Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following best defines marketing, according to CIM 2015?

1. A process that regulates production

2. A management process that satisfies customer needs profitably

3. A way to reduce costs

4. A strategy for increasing market share

The correct answer is: A management process that satisfies customer needs profitably

The definition of marketing according to the Chartered Institute of Marketing (CIM) emphasizes that it is a management process focused on satisfying customer needs in a way that is profitable for the organization. This definition highlights the dual objectives of marketing: meeting the desires and expectations of customers while also ensuring that the business can operate successfully and sustainably. Marketing is not merely about selling or promoting products; rather, it involves a comprehensive approach that includes understanding market research, consumer behavior, product development, and pricing strategies, all aimed at delivering value to customers. By prioritizing customer satisfaction and profitability, marketing plays a crucial role in driving the long-term success of a business. In contrast to the other concepts presented, the notion of marketing as a way to reduce costs or merely a strategy for increasing market share misses the holistic approach that marketing takes. While these aspects can be elements of a broader marketing strategy, they do not capture the essence of what marketing fundamentally is according to CIM. Similarly, defining marketing solely as a process that regulates production overlooks the customer-centric focus that is paramount to effective marketing practices.