Marketing: Study Guide

1.1)1. Production orientation- The business simple does not take notice of the needs of the costomers the business only focuses on developing a better service or product.

Sales orientation- The main focus of the company is energetics sales techniques

Marketing orientation- Where the company focuses on identifying the consumer needs and then doing everything in their power to satisfy the costomer needs as efficiently and effectively as possible.

1.1)2. Monetary costs- This is the actual price of the product or service as well as cost of ownership , the cost of using the product or service and the maintenance cost. Example. Buying a new blade for your lawn mower, because the blade is maintenance.

Time and energy cost- Waiting in

Example. Tarrifs or fees.

1.1.3) Monopoly- A single market that markets a single product with no substitudes. Example. Eskom

Oligopoly- Is made up out of a few different companies that markets products that are either homogeneous or differentiated

Monopolistic competition- A lot of companies who are marketing more or less the same product , but the product differentiats.

Question 2

2.1)The threats of new entrants- New compeditors enter the market and rise the level of competition and the company’s profits and market shares are more vulnerable that normaly. For example when Smornoff introduced their new cider the Smirnoff Spin , people bought a lot more of that , so savanna was taking a dip in sales.

Bargaining power of suppliers- The attractiveness of the market all depends on how hight the bargaining power is. The higher the bargaining power , the less attractive your market

When the bargaining power for buyers is high , then the market will be less attractive. For example Savanna can negotiate for better prices with suppliers of their ingrediants.

Threat of substitude products- A substitude product offers you the same advantages as a similar product. People will start to buy substitude products if the prices are better and the quality is more or less the same than the original product. For example Smirnoff also introduces a similar cider such as the Smirnoff spin. Intensity of rivalry among compeditors- The number of competition in the market is achieved by many factors , such as the amout of businesses who are competitive in the market , the level of difference in products , the market size , and to see if the market is expanding.

2.1) No , I believe that it is unethical , because it gives people the wrong idea. Pregnant women should no be drinking beer because it is bad for their baby. It will maybe give the principal to others that it is fine to drink while