Unit 4.1

Question 1

Define marketing

Answer 1

Identifying, anticipating and satisfying consumer requirements profitably

This can involve: Advertising, Selling, Market research, Product design, Pricing, Promotion, Distribution, After sales service

Question 2

Marketing and its relationship to other business functions

Answer 2

Human Resources

Hire staff that are needed for marketing and increased production

Finance

Set marketing budget

Will the marketing campaign increase profit

Operations Management

Is there capacity to increase production

Can they produce the product advertised

Question 3

The difference between marketing a good vs a service

Answer 3

1. Services are consumed immediately

Goods can be stored

Eg. hotels offer off-peek discounts

2. Services are consumed at the place of sale

The place of the sale is important and cannot buy online

Eg. restaurant decoration

3. Tangible vs. Intangible

Harder to compare services

Eg. expedia offers ratings on hotels

4. Homogeneous vs heterogeneous

Goods can be mass produced

Services will never be identical

5. Service is key for service

Services cannot be returned, goods can

Hiring a good staff and building up trust is vital

Question 4

Define market oriented

Answer 4

When the company makes products that customers want and will sell based on market research

Question 5

Define product oriented

Answer 5

When the company focuses on the product and its quality, rather than market research and assuming it will sell.

Question 6

Define commercial marketing

Answer 6

Identifying needs and wants of customers with the intention of making a profit

Question 7

Define social marketing

Answer 7

Seeks to influence social behavior to benefit the target audience and society as a whole

Question 8

Market share formula

Answer 8

(Firm’s Sales/Market sales) x 100

Answer as percentage

Question 9

The importance of market share and market leadership

Answer 9

The business with the highest market share.

Benefits:

Higher profit

Better locations in shops

Brand image, e.g. “Market Leader in BM teaching”

Recruitment

Negotiating with suppliers

Access to capital

Question 10

The marketing objectives of for-profit organizations

Answer 10

Increase:

sales revenue

customers

profit

Question 11

The marketing objectives of non-profit organizations

Answer 11

Raise awareness

Raise revenue through more donations