CH6: Marketing Management

Question 2

What is the purpose of marketing management?

Answer 2

To segment markets, select target segments, and position offerings to create value and meet organisational objectives.

Question 3

How does marketing management create value in an organisation?

Answer 3

By identifying customer needs, delivering products that meet those needs, and using pricing, promotion, and distribution strategies to generate satisfaction and profit.

Question 4

Define marketing.

Answer 4

Marketing is the process of communicating, creating, and delivering value to customers and managing relationships profitably.

Question 5

What is marketing management?

Answer 5

It is the discipline of planning, implementing, analyzing, and controlling programs to reach target markets using marketing techniques.

Question 6

Can a company survive without adopting the marketing philosophy?

Answer 6

No. Companies that ignore marketing often fail to understand customer needs, leading to poor sales and missed profit opportunities.

Question 7

What is a marketing strategy?

Answer 7

A plan to achieve marketing objectives using variables like product, price, promotion, and place (4 Ps).

Question 8

What are the additional 3 Ps for services marketing?

Answer 8

People, Process, and Physical environment.

Question 9

Name six possible marketing objectives.

Answer 9

Achieve a specific sales volume, gain market share, become/maintain market leader, launch new products, achieve earnings per share, offer most cost-effective product.

Question 10

What are characteristics of good marketing objectives?

Answer 10

Measurable, realistic, and time-bound.

Question 11

What is market segmentation?

Answer 11

Dividing a heterogeneous market into homogeneous subsets with similar needs.

Question 12

What is market targeting?

Answer 12

Selecting which market segments to focus on based on attractiveness and competitive position.

Question 13

What is market positioning?

Answer 13

Creating a distinctive image of the product in the minds of the target audience.

Question 14

List the four segmentation criteria.

Answer 14

Demographic, Geographic, Psychographic, Behaviouristic.

Question 15

Give an example of demographic segmentation.

Answer 15

Targeting products based on age, income, gender (e.g., luxury cars marketed to high-income males aged 40–60).

Question 16

What is a product in marketing?

Answer 16

Anything offered for acquisition, use, or consumption to satisfy needs, including goods, services, ideas, or people.

Question 17

What is branding?

Answer 17

Creating a unique name, symbol, or design that distinguishes a product from competitors.

Question 18

What are key characteristics of a good brand name?

Answer 18

Descriptive of benefits, easy to pronounce and remember, translatable into other languages, distinctive.

Question 19

What is the floor price of a product?

Answer 19

The minimum price based on manufacturing and marketing costs.

Question 20

What is penetration pricing?

Answer 20

Setting a low price to quickly gain market share.

Question 21

What is mark-up pricing?

Answer 21

Adding a fixed percentage to the product’s cost.

Question 22

What is target-return pricing?

Answer 22

Setting a price to achieve a specific return on investment.

Question 23

What is perceived-value pricing?

Answer 23

Pricing based on the value customers believe the product offers.

Question 24

Define value pricing.

Answer 24

Offering high-quality products at a low price.

Question 25

What is going-rate pricing?

Answer 25

Pricing based on competitors’ prices.

Question 26

What is marketing communication?

Answer 26

All communication between the seller and buyer aimed at influencing attitudes and buying behavior.

Question 27

What are the five elements of promotion?

Answer 27

Advertising, Personal selling, Sales promotion, Publicity, Direct marketing.

Question 28

What is advertising?

Answer 28

Paid, impersonal promotion by an identifiable sponsor to a target audience.

Question 29

What is personal selling?

Answer 29

Direct interaction between sales reps and potential buyers, often face-to-face.

Question 30

Name and describe the three types of sales reps.

Answer 30

Recruiters: find new clients, Order-takers: routine visits, Supporters: assist other reps.

Question 31

What is sales promotion?

Answer 31

Short-term incentives like coupons, contests, and free samples to stimulate buying.

Question 32

Define publicity.

Answer 32

Unpaid media coverage to create awareness and favorable opinion.

Question 33

What is direct marketing?

Answer 33

Using direct communication channels like email, SMS, or phone to reach and engage consumers.

Question 34

What is a distribution channel?

Answer 34

A chain of intermediaries that help move the product from producer to consumer.

Question 35

What are the three types of distribution coverage?

Answer 35

Intensive – many intermediaries (e.g., soft drinks), Exclusive – few selected outlets (e.g., luxury cars), Selective – only selected efficient intermediaries (e.g., electronics).

Question 36

Why do intermediaries exist despite increasing product cost?

Answer 36

They bridge time, place, and possession gaps between producers and consumers.

Question 37

How has the Internet transformed marketing?

Answer 37

It provides consumers with more product choices, price comparisons, and convenience while enabling organisations to reach wider markets and communicate more efficiently.

Question 38

What devices do consumers use to access digital platforms?

Answer 38

Desktops, laptops, smartphones, and tablets.

Question 39

What opportunities does digital marketing offer to organisations?

Answer 39

Expansion into new markets, new services, advanced communication techniques, competitive parity with larger firms, skill development for staff.

Question 40

What are some examples of companies that disrupted industries using digital platforms?

Answer 40

ASOS.com (clothing), Amazon.com (books and retail), iTunes (music), Expedia (travel).

Question 41

Why are social networks important in digital marketing?

Answer 41

They are part of consumers' daily lives and provide a space for brands to engage, build relationships, and promote products directly.

Question 42

Name five social platforms that are important for marketers.

Answer 42

Facebook, Google+, LinkedIn, Instagram, Twitter.

Question 43

How has ASOS leveraged digital marketing effectively?

Answer 43

By interacting with customers in social media spaces and evolving into a global brand through consistent digital engagement.

Question 44

Why is an engaging online presence crucial in modern marketing?

Answer 44

Because consumers expect interactive, value-driven experiences, and digital visibility drives market share and customer loyalty.

Question 45

What is the risk for companies that neglect digital marketing?

Answer 45

Loss of market share, irrelevance, and inability to compete in the modern, fast-paced consumer environment.

Question 46

What is essential for survival in today’s consumer market?

Answer 46

A well-developed and continuously updated digital strategy.

Question 47

What is the primary responsibility of marketing management in the value chain?

Answer 47

Identifying customer needs and creating targeted strategies to meet those needs.

Question 48

What core activities does marketing management include?

Answer 48

Market segmentation, targeting and positioning, product, pricing, promotion, and distribution decisions.

Question 49

What additional strategic roles does marketing management play?

Answer 49

Environmental scanning, market research, consumer behavior analysis, supporting strategic planning.

Question 50

Why is knowledge of customer needs critical in marketing?

Answer 50

Because customer preferences constantly evolve, and businesses must adapt strategies to remain relevant and competitive.

Question 51

In one sentence, summarize the role of marketing management.

Answer 51

Marketing management aligns the organisation’s offerings with customer needs to create value, drive demand, and sustain long-term business success.