Unit 1: Marketing Principles Flashcards

1
Q

What is the role of Marketing or Marketing Management within an organization?

A

To understand customers, their wants and needs, and develop products and services to satisfy these needs.

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2
Q

Why is the understanding of customers’ wants and needs crucial for the long-term success of an organization?

A

Allows them to devise strategies and plans to maximize the attractiveness of their products and services in the marketplace.

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3
Q

What is the primary objective of successful companies regarding their products and services?

A

To continually adjust and organize their products and services to meet their customers’ ever-changing needs and wants, while also competing with other companies.

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4
Q

According to Philip Kotler, what are the four pillars of the marketing concept?

A
  1. Target market
  2. Customer needs
  3. Integrated marketing
  4. Profitability.
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5
Q

How would you describe the marketing process in terms of creating value for customers and satisfying their needs?

A

An endless series of actions and reactions between customers and companies attempting to meet customer requirements.

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6
Q

What are the four main steps involved in the marketing process?

A
  1. Situation analysis
  2. Marketing objectives
  3. Marketing strategy
  4. Implementation and control
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7
Q

How does situational analysis contribute to identifying opportunities and unfulfilled customer needs?

A

By examining -
1. The organization’s capabilities
2. The market environment
3. Understanding the surroundings in which the organization operates.

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8
Q

What are some examples of marketing objectives that a marketer may set for an organization?

A
  1. Increased sales
  2. higher public profile
  3. the development of a new product.
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9
Q

How does a marketing strategy differ from marketing objectives, and what does it involve?

A

Marketing objectives are the goals set by marketers, such as increased sales or product development, while a marketing strategy involves developing a strategic plan to pursue identified marketing options and making elaborate tactical decisions for the marketing mix.

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10
Q

What is the final step of the marketing process, and what does it aim to achieve?

A

Implementation and control, which aims to execute the marketing plan and monitor outputs to adjust the marketing mix according to market changes

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11
Q

What is the marketer primarily interested in concerning the organization, its customers, and suppliers?

A

The marketer is primarily interested in the interactions between the organization, its customers, and suppliers, based on the process of exchange.

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12
Q

What is the basis of the relationship between customers and the organization, and how does it continue?

A

The relationship between customers and the organization is based on the customer’s willingness to pay for a product or service in exchange for receiving a benefit superior to competitors. This relationship continues as long as the perceived benefit outweighs the cost.

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13
Q

How do marketers aim to maintain and improve customer relationships?

A

Marketers aim to maintain and improve customer relationships through customer loyalty, offering a wider range of products, and encouraging customers to spend more on each product.

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14
Q

What are the two key objectives of marketers?

A
  1. Keeping and improving the relationship with existing customers.
  2. Attracting new customers to increase the customer base.
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15
Q

What are the three elements classified as ‘Factors of Product,’ and who provides them to organizations?

A

The three elements classified as ‘Factors of Product’ are finance, people, and physical resources. Suppliers provide these elements to organizations.

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16
Q

How does the success of the marketer’s relationship with customers impact the organization’s relationship with suppliers?

A

The success of the marketer’s relationship with customers has a profound impact on the organization’s relationship with its suppliers.

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17
Q

According to Gronroos (2010), how does he define marketing?

A

According to Gronroos (2010), marketing is “to establish, maintain and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by mutual exchange and fulfillment of promises.”

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18
Q

Why is customer satisfaction critical to the long-term success of companies?

A

Customer satisfaction is critical to the long-term success of companies because customers provide revenue through transactions, which delivers profit and ensures long-term business success.

19
Q

What do mission statements of organizations often convey regarding their customers and marketing?

A

Mission statements of organizations often express their commitment to customers and the importance of marketing in their business philosophy.

20
Q

What is the boundary-spanning role of the marketing department, and why is it important?

A

The marketing department plays a boundary-spanning role, influencing other managerial functions within the organization to ensure customer interests are represented, and marketing objectives are achieved

21
Q

What is the purpose of internal marketing, and how does it relate to marketing’s boundary-spanning role?

A

The purpose of internal marketing is to align all members of the organization with the marketing concept and motivate them to serve customers in a consumer-focused way, directly relating to marketing’s boundary-spanning role.

22
Q

What sets communication apart from promotion, and what are the key audiences that marketing needs to communicate with?

A

Communication is a two-way process that involves delivering and receiving information. Key audiences that marketing needs to communicate with include suppliers, internal customers, distributors, and external customers.

