The role of Marketing - 3.1

Question 1

Marketing

Answer 1

The management task that links the business to the customer by identifying and meeting the needs of customers profitably - it does this by getting the right product at the right price to the right place at the right time

Question 2

What management function does marketing include?

Answer 2

Market research

Product design

Pricing

Advertising

Distribution

Customer service

Packaging

Question 3

Marketing relationship with Finance

Answer 3

Needs to fund the increased promotion budget.

Question 4

Marketing relationship with Human resources

Answer 4

Additional employees are likely to be required.

Question 5

Marketing relationship with Operation

Answer 5

Market research data will be used by operations to determine the preferences of consumers for the future product mix.

Question 6

How can market be differentiated?

Answer 6

Market size

Market growth

Competitors and ease of entry

Differentiated or homogeneous products

Segmentation

Question 7

Market size

Answer 7

The total level of sales of all producers within a market

Question 8

Why is market size important?

Answer 8

A marketing manager can assess whether a market is worth entering or not

Businesses can calculate their own market share

Growth or decline of the market can be identified

Question 9

How to measure market growth

Answer 9

By volume

By value

Question 10

Market growth

Answer 10

The percentage change in the total size of a market over a period of time

Question 11

Ease of entry

Answer 11

The lack of barriers for the establishment of new competitors in a market

Question 12

What factors affect market growth?

Answer 12

Economic growth

Changes in consumer incomes

Development of new markets

Changes in consumer tastes

Technological change

Saturation of market

Question 13

What makes it easier to join a market?

Answer 13

If there is more competitors

Question 14

Issue with homogeneous products

Answer 14

Cannot be distinguished and therefore difficult for a business to charge higher prices

Question 15

Homogeneous products

Answer 15

Goods that are physically identical or viewed as identical by consumers

Question 16

Segmentation

Answer 16

Dividing a market into distinct groups of consumers who share common tastes and requirements

Question 17

Target marketing

Answer 17

Focusing marketing activity on particular segments of the market

Question 18

Mass marketing

Answer 18

Selling to the whole market using a standardised product and the same marketing activities

Question 19

What differences do managers responsible for selling services need to recognise between goods and services?

Answer 19

Consumed immediately - cannot be stored

Services cannot be repaired - services need to be good quality the first time

Consumers find it more difficult to compared services. Promotion has to be informative and detailed

People are very important to the successful marketing of services

Question 20

Important things to remember when selling services

Answer 20

Building trust

Time for delivering the service

Deliverability

Relationships

Services need a perceived value - emotional connection

Question 21

Market orientation

Answer 21

An outward looking approach basing product decisions on consumer demand, as established by market research

Question 22

Product orientation

Answer 22

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

Question 23

Benefit of market orientation

Answer 23

Chances of new products failing is less likely

More likely to survive

Constant feedback from consumers

Question 24

Why is product orientation still being kept in some businesses?

Answer 24

Invent products in the belief that they will find consumers to purchase them.

Innovation

Concentrate their efforts on efficiently producing high quality goods

Question 25

Issue with market orientation

Answer 25

If a business tries to respond to every passing consumer trend then they will overstretch

Question 26

Social marketing

Answer 26

This approach considers not only the demands of consumers but also the effects on all members of the public involved in some way when firms meet these demands

Question 27

Example of social marketing

Answer 27

Body shop, which promises not to support animal testing of its products and purchases its supplies from sustainable sources produced in non environmentally damaging ways

Question 28

What implications does social marketing have?

Answer 28

It tries to to balance company profits, consumer wants and society’s interests

Social considers long term welfare (protecting the environment and paying workers reasonable wages

Give a competitive advantage, consumers prefer to purchase products from businesses that are seen t one socially responsible

Being able to charge higher prices

Question 29

Market share

Answer 29

The percentage of sales in the total market sold by one business

Question 30

Equation of market share

Answer 30

Firm’s sales in time period/total market sales in time period x 100

Question 31

Benefits of being the market leader

Answer 31

Sales are higher - higher profits

Retailers want to stock the best selling brands

Can be shown off in advertising

Strong bargaining position with suppliers and retailers

Easier to recruit him class employees

Finance can be easier with banks and investors

Question 32

Marketing objectives

Answer 32

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

Question 33

Examples of for profit organisation objectives

Answer 33

Market share - gain market leadership

Total sales (value or volume)

Average number of items purchased per customer visit

Frequency that a loyal customer shops

Percentage of customers who are returning customers

Number of new customers

Customer satisfaction

Brand identity

Question 34

What will a business with short term profits target?

Answer 34

Maximising sales at the highest price possible

Question 35

What will a business with long term profits target?

Answer 35

May include both profitability and achieving goals of social responsibility.

Question 36

To be effective, what should marketing objective be?

Answer 36

Fit in with the overall aims and mission of the business

Be determined by senior management

Be realistic, motivating, achievable, measurable and clearly communicated to all departments in the organisation

Question 37

Why are marketing objectives important?

Answer 37

They provide a sense of direction

Progress can be monitored against the targets

They can be broken down into regional and product sales targets to allow for management by objectives

They form the basis of marketing strategy.

Question 38

How does a not for profit organisation differ from a profit organisation?

Answer 38

Do not have external shareholders

Do not distribute dividends

Objectives include social or environment dimension

Question 39

What are the main marketing activities in a not for profit organisation?

Answer 39

Market research

Identifying the best ways to communicate effectively with donors

The need to assess the effectiveness of different promotions and companions to increase value for money in the future

Question 40

Difference in marketing for non profit making organisations compared t profit organisations?

Answer 40

Maintaining high ethical standards

Constant feedback on the success of charity campaigns

Free publicity

Question 41

Not for profit organisation marketing objectives

Answer 41

Maximise revenue from trading activities

Increase recognition of the organisation by society

Promote the work and aims of the organisation to a wide audience

Question 42

What 3 considerations can influence marketing practices and strategies?

Answer 42

Innovation

Ethics

Cultural differences