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1

Consumer buying behaviour

  1. Cognitive paradigm-outcome of rational decision-making process
  2. Learned behaviour-Importance of past purchases
  3. Habitual decision making-habit and brand loyalty

2

Consumer decision -making model

Lancaster and Withey:5 steps

  1. Need/problem recognition
  2. Pre-purchase -info search
  3. Evaluation of alternatives
  4. Purchase decision
  5. Post-purchase evaluation

Useful descriptive framework fro marketers

3

Influences on consumer buying behaviour

Lancaster and Withey:

  1. Social factors;reference groups,family,roles and status.
  2. Cultural factors: cultural,sub culture,social class(values,attitudes,beliefs)
  3. Personal factors; age/life cycle stage,occupation,economic circumstances,lifestyle,personality
  4. Psychological factors:Motication,leaning,perceptions,beliefs,attitudes

4

Motivation Maslow and Herzberg:

Inner state that energises,activates,moves,directs,channels

Maslow:Hierarchy in their order of importance

  1. physiological needs
  2. Safety needs
  3. social needs 
  4. esteem needs 
  5. self -actualisation needs

Herzberg:Two factor theory

  1. Cause disatisfaction(markters goal -avoid disatisfiers-eg poor after sale service)
  2. Cause satisfaction(identify major datisfiers or motivators)

5

Organisations as buyers-characteristics:

  1. More rational than consumer
  2. Fewer buyers
  3. Close relationship buyer seller
  4. Demand for industrial goods is derived from demand for consumer goods-price inelastic
  5. Purchase decision -by consensus

6

Typical org buying process ;stages 

  1. Recognise the problem (from within or out)
  2. Develop product specifications or service requirements to solve the problem.
  3. Search for products/suppliers(trade shows,trade publications,supplier catalogues ect)
  4. Evaluate products relative to specifications( also evaluate supplier -price,service and ability)
  5. Select and order the most appropriate product
  6. Evaluate the product and supplier performance. 

7

The decision making Unit in the org (DMU)-Groups withing the DMU

  1. Initiatiors(define purchase characteristics)
  2. Buyers (formal authority for selection of suppliers)
  3. Influencers(input in alternatives,helps initiator)
  4. Gatekeepers(stop sellers from reaching individuals)
  5. Users
  6. Deciders (decide on product requirements)
  7. Approvers

8

Selection criteria :How org buyers make the purchase decision

  1. Delivery capability
  2. Quality
  3. Price
  4. Repair and after sales service
  5. Technical capability
  6. Performance history
  7. Production facilities
  8. Help and advice
  9. Controls systems
  10. Reputation
  11. Financial position
  12. Attitude towards the buyer
  13. Compliance with bidding procedures
  14. Training support
  15. Communication on the progress of the order
  16. Mngt and organisation
  17. Packaging 
  18. Moral/legal issues
  19. Location
  20. Labour relations

9

Key difference between B2G and B2B?

B2G:

  1. Contract determinded by a tendering process
  2. Longer duration
  3. Greater amount of value
  4. Might be pre determined
  5. Lower profit margin (possible)

10

Lancaste and Whithey_Typical exchanges between public sector and their customers:

  • University provides edu in exchange of fees and time 
  • Council :local services in exchange tax and votes

If an exchange is taking place there is room for mkt

11

Dibb et al: NfP need to consider their mkt obj ,target markets,marketing mixes and how they will control mkt activities.Elaborate:

  1. Objectives: Measured on the response recieved by the target markets->open and honest how it managed budget and allocated funds.Efficiency and effectiveness very important
  2. Target mkt: Bruce 3 types of customers for charities:
  • Beneficiaries :those who receive benefit support  & who benefit from lobbying and publicity
  • Supporters: Provide money ,time,skill
  • Regulators :Charities commission and local authorities ,residents  association(form+inf)

 3.Deal more often with services->extended mix

  • Process: eg direct debit pay for counsil tax reduces adm cost
  • People: employed +volunt->should be good and caring when dealing with their clients
  • Promotion: personal selling with street corner and D2D collections,ads for large charities,direct mkt is growing,sponsorship ect
  • Pricing: value for money important,opportunity cost
  • Appearance: should be business like
  • Distribution channels:shorter with fewer intermediaries than profit making

4. Control: proceeding as planned,compare donations with expences 

12

NGO s :Definition and examp

  • Private sector,voluntary orgs.
  • Participate in : training or other humanitarian activities
  • ISO,wwf,Amnesty international

13

Charity mkt mix:

 

  1. Price: important to larger charities,goods and services:largest single source of income
  2. Processes: customer friendly
  3. Place: Distribute physical goods challenging-fund distribution short and easily managed (eg online donation)
  4. Product :cause it supports and the help it provides

14

Internal mkt-Peck et al:

  • Creating,developing,maintaining and internal service culture and orientation which in turn assists the org to achieve its goals
  • All employees can develop and understanding of how their tasks and the way they perform them create and deliver customer value and build relationships.

