unit three: chapter 16- what is marketing

Question 1

define 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.

OR

marketing is the process of planning and undertaking the conception, pricing, promotion, distribution of goods and services to create and maintain relationships that will satisfy individual and organizational objectives.

Question 2

what are the 7 related management functions of marketing?

Answer 2

1. market research
2. product design
3. pricing
4. advertising
5. distribution
6. customer service
7. packaging

Question 3

what are the 3 related concepts?

Answer 3

1. markets
2. human needs and wants
3. value and satisfaction

Question 4

what are marketing objectives?

Answer 4

the goals set for the marketing department to help the business achieve its overall objective.

Question 5

what is a marketing strategy?

Answer 5

a long-term plan established for achieving market objectives.

Question 6

why are marketing objectives important?

Answer 6

they provide a sense of direction for the marketing department.

progress can be monitored against these 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 7

what are the 3 coordinations of marketing with other departments?

Answer 7

1. marketing - finance
2. marketing - human resources
3. marketing - operations

Question 8

what is the difference between market orientation and product orientation?

Answer 8

market orientation is an outward-looking approach basing product decisions on consumer demand.
product orientation is an inward-looking approach that focuses on making products that can be made- or have been made for a long time- then trying to sell them.

Question 9

name the term that is the third way between market and product orientation, and provide a definition.

Answer 9

the third way is asset-led marketing, and it is an approach to marketing that bases strategy on the firm’s existing strengths and assets instead of purely on what the customer wants.

Question 10

what is societal marketing, and its concepts?

Answer 10

an approach that considers not only the demand of consumers but also the effects on all members of society involved in some way when firms meet these demands.

its concepts are

• to balance three concerns: company profits customer wants and society’s interests
• give a business a significant competitive advantage
• lead to the firm being able to charge higher prices for its products and benefiting society becomes a unique selling point

Question 11

what is demand and supply?

Answer 11

demand is the quantity of the product that consumers are willing able to buy at a given price in a time period.
supply is the quantity of a product that firms are prepared to supply at a given price in a time period.

Question 12

define equilibrium price.

Answer 12

the market price that equates supply and demand for a product.

Question 13

what are the 5 features of markets?

Answer 13

1. location
2. size
3. growth
4. share
5. competitors

Question 14

define market size.

Answer 14

the total level of sales of all producers within a market.

Question 15

define market growth.

Answer 15

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

Question 16

define market share, and provide how it is calculated.

Answer 16

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

calculated by:
firm’s sales in time period / total market sales in time period
x 100

Question 17

what are the benefits of a high market share?

Answer 17

• sales are higher than those of any competing business in the same market, leading to higher profits.
• retailers will e keen to stock and promote the best-selling brands.

Question 18

what is a direct competitor?

Answer 18

businesses that provide the same or very similar goods or services.

Question 19

what are the 3 important marketing concepts?

Answer 19

1. creating and adding value
2. mass marketing and niche marketing
3. market segmentation

Question 20

what is a unique selling point?

Answer 20

the special feature of a product that differentiates it from competitors’ products.

Question 21

what is product differentiation?

Answer 21

making a product distinctive so that it stands out from competitors’ products in consumer’s perception.

Question 22

what is the difference between mass and niche marketing?

Answer 22

mass marketing is selling the same products to the whole market with no attempt to target groups within in.
niche marketing is identifying and exploiting a small segment of a larger market by developing products to suit it.

Question 23

what is a market segment?

Answer 23

a sub-group of a whole marker in which consumers have similar characteristics.

Question 24

what is market segmentation?

Answer 24

identifying different segments within a market and targeting different products or services to them.

Question 25

what is a consumer profile?

Answer 25

a quantified picture of consumers of a firm’s products, showing proportion of age groups, income levels, location, gender and social class.

Question 26

what are the 3 ways to identify different consumer groups?

Answer 26

1. geographic differences
2. demographic differences
3. psychographic factors