MN151 Business Models - Marketing Chapter 1 Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a primary characteristic of market-oriented businesses?

Cherish the status quo

Segment by product

Customer concern throughout the business (correct)

Assume price and product performance are key to most sales

Which of the following actions is typical for internally oriented businesses?

Invest in market research to track market changes

Welcome change

Try to understand competition

Rely on anecdotes and received wisdom (correct)

How do market-oriented businesses typically view marketing expenditure?

As an optional expense

As a necessary cost of operations

As an investment (correct)

As a luxury

Which of the following is a strategy used by market-oriented businesses?

Segment by customer differences Signup and view all the answers

What typical approach do internally oriented businesses take towards innovation?

Innovation is punished Signup and view all the answers

What must be true for an exchange to occur between two parties?

Both parties must be capable of communication and delivery. Signup and view all the answers

Which of the following is NOT considered a type of customer value?

Promotional Value Signup and view all the answers

Customer satisfaction is primarily determined by what factor?

The product’s perceived performance against buyer expectations. Signup and view all the answers

What is the formula for calculating customer value?

Customer Value = Perceived Benefits – Perceived Sacrifices Signup and view all the answers

Which statement best describes the evolution of business orientation?

It has moved from sales emphasis to long-run profits through customer satisfaction. Signup and view all the answers

What is a primary component of marketing as described in the content?

Value exchange Signup and view all the answers

Which definition emphasizes the management aspect of marketing?

Marketing is a social and managerial process... Signup and view all the answers

What does the marketing concept primarily focus on?

Identifying customer needs Signup and view all the answers

Which of the following is NOT mentioned as something that can be marketed?

Financial services Signup and view all the answers

What is the primary intention behind the process of marketing?

To create and exchange value Signup and view all the answers

Which statement best describes the relationship between marketing and commerce?

Marketing has been practiced as long as commerce itself. Signup and view all the answers

What is the primary focus of marketing effectiveness?

Identifying customer needs Signup and view all the answers

Which aspect of marketing orientation is crucial for success?

Focusing on customer satisfaction Signup and view all the answers

Which of the following best describes efficiency in the marketing context?

Producing goods economically Signup and view all the answers

According to the content, what role do ideas play in marketing?

They are one of the many elements that can be marketed. Signup and view all the answers

What is a crucial aspect of the Marketing Management Process?

Identifying, anticipating, and satisfying customer requirements Signup and view all the answers

Which component is NOT part of the Marketing Mix?

People Signup and view all the answers

In which area does the Marketing Mix Strategy emphasize during product development?

Features and benefits of the product Signup and view all the answers

Which of the following is a primary focus when constructing a marketing program?

Delivering superior customer value Signup and view all the answers

What does promoting 'customer equity' imply in marketing management?

Enhancing customer satisfaction leading to profitability Signup and view all the answers

Critics argue that the 4Ps framework oversimplifies which aspect of marketing?

The complexity of market needs Signup and view all the answers

Study Notes

Course Details

Course Title: MN151 - Business Models and Marketing, MN159 - Global Business and Marketing
Lecturer: Dr Nada Elnahla
Year: Fall 2024
Week: 5, Lecture 2

Week 5 Lecture 2 Topics

First week of Marketing Content Begins!
This week, chapter (1) is covered.
Group Project Assignment allocations
Lecturer announcement to be reviewed

No Class on Friday 25th October

In-class Quiz on the MN151 Business Models part of the module at 11:00 am

Chapter 1: The Nature of Marketing

Textbook: Foundations of Marketing by John Fahy and David Jobber (Seventh Edition)

Introduction to Marketing

Understand and define marketing
Concept of customer value and satisfaction
Understand marketing orientation
Understand the marketing concept
Marketing Mix elements

Marketing as a Process of Value Exchange

Marketing is a process of value exchange
Marketing is the delivery of value to customers at a profit (Fahy & Jobber, 2022)

Marketing Definitions

Management process that identifies, anticipates, and supplies customer requirements profitably (CIM, cited in Dibb et al, 1997)
Social and managerial process through which individuals/organisations obtain their needs and wants through creating and exchanging value (Armstrong & Kotler, 2005)
Process of planning/executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchange/satisfy individual and organizational objectives (AMA, 2010)

What is Marketed?

Goods
Services
Events
Experiences
Person's expertise
Places
Properties
Organizations
Information
Ideas

Value Exchange for Marketing

At least two parties are needed for value exchange
Each party has something of value to the other
Parties involved can communicate and deliver the relevant item
Each party can reject the offer
Parties believe that the deal is fair and suitable

Customer Value

Price Value: basic products at low prices, forego extra features
Emotional Value: differentiation beyond attributes, branding & brand image
Performance Value: innovative features, perceived quality
Relational Value: quality of service, high levels of trust
Customer Value = Perceived Benefits – Perceived Sacrifices
Product/service Benefits, Monetary/time Costs, Relational/image Benefits, Energy/psychological Costs.
Positive customer value occurs when perceived benefits outweigh perceived sacrifices

Customer Satisfaction

The value offered must exceed that of the competition.
Customer satisfaction depends on perceived product performance compared to buyer expectations.
The purchase must meet or exceed buyer expectations

Organizational Orientation

Different business orientations: production, sales, and customer.
The evolution of business orientation from production to customer orientation includes various stages.

Market-Oriented vs Internally-Oriented Businesses

Market-oriented businesses prioritize customer needs throughout their operations, are responsive to change, value marketing research, and innovation.
Internally-oriented businesses value convenience, prioritize existing products, and often do not seek to fully understand the customer.

Marketing Orientation: Efficiency and Effectiveness

Efficiency means doing things right (economically producing goods), effectiveness means doing the right things ( focusing on market needs).
An ineffective but efficient business will survive, but a highly effective but inefficient one will fail quickly.

The Marketing Mix (4Ps)

Product: Development, Management, Features/benefits, Branding, Packaging, After-sales service.
Price: Costs, Profitability, Value for money, Competitiveness, Incentives.
Place: Access to market, Channel structure, Channel management, Retailer image, Logistics
Promotion: Communication mix, Advertising, Sales promotion, Sales, Public relations, Direct marketing.

The 7Ps of Marketing

The 7Ps of marketing (product, price, place, promotion, people, physical environment, and process) build upon the basic 4 Ps, adding further detail including the people, the physical environment, and the process.

Critiques of Marketing Approaches

4Ps approach oversimplifies complex marketing realities and may not be sufficient in modern markets.
It frequently is good for mass markets but inadequate, and potentially misleading in fragmented ones.
Customer relationships and value creation are critical elements in the modern market.

Products vs Services

Products are tangible goods, services are intangible.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz assesses your understanding of Chapter 1 from the MN151 Business Models course, focusing on the nature of marketing and customer value. Key concepts include marketing orientation, the marketing mix, and value exchange processes. Prepare to demonstrate your knowledge of these essential marketing principles.