Introduction to Functional Areas of Management Unit 4

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Questions and Answers

What is the core of marketing according to one of the shortest good definitions?

Creating products and services

Meeting needs profitably (correct)

Meeting human and social needs

Managing customer relationships

What is the key focus of marketing management?

Managing customer relationships

Delivering a higher standard of living

Getting, keeping, and growing customers (correct)

Creating products and services

What is the difference between a social and a managerial definition of marketing?

Social definition focuses on marketing ethics, while managerial definition focuses on products and services

Social definition focuses on customer relationships, while managerial definition focuses on business opportunities

Social definition focuses on delivering a higher standard of living, while managerial definition focuses on business opportunities (correct)

Social definition focuses on creating products, while managerial definition focuses on delivering products

What is an example of a company that demonstrated marketing knowledge by turning a private need into a profitable business opportunity?

eBay Signup and view all the answers

What is the primary goal of the exchange process in marketing?

Achieving desired responses from customers Signup and view all the answers

What type of industries do marketing people market?

Goods, services, events, experiences, persons, places, properties, organisations, information and ideas Signup and view all the answers

What constitutes the bulk of most countries' production and marketing efforts?

Goods Signup and view all the answers

What is the role of marketing, according to one marketer?

Delivering a higher standard of living Signup and view all the answers

What proportion of the US economy is focused on the production of services?

70-30 services-to-goods mix Signup and view all the answers

What type of marketing involves creating, staging, and marketing experiences?

Experiential marketing Signup and view all the answers

What type of marketing involves promoting time-based events?

Event marketing Signup and view all the answers

What is the goal of marketing for organizations such as universities and museums?

To build a strong and unique image Signup and view all the answers

What is the primary product offered by companies such as Road and Track and Vogue?

Information Signup and view all the answers

What is the core product of companies such as Siemens Medical Systems?

Electronic patient records Signup and view all the answers

What type of marketing involves promoting intangible rights of ownership?

Property marketing Signup and view all the answers

What is the primary goal of celebrity marketing?

To build a strong personal brand Signup and view all the answers

What is a key aspect of every market offering?

An idea Signup and view all the answers

What type of marketing involves attracting tourists, factories, and company headquarters?

Place marketing Signup and view all the answers

What is the main goal of marketers according to the marketing concept?

To create, deliver, and communicate superior customer value Signup and view all the answers

What is the primary focus of businesses with a production orientation?

Achieving high production efficiency and low costs Signup and view all the answers

What is the main assumption of the selling concept?

Customers will not buy enough products without aggressive selling Signup and view all the answers

What is the primary goal of companies selling mass consumer goods and services?

To establish a superior brand image Signup and view all the answers

What do business buyers primarily buy goods for?

To make or resell a product to others for a profit Signup and view all the answers

Which environment consists of six components, including demographic, economic, and physical environments?

Broad environment Signup and view all the answers

What is the main challenge faced by companies selling goods and services in the global marketplace?

All of the above Signup and view all the answers

What is the key characteristic of companies with a holistic marketing approach?

They take a cohesive approach that goes beyond traditional marketing Signup and view all the answers

What is the main criticism of the production concept?

It ignores customer needs Signup and view all the answers

What do non-profit organisations and government agencies have limited power to do?

Purchase goods Signup and view all the answers

Which company is an example of a production-oriented business?

Lenovo Signup and view all the answers

What is the difference between a need and a want?

A need is a basic requirement, while a want is a specific object that satisfies the need Signup and view all the answers

What is a demand?

A want for a specific product backed by an ability to pay Signup and view all the answers

What is the main goal of businesses with a product orientation?

To improve product quality and features Signup and view all the answers

What is the purpose of market segmentation?

To divide the market into distinct groups of buyers Signup and view all the answers

What is the main consequence of relying on hard selling tactics?

Higher risk of customer dissatisfaction Signup and view all the answers

What is a value proposition?

A set of benefits offered to customers to satisfy their needs Signup and view all the answers

What is the primary focus of internal marketing?

To ensure all departments in the organisation think customer-centric Signup and view all the answers

What is the primary focus of marketers with a customer-centered approach?

Finding the right products for their customers Signup and view all the answers

What determines the success of an offering?

