MKW1120 exam practice question and answer

Topics: Marketing, Pricing, Customer Pages: 7 (2115 words) Published: March 17, 2014
2012 Exam Question Answer

Marketing can be defined as an organization function and a set of process foe creating, communicating and delivering value to the customer and for managing customer relationship in a way that it benefits the organization and its stakeholders.

In order to understand the marketplace and customer needs and wants, marketers need to identify the needs of the consumer, which is defined as the state of felt deprivation, such as hunger and self-actualization needs. Next, it advanced into wants, which is defined as the form of human need that is shaped by culture and individual personality. To satisfy ones hunger, they may opt to eat either rice or noodles depending on their preference. Demand, the human wants that are backed by buying power indicates a person’s financial ability to buy their wants.

Organizations need to identify its microenvironment and macroenvironment to identify forces or actors in the business environment that can have effect on the organization’s marketing and business activities. Microenvironment of a company is made up of the company itself, its competitors, the suppliers, customers, marketing intermediaries and the publics. The publics are those people or organization that affect the operations of the organization. There are seven publics in total, which is made up of financial publics, media publics, citizen-action publics, government publics, local publics, general publics and internal publics that affects the marketing operation of an organization. Financial publics are banks and insurance companies that affect the company success in obtaining loan.

Macroenvironment is the larger societal force that affects the whole environment. In an organizations macroenvironment, it consist of demographic environment, economic environment, natural environment, technological environment, political environment and cultural environment. Demographic environment is mainly made up of the changing age structure in the population, the changing family, geographical shift in population, better educated and white collar population and increased in ethnic diversity. A changing age structure means that as a person’s age grows, their needs and wants for a certain product will change according to their life cycle.

After identifying the environment, marketers will undergo marketing research process. The first step of marketing research process is to define the problem and research objectives, which contains of exploratory, descriptive and causal research objectives. Next, the process will be continued by the development of the research plan from secondary source and primary source. Then it will decide on the research approaches it will utilize whether it is observational, experimental, ethnographic or survey type of research. Then, it researcher will decide on the contact method through mail, telephone, personal and group interviews or online marketing research. Then it will proceed to sampling plan and research instruments like mechanical devices and questionnaire. The processes are completed by implementing the plan and report it to the management.

After research, marketers need to identify the factors that influence a consumers purchasing behavior. The factors that determine the buyer decision are personal factors, social factors, psychological factors and cultural factors. Social factors consist of age and life cycle, reference groups and roles and status in the society. For example, according to the age and life cycle of everyone, the needs and wants of an individual differs as their age grows, an old man require a walking stick. In buying a product, consumer may display one of the four buying behavior, which consist of complex buying behavior, dissonance-reducing buying behavior, habitual buying behavior and variety-seeking buying behavior depending on the involvement and the perceived brand difference from the consumers. In buying an item, consumers may go through stages...
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