Week 1

Question 1

What is the definition for marketing?

Answer 1

The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.

Question 2

How did marketing evolve?

Answer 2

Tall People Sell More Services in Society

• Trade → one good for another
• Production concept → Marketers’ offerings were largely determined by what could be made
• Sales Orientation → Marketers’ focused on increasing profits through advertising and one-to-one selling
• Market Orientation → Marketers’ worked to determine what potential customers wanted and then made products to suit
• Service-dominant logic → Marketers’ seek a deep understanding of their customers and utilise communication to engage with their customers in the marketing process
• Societal market orientation → Marketers’ seek to minimise their negative impact on society and maximise their positive impact

Question 3

What does the marketing process involve?

Answer 3

The marketing process involves understanding the market to create, communicate and deliver an offering for exchange.

• Understanding the customers, the market and how they are currently situated
• Create → Create the offering that the target market wants
• Communicate → Communicate to the market that we have the offering
• Deliver → Deliver good or service, concerned with quality and satisfaction

Question 4

What are the requirements for an exchange of value?

Answer 4

Two or more parties must participate, each with something of value desired by the other party

Question 5

What is value?

Answer 5

A customer’s overall assessment of the utility of an offering based on perceptions of what is received and what is given.

Question 6

What is ethics?

Answer 6

• Ethics is a set of moral principles that guide attitudes and behaviour

Question 7

What is corporate social responsibility?

Answer 7

• Businesses must act in the interests of the societies that sustain them

Question 8

What is sustainability?

Answer 8

• The needs of today should be met without compromising the needs of future generations

Question 9

What is the marketing mix?

Answer 9

A set of variables that a marketer can exercise control over in creating an offering for exchange.

Question 10

What does the extended marketing mix consist of?

Answer 10

• Product → Anything offered to a market (goods, service, an idea or a person)
• Price → The amount of money a business demands in exchange for its offerings
• Promotion → Describes the marketing activities that make potential customers, partners and society aware of and attracted to the business’s offerings
• Place (or Distribution) → Refers to the means of making the offering available to the customer at the right time and place
• People → Refers to any person coming into contact with customers, who can affect value for customers
• Process → Refers to the systems used to create, communicate, deliver and exchange an offering
• Physical evidence → Refers to the tangible cues, including the physical environment, that customers use to evaluate products, particularly services.