Whether it delivers value and satisfaction to the target buyer Signup and view all the answers

What is the main difference between traditional marketing and holistic marketing?

Focus on financial gain versus social responsibility Signup and view all the answers

What is a brand?

An offering from a known source Signup and view all the answers

According to Kotler and Keller, what is the shift in marketing management regarding product availability?

From stores and salespeople to making products available online Signup and view all the answers

What is one of the four main areas of social responsibility in marketing?

Environmental context Signup and view all the answers

What is the shift in marketing management regarding brand building?

From advertising to performance and integrated communications Signup and view all the answers

What is the focus of marketing management according to Kotler and Keller?

Marketing scorecard Signup and view all the answers

What is one of the major shifts in marketing management according to Kotler and Keller?

From marketing doing the marketing to everyone doing the marketing Signup and view all the answers

What is the focus of social responsible marketing?

Ethical, environmental, legal, and social context Signup and view all the answers

What is the primary goal of relationship marketing?

To build mutually satisfying long-term relationships with key constituents Signup and view all the answers

What is the ultimate outcome of successful relationship marketing?

A marketing network Signup and view all the answers

What is a marketer responsible for according to the content?

Demand Management Signup and view all the answers

What is the main idea behind holistic marketing?

To recognise and reconcile the scope and complexities of market activities Signup and view all the answers

What are the four constituents for relationship marketing?

Customers, employees, marketing partners, and members of the financial community Signup and view all the answers

What type of demand occurs when consumers are unaware of or uninterested in a product?

Non-existent demand Signup and view all the answers

What is the difference between a marketplace and a marketspace?

Marketplace is physical, marketspace is digital Signup and view all the answers

What is the main task of a marketer in integrated marketing?

To devise marketing activities and assemble fully integrated marketing programmes Signup and view all the answers

What corresponds to the seller's 4P's in the marketing mix?

The customer's 4C's Signup and view all the answers

What is the concept of meta-markets according to Sawhney (2001)?

A collection of complementary products and services Signup and view all the answers

What are the four flows that connect sellers and buyers in a market?

Goods, Services, Communication, Money Signup and view all the answers

What is the marketing mix?

The combination of controllable marketing variables Signup and view all the answers

What is the purpose of the marketing mix?

To influence the trade channels and the final consumers Signup and view all the answers

What is the term used to describe a collection of buyers and sellers who transact over a particular product or product class?

Market Signup and view all the answers

What is an example of a marketing activity used to communicate and deliver value?

Direct mail Signup and view all the answers

What are the key customer markets mentioned in the content?

Consumer, Business, Global, Non-profit Signup and view all the answers

What is the term used to describe a situation where consumers dislike a product and may even pay a price to avoid it?

Negative demand Signup and view all the answers

What is the importance of holistic marketing?

It recognises the breadth and interdependencies of market activities Signup and view all the answers

What is the term used to describe a situation where consumers are adequately buying all products put into the marketplace?

Full demand Signup and view all the answers

What type of demand occurs when consumers may be attracted to products that have undesirable social consequences?

Unwholesome demand Signup and view all the answers

What does value primarily reflect in marketing?

The combination of quality, service, and price Signup and view all the answers

What is the primary goal of marketing?

To identify, create, communicate, deliver, and monitor customer value Signup and view all the answers

What are the three kinds of marketing channels used to reach a target market?

Communication, distribution, and service Signup and view all the answers

What is the supply chain in marketing?

The sequence of companies involved in producing and delivering a product Signup and view all the answers

What is competition in marketing?

All the actual and potential rival offerings and substitutes a buyer might consider Signup and view all the answers

What is the marketing environment composed of?

The task environment and the broad environment Signup and view all the answers

What is customer satisfaction?

A person's judgment of a product's performance in relation to their expectations Signup and view all the answers

What is the main difference between communication channels and dialogue channels?

Communication channels are monologue, while dialogue channels are two-way Signup and view all the answers

What is the goal of a company acquiring competitors or expanding upstream or downstream in the supply chain?

To capture a higher percentage of supply chain value Signup and view all the answers

What is the risk faced by a company that focuses too narrowly on its competition?

It may be hurt by substitute products Signup and view all the answers

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.