Marketing

AFT 1013/SAK 1

1. Explain your understanding of marketing.

In my opinion, marketing is a business that satisfies needs and wants of customers. The process commit of planning, executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges.

Pada pandangan saya, pemasaran merupakan suatu bidang perniagaan yang memenuhi kehendak dan keperluan pengguna/pelanggan. Proses pemasaran melibatkan perancangan, perlaksanaan sesuatu konsep, menetapkan harga, promosi, dan membekalkan barangan serta servis untuk memudahkan pertukaran barang.

2. Explain briefly the various definition of marketing.

Depends on Kotler (1984), Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Others, on 1946 AMA define marketing as the performance of business activities that direct the flow of goods and services from producers to customer or user. Then, on 1985 AMA told that marketing as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

3. How do you explain a market?

The market is a place where buyers and sellers of a product and services are exchange. The nature and location of the market depends on the product. For example, within local town, there is likely to be a vegetable market where you would go to buy vegetables. Here, buyers and sellers meet face to face in the same location, and done the trade between them. But, this is not always the case. Market categories consist of human being, governments, NGOs and business entities.

4. Define and explain steps in identifying target market.

Target market is a group of customers with needs and wants that can be satisfied by the business through the supply of goods and services.

An entrepreneurship is focus on certain groups of customers. These customers are chosen based on the business ability to satisfy the needs and wants of the groups. There are three steps in identifying the target market.

First step is to identify the product or service to be offered. A business needs to first identify a viable product or service based on the needs and wants of the market. This is often done through a survey that can give vital information and ideas about products that the business can offer.

Second step is to focus on the marketing effort. This focus of marketing effort consist of three segment which are identifying the market area and business location, collect information and data of customers, and segmenting the market.

A market area can be segmented by certain geographic factors, such as region, states, cities, towns or district. The key factor to consider is the physical distance between the business location and the target market. In collecting information and data of customers, the business has to compile it as much as possible around the market area selected. The information can be based on personal details and attributes of the population in the area, their lifestyles and any psychological factors that may influence buying habits. Segmenting the market can be done by compiling the geographic, demographic and psychographic factors of the market, the business can now divide the total market into smaller groups or market segments based on identifiable common traits and buying preferences.

Third step is to determine target market from the market segments identified. In general, the target market is selected based on the higher sales potential and profits this group is expected to produce compared with the other market segments. This also allows for a more focused and effective marketing effort.

5. Define sales forecast and list factors that should be taken into consideration when preparing a sales forecast.

Sales forecast is the expected sales potential from the selected target market. The sales forecast is quoted in units of sales or in Ringgit for a period of time such as one month or one year.

The factors that need to be taken into consideration when forecasting sales are the customer awareness of the existence of the business, seasonal factors and pre-sales period.

6. What are the components of marketing mix? Explain.

The components of marketing are product/service, pricing, distribution and promotion strategy. Marketing mix is a combination of the 4 Ps which is product, price, promotion and also place (distribution or logistics).

Product is an item, service and idea that was supplied from buyers to satisfy needs and wants for customers. In outlining product strategy, special attention needs to be given in brand, quality, design, brand name, and after sales service.

The price of the product or service is the amount of money charged to the customer for a particular purchase. As the only element in the marketing mix that generates revenue, an entrepreneur must understand the importance of pricing a product or service right. There are several pricing strategies. The most commonly used are cost based pricing, value based pricing, and competition based pricing.

Distribution strategy is aimed at establishing a structured and controllable distribution system to ensure the product offered reaches the target customer. A distribution channel moves goods from producers to consumers. The most common form of distribution channels are direct to consumer, selling through retailers, selling through wholesalers, and selling through wholesaler and retailers or agent.

Promotion strategy is used to disseminate information about the company’s product or services with the purpose of attracting the target market. The three main promotion tools are advertising, sales promotion, and public relations and publicity.

7. Explain five important factors in product packaging.

Five important factors in product packaging are protection, ease of use, attractive to customers, product safety and labelling.

The primary function of packaging is to protect the product. The packaging must be able to. Protect the product during the process of transportation, storage, display and sales until the product is ready for use.

Good packaging is easy for the customers to use. For instance, most baby formula has a plastic cover and includes a measuring spoon. The current trend of disposable packaging is also aimed at ease of use for consumers.

The packaging of the product may be the sellers’ final chance to influence customers. The packaging must attract customers’ attention. The size, shape, material used and colour of the packaging must be attractive to the target market.

Product safety has become a major packaging concern today. With growing consumer awareness and stringent regulations, businesses have come out with childproof and tamper-resistant packaging. Packaging decisions must take into account needs of the target market, society’s interest and environmental concerns.

Labelling performs several functions such as identifying, grading, describing or even promoting the product. Labels provide information about the manufacturer, the contents of the product, and usage instructions of warnings. For Muslims, the label of ‘Halal’ is important for them.