Marketing Concept

Question 1

When did the production concept come about?

Answer 1

1850s

Question 2

How did the production concept evolve?

Answer 2

Industrial revolution:
- technological inventions enabled market traders to set up factories

• grew rapidly
• demand to produce more and more
• needed more people to work in the factories
• people then had more money to spend on consumer goods
• new factories opened up

Question 3

Where did the industrial revolution begin?

Answer 3

Manchester cotton goods production

Question 4

Production concept demand

Answer 4

Companies didn’t have to think about the customer

Produce more
Reduced price for consumer
Prices go down demand goes up

As more people buy and produce more, prices go down

Question 5

Production led:

Answer 5

Produce more

Bring prices down

More customers

Question 6

How long did the production concept last?

Answer 6

Until late 1920s

Question 7

Example of the production concept

Answer 7

Henry Ford didn’t give customers colour choice

Question 8

What happened in 1929?

Answer 8

Wall Street crash caused by the Great Depression

Question 9

Consequences of the Wall Street crash?

Answer 9

People started to think about what they were spending

More cautious with their money

Manufacturers also become more cautious

Prices went down below the cost of production

Question 10

What was the outcome of the Great Depression?

Answer 10

Era of the selling concept

1930s

Question 11

Who started the selling concept?

Answer 11

Tom Watson Snr

CEO of IBM

Question 12

Why the selling concept?

Answer 12

Couldn’t rely on he customers to buy, you had to go out and sell things

Question 13

How does the selling concept work best?

Answer 13

Not loyal to brands

Competition brings the price down

Question 14

Who adopts the production concept today?

Answer 14

Still developing countries

Question 15

Why do still developing countries use the production concept?

Answer 15

Don’t have the products and services of developed countries

As the get employment they can spend more on products and services

Question 16

Who starts marketing revolution?

Answer 16

Elvis 1955 rebellious youth, wouldn’t take what was given

Question 17

How can companies meet the wants and needs of the customer?

Answer 17

First have to understand the industry they’re in

Reevaluate and reinvent the offerings to customer as they understand what they want

E.g American railways didn’t realise they were in the transport industry and had car and planes as competitors

Question 18

What is the marketing concept?

Answer 18

Achieving organisational goals depend on DETERMINING THE NEEDS ANS WANTS OF TARGET MARKETS and delivering the desires satisfactions MORE EFFECTIVELY AND EFFICIENTLY than competitors do

Question 19

How is the marketing concept achieved?

Answer 19

Management of the 4Ps

Question 20

What are the 4Ps?

Answer 20

Product
Price
Place
Promotion

Question 21

What are the three main components of the marketing concept?

Answer 21

Customer orientation

Goal achievement

Integrated effort

Question 22

Do customers always know what they need or want?

Answer 22

No

Market led innovation

Question 23

Customer orientation is

Answer 23

Corporate activities focused on providing customer satisfaction

Question 24

Integrated effort is

Answer 24

All staff accept responsibility for creating customer satisfaction

Question 25

What is goal achievement?

Answer 25

The belief that corporate goals can be achieved through customer satisfaction

Question 26

Marketing concept Kohlberg 1980

Answer 26

Consists of determining the needs and wants of the target markets

Question 27

Jobber 2004

Answer 27

The achievement of corporate goals through meeting and exceeding customer needs better than the competition

Question 28

Marketing process role achieved by

Answer 28

Analysing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort

Question 29

McKitterick 1957

Answer 29

Awareness of consumer wants- market led organisations, integrations of actives around customer orientation, profit rather than sales as a measure of success

Question 30

Keith 1960

Answer 30

The marketing revolution The consumer is ‘at the absolute dead centre of the business universe’ ‘Marketing is emerging as the most important single function in business’

Question 31

McCarthy 1960

Answer 31

4Ps - four controllable variables that a company manages in its effort to satisfy the corporations objectives as well as the wants and needs of the target market

Question 32

Borch 1958

Answer 32

Dual core concept of marketing Not simply concerned with meeting explicit customer desires but also with creating them- managing demand and influencing the customer Not only cater to customer demands but also ‘persuade the prospective customer, through all the arts if selling and advertising, to purchase the products and services that have been developed’

Question 33

Kotler 1976 argued that

Answer 33

The marketing concept replaces and reverses the logic of the selling concept Contrast Brown 2001 sales orientation still remains very much part of marketing identity whether we like it or not

Question 34

Gardner and Levy 1955

Answer 34

Impact of brand image on consumer behaviour - brand image is consisted of consumers opinion, attitude and emotion toward a brand, which reflects the cognitive or psychological elements of the brand

Question 35

Levitt 1960

Answer 35

Marketing myopia - an industry is a customer satisfying process, not a goods producing process - businesses will do better if they concentrate on meeting customers needs rather than on selling products Myopia- short sighted - companies stop growing because of failure in management, not because the market is saturated but because of myopia

Question 36

Production orientation

Answer 36

Production capabilities Manufacture product Aggressive sales effort Customers

Question 37

Marketing orientation

Answer 37

Customer needs Potential market opportunities Marketing products and services Customers

Question 38

Borch 1958

Answer 38

Dual core concept of marketing Not just meeting desires of customers but creating them