Download Unit 4.1 The Role of Marketing The Role of Marketing

4.1 Role of Marketing
Unit 4 .1
T he Role of Ma rk eting
Task 1 – Complete the missing words…
satisfaction
profit
product
customer
Task 2 – Explain…
a.
i.
Since market share refers to an organization’s share of the total value of sales of all
products within a specific market, it can be measured by expressing the firm’s sales as a
percentage of the total market’s sales.
ii.
Market concentration measures the degree of competition within a market by calculating the
market share of the largest firms in a market. The sum of these market shares is known as
the concentration ratio.
b.
Gain market share in the rapidly growing markets or gain higher sales/profits by entering the new
market; Cost of entry into new markets (e.g. finance, R&D and personnel) or the high risks involved
in launching new products.
c.
Commercial marketing is concerned with selling a product to the customer with the purpose of
making a profit, e.g. by portraying the glamour and appeal of smoking. By contrast, social marketing
focuses on changing people’s behaviour for what is deemed to be in the best interest of society, e.g.
anti-smoking campaigns with the purpose of dissuading people from smoking.
Task 3 – True or false?
True / False
T
F
T
T
F
T
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4.1 Role of Marketing
Task 4 – Vocab Quiz
Key Term
Product orientation
Marketing plan
Market share
Market orientation
Task 5 – Calculating market share
a.
Company
A
B
C
D
Sales ($m)
Market share (%)
40
20
33
27
b.
A and B account for 60% of the market (a combined $90m in a market worth $150m), i.e. the two
firms have significant market power. They can be described as oligopolist firms that dominate the market.
Task 6 – Multiple Choice
1.
D.
Marketing budgets
2.
C.
People
3.
C.
Pledge
4.
D.
Recruiting the best sales people
5.
A.
Perishable
6.
A.
Researching consumers’ needs in order to develop new products
7.
C.
Marketing is all about selling to meet the needs of customers
8.
D.
Methods of production
9.
B.
The percentage of total sales in a market that can be attributed to a firm
10.
C.
There is heavy spending on product research and development
11.
B.
Physical environment
12.
A.
It can lead to market leadership or dominance
13.
C.
Producing and marketing products that the firm believes will sell
14.
C.
Asset led marketing
15.
D.
Newly recruited staff
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4.1 Role of Marketing
16.
B.
Social marketing
17.
B.
Products are designed according to what the producer feels will sell the best
18.
C.
Increase market share by 5% within the next 20 months
19.
D.
People, Physical environment, Process
20.
D.
Product orientation
21.
A.
Asset-led Marketing
22.
C.
Production
23.
C.
Ethical marketing
24.
C.
Customer relations management
25.
D.
Physical evidence
3