Podcast
Questions and Answers
Which of the following is NOT a type of segmentation?
Which of the following is NOT a type of segmentation?
Behavioristic segmentation focuses on customers' attitudes and values.
Behavioristic segmentation focuses on customers' attitudes and values.
False
What is the primary focus of psychographic segmentation?
What is the primary focus of psychographic segmentation?
Lifestyle of customers
The unique selling proposition is a marketing concept that explains successful __________ campaigns.
The unique selling proposition is a marketing concept that explains successful __________ campaigns.
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Match the following segmentation types with their characteristics:
Match the following segmentation types with their characteristics:
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Which targeting strategy involves providing separate offerings to different market segments?
Which targeting strategy involves providing separate offerings to different market segments?
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Concentrated marketing targets a broad range of market segments.
Concentrated marketing targets a broad range of market segments.
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According to Philip Kotler, what does positioning mean?
According to Philip Kotler, what does positioning mean?
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Which of the following best describes the focus of marketing?
Which of the following best describes the focus of marketing?
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Marketing management processes do not consider customer relationships.
Marketing management processes do not consider customer relationships.
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Who is credited with defining marketing as a social and managerial process?
Who is credited with defining marketing as a social and managerial process?
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Marketing can be defined as the process of creating, communicating, and delivering ___.
Marketing can be defined as the process of creating, communicating, and delivering ___.
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According to the American Marketing Association, marketing management involves which of the following processes?
According to the American Marketing Association, marketing management involves which of the following processes?
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Match the marketing definitions to their authors:
Match the marketing definitions to their authors:
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What is the starting point of selling compared to marketing?
What is the starting point of selling compared to marketing?
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According to the Chartered Institute of Marketing, what is the management process responsible for?
According to the Chartered Institute of Marketing, what is the management process responsible for?
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Which of the following statements best describes marketing?
Which of the following statements best describes marketing?
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Marketing is solely an economic function.
Marketing is solely an economic function.
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What is the primary goal of relationship marketing?
What is the primary goal of relationship marketing?
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A product is anything that can be offered to satisfy a ______ or want.
A product is anything that can be offered to satisfy a ______ or want.
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Which of the following is NOT a core concept of marketing?
Which of the following is NOT a core concept of marketing?
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Demands are wants backed by purchasing power.
Demands are wants backed by purchasing power.
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Name one importance of marketing.
Name one importance of marketing.
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Match the following concepts with their definitions:
Match the following concepts with their definitions:
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Study Notes
Marketing Management
- Marketing is a social and managerial process for individuals and groups to obtain what they need and want through creating, offering, and exchanging products of value with others
- Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders
- Profitably translating customer needs into revenue is the process of marketing
- Marketing is meeting consumer needs and wants
- Marketing is identifying, anticipating, and satisfying customer requirements profitably
- Marketing management: analysis, planning, implementation, and control of programs designed to create desired exchanges with target audiences
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Selling focuses on established goods to increase sales volume and profits, often leading to a transactional emphasis. In contrast, marketing begins by understanding market dynamics through research to uncover customer needs and preferences, guiding strategic decisions. Its ultimate aim is to create customer value, stimulating demand and profitable sales. Effective marketing also fosters long-term customer relationships by addressing specific needs, cultivating loyalty and repeat business, which is crucial for maintaining a competitive edge.
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Selling: The selling process begins in the factory, where production capabilities and inventory levels are assessed. The primary focus is on promoting and distributing existing products to the market. The ultimate goal of selling is to achieve profits by increasing sales volume, meaning businesses must prioritize enhancing their sales techniques, product positioning, and negotiation strategies to drive higher transactions and boost revenue.
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Marketing: In contrast, marketing starts with a comprehensive understanding of the market landscape and consumer behavior. It emphasizes identifying and addressing customer needs and preferences through research and analysis. The success of marketing efforts is measured by the ability to create satisfaction and loyalty among customers, ultimately leading to profits. This approach often involves developing targeted campaigns, product innovations, and strategic communications to enhance customer experiences.
Nature of Marketing
- A philosophy based on consumer orientation and satisfaction
- An economic function
- A managerial function
- A social process
- A legal process by which ownership transfers
- A system of interacting business activities
Importance of Marketing
- Helps in brand building
- Helps in retaining existing customers
- Helps in attracting new customers
- Helps in competing more effectively
- Helps in entering new markets
Scope of Marketing
- Study of consumer behavior
- Production planning and development decisions
- New product development decisions
- Pricing policies decisions
- Distribution decisions
- Promotion decisions
Core Concepts of Marketing
- Needs, Wants, and Demands
- Products
- Relationships and Networks
- Markets
- Marketers and Prospects
- Value and Satisfaction
- Exchange
- Segmentation, Targeting, and Positioning
- Marketing Environment
- Marketing Channels
- Brands
Needs, Wants, and Demands
- Need: A state of deprivation of some basic satisfaction (food, shelter, water)
- Want: Desire for specific satisfiers of needs (Coke, French fries)
- Demand: Wants backed by the ability and willingness to buy them
Products
- Anything that can be offered to satisfy a need or want (physical goods, services, ideas)
Relationships and Networks
- Relationship marketing is building long-term satisfying relationships with key parties (customers, suppliers, distributors)
- Ultimate outcome is a marketing network (unique company asset)
Markets
- All potential customers sharing a particular need or want
Marketers and Prospects
- Marketer seeks prospects who might engage in value exchange
- Prospect is someone identified as potentially willing and able to exchange values
Value and Satisfaction
- Value is the consumer's estimate of a product's overall capacity to satisfy needs
Exchange
- Obtaining a desired product from someone by offering something in return
- Two parties are engaged in exchange if they are negotiating and moving towards agreement
- Transaction is a trade of values when an agreement is reached
4 Ps of Marketing
- Product
- Price
- Place
- Promotion
4 Cs of Marketing
- Consumer
- Cost
- Convenience
- Communication
Marketing Environment
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Macro-environment: factors outside a firm's control (economic, political/legal, social/cultural, technological, ecological/physical)
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Micro-environment: factors close to a firm (company, customers, competitors, suppliers, intermediaries, publics)
Marketing Process
- Situation Analysis
- Marketing Strategy
- Marketing Mix
- Implementation & Control
Situation Analysis
- SWOT Analysis (strengths, weaknesses, opportunities, threats)
- PEST Analysis (political, economic, societal, technological)
Marketing Strategy
- Segmentation
- Targeting
- Positioning
Implementation & Control
- Changes in market require adjustments to the marketing mix
- New product redesigns/entirely new products might be needed
- Continuous monitoring and adaptation
Consumer Behavior
- Consumer behavior refers to the behavior consumers display in seeking, purchasing, using, evaluating, or disposing of products or services
Participants in the Consumer Buying Process
- Initiator
- Influencer
- Decider
- Buyer
- User
Consumer Decision-Making Process
- Need recognition
- Information search
- Evaluation of Alternatives
- Purchase decision
- Post-purchase evaluation
Problem Recognition
- Types: routine, emergency, evolving situation. Routine problems are frequently encountered issues that can be resolved using established methods. Emergency situations arise suddenly and require immediate action. Evolving situations develop gradually, necessitating ongoing assessment and adaptive responses as circumstances change.
