Unit 1: Marketing Principles

Question 1

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

Answer 1

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

Question 2

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

Answer 2

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

Question 3

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

Answer 3

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

Question 4

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

Answer 4

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

Question 5

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

Answer 5

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

Question 6

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

Answer 6

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

Question 7

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

Answer 7

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

Question 8

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

Answer 8

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

Question 9

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

Answer 9

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.

Question 10

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

Answer 10

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

Question 11

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

Answer 11

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

Question 12

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

Answer 12

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.

Question 13

How do marketers aim to maintain and improve customer relationships?

Answer 13

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.

Question 14

What are the two key objectives of marketers?

Answer 14

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

Question 15

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

Answer 15

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

Question 16

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

Answer 16

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

Question 17

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

Answer 17

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.”

Question 18

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

Answer 18

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.

Question 19

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

Answer 19

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

Question 20

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

Answer 20

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

Question 21

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

Answer 21

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.

Question 22

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

Answer 22

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.

Question 23

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

Answer 23

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

Question 24

What are the stages of the customer buying process?

Answer 24

• Problem recognition
• Information search
• Information evaluation
• Purchase decision
• Post-purchase evaluation

Question 25

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

Answer 25

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

Question 26

How do customers gather information during the information search stage?

Answer 26

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

Question 27

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

Answer 27

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

Question 28

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

Answer 28

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.

Question 29

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

Answer 29

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

Question 30

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

Answer 30

• Physiological needs
• Safety needs
• Belongingness and love
• Esteem
• Self-actualization needs

Question 31

How does culture influence customer decision-making?

Answer 31

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

Question 32

What role does perception play in customer decision-making?

Answer 32

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.

Question 33

How can social groups and family influence buying decisions?

Answer 33

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

Question 34

What is the role of influencers in modern marketing?

Answer 34

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.

Question 35

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

Answer 35

• 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.

Question 36

How does derived demand affect B2B markets?

Answer 36

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.

Question 37

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

Answer 37

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.

Question 38

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

Answer 38

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

Question 39

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

Answer 39

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

Question 40

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

Answer 40

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.

Question 41

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

Answer 41

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.

Question 42

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

Answer 42

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

Question 43

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

Answer 43

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