Marketing
What the domain covers
The Marketing domain of the MATSEC Intermediate examination tests whether you can apply the marketing concept rather than only recite definitions. Expect questions on the marketing environment, consumer and organisational buying behaviour, segmentation and positioning, the marketing mix (product, price, place, promotion), market research, and the structure of a marketing plan. Marks go to correct terminology used in context and to the link you show between analysis and a decision.
Core rules
- Marketing is the management process of identifying, anticipating and satisfying customer needs profitably. Needs are felt states of deprivation; wants are culturally shaped; demand is backed by purchasing power.
- A marketing orientation starts from the customer and works back to the product. Production and selling orientations start from what the firm can make and push.
- STP: segment a heterogeneous market on measurable, accessible and substantial criteria; target by attractiveness and fit; position by owning a distinct place in the customer's mind.
- The 4Ps must be internally consistent and aimed at the chosen segment. Price is the only element that generates revenue; the other three are costs.
- Primary data is collected first-hand for the problem; secondary data already exists, is cheaper, but may be outdated or not fit the question.
Worked example
A firm has fixed costs of €20,000, variable cost €8 per unit and a selling price of €12. Contribution per unit = €12 − €8 = €4. Break-even = €20,000 ÷ €4 = 5,000 units. At forecast sales of 6,500 units the margin of safety is 1,500 units and profit = 1,500 × €4 = €6,000. Reasoning: contribution first covers fixed costs, then becomes profit; break-even is where total contribution equals fixed costs.
Traps that cost marks
Calling marketing 'just advertising or selling'; listing the 4Ps without tying them to the chosen segment; confusing market share with market growth; assuming secondary data is always better because it is cheaper; answering a 'discuss' question with definitions but no application.