Marketing

• What does marketing refer to?

  A process of identifying customer needs
• What is the primary aim of marketing?

  To link the business to the consumer
• How does market research contribute to marketing?

  It identifies customer wants and pricing
• What are marketing objectives?

  Goals related to marketing methods and issues
• What should good marketing objectives be?

  Realistic, clear, measurable, and time-framed
• How do marketing objectives relate to corporate objectives?

  They support and align with corporate objectives
• Why are marketing objectives important?

  They provide direction and assist in decision making
• What is demand in marketing terms?

  Units consumers are willing to buy at a price
• What does the law of demand state?

  More units are bought when price decreases
• What does ceteris paribus mean?

  Other things remaining constant
• What is a demand curve?

  A graph showing quantity demanded versus price
• What happens to demand when price decreases?

  Consumers increase their purchase of the product
• What are the income and substitution effects?

  Income effect increases real income; substitution effect shifts preferences
• What does a shift in the demand curve indicate?

  A change in demand due to factors other than price
• What does an outward shift in the demand curve signify?

  An increase in demand at the same price level
• What does an inward shift in the demand curve indicate?

  Less is demanded at the same price level
• What factors influence demand?

  • Price of the product
  • Price of other products (substitutes and complements)
  • Advertising and promotion
  • Income level
  • Population size and composition
  • Weather conditions
  • Changes in fashion and taste
  • Changes in income tax
• What is supply in marketing terms?

  Goods firms are willing to sell at a price
• What does the law of supply state?

  Supply increases when the price of a commodity rises
• What does a supply curve represent?

  The relationship between quantity supplied and price
• What causes shifts in the supply curve?

  Factors other than price affecting supply
• What does an outward shift in the supply curve indicate?

  An increase in supply at the same price level
• What does an inward shift in the supply curve signify?

  Less is being supplied at the same price level
• What factors affect supply?

  • Price of the commodity
  • Prices of other commodities
  • Change in cost of production
  • Technological advancement
  • Climate and weather conditions
  • Number of firms in the market
  • Government policy (taxation and subsidies)
• What is equilibrium in marketing terms?


  A balance where demand equals supply
• What is equilibrium price?

  The price where quantity demanded equals quantity supplied
• What is disequilibrium?

  A situation where demand and supply are not equal
• What is a shortage in marketing terms?

  When demand exceeds available supply
• What is a surplus?

  When supply exceeds demand
• What causes shifts and changes in equilibrium?

  Changes in demand or supply conditions
• What are the types of markets?

  • Consumer Market: Final users of products
  • Industrial Market: Businesses buying inputs for processes
• What is product orientation?

  Focusing on products without customer needs
• What are the benefits of product orientation?

  Saves market research costs and utilizes strengths
• What are the limitations of product orientation?

  Higher risk and potential resource wastage
• What is customer orientation?

  Researching consumer wants and designing products
• What are the advantages of customer orientation?

  • Confident product launches due to research
  • Products likely to survive longer and yield higher profits
  • Quick response to market changes
  • Anticipation of changes from continuous research
• What are recent trends in marketing?

  • Asset-Led Marketing: Strategy based on existing strengths
  • Societal/Green Marketing: Focus on societal impact and stakeholder satisfaction
• What are the features of the market?

  • Location: Understanding customer demographics
  • Local Markets: Selling to nearby customers
  • National Markets: Selling across the country
  • Regional Markets: Selling across geographical regions
• What factors can influence customer needs and wants in different geographical areas?

  Cultural, economic, or historical factors
• What are the characteristics of local, national, regional, and international markets?

  • Local Markets: Sell to nearby customers; use local media.
  • National Markets: Sell across the country; require mass media.
  • Regional Markets: Sell in different countries within a region; have identifiable characteristics.
  • International Markets: Sell across continents; involve multinational companies.