Deck 1: Overview of Marketing

Question 1

Assume you have been hired into the marketing department of a major consumer products manufacturer, such as Nike. You are having lunch with some new colleagues in other departments-finance, manufacturing, and logistics. They are arguing that the company could save millions of dollars if they just got rid of the marketing department. Develop an argument that would persuade them otherwise

Answer 1

The firm has to develop various growth strategies in order to survive in the market and to face the competition. After the analysis the strength, weakness, opportunity and threats, the firm has to decide where there is opportunity for growth and threat is less. The firm then develops strategies either short term or long term as per the market situation and internal environment as well.
The various growth strategies used by the firm are as follows:
1. Market Penetration strategy:
This strategy focuses on the existing customers and offers those existing products and services. It requires greater marketing and sales promotion efforts in the area where the products and services are going to be sold.
2. Market development strategy:
It means offering existing products and services to the new market domestic or international. International expansion is riskier but can create more opportunity in the future.
3. Product development strategy :
It refers to offering new products and services to the existing market segments. It refers to creating new offers and innovation in the products as per the demand of the existing customers.
4. Diversification strategy:
It refers to offering new products to the new market segments. It can be related or unrelated diversification. In the related diversification the new offers will have something in common. It can be distribution channel, packaging etc. But in the unrelated diversification the current offering is no where related to the existing one.
The most risky growth strategy is the Diversification strategy as the customer segment is completely new, the company doesn't have much experience about them and the product and service which they are offering is also new. The company will have to make proper analysis and research before jumping into the market.
The easiest growth strategy is the Market penetration strategy because the company already know about the market segment, the product is already familiar the customers. Only the promotions need to be conducted strategically.

Question 2

Why do marketers find it important to embrace societal needs and ethical business practices? Provide an example of a societal need or ethical business practice that a specific marketer is addressing.

Answer 2

Marketing is referred to as the function of management which is utilized to promote the products and services of a company to increase the overall revenue for the organization.
Ethics can be defined as the reasoning behind why someone does what they do. Ethics of a person are based and affected by multiple factors like religious political beliefs, upbringing etc.
Marketers try to balance societal needs and ethical businesses practices because of the following reasons:
1) It prevents government action against the company's operation which not only damages their reputation but has high financial penalties as well.
2) It helps build their goodwill in the market.
3) It helps them gain the trust of the local population which helps in ensuring a sustainable business operations environment.
4) Many businesses also give back to nature to ensure that there is a sustainable form of business and the resources are not wasted or depleted.
Company C produces soft drinks among many other products. Some of the societal needs and ethical business practices that they are following are as follows:
1) They are providing and supporting girl child education.
2) They have put up measures in place to ensure that harmful chemicals that are utilized to make their products are treated before they are disposed of to ensure that nature and environment are not harmed.
3) They are utilizing recycled material in their production and other activities to ensure that a sustainable balance is maintained the negative effect of their activities on the environment is minimized.

Question 3

What is the definition of marketing?
2. Marketing is about satisfying _________ and _______.
3. What are the four components of the marketing mix?
4. Who can perform marketing?
5. What are the various eras of marketing?

Answer 3

(1)Marketing:
A process of communicating to the customers by focusing on features of the product and creating a strong relationship with customers is termed as marketing.
(2)Marketing is about satisfying Customer needs and Wants.
(3)Marketing Mix:
A tool which is used by marketer to determine the right mix of product, to promote the product, to choose the right place to sell the product at reasonable price is termed as marketing mix. The marketing mix is often compared with the 4 Ps of marketing.
Components of marketing mix:
The following are the components of marketing mix:
• Product
• Promotion
• Place
• Price
(4)Marketing is performed by an organization or individual whose intention is to educate prospective customers about the products. The main purpose of any marketing activity is to make product super flows in the market with good reputation. Marketing can be between business to business, business to customer, and customer to customer.
(5)Eras of marketing:
The following are the various eras of marketing:
• Production oriented era : Producers concentrate on improving the production of the organization.
• Sales oriented era : Producers use techniques to improve the sales of the products.
• Market oriented era : Producers concentrate on producing products that suit the customer needs.
• Value-based oriented era : Producers concentrate on creating customer and business value for the products.

Question 4

Do you know the difference between needs and wants? When firms wishing to sell mobile devices (e.g., iPad) develop their marketing strategy, do they concentrate on satisfying their customers' needs or wants? What about a utilities company, such as the local power company? A humanitarian agency, such as Doctors without Borders?

Question 5

Visit Pandora ( http://www.pandora.com/corporate/mgp ), whose music database and customer knowledge are incomparable. Find out what the Music Genome Project is. What value does Pandora provide customers? What are the advantages and disadvantages to using Pandora versus listening to music through another channel?

Question 6

With regard to the assertion (in the chapter's opening vignette) that Apple is a marketing company rather than a technology company, assess the launch of the iPad. Use both the information included in the case study and your own experience with Apple's marketing tactics to illustrate your discussion.

Question 7

Does providing a good value mean selling at a low price?
2. What type of relationship is best for providing value to customers?

Question 8

People can apply marketing principles to finding a job. If the person looking for a job is the product, describe the other three Ps.

Question 9

Go to Facebook.com, and click on "About" at the bottom of the page, then click on the Info tab. What is Facebook's mission? How could a marketer use Facebook, and what other social media tools could they use? What are the drawbacks a marketer might face when using Facebook?

Question 10

Which features of the iPad create the most value for users? Which create the most value for Apple's partners (e.g., advertisers)?

Question 11

List five functions that illustrate the importance of marketing.
2. A firm doing the right thing emphasizes the importance of marketing to _____________.

Question 12

One of your friends was recently watching TV and saw an advertisement that she liked. She said, "Wow, that was great marketing!" Was the ad in fact marketing?

Question 13

List the specific product and service elements contained within an iPad.

Question 14

Mercedes-Benz manufactures the Smart Car, which sells for around $15,000 and the SL 65 AMG 2 door Roadster for over $100,000. Is Mercedes providing the target markets for these cars with a good value?