Questions and Answers
What is the core of marketing according to one of the shortest good definitions?
What is the key focus of marketing management?
What is the difference between a social and a managerial definition of marketing?
What is an example of a company that demonstrated marketing knowledge by turning a private need into a profitable business opportunity?
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What is the primary goal of the exchange process in marketing?
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What type of industries do marketing people market?
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What constitutes the bulk of most countries' production and marketing efforts?
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What is the role of marketing, according to one marketer?
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What proportion of the US economy is focused on the production of services?
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What type of marketing involves creating, staging, and marketing experiences?
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What type of marketing involves promoting time-based events?
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What is the goal of marketing for organizations such as universities and museums?
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What is the primary product offered by companies such as Road and Track and Vogue?
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What is the core product of companies such as Siemens Medical Systems?
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What type of marketing involves promoting intangible rights of ownership?
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What is the primary goal of celebrity marketing?
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What is a key aspect of every market offering?
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What type of marketing involves attracting tourists, factories, and company headquarters?
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What is the main goal of marketers according to the marketing concept?
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What is the primary focus of businesses with a production orientation?
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What is the main assumption of the selling concept?
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What is the primary goal of companies selling mass consumer goods and services?
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What do business buyers primarily buy goods for?
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Which environment consists of six components, including demographic, economic, and physical environments?
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What is the main challenge faced by companies selling goods and services in the global marketplace?
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What is the key characteristic of companies with a holistic marketing approach?
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What is the main criticism of the production concept?
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What do non-profit organisations and government agencies have limited power to do?
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Which company is an example of a production-oriented business?
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What is the difference between a need and a want?
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What is a demand?
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What is the main goal of businesses with a product orientation?
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What is the purpose of market segmentation?
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What is the main consequence of relying on hard selling tactics?
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What is a value proposition?
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What is the primary focus of internal marketing?
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What is the primary focus of marketers with a customer-centered approach?
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What determines the success of an offering?
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What is the main difference between traditional marketing and holistic marketing?
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What is a brand?
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According to Kotler and Keller, what is the shift in marketing management regarding product availability?
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What is one of the four main areas of social responsibility in marketing?
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What is the shift in marketing management regarding brand building?
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What is the focus of marketing management according to Kotler and Keller?
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What is one of the major shifts in marketing management according to Kotler and Keller?
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What is the focus of social responsible marketing?
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What is the primary goal of relationship marketing?
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What is the ultimate outcome of successful relationship marketing?
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What is a marketer responsible for according to the content?
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What is the main idea behind holistic marketing?
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What are the four constituents for relationship marketing?
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What type of demand occurs when consumers are unaware of or uninterested in a product?
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What is the difference between a marketplace and a marketspace?
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What is the main task of a marketer in integrated marketing?
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What corresponds to the seller's 4P's in the marketing mix?
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What is the concept of meta-markets according to Sawhney (2001)?
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What are the four flows that connect sellers and buyers in a market?
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What is the marketing mix?
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What is the purpose of the marketing mix?
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What is the term used to describe a collection of buyers and sellers who transact over a particular product or product class?
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What is an example of a marketing activity used to communicate and deliver value?
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What are the key customer markets mentioned in the content?
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What is the term used to describe a situation where consumers dislike a product and may even pay a price to avoid it?
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What is the importance of holistic marketing?
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What is the term used to describe a situation where consumers are adequately buying all products put into the marketplace?
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What type of demand occurs when consumers may be attracted to products that have undesirable social consequences?
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What does value primarily reflect in marketing?
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What is the primary goal of marketing?
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What are the three kinds of marketing channels used to reach a target market?
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What is the supply chain in marketing?
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What is competition in marketing?
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What is the marketing environment composed of?
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What is customer satisfaction?
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What is the main difference between communication channels and dialogue channels?
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What is the goal of a company acquiring competitors or expanding upstream or downstream in the supply chain?
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What is the risk faced by a company that focuses too narrowly on its competition?
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Study Notes
Introduction to Marketing
- Marketing is about identifying and meeting human and social needs profitably.
- It involves creating, communicating, and delivering value to customers and managing customer relationships in ways that benefit the organisation and its stakeholders.
- Marketing can be defined as both an organisational function and a set of processes.
What is Marketed?
- 10 types of industries are marketed:
- Goods (physical products)
- Services (intangible products)
- Events
- Experiences
- Persons (celebrity marketing)
- Places (cities, states, regions, nations)
- Properties (intangible rights of ownership)
- Organisations
- Information
- Ideas
Who Markets?
- A marketer is someone who seeks a response from another party, called the prospect.
- Marketers are responsible for demand management, influencing the level, timing, and composition of demand to meet the organisation's objectives.
