Marketing Textbook Ch 1-7 Questions PDF

## Role of Marketing ### Learning Objectives After studying this chapter, you should be able to: - explain the marketing concept. - discuss the importance of marketing as a business function. - describe the planning, organizing, implementing and controlling of marketing activities. - discuss the...

## Role of Marketing ### Learning Objectives After studying this chapter, you should be able to: - explain the marketing concept. - discuss the importance of marketing as a business function. - describe the planning, organizing, implementing and controlling of marketing activities. - discuss the objectives, strategies and resources of the marketing process. ### -Teachers' guide There is no specific section dedicated to this learning objective. Students would gain some idea about the objectives, strategies, and resources of the marketing process after studying the whole chapter. ### Concept Map | | | | | --------------------- | --------------------------------------- | -------------------------------------------- | | **Role of marketing** | **The marketing concept** (Section 1.2) | **Step 1** Review current performance and conduct a SWOT analysis | | | **Importance of marketing as a business function** (Section 1.3) | **Step 2** Set marketing objectives | | | **The marketing process** (Section 1.4) | **Step 3** Select target markets | | | | **Step 4** Formulate marketing strategies | | | **Planning marketing activities** (Section 1.4A) | **Common types of organizational structure for organizing marketing activities:** | | | **Organising marketing activities** (Section 1.4B) | 1. Functional organisation | | | **Implementing marketing activities** (Section 1.4C) | 2. Product organisation | | | **Controlling marketing activities** (Section 1.4D) | 3. Geographical organization | | | | 4. Customer management organization | | | | **Step 1** Set performance standards | | | | **Step 2** Measure actual performance | | | | **Step 3** Compare actual performance with standards | | | | **Step 4** Analyse deviations and take corrective actions | ### Glossary 1. **Marketing concept:** A company should analyse its customers' needs and take appropriate measures to satisfy those needs in order to make a profit, and deliver the satisfaction desired by customers more effectively and efficiently than its competitors. 2. **Target market:** A group of customers sharing similar needs that a company decides to serve. 3. **Marketing process:** Planning, organizing, implementing and controlling marketing activities. 4. **SWOT analysis:** An analysis of the main strengths and weaknesses of a company (internal conditions), as well as the opportunities and threats in its operating environment (external environment). 5. **Market leader:** A company with the highest market share in the relevant market. 6. **Market challenger:** A company that has a smaller market share than the market leader and wants to challenge the market leader. 7. **Market follower:** A company that is satisfied with its existing market share and follows what leading brands do. 8. **Market nicher:** A company specializing in serving one or a few small market segments. ### Summary 1. The marketing concept suggests that a company should: - analyse its customers' needs and take appropriate measures to satisfy those needs in order to make a profit, and - deliver the satisfaction desired by customers more effectively and efficiently than its competitors. 2. Marketing is an important business function as it helps a company: - identify and satisfy customers' needs - develop strategies to compete with competitors - maintain long-term relationships with customers - monitor changes in the market and respond to those changes 3. The marketing process involves four steps: - Planning marketing activities - Organising marketing activities - Implementing marketing activities - Controlling marketing activities 4. (i) Planning marketing activities concerns setting marketing objectives and deciding how to achieve these objectives. This involves the formulation of a marketing plan. (ii) A company can take the following steps to formulate a marketing plan: - Review current performance and conduct a SWOT analysis - Set marketing objectives - Select target markets - Formulate marketing strategies (iii) The marketing strategies adopted by a company depend on its competitive position in the market. | **Competitive positions** | **Marketing strategies** | | :----------------------- | :----------------------- | | Market leaders | - Expand the total market in order to increase the number of customers. | | | - Increase market share in the existing market. | | | - Protect the current market share. | | Market challengers | - Obtain market share from competitors in the following ways: | | | - Attack the weaknesses of the market leader or other competitors. | | | - Enhance the quality of existing products | | | - Lower product prices | | Market followers | - Imitate the products of leading brands.| | Market nichers | - Focus resources on customising the marketing mix to better satisfy the needs of the niches. | 5 There are four common types of organisational structure that a company can use to organise its marketing activities: - Functional organisation: A manager is assigned to look after each marketing function. - Product organisation: A product manager is assigned to look after each product group. - Geographical organisation: A regional manager is assigned to look after each regional market. - Customer management organisation: A customer relationship manager is assigned to look after each customer group. 6. (i) Implementing marketing activities involves turning marketing plans into action. (ii) Factors affecting the implementation of marketing activities include: - Soundness of the marketing plan - Availability of the required resources - Leadership skills of the marketing manager 7. (i) Controlling marketing activities involves monitoring marketing activities to ensure that they are implemented as planned. (ii) The process of controlling marketing activities involves the following steps: - Set performance standards - Measure actual performance - Compare actual performance with standards - Analyse deviations and take corrective actions ### Additional information (p. 16) If a company has a group of product managers supporting each regional manager, the organisational structure of its marketing department would be something like this: | | | | | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Regional Manager (The Americas) | Marketing Director | Regional Manager (Europe) | Regional Manager (Greater China) | | Product Manager (Clothing) | Product Manager (Shoes) | Product Manager (Watches) | Product Manager (Clothing) | | | | | Product Manager (Shoes) | | | | | Product Manager (Watches) | | | Product Manager (Clothing) | Product Manager (Shoes) | | | | Product Manager (Shoes) | Product Manager (Watches) | | | | Product Manager (Watches) | | |