Chapter 4 Business
Flashcards: Marketing Part
1 2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review
Updated Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,Needs the essential necessities that all humans must have to survive: food, shelter, warmth
and water.
Wants human desires, i.e. things that people would like to have. Irrespective of personal
income or wealth, humans have infinite wants
Marketing exists to address peoples needs and wants. It is about making customers want to
buy the products of a particular business. It therefore looks at the reasons behind
peoples decisions, such as the price and the product's features (e.g. color, size,
quality or special features of a product).
Marketing department objectives • Ensure that the right products are supplied to fulfill the needs and wants of
customers.
• Set the correct price so that customers can afford to buy the product (and to
ensure that they do not buy from a rival business).
• Distribute (or place) the products conveniently for customers to buy the product.
• Ensure that there is adequate and effective promotion to convince customers to
buy the firm's products.
Marketing is successful when paired up with what other Operations Management, Finance, Human Resources
business functions?
Operations Management A specialized area in management that converts or transforms resources (including
human resources) into goods and services. The production department works
closely with the marketers in using sales forecasts (from market research) to
prepare their production schedules. These departments also work directly with each
other to research, develop and launch products to meet the changing needs of
customers
Human Resources maintains policies, plans, and procedures for the effective management of
employees. Marketing data can help the HR department to identify staffing needs.
For example, the introduction of a new product might require hiring extra production
staff and sales personnel. The HR department's role is to ensure the business has
the right quantity and quality of workers through effective workforce planning to
meet the wants and needs of its customers.
Differences between the marketing of goods and services? Intangibility, Inseparability, Heterogeneity, Perishability, Product Strategy, Price
Strategy, Promotional Strategy, Place Strategy
Intangibility Whilst goods are tangible (physical), services are intangible. Marketers face a
challenge to communicate the benefits of the service. The purchase is based largely
on trust. By contrast, marketers tend to have less challenges selling a physical
product with physical attributes that customers can inspect before buying.
Inseparability Services are consumed at the time of purchase. Inseparability means it is not
possible to separate the production and consumption of a service. Marketers strive
to ensure the staff are well trained at providing outstanding and consistent customer
services.
Heterogeneity It is common to mass produce standardized (homogeneous) goods such as
smartphones, books or soft drinks. However, services are heterogeneous because
the experience is different for different customers. If customers experience poor
customer service, they will opt to use the services provided by other providers.
Perishability Unlike goods, services cannot be stored. By contrast, most goods are durable to
some extent.
, Product Strategy Many businesses provide value-added services to attract customers. Service
companies also have to decide on whether their offerings will be standardized or
customized.
Price Strategy As people are a fundamental aspect of marketing services, the cost and hence the
price can to be quite high. A challenge for marketers is to get the right pricing
strategy for a service that appeals to customers, covers costs of production and
generates profit for the business. The pricing decision depends on the source of
value to customers.
Promotional Strategy Promoting a service can be a challenge for marketers as it is intangible. Businesses
often use the physical environment to promote their services so that customers can
visualize the quality of the service being provided. Other common promotional
strategies include the use of branding, slogans, logos and celebrity endorsements.
Place Strategy The location decision is vital for the marketing of services as customers are unlikely
to visit restaurants, hotels, theatres, banks and retailers in highly inconvenient or
remote locations.
Market Orientation a marketing approach used by businesses that are outward looking. They focus on
making products that they can sell, rather than selling products that they can make.
Market orientation focuses on the customer in order to identify, design, develop and
supply products that meet their needs and wants. Such information can be gathered
from market research and the pricing decision is taken after considering information
about customers, such as their level of income.
The two main advantages to a business in being market Greater Flexibility and Lower Risk
orientated are?
Greater Flexibility Firms can respond quickly to changes in the market as they have access to relevant
data and information about customers. Market orientated businesses are also more
able to anticipate changing market trends and hence prepare for such changes.
Lower Risk Market orientated firms can be more confident that their products will sell and be
more successful. Without proper market research and analysis, the cost of
marketing a product is much more likely to be a gamble.
Main disadvantages of market orientation It can be very expensive.
In addition, given the dynamic nature of the business environment and the
uncertainty of the future, there is no guarantee that this approach will work.
