MG1006 1,2,3,18,19,20 Flashcards
CHAPTERS 1,2,3,18,19,20
what is the marketing concept
The achievement of corporate goals through meeting and exceeding customer needs better than the competition
CORE PRINCIPALS OF MARKETING
Integrated effort
Search for latent
Market Goal achievement
Customer focused
1935 MARKETING DEFENITION
Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers
1985 MARKETING DEFINITION
Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives
2004 MARKETING DEFINITION
Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders
2007 MARKETING DEFINITION
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
WHY DO WE NEED MARKETING
Because it is the management process that helps to identify, anticipate what the customer wants and needs.
BASIC ELEMETS OF MARKETING ORIENTATION
Potential market opportunities
Customer needs
Marketing products and services
Customers
Production orientation:
Production capabilities
Manufacture product
Aggressive sales effort
Customers
MARKET FOCUS 7 DIFFERENCES
FAST
EFFICIENT AND EFFECTIVE
STRIVE FOR COMPETITIVE ADVANTAGE
WELCOME CHANGE
TRY TO UNDERSTAND COMPETITION
INNOVATION REWARDED
MARKETING SPEND REGARDED AS AN INVESTMENT
INTERNAL FOCUS 6 DIFFERENCES
WHY RUSH
EFFICIENT
HAPPBY TO BE ‘ME TO’
CHERISH STATUS QUO
IGNORE COMPETITION
INNOVATION PUNISHED
MARKETING SPEND REGARDED AS A LUXURY
The development of marketing: FOUR PERIODS
Production Period (1890s-1920s)
Sales Period (1920s-1950s)
Marketing period (1950s-1980s)
Societal marketing period (1980s to present)
why study consumer behaviour?
understand customers needs
knowing how they make choices
how to influence their purchasing choice
what are the purchasing roles/ DMU (CONSUMER)
intiator
influencer
decided
buyer
user
who begins the process of considering a purchase.
initiator
Who attempts to persuade others in the group concerning the outcome of the decision. They typically gather information and attempt to impose their choice criteria on the decision.
influencer
who has the power and/or financial authority to make the ultimate choice regarding which product to buy.
decider
who conducts the transaction. They call the supplier, visits the store, makes the payment and effects delivery.
buyer
who is the actual consumer that will use the product
user
what are the process in the consumer decision making
need recognition/problem awareness
information search
evaluation of alternatives
purchase
post-purchase
what happens in the process of Need recognition/problem awareness
Consumers awareness of needs and goals which need to be satisfied.
Requires consumers to have an awareness of their own needs and requirements.
what types of information search are there?
internal search
external search
what happens in the process of information search?
Search for information or consumption behaviours which can address the problem identified.
what happens in the process of Evaluation of alternatives?
Determination of most suitable consumption solution among an array of options.
high involving decision context is when….
, the consumer is more likely to carry out extensive evaluation. High-involvement purchases are likely to include those incurring high expenditure or personal risk, such as buying a car or a home.
low involvement decision contexts is when…
Consumers use simple choice tactics to reduce time and effort rather than maximize the consequences of the purchase
what happens in the purchase process DMU?
At this stage the choice product is purchase
what happens in the post-purchase evaluation process?
Considering whether the product actually satisfied the need or not and whether there were any problems arising from its purchase and consumption.
what is marketing planning?
This is a sort of corporate strategic planning which involves all business units
The core function of a marketing plan is to answer what questions?
1- where are we now
2- where would we like to be
3-how do we get there
4-are we on course
what is the marketing planning at the business level. (4)
business mission
market audit
swot analysis
marketing objectives
what is the marketing planning at the product level
-core strategy
-competitive advantage
-marketing mix decisions
-organization and implementation
-control
what is the vision statement
looks into the future. What is it that the business wants to achieve. Is goal
what is the mission statement?
A broadly defined, enduring statement of purpose that distinguishes a business from other of its type. (Ackoff)
what is the marketing audit?
- Is a systematic examination of a business’s marketing environment, objectives, strategies and activities, with a view to identifying key strategic issues, problem areas and opportunities.
- The marketing audit provides the basis for developing a plan of action to improve marketing performance.
SWOT anaylisis stands for?
strengths, weakness, opportunities and threats
example of a strengths
strong branding, expertise, financial resources, market share, process capabilities
example of weaknesses
financial constraints, poor supply chains, weak branding, poor management, resource deficits
example of opportunites
rapid market growth, changing market trends, economic boom, government deregulation, weak competitors
example of threats
new competitors entering market, substitute products, changing consumer preferences, economic downturn
swot internal
(controllable)
S AND W
SWOT external (uncontrolable)
O AND T
What are the two levels in Marketing objectives used in marketing planning
strategic thrust objectives
strategic objectives
What are strategic thrust objectives?
they shape the directions of the plan, like what product to sell
What are strategic objectives?
they set objectives for individual product
objectives SMART stands for?
specific, measurable, actionable, realistic, timely
what are the core marketing strategy?
This focuses on how objectives can be accomplished. There are three key elements to consider: target markets, competitor targets and establishing a competitive advantage
what are the three key elements to consider in the core marketing strategy:
-target markets,
-competitor targets
-establishing a competitive advantage
what are the benefits of marketing Planning?
-Consistency
-Monitoring of Change
-Encourages Organizational Adaptation
-Resource Allocation
-Identification of Sources of Competitive Environment
what does PEST analysis stand for?
political
economical
ecological
socio-cultural
technological
marcroenvironment is?
The major uncontrollable, external forces, which influence a firm’s decision making and have an impact upon its performance.
micro environment is?
It consists of those organisations that either directly or indirectly influence an organisation’s
what are the key actors in the microenvironment?
suppliers
distributors
competitiors
customers
what are the five factors in “porter’s five forces”?
-Competition in the industry
- Potential of new entrants into an industry
- power of suppliers
-power of customers
-threats of substitutes
What is the BCG matrix
It is a planning tool that uses graphical representations of a company products and services so that it helps the company decide whether they should sell, keep or invest
What are the 4 BCG categories?
Dogs
stars
cash cow
problem children
Low growth, low share businesses/products
May generate enough cash to maintain themselves but are not that promising
Cash neutral this is …
dogs
Low growth, high share businesses/products
Are established and successful so need less investment to hold their market share
Milking it - produces cash to support SBUs
Cash generator
THIS IS….
cash cows
High growth, high share businesses/products
Often need heavy investment to finance their rapid growth
When growth slows down -> cash cows
Cash neutral
THIS IS…
stars
Low share businesses/products in high growth
markets
Require cash to hold their share (and more to increase it)
Can build into stars but could choose to phase them out
Cash user
THIS IS….
problem children or question marks
what are the Porter’s five forces ?
Separate threats factors that can impact a business growth
