Week 1 - Introduction

Question 1

What is marketing?

Answer 1

Marketing involves creating, communicating, delivering & exchanging offerings that have value for customers, partners & society

Question 2

What is customer value?

Answer 2

Customer value is the value perception of customers, based on what customers receive (benefits, quality, and reputation) vs what they give (price, effort)

Question 3

What are the 4 types of utility (benefits)

Answer 3

The four types of utility are form, place, time, and possession

Question 4

What is form utility

Answer 4

Form utility is transforming raw materials/knowledge into a usable product or service e.g. pre-cooked meals

Question 5

What is place utility

Answer 5

Place utility is making offerings available and convenient for when customers need/want them e.g. shopping malls with various stores

Question 6

What is time utility

Answer 6

Time utility ensures that a product or service is available when needed, e.g., express delivery. Additionally accounts for seasonal purchases such as ice-cream in summer.

Question 7

What is possession utility

Answer 7

Possession utility is the amount of usefulness/value from owning a product and the ability to use it as soon as possible, e.g. car dealerships and leases, allowing cars to be financially accessible for consumers to use a vehicle even though that can’t pay it outright.

Question 8

What is value?

Answer 8

Value is the total offering and is hard to measure or quantify. Value = Quality/Price
It can also change interpersonally or situationally

Question 9

What is marketing exchange

Answer 9

Marketing exchange is a successful exchange between two parties with something valuable to each, mutual benefit and fulfilled expectations

Question 10

Who is marketing for

Answer 10

Marketing is focused at meeting the needs and wants of various stakeholders

Question 11

What is the marketing evolution

Answer 11

The marketing evolution is
- Trade Orientation
- Production Orientation
- Sales Orientation
- Market Orientation
-Social Market Orientation

Question 12

Trade Orientation

Answer 12

Trading one product for another e.g. Farmers trading crops for stock/tools within the community

Question 13

Production Orientation

Answer 13

Producing a lot of the product so there is high availability, e.g. Harry Ford’s Model T production line making cars more affordable and available

Question 14

Sales Orientation

Answer 14

Selling a product through selling techniques and persuasion e.g. Door-to-door sales, heavy advertising campaigns

Question 15

Market Orientation

Answer 15

Focusing on customers’ needs and preferences, e.g. Shoes for basketball, soccer, and running (need). Shoe customisation (preferences)

Question 16

Social Market Orientation

Answer 16

Aiming to meet customer satisfaction and positive social impact, e.g. Incorporating social goals into products by using recycled materials in the product or packaging

Question 17

What is the Triple bottom line

Answer 17

Corporate social responsibility: Businesses must act in the interest of societies that sustain them

Sustainability: Business philosophy that is needed to ensure our future

Question 18

What is the marketing process?

Answer 18

Understand
Create
Communicate
Deliver

Question 19

What is a market?

Answer 19

A market is a group of customers with different needs and wants e.g Geographic (Australian vs USA Market)
Product (Smartphone vs Tablet Market)
Demographic (University vs Highschool Market)

Question 20

What is the Marketing Mix (4 P’s)

Answer 20

Product
Price
Promotion
Place

Question 21

What is a Product?

Answer 21

Anything offered in the market can be a good, service or idea

Question 22

What is Price

Answer 22

The amount of money in a business demands in exchange for its offerings

Question 23

What is Promotion

Answer 23

The marketing activities that make potential customers, partners and society aware of the business

Question 24

What is place(distribution)

Answer 24

The means of making the offering available at right place and right time

Question 25

What is the marketing environment

Answer 25

The Marketing Environment is all of the external forces that affect a marketer's ability to create, communicate, deliver and exchange offerings of value

Question 26

What is environment analysis

Answer 26

Environment Analysis is a process that involves breaking the marketing environment into smaller parts in order to gain a better understanding

Question 27

Factors under and not under control

Answer 27

Under Control - Strengths - Weakness Not Under Control - Opportunities - Threats

Question 28

What is the internal environment

Answer 28

The parts of the organisation, the people and the processes used to create, communicate, deliver and exchange offerings that have value The organisation can directly control its internal environment Strengths and Weaknesses are internal factors

Question 29

What is the external environment

Answer 29

The people and processes that are outside of the business and can’t be controlled only influenced Opportunities and Threats are external factors It can be divided into micro and macro environment

Question 30

What is Micro Environment

Answer 30

The forces within the organisation’s industry Target markets (Customers) Partners Competitors

Question 31

Target market (Customers)

Answer 31

Marketers must understand the current and future needs and wants of their customers

Question 32

Partners

Answer 32

People who work with the organisations (Logistic Firms, Financiers, Retailers, Wholesalers and Suppliers)

Question 33

Competitors

Answer 33

Marketers must ensure their offerings provide their target market with greater value than their competitor’s offerings

Question 34

What are the types of competitors

Answer 34

Monopoly Monopsony Oligopoly Monopolistic Competition Pure Competition

Question 35

Monopoly

Answer 35

One main supplier dominates the market e.g. Australia Post, sole provider of essential postal and mail services in the country

Question 36

Monopsony

Answer 36

One main buyer dominates the market, e.g. deep sea fishermen collect large fish and have only one buyer setting the price, forcing fishermen to accept or not sell at all

Question 37

Oligopoly

Answer 37

There are few main players; entry barriers high Telecommunications brands in Australia, Telstra, Optus, Vodafone

Question 38

Monopolistic Competition

Answer 38

Numerous competitors; striding to differentiate, Petrol stations, 7-Eleven, Ampol, Shell, BP are differentiating each other through price, offering unique services, loyalty programs, brand perception, and convenience

Question 39

Pure Competition

Answer 39

Numerous competitors; undifferentiated products Agricultural markets for commodities like wheat, corn, and rice are examples of pure competition. Farmers sell these products at the market price, which is determined by supply and demand, and individual producers cannot set prices

Question 40

What is the Macro Environments

Answer 40

Political Forces Economic Forces Sociocultural Forces Technological Forces Environmental Forces Legal Forces

Question 41

Political Forces

Answer 41

The influence of politics

Question 42

Economic Forces

Answer 42

The factors affecting how people spend their money (interest rate, exchange rate, economic growth rate)

Question 43

Sociocultural Forces

Answer 43

Social and cultural factors (attitudes, beliefs, behaviour, preferences customs and lifestyle)

Question 44

Technological Forces

Answer 44

Improvement in technology

Question 45

Environmental Forces

Answer 45

Natural disasters, weather and climate change

Question 46

Legal Forces

Answer 46

Laws and Regulations

Question 47

Situational Analysis

Answer 47

An ongoing process that combines organisational objectives and situational analyses to formulate plan that moves the organisation from where it currently is to where it wants to be

Question 48

Situational analysis + Organisational objectives = Marketing place

Answer 48

Where we are now Where senior management thinks we should be How we plan to get to where management want us to be

Question 49

Marketing Metrics (SWOT)

Answer 49

Strengths - Attributes of the organisation that help it achieve its objectives Weaknesses - Attributes of the organisation that hinder it in trying to achieve its objectives Opportunities - External factors that are potentially helpful to achieving objectives Threats - External factors that are potentially harmful to achieving objectives