Chapter 1

Question 1

Marketing transaction

Answer 1

• exchanging ‘things of value’
• buyer (money), seller (goods/services)
• Employer (wage/benefits), Employee (labour/expertese)
  Candidate (promises), Voter (Votes)

Question 2

What is marketing?

Answer 2

• Departmental/Functional View (tools, techniques & models)
• Philosophy View (how everyone marketing orientated organisation thinks)

Question 3

The marketing philosophy quotes

Answer 3

• Make what can sell, Love customers (identify demands) not the product
• Creating relationships not selling products (meet profitably & ethically)

Question 4

3 Philosophies of Business

Answer 4

1) Production (effix low cost high volumes)
2) Sales (product what good at, make customers buy)
3) Product (make product better, analyse cost)
- - Marketing (understand potential customers)

Question 5

In favour of Free Marketings and Capitalism

Answer 5

• Consistent with individual freedom & Human rights
  ​- Encourages growth & Innovation (comp)
• Efficient setting prices/prod levels
• Efficient allocating resources
• Minimises waste nat resources & global climate change (goes out of business if doesn’t make profit)

Question 6

Criticisms of free Markets & Capitalism

Answer 6

• Equality of opportunity inevitably leads to inequality of rewards (lucky, intelligent, hardworking)
• Capitalist economies ‘economically unstable’ (not regulated or controlled, boom recession, if stable doesn’t move, growth inovation)
• Freedom, efficiency, and effectiveness of free markers can be destroyed by cartels and monopoly
• In the ‘democracy of the market’, not everyone has a vote (so free markets, like free societies need strong laws to protect freedom)

Question 7

Needs, Wants, Demands Examples

Answer 7

• Needs (food, water, shelter, heat comfort, self esteem, STATE OF DEPRIVATION)
• Wants (steak, beer, new house, central heating, new car, DESIRED) ——–
• Demand (WANTS backed by WILLINGNESS & ABILITY TO PAY)
• Existing (exist & being served - Food)
• Latent (Known to exist, but cannot be served for some reason - technological of legal constraint)
• Incipient (exist, but undiscovered)

Question 8

What is a Market

Answer 8

• Group of consumers with similar demand

Question 9

• What do cosmetics, pen, computer, oil, drill bit manufacturer sell

Answer 9

• hope - gift market - solutions to problems - energy - holes