Marketing

Question 1

What is marketing?

Answer 1

Refers to activities a company undertakes to promote the buying or selling of a product

Involves all the actions a company undertakes to draw in customers and maintain relationships with them

Seeks to match a company’s products and services to customers who want access to those products -> ultimately ensures profitability

Question 2

Importance of relationships in marketing

Answer 2

Marketing is based on the relationship between the buyer and the seller

Research shows that it is less costly to keep an existing customer than to get a new one

Successful marketing involves:
“Putting the right product in the right place, at the right price at the right time.”

If you’re able to do this, you should have a winning marketing strategy.

Question 3

Seven functions of marketing - know any 4 of them

Answer 3

Pricing, Selling, Financing, Distribution

Question 4

Product

Answer 4

research, product development, packaging, and branding

Question 5

Price

Answer 5

costs to produce, pricing strategies, government policies

Question 6

Promotion

Answer 6

advertising, sales promotion, publicity, and personal selling
ex. contests, coupons, giveaways

Question 7

Place

Answer 7

where and how, Channels of distribution, Location, Transportation

Question 8

Competitive market

Answer 8

All the sellers of a specific product

Question 9

Market share

Answer 9

% of the market that a company or brand has

Question 10

Target market

Answer 10

The group of people most likely to purchase a specific product or service

Question 11

Market segmentation

Answer 11

Dividing a broad consumer or market, into sub-groups of consumers based on shared characteristics

Question 12

What is a marketing plan?

Question 13

4 components of a plan

Question 14

The marketing concept

Question 15

Three elements of the marketing concept

Answer 15

Customer satisfaction
Customer satisfaction is the positive feeling a customer gets when the product or purchase meets or exceeds the customer’s expectations.

Total company approach
All employees of the business must work together as a team
Focus is on the earning profits through customer satisfaction
Every employee can have an effect on the customer.

Profit
Best way to make a profit is to satisfy customers
THe main goal of most businesses is to make a profit

Question 16

Skills of a good marketer

Answer 16

1. Creativity
2. Analytical/ Critical Thinker
3. Communicator
4. Technological Proficiency
5. Adaptability
6. Detail Oriented

Question 17

AIDA

Answer 17

Attract Attention: Successful advertising relies on a brand-centric headline, concise print content, and attention-grabbing strategies in broadcast ads to engage and retain the audience.

Gain Interest:Ads should be straightforward, aiming to captivate and pique the audience’s interest, enticing them to explore the brand further, whether in person or online.

Build Desire: Link your sales message to visuals by presenting a relatable problem solved by your product, as demonstrated in a Sprite commercial with thirst, to evoke consumer desire.

Get action: Concisely convey the motivations to purchase, including your logo, slogan, brand name, and contact details, while guiding customers on how to locate your brand both in the physical and digital realms.

Question 18

Three types of economic systems: Command Economy

Answer 18

Property ownership is limited, leading to government control of profits, employment of all workers, and centralized authority over pricing, quality, style, and supply of goods and services.

Question 19

Three types of economic systems: Market Economy

Answer 19

Encouraging private property ownership, where profits are at the discretion of business owners who compete based on quality, services, price, reputation, and warranties.

Question 20

Three types of economic systems: Mixed Economy

Answer 20

Property ownership varies among individuals, corporations, and government, with profit encouraged but taxed for government projects, and robust corporate competition, sometimes involving government as a competitor.

Question 21

What is supply?

Answer 21

willingness and ability of sellers to produce and offer to sell different quantities of a good

Question 22

What is demand?

Answer 22

driving force of our economy
the quantity of goods and services at a given price

Question 23

Point of equilibrium

Answer 23

market supply and demand balance each other, and as a result prices become stable

Question 24

Marketing strategy

Answer 24

Once you find an opportunity, you must develop a marketing strategy
A business plan and a marketing plan

Target Market + Marketing Mix = Marketing Strategy

Question 25

4 qualities of a target market

Answer 25

1. Clearly defined wants and needs
2. Money to buy (your product)
3. Willingness and authority to buy (your product)
4. Enough customers in the market

Question 26

Mass marketing

Answer 26

consists of all of the customers for a specific type of product

Question 27

What are the four categories of market segmentation

Answer 27

1. Geographic
2. Demographic
3. Psychographic
4. Behavioural

Question 28

The three categories of influences on consumers

Answer 28

1. Psychological
2. Social
3. Situational

Question 29

Direct vs indirect competition

Answer 29

Two or more businesses offer the same product or service and compete for the same market, to satisfy the same customer need
vs
Two or more businesses compete for the same market to satisfy the same customer need, but offer different products or services.

Question 30

Competitive edge

Answer 30

the special feature or aspect of a product that makes it different from and better than the others

Question 31

Price vs non-price competition

Answer 31

1.Competing on the basis of price
Focus is on making the most profit by offering the lowest prices enabling more sales
2.Competition that is based on something other than price
Other 3 Ps in the Marketing Mix

Question 32

Six stages of the buying decision

Answer 32

1. Recognition of a need
2. Information Search
3. Evaluation of Options
4. Decision to Buy
5. Purchase
6. Post-purchase Evaluation

Question 33

Four levels of purchasing decisions

Answer 33

Impulse - Purchase made with no planning or research
Routine – Made quickly and without much thought
Limited –Made with some research and planning
Extensive – Involves a great deal of research and planning