20. Marketing

Question 1

How did Kotler define marketing?

Answer 1

• The science and art of exploring, creating and delivering value to satisfy the needs of a target market at a profit.
• It identifies unfulfilled needs and desires.
• It defines, measures and quantifies the size of the identified market and the profit potential.

Question 2

What is the product-led approach?

Answer 2

Assuming you will get customers because of the quality of your product
- It may be too expensive
- Maybe nobody is interested in the product, regardless of quality

Question 3

What is the sales-led approach?

Answer 3

• Emphasizes selling what you have even if customers don’t want it
• Need skill in persuasion
• Might make people sign contracts they later regret

Question 4

What is the marketing-led approach?

Answer 4

Looks to find what customers:
- Want
- Appreciate
- Are willing to pay

Question 5

What is a maxim of the marketing-led approach?

Answer 5

The customer knows best

Question 6

What is market segmentation?

Answer 6

Looking at how a market can be split up into segments or sections

Question 7

What are some common sections to split a market into?

Answer 7

• Age
• Sex
• Lifestyle
• Wealth
• Geography

Question 8

What is the point of market segmentation?

Answer 8

Can design products specifically for each segment of the market

Question 9

What is product positioning?

Answer 9

Targeting a section or sections of the market

Question 10

Who proposed the original marketing mix (with only Four P’s)

Answer 10

McCarthy

Question 11

What are the Seven P’s of the marketing mix?

Answer 11

• Product
• Price
• Promotion
• Place
• People
• Process
• Physical evidence

Question 12

How do carry out product positioning?

Answer 12

By adjusting the marketing mix

Question 13

Describe product in relation to the marketing mix.

Answer 13

What are the features of the product?
Includes:
- Quality
- Design
- Brand
- Packaging

Question 14

Describe pricing in relation to the marketing mix.

Answer 14

• The price of the product (price level/price point)
• Discounts for bulk buying
• Terms of payment (how much time customers have to pay)
• Take into account price of competition.

Question 15

Describe promotion in relation to the marketing mix.

Answer 15

Four main types:
- Advertising
- Sales promotion
- Personal selling
- Public relations

Categorized into:
- Push promotion (pushing product to customers eg personal selling)
- Pull promotion (encouraging public demand eg advertising)

Question 16

Describe place in relation to the marketing mix.

Answer 16

• The place you buy the product
  Consider:
• Length of distribution chain
• Suitability of outlet

Question 17

Describe people in relation to the marketing mix.

Answer 17

Providing services requires having the right people with the right attitude.

In manufacturing, customers may never meet employee

Question 18

Describe process in relation to the marketing mix.

Answer 18

The process by which product is aquired

Question 19

Describe physical evidence in relation to the marketing mix.

Answer 19

Shows that the service is going to be provided. Eg via email