week 1 - 5 MARK101

Question 1

What is marketing?

Answer 1

Engaging customers and managing profitable customer relationships

Marketing focuses on creating value for customers and establishing strong relationships.

Question 2

What are market offerings?

Answer 2

Goods, services, and experiences

Market offerings are the products and services provided to meet customer needs.

Question 3

Define marketing myopia.

Answer 3

Paying more attention to the product’s attributes rather than its benefits

This leads to selling a product rather than a solution to a problem.

Question 4

List the 5 elements of a modern marketing system.

Answer 4

• Suppliers
• Company
• Competitors
• Marketing intermediaries
• Final consumers

These elements interact to create value in the marketplace.

Question 5

What are the major environmental forces in marketing?

Answer 5

• Demographic
• Economic
• Physical
• Technological
• Political/legal
• Social/cultural

These forces shape the marketing environment and affect customer behavior.

Question 6

What is a value proposition?

Answer 6

The set of benefits or values a marketing organization promises to deliver to consumers

It differentiates the company from its competitors.

Question 7

What is negative demand?

Answer 7

A major part of the market dislikes the product

Example: Some consumers may pay a price to avoid dental work.

Question 8

What is the marketing task associated with no demand?

Answer 8

Connect product benefits to consumer wants and needs

This involves raising awareness and interest in the product.

Question 9

What is latent demand?

Answer 9

A need that cannot be satisfied by any existing product

The marketing task is to develop effective products to fill these needs.

Question 10

What does declining demand require in marketing?

Answer 10

Creative remarketing of the product

This may involve repositioning or rebranding efforts.

Question 11

What is full demand?

Answer 11

Satisfactory volume of business

The marketing task is to maintain the demand level.

Question 12

Define the production concept in marketing management.

Answer 12

Consumers will favor products that are available and highly affordable

This concept emphasizes efficiency in production and distribution.

Question 13

What is the selling concept?

Answer 13

Consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort
- agressive selling
- customer conquest

Focus is on short-term sales and profit through sales volume.

Question 14

What does the marketing concept focus on?

Answer 14

Satisfying customer needs better than competitors

This approach emphasizes long-term customer satisfaction.

Question 15

What is the societal marketing concept?

Answer 15

Meeting customer needs while considering society’s well-being and long-term interests

It balances company profits, customer satisfaction, and societal good.

Question 16

What are the components of the marketing mix?

Answer 16

• Product
• Price
• Placement
• Promotion
• People
• Process
• Physical evidence

These elements work together to deliver value to customers.

Question 17

Define share of customer.

Answer 17

The portion of the customer’s purchasing that a company gets in its product categories

It reflects the company’s ability to capture customer spending.

Question 18

What is customer equity?

Answer 18

The total value of a company’s customer base

It represents the long-term financial value that customers bring to the business.

Question 19

List the four groups of customers for relationship management.

Answer 19

• Strangers
• Butterflies
• True friends
• Barnacles

Each group requires different management strategies.

Question 20

What is the marketing process?

Answer 20

• Understand the marketplace and customer needs and wants
• Design a customer value-driven marketing strategy
• Construct an integrated marketing program that delivers superior value
• Engage customers, build profitable relationships and create customer delight
• Capture value from customers in return

This process outlines the steps to effectively meet customer needs.

Question 21

What are the 4 P’s in creating value?

Answer 21

• Product
• Price
• Place
• Promotion

These elements are crucial for delivering value to customers.

Question 22

What is market penetration?

Answer 22

Company growth by increasing sales of current products to current market segments without changing the product

This strategy carries the least risk.

Question 23

What is market segmentation?

Answer 23

Dividing the market into distinct groups of buyers with different needs or behaviors

This allows for targeted marketing strategies.

Question 24

List the main types of market segmentation.

Answer 24

• Geographic
• Demographic
• Psychographic - Based on lifestyle, values, personality, or social class.
• Behavioral - e.g. buying habits, usage, brand loyalty, or benefits sought

Each type helps marketers understand and target specific customer groups.

