chapter 12- sustainable marketing Flashcards
Relationship marketing
looks at the customer as an individual and tries to establish a relationship
concerned with lifetime value (LTV)
moved away from focusing on a single sale
customer intimacy leads to collective intimacy
Traditional (transaction) view of marketing
reactive approach to customer complaints
failure to recognise the needs of long term customers
too much money spent on promotion to obtain new customers
inner conflict within departments as production people expect marketers to sell the goods
Fallacies of relationship marketing
customer acquisition is cheap and retention is expensive - long term customers will be less profitable
difficult to influence long-tenure customers
customer satisfaction does not necessarily lead to retention but it does lead to increase customer acquisition through word of mouth
Referral makets
people who might be expected to recommend company to others
Supplier markets
people who provide raw materials and components for the company
shift in view from getting the lowest price to reliability if delivery, zero-fault quality control
Employee markets
need to recruit and train appropriately talented and motivated staff
Influence markets
those individuals who might have influence over the firms activities eg. gov departments, financial institutions
Quality
the relationship between what customers expect and what they get
dependent on what people view as value for money
Total quality management (TQM)
approach to ensure that the firm does the right things at every stage of the production process with the expectation it will result in high-quality outcome
reduced wastage, reduces cost
Marketing ethics- products and promotions
products would be honestly made
promotions can be manipulative and customers can be decieved
marketing ethics- Pricing and distribution
price fixing and predatory pricing sometimes do not reveal the full price
distribution ethics involves abuse of power in channel management
Globalisation
business philosophy under which firms regard the entire planet as their marketplace and source of supply
main drivers for globalisation
increasing economies of scale and scope for firms in the market
convergence of consumer tastes and preferences
rapidly improving communications
increase political acceptance of global trading
continuing growth of large firms
3 stages of globalisation
Ethnocentrism
Polycentrism
geocentrism
Ethnocentrism
home-country orientated
foreign market is secoundary
marketing strategies are hardly adapted at all for the overseas market
