4.1

Question 1

Marketing and its relationship with other business functions (AO1)

Answer 1

Marketing

• Identifying, anticipating and satisfying consumers requirements profitably
• Not just advertising
• Involves:
  
  • Advertising and selling and…
  • Market research
  • Product design
  • Pricing
  • Promotion
  • Distribution (How to get the product to customers)
  • After-sales service

Finance

• Set marketing budget
• Will the marketing campaign increase profits

Human Resource Management

• Hire staff that is needed for marketing and increased production

Operations Management

• Is there capacity to increase production?
• Can they produce the product advertised?

Question 2

The differences between marketing of goods and marketing of services (AO2)

Answer 2

Services are consumed immediately

• Goods can be stormed
• E.g. hotels offer off-peak discounts as room can’t be sold later

Services are consumed at the place of sale

• The place of sale is important and cannot buy online
• E.g. restaurant decoration

Tangible vs intangible

• Harder to compare services
• E.g. Expedia offers rating on hotels

Homogeneous vs heterogeneous

• Goods can be mass produced
• Services will never be identical

Service is key for service…

• Services cannot be returned, goods can
• Hiring of good staff and building up trust is vital

Question 3

Market Orientation Vs Product Orientation (AO2)

Answer 3

Market Orientation

• Market research identifies needs
• Then making products that can sell
• Produce what customers want
• Outward looking

Product Orientation

• Selling products they make
• Focus on quality and assume it will sell
• Ignore the market to some extent
• Inwards looking → looks only at business

Question 4

Commercial Marketing and Social Marketing (AO2)

Answer 4

Commercial marketing

• Identifying needs and wants of customers with the intention of making a profit
• For profit

Social Marketing

• Seeks to influence social behaviour to benefit the target audience and society as a whole
• Corporate Social Responsibility

Question 5

Characteristics of the market in which an organization operates (AO1)

Answer 5

Market size

• Total level of sales(units or revenue) in a market
• Or number of customers

Market Growth

• % change in market size
• Smartphone vs TV

Market Share

• Firm’s Sales/ Market sales) x 100
• E.g. revenue in the market is $2bn and the firm has $400m of sales
• Market share= 0.4/2=20%

Barriers to entry

• Branding, patents, set- up costs

Amount of competition

• Airline manufacturers vs Sportswear

Demographics of the market

• Gaming apps vs walking sticks

Question 6

The marketing objectives of for- profit organizations and non-profit organizations (AO3)

Answer 6

For profits

• Increase sales/revenue/customers/profit

Not for profits

• Raise awareness
• Raise revenue- more donations