Podcast
Questions and Answers
Both Marketing and Sales strive to generate revenue and take fundamentally different approaches, with Marketing focusing on the customer's ______.
Both Marketing and Sales strive to generate revenue and take fundamentally different approaches, with Marketing focusing on the customer's ______.
needs
The most common and best-known Portfolio evaluation tool is the ______ Matrix.
The most common and best-known Portfolio evaluation tool is the ______ Matrix.
BCG
Stars often need heavy investment to sustain their growth, and eventually, their growth will slow down, becoming ______ if they maintain their market share.
Stars often need heavy investment to sustain their growth, and eventually, their growth will slow down, becoming ______ if they maintain their market share.
cash cows
Question marks are products or services that operate in higher growth markets but have ______ market share.
Question marks are products or services that operate in higher growth markets but have ______ market share.
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In Sales, there is a high pressure to sell goods already ______.
In Sales, there is a high pressure to sell goods already ______.
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In marketing terminology, products or services with low relative share in unattractive, low-growth markets are referred to as ______.
In marketing terminology, products or services with low relative share in unattractive, low-growth markets are referred to as ______.
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Social factors can shape consumer behavior through influences from family members, reference groups, and an individual's roles and ______.
Social factors can shape consumer behavior through influences from family members, reference groups, and an individual's roles and ______.
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A channel of ______ is the network of businesses and intermediaries that a product or service passes through before reaching the final consumer.
A channel of ______ is the network of businesses and intermediaries that a product or service passes through before reaching the final consumer.
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In ingredient co-branding, multiple brands provide a distinctive ______ or component to the carrier brand.
In ingredient co-branding, multiple brands provide a distinctive ______ or component to the carrier brand.
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Catalogue marketing involves selling through catalogues that are ______ to a selected list of customers.
Catalogue marketing involves selling through catalogues that are ______ to a selected list of customers.
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Study Notes
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.
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Description
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.
