Question 1: Define what marketing is and discuss its core concepts

Marketing is the management process responsible for identifying, anticipating and satisfying
customer requirements profitably
It does this by getting the right product at the right price at the right place at the right time.

 Through in-depth research into the business environment

 by foreseeing the changes that are going to happen in the near future and how the
business will react to them
 with a motive of profit.

Marketing core concepts are:

 Markets- a platform where buyers and sellers meet to engage in exchange

 It also refers to a group of potential customers sharing particular needs or wants
 for example, the use of internet as a marketing tool

 Needs and wants

 Needs are basic requirements that an individual wishes to satisfy such as food and shelter
 Wants are described as being goods and services that fulfil the needs of individual
customers.

 Customer Value and Satisfaction

 A customer will consider a product to be of good value if it provides satisfaction at what
is thought to be a reasonable price
 Product’s perceived performance in delivering value relative to buyer’s expectations is
customer satisfaction.

 Products and Services

Question 2: Explain the relationship between customer value, satisfaction and quality.

 The customer ‘s buying power is measured

 Quality is measured from customer’s perceptions
  Quality has an effect on customer value and satisfaction as the customer may feel that the
quality is worth the price of the product or service.
 Customer value is when he/she thinks the product is worth, that the value he/she expects
to gain from a product.
 Customer satisfaction is the customer’s response to what they expect in the product
performance.

Question 3: Explain fully how marketers manage demand and build profitable customer
relationships.

 Through continuous market research – to predict future demand changes

 To explain patterns in sales of existing products and market trends
 Meeting customer requirements continuously leads to customer satisfaction
 Should aim to offer good value:
 Encouraging brand loyalty -maintain long term customer relationships
 Use of four P’s - Product, Price, Promotion, Place

Question 4: Explain fully the marketing management philosophies

 Production Concept-The highly affordable and available products are preferred by the
consumers
 Product Concept- the expectations of quality and performance of products are high,
 Selling Concept-Customers will buy products only if the business promotes or sells the
products (brand awareness)
 Marketing Concept-This concept focuses on customers, by delivering value to customers'
needs and demands
 Societal Marketing-This approach considers not only the demands of consumers but also
the effects on all the members of public. For example, producing goods in a non-
environmentally damaging ways, sustainability, less wastes.

Question 5: Analyze the major challenges facing markets in a competitive business

environment.
 As there is globalization, there are many firms which produce and sell in many different
countries
 There are technological advancements for example customers can now buy online
anywhere in the world, thus having more choice and lower prices.
 Markets are more competitive as consumers have more information about products
therefore, they can make better judgments and choice.
 Businesses can use the PEST analysis (analyzing the macro environment of the business)
and SWOT analysis (assessing internal strengths and weaknesses and its external
opportunities and threats).