary data is information collected for a specific research purpose and must be gathered by the researcher. Secondary data is information that already exists, collected for other purposes by either an internal or external source.
