Concepts Flashcards
Production concept
When a company mainly focuses on efficiency and the production and how to make the produce the product as best as possible.
Product concept
As competitors grow the focus shifts from production to the product, innovating and creating the best possible version of the product. Companies should be careful while using this concept as it can easily lead to marketing myopia.
Selling concept
Focuses on sales efforts, according to this concept the only way to actually profit and make sales from a product is through heavy promotion. takes an inside out perspective because it focuses on the company then customers
Marekting concept
focuses on the wants and needs of the target market and delivering the desired satisfaction better than competitors can. Takes an outside in perspective because it starts with the customers then the company.
Societal marketing concept
idea that the company’s marekting choises should consider the customer wants, company’s requirements, customer long-tern interests as well as society’s long term interests
Partner relationships management
PRM: managing the relationship between the members of the supply chain or members in the company. This is key for a successful value delivery network and delivering customer value.
Customer relationships management
CRM: mananging and maintaing customer relationships and prioritising their loyalty is the best move for the company since loyal customers are the best marketing tools. In order to do this the priducts need to match the expectations of the customers and neither exceed them nor not be able to meet them.
Experience curve
Product life cycle
PLC consists of multiple steps:
Prodcut development: the rpduct is being developed and costs a lot, no sales or profit in this stage.
Introduction: here the product is being introduced to the market and tries to establish a strong hold on the market. Lot of investments but no profit and slow sales.
Growth: Here the product is strating to get recognition in the market and establishes a place. Here profits are growing along with sales
Maturity: Here the product has established a place in the marekt and a market share, profits and sales are reaching their peak. Successful products usually stay here.
Decline: the product as reached the end of its cycle and sales drop and fall off
Differentiation
differentiating the market offering to create customer value and a competitive advantage.
Positioning
Positioning the product in a way that it occupies a clear, distinctive and desirable place inrelation to competitors products in the minds of the customers.
micro environment
Factors that affect the company and its ability to serve the customers, that the company can affect as well.
Suppliers:
The company:
Publics: example, media, government, investors
Customers:
Competitors
macro environment
Factors outside of a company’s reach that can have great effect on it. Includes
Demographic: age, family structure, war?
Economical: changes in income and spending routines
Ecological: natural resources needed or affected, environmental sustainability
Polotical and societal: government agencies, pressure groups, legislations or laws that influence or limit organisations. Most companies want to be CSR (corporate social responsibility) and are guided by the social codes of the market.
Cultural: insititions and other forces that influence societys basic values, perceptions, preferences and behaviour. Core beliefs - last a lifetime not easily changed, secindary beliefs - easily changed. Media is an example.
Marketing process
- understanding the marketplace, customer needs and wants through research and managing customer data and marketing information.
- design customer driven marketing staregy. Companies as themselves What custoemrs will we serve and how do we serve them best (segmentation and targeting)
- Constructing a marketing program using the marketing mix (product, price, promotion, place)
- CRM: building strong relationships and creating customer delight in order to inspire high profit and high loyalty from customer. Also entails PRM.
- the 4 steps before this was to create value FOR customers but the 5th step is where the company gets ROI and captures value FROM customers by creating loyal and satisfied customers. This then leads to capturing customer lifetime value and then earning greater share of customer and thus share of makret.
Consumer buying behaviours
Complex buying behaviour: occurs when consumers have high involvement in a product or service and there are significant differences between the brands that offer it.
Dissonance-reducing buying behaviour: occurs when consumers have high involvement in a product or service and there are few significant differences between the brands that offer it.
Habitual buying behaviour: occurs when there is low involvement in a product or service and there are few significant differences between the rbands that offer it.
Variety-seeking behaviour: occurs when there is low involvement in a product or service and there are significant differences between the brands that offer it.
