Marketing vs. Sales Study Guide

Assignment 2: Marking Guide - Study Notes

• Due Date: 2025
• Total Marks: 100
• Setter: MS. ROSINA PAULUS
• Moderator: (Not specified)

Question 1.1: Marketing vs. Sales

• Marketing: Focuses on future needs, long-term relationships, fulfilling customer wants/needs with available products/services. Prioritizes customer needs and plans product development to match market needs.
• Sales: Aligns customer demands with current product offerings; aims for sales volume; external market orientation; prioritizes seller needs; high pressure to sell existing items; fragmented approach for immediate gains.

Question 1.3: BCG Matrix Significance

• Stars: High-growth products/services in strong markets, requiring significant investment. Eventually transition to cash cows if market share remains strong. (Samsung example)
• Cash Cows: Low-growth/mature products with high market share, requiring minimal investment but managed to maintain profitability and cash flow for the company. (e.g., Coca-Cola)
• Question Marks: Low market share in high-growth markets; potential exists, but substantial investment may be needed to gain market share. Require careful management decisions concerning investment.
• Dogs: Low market share/presence in low-growth markets. May break even, but not worthy of investment.

Question 2.1: Social Factors in Consumer Behavior

• Family: Family members, especially parents, influence buying decisions. (e.g., mothers as traditional purchasing agents in Lesotho)
• Reference Groups: Formal or informal groups (clubs, churches, etc.) influence consumer behavior through emulation.
• Roles & Status: Individual roles within groups (work, family, hobbies) impact buying decisions.

Question 2.2: Co-branding Definition

• Co-branding: Two or more established brands from different companies used on the same product.

Question 2.3: Types of Co-branding

• Ingredient: Brands provide distinctive ingredients to a carrier product (e.g., Intel chips in computers).
• Product-service: Combining a product with a service (e.g., Best Western rewards program for Harley Davidson owners).
• Alliance: Brands targeting the same audience (e.g., airlines partnering for improved customer benefits).
• Supplier-retailer: A supplier and retailer collaborating (e.g., Starbucks and AT&T Wi-Fi).
• Promotional: Brand + person/entity collaboration

Question 3.1a: Channels of Distribution

• Direct Sales: Manufacturer directly to consumer (online, stores).
• Wholesalers: Buy/sell in bulk to/from retailers.
• Retailers: Sell to consumers (e.g., groceries).
• Distributors: Intermediaries between manufacturer and retailers, specializing in product lines/regions.
• Online Marketplaces: Connect buyers/sellers online (e.g., Amazon, eBay)

Question 3.1b: Distribution System Participants

• Manufacturers: Produce goods.
• Wholesalers: Buy, store, and distribute to retailers .
• Retailers: Sell directly to consumers.
• Distributors: Intermediaries, specializing in regions/products
• Transportation: Move goods through supply chain
• Warehousing: Storage during distribution process

Question 3.2: Direct Marketing Strategies

• Catalogue Marketing: Printed, mailed catalogues for direct ordering.
• Direct-Response TV: Television ads/infomercials; home shopping channels.
• Kiosk Marketing: Information/ordering machines in public places (stores, airports).
• Online Marketing/eCommerce: Interactive online systems for buyer-seller connection. Online Services & Internet.

Question 4a: Marketing Environments

• Micro-environment: Internal factors closely linked to the organization influencing activities (company, suppliers, intermediaries, competitors, and customers).
• Macro-environment: Broad factors beyond the company's control affecting all elements including microenvironment (demographic, economic, natural, technological, political/legal, cultural).

Question 4b: Micro-environment Analysis

• Company: Internal groups (management, R&D, finance) affecting customer value.
• Suppliers: Provide raw materials; manage supply availability, affecting costs, and customer satisfaction.
• Marketing Intermediaries: Help sell/distribute products (resellers, distributors, agencies, financial intermediaries); crucial for building brand value and relationships.
• Competitors: Shaping strategic advantages for customers.
• Customers: Consumer markets, business markets, reseller markets, government markets, international markets require specialized marketing strategies.
• Publics: Groups with an interest in or impact on the organization (financial, media, government, citizen-action, internal, local, general).

Question 4c: Macro-environmental Factors (Examples)

• Demographic: Factors describing population (size, location, age, income); valuable for market segmentation/forecasting.
• Economic: Factors affecting consumer purchasing power/spending (income, inflation, GDP). Important consideration for product pricing and customer acquisition. Changes in income and in distribution of wealth. Value marketing.
• Natural: Natural resources (raw materials), pollution, government intervention; businesses should manage environmental impact.
• Technological: Dynamic force influencing communications, retail channels; both opportunities and threats.
• Political/Legal: Laws and government agencies affecting business activities. Legislation protecting consumers and the community.
• Cultural: Institutions affecting values, perceptions, and behaviours; both persistent (inherited) and secondary (changeable) beliefs.

Explore the fundamental differences between marketing and sales, as well as the significance of the BCG Matrix in strategic planning. This guide offers insights into customer-oriented approaches and product management strategies that are essential for success. Perfect for students preparing for exams in business studies.