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Business Marketing Concepts
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Business Marketing Concepts
Business Marketing Concepts
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1
Question
What is a market in Business Management?
Answer
A place where buyers and sellers interact, a geographical location for business operations, or an exchange of a singular good/service.
2
Question
Define marketing.
Answer
The process designed to identify and satisfy customer needs through the successful implementation and management of the marketing mix.
3
Question
What is product orientation?
Answer
A business strategy where most investment goes into product development, aiming to create the best possible product, often leading to unique selling points (USPs).
4
Question
What are the advantages of product orientation?
Answer
Allows businesses to have a unique selling point and higher quality to distinguish themselves, acquiring patents allows for monopoly power, and the creation of new products means little to no competition.
5
Question
What are the disadvantages of product orientation?
Answer
Elevated risk due to the possibility of customers not liking the new product, and high costs associated with research and development.
6
Question
What is market orientation?
Answer
A business strategy that prioritizes market research to identify and target customer needs; actions are taken after thorough market analysis.
7
Question
What are the advantages of market orientation?
Answer
Low risk as the product is tailored to customer needs.
8
Question
What are the disadvantages of market orientation?
Answer
Does not allow the business to develop a USP (Unique Selling Proposition), and requires extensive investment and meticulous planning.
9
Question
What is a Unique Selling Point (USP)?
Answer
A factor that differentiates a product from its competitors, such as the lowest cost, the highest quality or first-to-market product.
10
Question
What is Market Share?
Answer
Measures a company's sales compared to the entire market's sales, expressed as a percentage.
11
Question
How is Relative Market Share (RMS) calculated, and what are its requirements?
Answer
RMS requires precise identification of the market and the period analyzed. Formula: (Company Sales / Total Market Sales) * 100
12
Question
What is Market Growth?
Answer
Increase in sales revenues or volume in a market over time. STEEPLE analysis helps businesses decide whether to invest in growing markets.
13
Question
What is the BCG Matrix?
Answer
A tool evaluating products in a business portfolio based on Market Growth and RMS, used for making marketing decisions and diversifying portfolios.
14
Question
Describe 'Stars' in the BCG Matrix
Answer
High RMS, high growth. Require significant investment to sustain growth and attract new customers. Cash flow might be negative.
15
Question
Describe 'Cash Cows' in the BCG Matrix
Answer
High RMS, low growth. Successful in mature markets with an established customer base. Focus on maintaining loyalty with less marketing spend.
16
Question
Describe 'Question Marks' in the BCG Matrix
Answer
Low RMS, high growth. Require significant investment to gain RMS. Unpredictable and hard to forecast
17
Question
Describe 'Dogs' in the BCG Matrix
Answer
Low RMS, low growth. Often at the end of their life cycle or in niche markets. May still be useful for a company.
18
Question
What is the BCG matrix useful for?
Answer
Selecting products to invest in and predicting revenue.
19
Question
What are the limitations of the BCG Matrix?
Answer
Does not consider external factors, requires accurate data, and unpredictable nature of Question Marks and Dogs
20
Question
What is Marketing Planning?
Answer
A process to organize and develop marketing activities to achieve specific goals.
21
Question
What is a Marketing Plan?
Answer
A document outlining a business's marketing strategy and tactics.
22
Question
What is a marketing plan?
Answer
A document outlining a business's entire marketing process, considering corporate business goals to construct marketing objectives.
23
Question
What are the main elements of a marketing plan?
Answer
Marketing objectives, marketing budget, segmentation and the target market, market research, marketing strategies, and control tools.
24
Question
What are marketing objectives?
Answer
They provide direction for the marketing function and, if achieved, help the business achieve its other objectives.
25
Question
How can a marketing budget be set?
Answer
By marketing objectives, sales-based allocation, or incremental based on past years.
26
Question
What is segmentation?
Answer
Dividing the consumer base into groups based on similar characteristics to help with market planning.
27
Question
What is market research?
Answer
The process done to identify consumer needs, wants, and behaviour to make informed marketing decisions.
28
Question
What are marketing strategies?
Answer
Long-term goals set to work towards the marketing objectives, built by evaluating the seven Ps.
29
Question
What are control tools?
Answer
Tools that allow businesses to evaluate the effectiveness of their marketing strategies, involving gathering data to see if objectives have been met.
30
Question
What is segmentation in the marketing cycle?
Answer
Splitting a population into groups with similar needs.