Question 25

What is market differentiation?

Answer 25

Making your product stand out from competitors by offering unique value ## Footnote This can involve unique features, branding, or customer service.

Question 26

Define market positioning.

Answer 26

Creating a distinctive place for your product in consumers’ minds ## Footnote Effective positioning helps consumers choose your product over competitors.

Question 27

What are the internal factors in the microenvironment?

Answer 27

* The company * Suppliers * Marketing intermediaries * Competitors * Publics * Customers ## Footnote These factors influence the company's ability to serve its customers.

Question 28

What are the external factors in the macroenvironment?

Answer 28

* Demographic * Economic * Natural * Technological * Political and social * Cultural ## Footnote These factors affect the overall market environment and consumer behavior.

Question 29

What is a Marketing Information System (MIS)?

Answer 29

A system that helps businesses collect, analyze, and use data to make better marketing decisions ## Footnote This system is essential for effective marketing strategy formulation.

Question 30

What are the five stages in the consumer decision process?

Answer 30

* Need recognition * Information search * Evaluation of alternatives * Purchase decision * Post-purchase evaluation ## Footnote Understanding these stages helps marketers influence consumer behavior.

Question 31

What is complex buying behavior?

Answer 31

High involvement, big decisions ## Footnote Example: Buying a car, where customers compare features and prices.

Question 32

Define dissonance-reducing buying behavior.

Answer 32

Moderately high involvement ## Footnote Buyers look for positive and negative reviews to feel certain about their choice.

Question 33

What is habitual buying behavior?

Answer 33

Low involvement, little brand difference ## Footnote Consumers tend to stick to the same brand out of habit.

Question 34

What is variety-seeking buying behavior?

Answer 34

Low involvement, noticeable brand differences ## Footnote Customers switch brands for variety.

Question 35

List factors affecting consumer buying behavior.

Answer 35

* Cultural * Social factors * Family * Personal factors * Psychological ## Footnote These factors influence how consumers make purchasing decisions.

Question 36

What is selective attention?

Answer 36

Consumers focus only on information that interests them ## Footnote This leads to ignoring other stimuli.

Question 37

Define selective distortion.

Answer 37

Consumers interpret information in a way that fits their existing beliefs or attitudes ## Footnote This can lead to biased perceptions of products.

Question 38

What is selective retention?

Answer 38

Consumers remember information that supports their beliefs and forget contradictory information ## Footnote This affects how consumers recall brand messages.

Question 39

What is mass marketing?

Answer 39

Focuses on common needs of consumers with one offer for the whole market ## Footnote Challenges include designing a product that satisfies mass consumer needs.

Question 40

What is differentiated marketing?

Answer 40

Targets several market segments and designs separate offers for each ## Footnote This aims for high sales and strong positioning in each segment.

Question 41

Define concentrated marketing.

Answer 41

Targeted strategies that focus on serving a specific market segment or group ## Footnote This aims to meet unique needs better than mass marketing.

Question 42

What is micromarketing?

Answer 42

Tailoring products and marketing programs for specific individuals or locations ## Footnote This approach can be costly and challenging due to data requirements.

Question 43

What are possible value propositions?

Answer 43

* More for more * More for the same * More for less * The same for less * Less for much less ## Footnote These propositions guide brand positioning strategies.

Question 44

what are the 4 strategies for growth? and what kind of adjustments are made e.g. a new product or a new market

Answer 44

Market penetration - same product new market Market development - developing a new market for existing products Product development - new product same market Diversification - new product new market

Question 45

what are the different marketing management orientations?

Answer 45

- Production concept - The product concept - The selling concept - Marketing concept - Societal marketing concept

Question 46

what are the 4 types of consumer buying behavior?

Answer 46

Complex Buying Behavior Dissonance-Reducing Buying Behavior Habitual Buying Behavior Variety-Seeking Buying Behavior