15

Implementing internal mkt-Peck et al

  1. Org design: key empl together
  2. Regular staff surveys
  3. Internal customer segmentation
  4. Personal dvt and training ;(focused on core competencies for internal mkt)
  5. Empowerment and involvement (at employees discretion to deliver better service)
  6. Recognition and rewards
  7. Internal communications(awarenes of the role and contribution)
  8. Performance measures
  9. Building supportive working relationships

16

Internal mkt mix-Jobber

  1. product: mkt plan,values,attitudes,actions
  2. price:what intern customers are being asked to sacrifice as a result of accepting the mkt plan
  3. promotion: Communication media and messages,understandable
  4. place: How product is delivered (meetings,seminars ect)

17

18

19

Segmentation of internal markert

  1. Supporters(likely to gain or committed)
  2. Neutrals(both gains and losses from the plan)
  3. Opposers: (likely to loose)

20

Christopher et al's method of segment

  1. Contactors:(frequent contact with customer-well versed to the mkt startegies and motivated to serve customers in a responsive manner-sales people,customer service)
  2. Modifiers:Not directly involved,need to have a clear view of the mkt startegy
  3. Influencers:Involved with traditional elements of mkt but not customer contact
  4. Isolated: Support functions (neither direct customer contact nor mkt input-need to be sensitive to the needs of internal cust,Gummesso-->part time marketers

21

The importance of internal customer communication:

  • Employer branding(attract quality candidates)
  • Employee communication and involvement (helps task performance and decision making,employees identify with theh org by sharing mkt info)
  • Employee relations: Aims of employees relations according to Armstrong
  1. Stable and cooperative relationships with employees
  2. Commitment
  3. Developing mutuality

22

Challenges to internal communication:

Jones and Cheeseman-challenges:

  1. Flatter mgt structures(more emplo reporting to one manager
  2. Downsizing 
  3. Teleworking and virtual teams
  4. Globalisation(diverse workforces and culturally distinctive -barriers to mass communication)

23

Email as internal communicatiom

Advantages:

  1. Sent and received quickly
  2. cheap
  3. Hard copy printed
  4. Worldwide any time (24-7)
  5. Attach complex docs
  6. Email mgt software(outlook)multiple recipients,address book ,filing

24

Intranet-uses :

  • Combination of networked computers and web tech.
  1. Performance data (database and reporting systems to fulfil work objectives)
  2. Employment info
  3. Employee support /info
  4. Notice boards
  5. Dpt home pages
  6. Bullentins and newsletters
  7. Email facilities
  8. Upward communication
  9. Individual personnel files

25

Benefits of intranet:

  • Cost saving(avoid printing)
  • More frequent use (search ,update)
  • Wider access to corporate info
  • Virtual team working

26

Team meetings:

  • Information exchange
  1. Ideas generation
  2. Problem solving and conflict resolution
  3. Decision making
  4. Facilitates persuasion
  5. Cooperation
  6. Human face of an org
  • Developing relationships
  1. ​brainstorming-Promotion planning or customer care improvement
  2. Customer complaint handling
  3. Decide plans and allocate roles and tasks 
  4. Sales negotiations
  5. Cross-functional team meetings,briefings,project meetings
  6. Personal customer service

27

Grapevine inetrnal communication

  • Friends,colleagues,contacts
  • Disadvant:inaccurate ,subjective
  • Adv:fast,effective delivery

28

Marketing decisions:Classification accrording to ethics and legality:

  • Ethical and legal(print on recycled paper.
  • Unethical and legal(targeting young adults in alcopops ad campaign)
  • Ethical but illegal (publishing stolen but revealing docs about mis selling)
  • Unethical and illegal:(imitation goods as designer brands)

29

Important considerations an ethical org will make:

  1. Whether its advertising is fair,balanced,truthful
  2. Who does it sell to -marketing aimed at
  3. Are its products appropriate ,safe,environmentally friendly?
  4. How does it deal with unhappy customers
  5. Does it exploit anyone in its advertising or pricing startegies?

30

Benefits to socially responsible and  ethical org:

  1. Competitive advantage
  2. Greater revenue
  3. Reduced costs(recycling)
  4. Positive publicity(before any regulation comes to force).