UNIT 4 - IB BUSINESS MANAGEMENT: MARKETING

• What is marketing?


  It is the process of identifying, anticipating, and satisfying the needs and wants of customers in a mutually beneficial exchange process.
• What does market orientation focus on?


  It focuses on meeting the specific demands of customers and potential customers.
• What are the advantages of market orientation?


  Guaranteed sales, increased market share, and customer loyalty.
• What are the disadvantages of market orientation?


  Opportunity cost and economies of scale may go down.
• What does product orientation focus on?


  It focuses on making products a business knows how to make well.
• How do product-oriented businesses prioritize their operations?


  They prioritize research and development over market research.
• How do market-oriented businesses prioritize their operations?


  They prioritize the needs of their customers above everything else.
• What are the advantages of product orientation?

  Product quality focus, brand reputation, expertise, and specialization.
• What are the disadvantages of product orientation?


  Less attention to customer needs, struggle with flexibility, and convincing people they need it.
• What is the market orientation approach characterized by?


  It is outward looking and market-led.
• What is the product orientation approach characterized by?


  It is inward looking and product-led.
• How is market size defined?


  It is the number of sales of all businesses in a given market.
• How can sales be measured?


  can be measured by volume and value.
• What is the formula for calculating market share percentage?


  (firm's sales / total sales in the market) x 100.
• What should increased market share lead to?

  Increased profit.
• What should increased production lead to?


  Economies of scale.
• What is a marketing objective?


  It is what the business wants to achieve and when.
• What is a marketing strategy?


  It is a marketing plan to achieve the marketing objective.
• How is market growth defined?


  It is the percentage change in the market size over a given period of time.
• How can market growth be calculated?

  can be calculated using volume or value data.
• What factors influence market growth?


  Economy, technological change, and changes in consumer taste.
• What is the formula for calculating market growth percentage?

  (this year's market sales - last year's market sales / last year's market sales) * 100.
• What is marketing planning?


  It is the process of formulating marketing objectives and devising appropriate marketing strategies to meet the objectives.
• What does a marketing plan typically include?


  Executive summary, market analysis, marketing objectives, marketing strategy, resources required, marketing budget, and marketing activities.
• What is a systemic process in marketing planning?


  It involves conducting a marketing audit, setting objectives, devising strategies, and outlining implementation.
• What is a detailed marketing plan?


  includes specific stages, resources, clear targets, and timelines.
• How does cross-functional use relate to the marketing plan?


  informs decisions in other business functions such as operations, human resources, and finance.
• What is market segmentation?


  It is the categorizing of customers into groups based on their common characteristics.
• What is a market segment?


  a subgroup of consumers with similar characteristics, needs, and wants.
• What are the types of market segmentation?


  Socio-economic segmentation, geographic segmentation, demographic segmentation, and psychographic segmentation.
• What are the advantages of market segmentation?


  Targeted marketing, better product development, and competitive advantage.
• What are the disadvantages of market segmentation?

  Increased costs, complexity in management, and risk of over-segmentation.
• What is a target market?


  a particular market segment(s) that a business focuses its marketing activities on.
• What are the advantages of targeting a market?

  Strategies are more effective, increase revenue, and time and money are not wasted on ineffective marketing.
• What are the disadvantages of targeting a market?


  It can be costly, time-consuming, and can be unethical.
• What is positioning in marketing?


  describes how a product or business is perceived relative to its competitors.
• What is product positioning?


  analyzes how consumers define or perceive a product compared to other products on the market.
• What is a product position map?


  shows how customers perceive the organization’s goods and services relative to its competitors.
• What is niche marketing?


  occurs when a business focuses on a relatively small and select target market.
• What is mass marketing?


  occurs when a business targets all customers in the market rather than specific segments.