Functions of Marketing: Exchange, Buying, Assembling, Selling

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10 Questions

What is the purpose of idea screening in the new product development process?

To select the most feasible ideas for further development

What is a product concept in the context of new product development?

A detailed version of the product idea with specific details

Why is concept testing important in the new product development process?

To gather feedback from a select group of consumers

In what stage of new product development are ideas evolved into product concepts?

Concept Development and Testing

Which factor might an automobile manufacturer consider during idea screening for electric vehicles?

The availability of batteries

What role do experts from various teams play in the idea screening stage?

Assist in assessing resources, technology needs, and marketability

How does generating various product concepts benefit companies in new product development?

It helps in determining which concept is most appealing to buyers

What aspect of a product should be highlighted in a detailed product concept?

'Characteristics and advantages that could be valuable for customers'

Why should companies involve a select group of consumers in concept testing?

'To validate product ideas before investing time and resources'

'After all the ideas pass through idea screening, they are evolved into ________.'

'Detailed product concepts'

Study Notes

Functions of Marketing

  • Buying involves the acquisition of goods and services by sellers or industrial users for resale.
  • Assembling means the collection of different types of goods and services by mediators for resale.
  • Selling is the final task of marketing that concerns the exchange process, generating income and increasing market share.

Functions of Physical Supply

  • Transportation creates place utility and is essential for the marketing system.
  • A good transportation system increases the value of goods, expands markets, and provides regular supply at lower prices.

Inventory Control and Financing

  • Inventory control refers to the efficient control of goods stored in warehouses.
  • Businesses need to maintain adequate inventory levels to ensure uninterrupted order fulfillment.
  • Financing involves meeting capital requirements, especially during seasonal peaks.

Risk Taking

  • Marketing involves risks such as loss, fire, flood, theft, deterioration, damage, and bad debts.
  • Some risks can be insured against, while others must be borne by businessmen.

After-Sales Service

  • After-sales service provides support to customers after purchasing a product or service.
  • It includes warranty service, training, or repair for a product, leading to higher customer satisfaction, brand loyalty, and word-of-mouth marketing.

Product Planning

  • Product planning involves developing successful products to offer customers, including market research, strategic planning, product design, development, manufacturing, and pricing.
  • It helps determine what products to offer, identifies markets for expansion, and creates product development goals.

Brand Building and Customer Loyalty

  • Product positioning is essential for brand building, creating a consistent brand message that resonates with the target audience.
  • Effective product positioning builds customer loyalty, as satisfied customers are more likely to return for repeat purchases and become advocates.

Product Development and Risk Mitigation

  • Product positioning influences product development, guiding decisions about product features, quality, and design.
  • It reduces the risk of market failure by ensuring products meet or exceed customer expectations.
  • Differentiation is critical in competitive landscapes to ensure product survival.

Product Concept Development and Testing

  • Idea screening involves evaluating potential product concepts, considering resources, technology, and marketability.
  • Concept development and testing help companies determine the attractiveness of each concept to buyers and select the most valuable one.

This quiz covers the functions of marketing, including exchange, buying, assembling, and selling. It explains the roles and activities involved in acquiring, collecting, and selling goods and services in the market.

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