Demand States
- 8 demand states exist:
- Non-existent demand (consumers unaware or uninterested)
- Negative demand (consumers dislike the product)
- Latent demand (consumers have an unmet need)
- Declining demand (consumers buy less frequently or not at all)
- Irregular demand (consumer purchases vary)
- Full demand (consumers adequately buy all products)
- Overfull demand (too many consumers want the product)
- Unwholesome demand (consumers attracted to products with undesirable social consequences)
Marketplaces, Marketspaces, and Meta Markets
- Marketplace: physical place where buyers and sellers gather
- Marketspace: digital platform for buyers and sellers
- Meta-markets: cluster of complementary products and services closely related in consumers' minds but spread across diverse industries
Types of Markets
- 5 basic markets and their connecting flows:
- Resource markets (raw materials, labour, money)
- Manufacturer markets
- Intermediary markets
- Government markets
- Consumer markets
- Each nation's economy and the global economy consist of complex interacting sets of marketers linked through exchange processes.
Core Marketing Concepts
- Needs, Wants, and Demands:
- Needs: basic human requirements
- Wants: specific objects that might satisfy a need
- Demands: wants for specific products backed by an ability to pay
- Target Markets, Positioning, and Segmentation:
- Dividing the market into segments based on demographic, psychographic, and behavioural differences
- Offerings and Brands:
- Value proposition: set of benefits offered to customers
- Offering: combination of products, services, information, and experiences
- Brand: offering from a known source with a unique image
- Value and Satisfaction:
- Value: perceived tangible and intangible benefits and costs to customers
- Satisfaction: judgement of a product's performance in relation to expectations
- Marketing Channels:
- Communication channels: deliver and receive messages from target buyers
- Distribution channels: display, sell or deliver the physical product or service
- Service channels: facilitate transactions with potential buyers
- Supply Chain:
- Series of companies and activities involved in producing and delivering a product to the end customer
- Competition:
- Actual and potential rival offerings and substitutes a buyer might consider
- Marketing Environment:
- Task environment: company, suppliers, distributors, dealers, and target customers
- Broad environment: demographic, economic, physical, technological, political-legal, and social-cultural environments
Company Orientation towards the Marketplace
- The Production Concept:
- Focus on achieving high production efficiency, low costs, and mass distribution
- The Product Concept:
- Focus on making superior products and improving them continually
- The Selling Concept:
- Focus on undertaking an aggressive selling and promotion effort to convince customers to buy### The Selling Concept
- The selling concept aims to sell more products to more people, more often, and for more money to make more profit.
- This concept is often used aggressively with unsought goods, such as insurance, encyclopedias, and cemetery blocks.
- Firms with overcapacity also practice the selling concept, focusing on selling what they make rather than making what the market wants.
- However, this approach carries high risk, assuming customers will like the product and ignoring the potential for negative word-of-mouth.
The Marketing Concept
- The marketing concept emerged in the mid-1950s, shifting from a product-centered "make and sell" philosophy to a customer-centered "sense and respond" approach.
- The focus is on finding the right products for customers, rather than finding the right customers for products.
- Dell Computers exemplifies this concept by providing product platforms that customers can customize to their desires.
The Holistic Marketing Concept
- The holistic marketing concept recognizes the need for a more complete and cohesive approach that goes beyond traditional marketing applications.
- It involves developing, designing, and implementing marketing programs, processes, and activities that recognize their breadth and interdependencies.
- Holistic marketing acknowledges that "everything matters" and requires a broad, integrated perspective.
Relationship Marketing
- Relationship marketing aims to develop deep, enduring relationships with people and organizations that affect the success of a firm's marketing activities.
- Four key constituents for relationship marketing are customers, employees, marketing partners, and members of the financial community.
- Marketers must respect the need to create prosperity among all these constituencies and develop policies to balance returns to all key stakeholders.
- The ultimate outcome of relationship marketing is a unique company asset called a marketing network.
Integrated Marketing
- Integrated marketing involves devising marketing activities and assembling fully integrated marketing programs to create, communicate, and deliver value for consumers.
- The marketing mix variables include product, price, place, and promotion (4Ps) or, from the customer's perspective, product, price, convenience, and communication (4Cs).
- Marketing mix decisions must be made for both trade channels and final consumers.
- All marketing activities are coordinated to maximize their joint efforts.
Internal Marketing and Socially Responsible Marketing
- Internal marketing ensures that everyone in the organization embraces appropriate marketing principles.
- It involves two levels: marketing functions working together and other departments embracing marketing and "thinking customer."
- Socially responsible marketing incorporates understanding broader concerns, including ethical, environmental, legal, and social contexts.
Shifts in Marketing Management
- Fourteen major shifts in marketing management include:
- From marketing doing the marketing to everyone doing the marketing
- From organizing by product units to organizing by customer segments
- From making everything to buying more goods and services from outside
- And ten more shifts, including a focus on customer lifetime value, building brands through performance, and prioritizing stakeholders over shareholders.
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Description
Learn about the basic concept of marketing, which is identifying and meeting human and social needs profitably. Examples of companies like eBay and IKEA are provided to illustrate marketing knowledge.