Flashcards: Marketing Part
1 2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review
Updated Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,Needs the essential necessities that all humans must have to survive: food, shelter, warmth
and water.
Wants human desires, i.e. things that people would like to have. Irrespective of personal
income or wealth, humans have infinite wants
Marketing exists to address peoples needs and wants. It is about making customers want to
buy the products of a particular business. It therefore looks at the reasons behind
peoples decisions, such as the price and the product's features (e.g. color, size,
quality or special features of a product).
Marketing department objectives • Ensure that the right products are supplied to fulfill the needs and wants of
customers.
• Set the correct price so that customers can afford to buy the product (and to
ensure that they do not buy from a rival business).
• Distribute (or place) the products conveniently for customers to buy the product.
• Ensure that there is adequate and effective promotion to convince customers to
buy the firm's products.
Marketing is successful when paired up with what other Operations Management, Finance, Human Resources
business functions?
Operations Management A specialized area in management that converts or transforms resources (including
human resources) into goods and services. The production department works
closely with the marketers in using sales forecasts (from market research) to
prepare their production schedules. These departments also work directly with each
other to research, develop and launch products to meet the changing needs of
customers
Human Resources maintains policies, plans, and procedures for the effective management of
employees. Marketing data can help the HR department to identify staffing needs.
For example, the introduction of a new product might require hiring extra production
staff and sales personnel. The HR department's role is to ensure the business has
the right quantity and quality of workers through effective workforce planning to
meet the wants and needs of its customers.
Differences between the marketing of goods and services? Intangibility, Inseparability, Heterogeneity, Perishability, Product Strategy, Price
Strategy, Promotional Strategy, Place Strategy
Intangibility Whilst goods are tangible (physical), services are intangible. Marketers face a
challenge to communicate the benefits of the service. The purchase is based largely
on trust. By contrast, marketers tend to have less challenges selling a physical
product with physical attributes that customers can inspect before buying.
Inseparability Services are consumed at the time of purchase. Inseparability means it is not
possible to separate the production and consumption of a service. Marketers strive
to ensure the staff are well trained at providing outstanding and consistent customer
services.
Heterogeneity It is common to mass produce standardized (homogeneous) goods such as
smartphones, books or soft drinks. However, services are heterogeneous because
the experience is different for different customers. If customers experience poor
customer service, they will opt to use the services provided by other providers.
Perishability Unlike goods, services cannot be stored. By contrast, most goods are durable to
some extent.
, Product Strategy Many businesses provide value-added services to attract customers. Service
companies also have to decide on whether their offerings will be standardized or
customized.
Price Strategy As people are a fundamental aspect of marketing services, the cost and hence the
price can to be quite high. A challenge for marketers is to get the right pricing
strategy for a service that appeals to customers, covers costs of production and
generates profit for the business. The pricing decision depends on the source of
value to customers.
Promotional Strategy Promoting a service can be a challenge for marketers as it is intangible. Businesses
often use the physical environment to promote their services so that customers can
visualize the quality of the service being provided. Other common promotional
strategies include the use of branding, slogans, logos and celebrity endorsements.
Place Strategy The location decision is vital for the marketing of services as customers are unlikely
to visit restaurants, hotels, theatres, banks and retailers in highly inconvenient or
remote locations.
Market Orientation a marketing approach used by businesses that are outward looking. They focus on
making products that they can sell, rather than selling products that they can make.
Market orientation focuses on the customer in order to identify, design, develop and
supply products that meet their needs and wants. Such information can be gathered
from market research and the pricing decision is taken after considering information
about customers, such as their level of income.
The two main advantages to a business in being market Greater Flexibility and Lower Risk
orientated are?
Greater Flexibility Firms can respond quickly to changes in the market as they have access to relevant
data and information about customers. Market orientated businesses are also more
able to anticipate changing market trends and hence prepare for such changes.
Lower Risk Market orientated firms can be more confident that their products will sell and be
more successful. Without proper market research and analysis, the cost of
marketing a product is much more likely to be a gamble.
Main disadvantages of market orientation It can be very expensive.
In addition, given the dynamic nature of the business environment and the
uncertainty of the future, there is no guarantee that this approach will work.
