BUSINESS INTRODUCTION TASK
SESSION 10
1. Explain various concepts in marketing! Why does a company need to know their market?
Answer:
• Production Concept
The production concept assumes that consumers are interested in buying
products because they are cheap.
• Product Concept
The product concept assumes that consumers are interested in buying products
because of product quality.
• Sales Concept
The selling concept assumes that consumers will buy the product because of the
company's promotions.
• Marketing Concept
The Marketing Concept assumes that the company's profit must be achieved
through customer satisfaction.
The marketing function is carried out after the production/operation process. In order
for marketing activities to run efficiently and effectively, a marketing plan is needed.
2. Explain about marketing aspects! Which aspects are most important for SMEs?
Answer:
• Market needs and wants
Needs are a sense of deficiency that needs to be met by goods or services.
• Market growth
Will consumer needs and wants be met? It depends on how big the market is
and the growth of the market.
• Market segmentation
In order to serve the needs and wants of the market well, companies need to
segment the market. Market segmentation is the process of grouping heterogeneous
markets into homogeneous markets using certain techniques.
• Gross profit
There are several concepts of profit, namely gross profit and net profit. Gross
profit is the difference between sales and cost of goods sold. Gross profit will increase
when sales increase while cost of goods sold remains or sales remain while cost of
goods sold decreases. The task of marketing is to encourage increased sales in order to
increase profits. Determination of the target market (market targeting) or target market
is the process of selecting market segments to serve as markets to be served.
• Utilities
Utility is defined as the use value of the product (goods or services) that is felt
by someone who consumes the product. Based on the types of products, there are
several types of utilities, namely place utility, form utility, time utility, ownership utility
and service utility.
• Customer value
The essence of goods/services is value.
• Market share
Market share is the share of the market controlled by the company. Market
share is calculated by dividing company sales and industry sales.
In my opinion, everything is important for SMEs. But the most important is market needs and
wants, market segmentation and utilities
3. Explain the function of marketing for large industries and SMEs!
Answer:
• Merchandising
Merchandising is concerned with producing the right item at the right time in
the right quantity, at the right place at the right price.
• Purchase and sale
Business insiders buy to increase sales or lower costs. Purchasing agents are
heavily influenced by quality, service and price. The products that retailers buy for
resale are determined by the needs and preferences of their customers. The factory
buys raw materials, spare parts, machinery, equipment, and others to carry out the
production process and other related activities. Wholesalers buy products for resale to
retailers.
• Selling function
The selling function is the core of marketing. This relates to potential buyers to
actually complete the purchase of a product. Selling involves transferring ownership of
the goods to the buyer. Selling plays an important role in realizing the company's
ultimate goal of profit. Sales are increased by means of personal selling, advertising,
publicity and sales promotion. The effectiveness and efficiency of sales determine the
volume of profits and profitability of the company.
• Transportation
Transportation is the physical means by which goods are moved from the place
where they are produced to the places where they are needed for consumption.
Transportation creates the utility of the place. Transportation is very important from the
procurement of raw materials to the delivery of the finished product to the customer's
place. Marketing relies on railroads, trucks, waterways, pipelines and air transport.
• Storage
Storage involves holding goods in the right condition (eg, fit for use or sale) from
the time the product is produced until it is purchased by the customer (if the product is
finished) or further processed by the production department; or stored and displayed by
the retailer to make a profit. Goods can be stored in various warehouses located in
different places, this condition is known as warehousing.
4. How do you view the market strategy? What is the urgency and relevance for business entities?
Answer :
A market strategy is needed so that the business continues to run, and are economic
steps that must be taken by business actors so that the value of their products increases.