23
Q

How do companies support the supply chain, and what are some examples of the support they provide?

A

Companies support the supply chain through long-term relationships, sharing information, and providing financial assistance or bonuses. Examples of support include sharing information about new products, assisting in product development, and offering financial incentives for timely orders

24
Q

What are the stages of the customer buying process?

A
  • Problem recognition
  • Information search
  • Information evaluation
  • Purchase decision
  • Post-purchase evaluation
25
Q

What happens during the problem recognition stage of the buying process?

A

The problem recognition stage is the starting point, where the customer identifies a need or problem that requires a solution.

26
Q

How do customers gather information during the information search stage?

A

Customers gather information from various sources, including advertising, word of mouth, the internet, expert advice, and marketing literature.

27
Q

What factors influence the evaluation of information during the information evaluation stage?

A

The evaluation of information can be influenced by objective or subjective criteria, depending on the product type and the personality of the buyer.

28
Q

What is the purpose of the post-purchase evaluation stage?

A

The post-purchase evaluation stage helps customers assess the quality of the match between their needs and the product’s benefits, and it confirms the correctness of their purchase decision.

29
Q

What are buying scenarios, and how do they impact the decision-making process?

A

Buying scenarios, such as routine purchases, high-value purchases, and services, impact the decision-making process based on the type of product, purchase need, and situation

30
Q

What are the five groups of needs in Maslow’s Hierarchy of Needs?

A
  • Physiological needs
  • Safety needs
  • Belongingness and love
  • Esteem
  • Self-actualization needs
31
Q

How does culture influence customer decision-making?

A

Culture influences customer decision-making through societal values, beliefs, norms, and preferences, which can impact product choices and consumption patterns

32
Q

What role does perception play in customer decision-making?

A

Perception represents how individuals analyze, interpret, and make sense of incoming information, such as product packaging, taste, smell, or promotional messages, which can be affected by personality, experience, and mood.

33
Q

How can social groups and family influence buying decisions?

A

Social groups and family can influence buying decisions based on shared interests, aspirations, and past programming from a young age.

34
Q

What is the role of influencers in modern marketing?

A

Influencers, especially in the realm of social media, have become essential promotional tools for marketers as they have the power to affect the purchasing decisions of their audience due to their authority, knowledge, position, or relationship with their followers.

35
Q

What are some of the key differences between B2B and consumer (B2C) buyer behavior?

A
  • B2B customers purchase for specific business needs, while consumer customers purchase for individual or family needs.
  • B2B buyers emphasize economic benefits, while consumer buyers seek psychological benefits.
  • B2B purchases involve formalized, lengthy processes, while consumer purchases are often impulsive or require minimal processes.
36
Q

How does derived demand affect B2B markets?

A

Derived demand means that the demand in B2B markets is based on consumer demand for the end product. For example, a demand for electric motors by a washing machine manufacturer depends on predictions of future consumer demand for washing machines.

37
Q

Why is the buying process more complex in B2B markets compared to consumer markets?

A

B2B purchasers buy on behalf of the organization, leading to more complexity in the buying process as it involves larger groups, longer decision-making processes, and considerations of economic benefits for the organization. In contrast, consumer purchases are often individual or family-oriented and are typically lower risk and quicker decisions.

38
Q

How does this understanding customers’ wants and needs help organizations devise effective strategies and plans?

A

By knowing what customers truly desire, organizations can tailor their offerings to meet those needs and create targeted marketing campaigns.

39
Q

In what way does understanding customer preferences maximize the attractiveness of products and services in the marketplace?

A

When products and services align with customer preferences, they are more likely to be perceived as valuable and desirable, leading to increased demand.

40
Q

How does meeting customer needs lead to higher customer satisfaction and loyalty?

A

When customers feel that their needs are being met, they are more likely to be satisfied with their purchases and develop loyalty towards the brand.

41
Q

What benefits can organizations gain from having satisfied and loyal customers?

A

Satisfied and loyal customers are more likely to become repeat buyers, recommend the brand to others, and provide positive reviews, ultimately boosting sales and reputation.

42
Q

Why is building strong relationships with customers important for long-term success?

A

Strong customer relationships foster trust, enhance brand reputation, and contribute to customer retention, which is vital for sustained success.

43
Q

How can organizations adapt and innovate to stay competitive by staying attuned to customer wants and needs?

A

By actively listening to customer feedback and monitoring market trends, organizations can identify opportunities for innovation and ensure they remain relevant and competitive.