ANSWERS
Marketing Introduction
Revision and Study Sheet
THEME 1 AND 2 :
INTRODUCTION AND
MARKETING PROCESS
Image : Freepik – flaticon.com
OBJECTIVES OF THIS THEME:
•
Define the contribution that marketing makes to the company’s mission
•
Describe the strategic marketing process;
•
Recognize the importance of marketing control within a company;
•
Distinguish between various marketing strategies;
•
Understand the place and importance of ethics in marketing.
Diagrams and figures :
Brunet, Johanne, Sihem Taboubi, Colbert Franc is, Renaud Legoux, Jean-Luc Geha, Sandra Laporte, et
Bruno Lussier. 2017. Gestion du marketing 6E édition. Montréal (Québec): Chenelière éducation.
Theme 1 and 2 : Introduction and marketing process
1
THEORETICAL QUESTIONS FOR THE MAIN CONCEPTS:
1. WHAT IS THE DIFFERENCE BETWEEN NEED AND DESIRE FOR A CONSUMER?
Need is a state of craving, e.g., being hungry, needing affection, or having to earn a living. Desire,
on the other hand, is how we satisfy that need, e.g., satisfying hunger by choosing an Italian
restaurant rather than fast food.
Hierarchy of needs
The job of marketers is to identify customer needs (and desires) and try to meet them with the
right products at the right price, through the best distribution network and by using the right
communication tools and first-rate customer service.
2. WHAT DISTINGUISHES THE FOLLOWING CATEGORIES OF DEMAND?
Market demand
The sum of individual and business demands.
Demand made to the company / Real demand
Transactions made (in volume or in dollars) to purchase a product or service from a given
Potential demand
The maximum level that demand for a product could reach within a given context.
Theme 1 and 2 : Introduction and marketing process
2
3. WHAT DEFINES THE 5 TYPES OF MARKETS BELOW?
Consumer market
Individuals who purchase products and services for their personal needs.
Business market
Organizations that purchase products and services to use in the production of other goods or for
their internal needs (B2B: “business-to-business”).
Intermediary market
Individuals or organizations that operate between the producer and the consumer.
State market
When states act as primary clients, and in general, through invitations to tender.
International markets
Individuals and companies located abroad.
4. WHAT DO WE MEAN BY VALUE CREATION IN MARKETING?
The notion of value is important for consumers because they want to come out on top in the
exchange. For this reason, it is important for the company to fully understand what its customers
expect in terms of value (functionally, economically, socially and experientially).
Theme 1 and 2 : Introduction and marketing process
3
5. WHAT IS THE DIFFERENCE BETWEEN A STRATEGY AND A TACTIC?
A strategy differs from a tactic in that it is derived from all the means to be taken to achieve an
end goal (e.g., increase market share by setting the price as low as possible). Tactics, on the other
hand, are one-time adjustments of an element of the strategy at a given time (e.g., inserting
coupons in a magazine). Thus, without modifying the business strategy, the manager can take
several tactical actions to achieve the desired results of the strategy.
6. WHAT IS A MARKETING PLAN AND WHY IS IT NECESSARY IN ORDER TO ACHIEVE BUSINESS
GOALS?
The marketing plan results from the marketing planning process. It can be very broad and affect
the company as a whole, at which point it becomes an integral part of the company’s strategic
vision, or be restricted to a particular sector where it focuses, for example, a market, specific
product line, product or brand. The marketing plan is an essential tool that allows a manager to
plan, coordinate, implement and control their actions. It is a “living” tool that should be reviewed
cyclically.
Theme 1 and 2 : Introduction and marketing process
4
7. WHAT ARE THE QUESTIONS THAT EACH OF THE SEVEN PARTS OF A MARKETING PLAN
ANSWER?
Analysis of the situation
Where are we and where are we going?
Setting marketing objectives
Where do we want to go?
Resource allocation
What efforts do we want to invest in it?
Deciding on a marketing strategy
Who do we want to reach and how do we want to be perceived?
Deciding on a marketing mix
How are we going to do so?
Implementation
How should we proceed?
Control
How do we know if we are going in the right direction?
Theme 1 and 2 : Introduction and marketing process
5
8. HOW IMPORTANT IS THE CONTROL STEP IN THE MARKETING PLAN?
The main goal of the control step is to measure the path to reaching the company’s goals. It
consists of partially or fully examining the results of a marketing action in order to gauge its
performance and to make any necessary adjustments if there is a discrepancy between forecasts
and reality.
It will therefore include an alternative plan, i.e., a statement of possible solutions for dealing with
the unexpected. To make such a plan, the manager must conduct a forecasting exercise wherein
they consider different scenarios that could cause deadlines to be missed or goals to be delayed.
Competitors’ reactions are clearly a key part of this forecasting exercise. A dashboard can be
developed to facilitate results monitoring.
The Control Cycle
Theme 1 and 2 : Introduction and marketing process
6