Chapter 5.3 Flashcards
Financial function
Aimed at the acquisition, utilisation and control of the funds necessary for running the business
Purchasing function
Ensures that the materials necessary for production are brought at the right place, times, quantities at the right places
Public relations
The public relations function maintains and cultivates a favourable and objective image of the organisation among those whose opinions are important to the achievement of the business objectives
The administration function
The administration function makes available internal information for planning and control
The marketing function
The only function that has the main aim of generating an income through its actions
General management
It includes activities of persons in managerial positions
Extending the offer to the market
-Repeat customers can be much more profitable for a company than customers who buy the market offering once only.
-Relationship marketing:
-It also seeks to build long-term relationships with customers by providing consistent satisfaction and, in the process, meeting the company’s objectives.
-The four marketing Ps alone are therefore insufficient to guarantee full consumer satisfaction.
Relationship marketing
Defined as a form of marketing that includes marketing activities aimed at developing and maintaining trust.
The four marketing Ps
-product
- place
-promotion
- price
An extended market
-Current customers
-Potential customers
-Suppliers
-Potential employees
-Reference groups
-The influencers
-Current employees
Defining marketing
Marketing is a combination of management tasks and decisions aimed at meeting opportunities and threats in a dynamic environment. It is done in such a way that its market offerings lead to the satisfaction of consumer needs and wants, so that the objectives of the enterprise, the consumer and society are achieved.
The marketing process
Its more complex and entails analysing marketing
opportunities, selecting appropriate target markets, developing the most suitable marketing mix for these segments, and managing the marketing efforts through implementation and control activities
Marketing management activities
-Compiles marketing data
-Chooses a specific target market
-Decides on specific distribution channels
-Decides on marketing communication methods
-Identifies opportunities and threats
Strategic marketing management
-It includes the decisions the marketing department will make with a view to long-term growth and survival in a competitive environment.
-Its a continuous process that mainly (but not exclusively) takes place at top-management level
strategic business units
A SBU directs its product offering at a specific market and manages the production, distribution and marketing communications function with a degree of independence
A strategic fit
the degree to which an organisation matches its resources and capabilities with the opportunities in the external environment
Strategic marketing
-Seeking opportunities on an ongoing basis
-Involves a high degree of creativity and originality
-Proactive perspectives
-Deals with activities of the SBU’s
Marketing management
-Seeking opportunities on an ad hoc basis
-Pursues interests of the marketing department
-Involves reactive perspectives
-Deals with running the marketing of SBU’s
