Marketing Basics

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Questions and Answers

What is marketing about?

Identifying business opportunities and creating products.

Meeting human and social needs profitably. (correct)

Creating products and services for business opportunities.

Identifying and creating human and social needs.

What happens when human wants are backed by purchasing power and willingness to buy?

They become demands. (correct)

They become needs.

They become exchanges.

They become satisfactions.

What is an example of a company that demonstrated marketing savvy?

Omnikick

IKEA (correct)

eBay (correct)

Intandemcommunications

What are unlimited and specific?

Wants Signup and view all the answers

What is not created by marketing people?

Needs Signup and view all the answers

What is an example of a marketing offer?

Not mentioned in the content Signup and view all the answers

What is the result of identifying and meeting human and social needs?

A profitable business opportunity Signup and view all the answers

What is the focus of the chapter?

Marketing Signup and view all the answers

What is exchange in the context of marketing?

The act of obtaining an object by offering something in return Signup and view all the answers

What refers to the different groups of consumers for a product or service?

Market Signup and view all the answers

What is the primary goal of marketing function?

To bring about profitable exchange relationships Signup and view all the answers

What is marketing management?

The art and science of choosing target markets and building profitable relationships Signup and view all the answers

What is included in marketing activities?

All of the above plus communication, sales promotion, searching for customers Signup and view all the answers

What is the primary focus of the production concept?

Product quality and features Signup and view all the answers

What is the ultimate goal of marketing management?

To get, keep, and grow customers Signup and view all the answers

What does managing demand involve?

Managing customer relationships Signup and view all the answers

What is the primary purpose of the marketing mix?

To produce the desired response in the target market Signup and view all the answers

What is included in the 'Product' variable of the marketing mix?

Goods and services offered by a company to satisfy needs and wants Signup and view all the answers

What is the 'Price' variable of the marketing mix?

The money value that the consumers have to pay to buy the product or service Signup and view all the answers

What is the primary purpose of the 'Promotion' variable of the marketing mix?

To communicate product benefits and attributes to target consumers to persuade them to purchase Signup and view all the answers

What is included in the 'Place' variable of the marketing mix?

Physical distribution activities, logistics, warehousing, transport, etc. Signup and view all the answers

What role does the marketing mix play in marketing strategy?

It plays an important role Signup and view all the answers

What does the company do with the marketing mix variables according to the environmental variables?

It chooses, alters and controls its marketing mix variables Signup and view all the answers

What is the marketing environment composed of?

Internal and external forces Signup and view all the answers

The marketing environment consists of how many components?

Two Signup and view all the answers

What are the forces that shape opportunities and pose threats to the company?

Macro Environment Signup and view all the answers

Which of the following is NOT a component of the micro-environment?

The Government Signup and view all the answers

What is the main difference between micro-environment and macro-environment?

Micro-environment is controllable, macro-environment is uncontrollable Signup and view all the answers

Which of the following is a component of the micro-environment?

The Public Signup and view all the answers

What is the primary role of the micro-environment?

To affect the company's ability to serve its customers Signup and view all the answers

What is the primary task of marketing?

To create value and deliver it Signup and view all the answers

What is a customer need?

A basic necessity for survival Signup and view all the answers

What is the largest share of marketing offers?

Physical products Signup and view all the answers

What is customer value?

The difference between the worth and cost of a product Signup and view all the answers

What happens when customer expectations are fulfilled?

Customer satisfaction Signup and view all the answers

What is a marketing offer?

A combination of products, services, and information Signup and view all the answers

What is the result of customer satisfaction?

Customers buy the product again and recommend it to others Signup and view all the answers

What is the result of customer dissatisfaction?

Customers switch to a competitor's product and discourage others from buying Signup and view all the answers

Study Notes

Marketing

Marketing is about identifying and meeting human and social needs.
A good definition of marketing is "meeting needs profitably."
Two examples of demonstrating marketing savvy are:
- eBay creating an online auction clearinghouse to meet people's needs of finding items they desired most.
- IKEA creating knockdown furniture to meet people's needs of good furnishings at substantially lower prices.

Core Marketing Concepts

Needs, Wants, and Demand

Needs: basic requirements of any individual, not created by marketing people.
Wants: described in terms of products that will satisfy needs, while human needs are limited and general, wants are unlimited and specific.
Demand: when human wants are backed by purchasing power and willingness to buy, they become demands.

Marketing Offers

A combination of products, services, information, or experiences offered to a market to satisfy a need or want.
The largest share of marketing offers consists of physical (tangible) products, which include non-durable goods (fast-moving consumer goods or FMCG) and consumer durables.

Customer Value and Satisfaction

Customer Value: the difference between the worth the customer gains from buying and using a product and the cost of buying the product.
The main task of marketing becomes value-creation and value delivery.
Customer Satisfaction: when customer expectations are fulfilled, resulting in customers buying the product again and telling others about their good buying experiences.

Exchange, Transactions, and Relationships

Exchange: the act of obtaining an object one needs from another by offering some other thing in return.
Market: refers to the different groups of consumers for a product or service, and is the set of actual and potential buyers of a product.

Marketing Function

Marketing as a function: a process by which individuals or groups obtain what they need and want by creating and exchanging products and values with others.
Managing markets to bring about profitable exchange relationships by creating value and satisfying needs and wants.
Marketing activities:
- Searching for customers
- Product development
- Market research
- Communication
- Sales promotion
- Distribution channel management
- Service

Marketing Management

Marketing management: the art and science of choosing target markets and building profitable relationships with them.
It involves getting, keeping, and growing customers through creating, delivering, and communicating superior value.
Marketing management involves managing demand, which in turn, involves managing customer relationships.

Marketing Management Orientations or Concepts

5 concepts:
1. Production Concept
2. Product Concept
3. Selling Concept
4. Marketing Concept
5. Marketing Mix (Four P's of Marketing)

Marketing Mix (Four P's of Marketing)

4 variables:
1. Product: goods and services offered by a company to the target market to satisfy needs and wants.
2. Price: the money value that consumers have to pay to buy the product or service.
3. Promotion: activities of personal selling, advertising, and communicating product benefits and attributes to target consumers to persuade them to purchase.
4. Place: physical distribution activities through which the product moves from the factory to the customer.

Role of Marketing Mix in Marketing Strategy

Marketing mix has an important role to play in marketing planning and marketing strategy.
The organization can choose, alter, and control its marketing mix variables according to environmental variables.
The marketing mix is the most visible part of the marketing strategy of an organization.

Scanning the Marketing Environment

Marketing activities do not take place in a vacuum, isolated from all external forces.
A company's marketing environment consists of internal and external forces that affect management's ability to build and maintain successful relationships with target customers.

Micro-environment

Consists of the following controllable actors close to the company that affect its ability to serve its customers:
1. The Company
2. The Suppliers
3. The Marketing intermediaries
4. The Customer markets
5. The Competitors
6. The Public

Macro Environment

Forces that shape opportunities and pose threats to the company.

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Description

Learn about the core concepts of marketing, including identifying and meeting human and social needs, and understanding the difference between needs, wants, and demand.