Chapter 3

Question 1

Why does the consumer form part of the marketing process

Answer 1

Because a small percentage of the money spent by the consumer to buy products pays for marketing

Question 2

What are the benefits of the consumer understanding the marketing process

Answer 2

The consumer will understand the purchasing process and will be able to communicate and negotiate more effectively as well as be better equipped to demand products and services that meet promised standards

Question 3

Who determines the role played by marketing

Answer 3

The beliefs and intentions as followed in the company

Question 4

List the types of businesses

Answer 4

-Production oriented business

-Sales-oriented businesses

-Marketing oriented business

-Societal marketing oriented business

Question 5

Define marketing

Answer 5

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational goals.

Question 6

Explain production-oriented business

Answer 6

Focuses on the internal capabilities of the company, rather than on the desires and needs of the marketplace.

Question 7

Explain Sales-oriented business

Answer 7

Its based on the belief that people will buy more products if aggressive sales techniques are used

And that high Sales volumes to produce high profits

Question 8

Explain marketing-oriented business

Answer 8

Focuses not only on the sales message and price but also on the quality of products, packaging, distribution, and information.

There are many competitors thus businesses aim for differentiation
Building long-term relationships with consumers

Question 9

Explain societal marketing orientation

Answer 9

Goes beyond a pure marketing orientation to include preserving or enhancing individuals’ and society’s long-term best interests

Question 10

What are the principles that the essence of the marketing concept lies in/The principles of the pure marketing concept

Answer 10

-Long-term maximisation of profitability
-Customer orientation
-Integration of all business activities directed at profitability and satisfying consumer needs.

Question 11

List the core marketing concepts

Answer 11

-Needs and wants

-Products and services

-Value satisfaction and quality

-Exchange transactions and relationships

Question 12

Explain the need for marketing and the core marketing aspects

Answer 12

Organisations ensure they do their market research and develop products/services that customers need.

The products have to satisfy the customer’s need, that is, add value and meet the standard(quality) expected.

An exchange takes place when the customer sacrifices money to acquire the product or service they desire to satisfy their needs/wants and the organisation offers the product/service to the customer and gain its profits.

Exchange transactions and relationship built between two parties.

Question 13

List the gaps that exist between the production and consumption of products

Answer 13

-Space gap

-Time gap

-Information gap

-Ownership gap

-Value gap

-Quantity gap

-Assortment gap

Question 14

What is marketings objective in regards to the gaps between the production and consumption of products

Answer 14

Marketing aims to CLOSE these Gaps.

Question 15

Define the marketing concept

Answer 15

The market offering must be focused on optimally satisfying customer needs, demands and preferences

Question 16

Elaborate on how general marketing functions are applied to marketing activities

Answer 16

• They identify opportunities which can be used for internal strengths and weaknesses

-They compile marketing data

-They choose a specific market

-They decide on products to satisfy consumer needs

-They decide on the selling to attain profit

Question 17

Explain the space gap

Answer 17

When consumers dont have direct access to a product within their immediate environment

Question 18

Elaborate the time gap

Answer 18

When there’s a difference in time between the time when a product has been produced and the time when it is consumed

Question 19

Explain the information gap

Answer 19

It forms because producers don’t know when consumers will need what by when and where. Consumers might not know which products certain producers can offer them

-Its necessary for consumers to be aware of certain products or else they wont develop a need for it

Question 20

Explain the ownership gap

Answer 20

Its when customers only take ownership for a product when they have fully paid for it

Question 21

Elaborate on the value gap

Answer 21

-Sellers place a value on the costs and competitive pricing of goods and services while buyers value goods in terms of what producers and suppliers can do for them and the amount of money they’ll have to spend on it

:. The value the buyer attaches to a product should ideally be the same as that attached by the seller. Their expectations should match in order for a sale to take place