Individuals gather information from various sources, including personal connections (family and friends) for firsthand experiences and commercial sources (advertising) that shape perceptions and decisions.
Evaluation of Alternatives
- Criteria: price, features, quality, brand, country of origin, maintenance, resale value
Purchase Decision
- Purchase intentions get converted to actual purchases when situational factors are favorable
- POP (Point Of Purchase) factors in physical surroundings and social surroundings
Post-Purchase Behavior
- Satisfied/delighted: repurchases, word-of-mouth, brand loyalty
- Dissatisfied: switching brands, viral marketing
Factors Influencing Consumer Behavior
- Personal (age, gender, qualifications, income)
- Social (family, reference groups, roles, status)
- Psychological (motivation, perception, learning, attitude)
- Cultural (culture, subculture, social class)
Organizational Buying Behavior
- Decision-making process formal organizations use to establish purchase needs, and identify, evaluate, and choose amongst suppliers
Difference Between Organizational and Individual Buying
- Purpose: Organizational buying often occurs to fulfill operational needs or to improve efficiency within a company, while individual buying is typically aimed at personal consumption or satisfaction.
- Type of product: Organizations frequently purchase specialized products or bulk items necessary for business processes, whereas individuals usually buy consumer goods or personal items.
- Quantity: Businesses usually acquire large quantities to meet ongoing demands and maximize cost efficiency, while individuals tend to buy smaller, more manageable amounts based on personal needs.
- Payment: Organizations often utilize different payment methods, including credit or purchase orders, whereas individuals primarily use personal credit cards or cash.
- Decision-making process: The buying process within organizations involves a structured approach with multiple stakeholders, while individual buying is typically quicker and often driven by personal preferences.
- Role players: In organizational buying, different roles such as buyers, influencers, and decision-makers collaborate, while individual buying usually involves only the person making the purchase.
- Involvement: Organizational buying often entails higher involvement due to the potential impact on business operations, while individual purchases can vary widely in involvement depending on the product's significance.
Participants in the Business Buying Process
- Initiators: These are individuals or groups who first recognize a need within the organization and trigger the purchasing process. Their role is crucial as they identify opportunities or challenges that necessitate action.
- Influencers: This group includes those who provide input on the purchasing decision. They often have specialized knowledge or expertise and can sway the opinions of others, ensuring that the chosen product meets the organization's requirements.
- Gatekeepers: Gatekeepers control the flow of information to other participants in the buying process. They may screen potential vendors, manage communications, and determine which proposals warrant attention from decision-makers.
- Approvers: Approvers have the authority to formally authorize purchases. Their role typically includes assessing the proposed solutions and making final decisions on the purchasing agreement based on established criteria.
- Deciders: The decider is a key player who has the ultimate authority to select the supplier or product. This role often involves evaluating the options presented by others and making the final call based on their assessment.
- Buyers: Buyers are responsible for transacting with suppliers. Their duties include negotiating terms, ensuring compliance with organizational policies, and managing the procurement process effectively.
- Users: Users are the individuals or groups who will be utilizing the product or service in their day-to-day operations. Their feedback can significantly influence future buying decisions, as they can share their experiences and satisfaction levels with the purchased item.
Major Influences on Business Buyers
- Organizational factors (centralized/decentralized purchasing)
- Environmental factors (expected demand)
- Interpersonal factors (relationship with supplier/sales reps)
- Individual factors (personal experience, expectations)
Organizational Buying Process
- Problem recognition
- General need description
- Product specification
- Supplier search
- Proposal solicitation
- Supplier selection
- Order-routine specification
- Performance review
STP (Segmentation, Targeting, Positioning)
- Segmentation: Dividing broad market into subsets of consumers with common needs
- Targeting: Selecting segments to focus marketing
- Positioning: Placing product/brand in consumer mind relative to competition
Unique Selling Proposition (USP)
- A product or brand's distinct feature that separates it from similar ones
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Description
Explore the fundamental concepts of marketing management, including its processes and functions. Understand the differences between selling and marketing, and how effective marketing translates customer needs into profit. This quiz aims to deepen your comprehension of marketing principles.
