Chapter 1 book

Question 1

Marketing

Answer 1

Marketing is the activity and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large.

Question 2

Marketing Management

Answer 2

We see marketing management as the art and science of choosing target markets and ensuring customers in delivering value

Question 3

10 main types of entities marketed

Answer 3

1. Goods
2. Services
3. Events
4. Experiences
5. Persons
6. Places
7. Properties
8. Organisations
9. Information
10. Ideas

Question 4

A Marketer

Answer 4

Someone who seeks a response from another party, who is called the prospect.
Marketers require quantitative and qualitative skills, entrepreneurial attitudes and understanding of how marketing creates value.

Question 5

Customer touch point

Answer 5

The point where a customer directly or indirectly interacts with the company in some form

Question 6

What is a market from an economist perspective?

Answer 6

A market is a collection of buyers and sellers who transact over a particular product or product class.

Question 7

What is a market from an marketer perspective?

Answer 7

The term market is used to cover groupings of customers. Sellers constitute the industry and buyers constitute the market.

Question 8

What types of markets are there? (4)

Answer 8

• Need markets
• Product markets
• Demographic markets
• Geographic markets

Question 9

Marketplace

Answer 9

Is the physical market, the stores you shop in.

Question 10

Marketspace

Answer 10

Is the digital market, the online shops.

Question 11

Metamarket

Answer 11

Is a cluster of complementary products and services closely related in the minds of consumers but spread across a diverse set of industries.

Question 12

What are the core marketing concepts? (3)

Answer 12

Needs, wants and demands

Question 13

Demands

Answer 13

Wants for specific products which are backed by an ability to pay

Question 14

Wants

Answer 14

Wants are specific products that can satisfy a need. Wants are shaped by our society. To gain an edge, companies sometimes help customers learn what they want.

Question 15

Needs

Answer 15

Needs are the basic human requirement for air, food, water, clothing and shelter.

Question 16

Target markets

Answer 16

The group that present the greatest opportunities for a certain company

Question 17

A value proposition

Answer 17

A set of benefits that satisfy customer needs. The proposition is made physical by an offering.

Question 18

Value (the value triad)

Answer 18

Value is a combination of quality, service and price. This is called the value triad.

Question 19

Three types of marketing channels

Answer 19

1. Communication channels
2. Distribution channels
3. Service channels

Question 20

Communication channels

Answer 20

These channels deliver and receive messages from target buyers

Question 21

Distribution channels

Answer 21

The marketer uses distribution channels to display, sell or deliver the physical product or service tot he buyer or user (direct or indirect).

Question 22

Service channels

Answer 22

The marketer carries out transactions with buyers using service channels such as warehouses, transportation companies, bank and insurance companies.

Question 23

Supply chain

Answer 23

The supply chain is a longer channel stretching form raw materials to components to finished product carried to final buyers.
When companies acquire other companies (upstream or downstream) their goal is to increase their percentage of supply chain value.

Question 24

The marketing environment exists of… (2)

Answer 24

• The task environment

- The broad environment

Question 25

The task environment

Answer 25

Includes actors engaged in producing, distributing and promoting the product, service, company, suppliers, target customers, distributors and dealers.

Question 26

The broad environment consists of...; (6)

Answer 26

- The demographic environment - The economic environment - The sociocultural environment - The natural environment - The technological environment - The political-legal environment

Question 27

Disintermediation

Answer 27

The removal of an intermediary in a process. For example, due to the introduction of the internet, wholesalers and retailers became less important to the flow of goods because customers could just buy online.

Question 28

Re-intermediation

Answer 28

Is the reintroduction of a middle man in the flow of goods by outsourcing certain processes (for a commission fee) so that companies themselves can focus on what they are good at.

Question 29

The 'brick and click' strategy

Answer 29

It is a business model in which a company operates both an online store (the clicks) and an offline store (the bricks) and integrates the two into a single retail strategy.

Question 30

Company marketing effort philosophies (4)

Answer 30

- The production concept - The product concept - The selling concept - The marketing concept

Question 31

The production concept

Answer 31

Concept that consumers prefer products that are widely available and inexpensive. So, high production efficiency, low costs and mass distribution.

Question 32

The product concept

Answer 32

Concept that consumers prefer products offering the most quality, performance and innovative features

Question 33

The selling concept

Answer 33

Concept that, if not promoted, the goods will not be sold enough because they are goods buyers don't normally think of buying. effort.

Question 34

The marketing concept

Answer 34

Concept in which the customer, sense and responsibility is central. The job is to find the right product for your customers. Create, communicate and deliver value to your target market.

Question 35

The holistic marketing concept

Answer 35

Holistic marketing recognises the scope and complexities of marketing activities. Based on the development, design and implementation of marketing programs, processes and activities that recognise breadth and interdependencies.

Question 36

What 4 broad components characterise holistic marketing?

Answer 36

- Relationship marketing - Integrated marketing - Internal marketing - Performance marketing

Question 37

Relationship marketing (marketing network)

Answer 37

Aims to build mutually satisfying long term relationships in order to earn and retain their business

Question 38

Integrated marketing

Answer 38

Marketing programs that create, communicate and deliver value to consumers through marketing activities.

Question 39

Internal marketing

Answer 39

The task of hiring, training and motivating able employees that want to serve customers well. Marketing within the company can be as important, or more important than external marketing. A happy employee is a happy customer.

Question 40

Performance marketing

Answer 40

Performance marketing requires understanding the (non)financial returns to business and society from marketing activities and programs. - financial accountability - social responsibility marketing

Question 41

What are the four P's of marketing

Answer 41

- Product (people) - Price (performance) - Place (processes) - Promotion (programs)

Question 42

Marketing management tasks (8)

Answer 42

- Develop strategies - Capture insights - Connect with customers - Build strong brands - Shape offerings - Deliver value - Communicate value - Create long term growth