Week 1 Flashcards
(11 cards)
Market(s)
=> Where things are bought and sold - PLACE where buyers meet sellers
=> Its about attracting customers, serving them well and making a profit.
=> DIF Types of markets:
(1) B2C
(2) Industrial markets
(3) Non profit
(4) Government Markets
(5) Reseller Markets
(6) Overseas Markets
(7) Internal markets
(8) B2B
MARKETING
Is the ACTIVITY,
set of institutions, and processes
- for creating, communicating, delivering and exchanging
-products/service that have value for customers/society
How did if all ( the marketing environment) start?
→ Marketing really started and boomed after WW2. People start to demand new and more things and with more and more people entering markets it was essential to market products well.
Marketing activities/tasks
(1) Marketing research→ Looking at where and who we are right now (SWOT, PESTLE etc)
(2) Objective Setting → Where and who we want to be (making missions, visions, SMART goals etc.)
(3) Marketing Tasks → Setting up a plan on how you’re going to make it happen (maybe through STP or 4Ps)
(4) Feedback → How will you keep track of things and improve?
Some Marketing tasks include:
(a) Promotion
(b) Sales
(c) Pricing
(d) Distribution
(e) Product management
(f) Branding
(g) Planning
(h) Staff/training
(i) Customer service/management
(j) Market entry
Development of Marketing
→ In the past few decades marketing has developed a lot, which is why experts need to continuously stay on track with newest developments and trends. Below are some differences:
Types of Orientation
(1) Production Orientation → a company that chooses to ignore their customer’s needs and focuses only on production efficiency, they want to minimize costs as much as possible by bulking (and therefore getting discounts) and have an optimal product range
(2) Product Orientation → focuses on the quality of the product rather than the needs/wants of the target market to increase sales. They want good quality, the best product and best characteristics.
(3) Sales Orientation → focuses on convincing customers to buy its products/services without taking into account their actual needs. They invest a lot in training, offer many deals, good quality products and always look at how they can make the most sales.
(4) Market Orientation → focusing on identifying consumer needs/desires to define new products to be developed. They also focus a lot on their competitors, take market research seriously and care to
improve customer satisfaction, loyalty and fulfil needs continuously.
(5) Societal Marketing Orientation → Focuses on the long-term well-being of all consumers. They also care heavily about environmental issues, sustainability, social impact and philanthropy.
PRESTCOM
(1) Political → stability, imports, exports, views on the market, policies, orientation of govt and other govt (2) Regulatory → laws (and changes), new legal institutions, changes in regulations
(3) Economic → trade cycle, availability of credit, business tax, import tariffs, inflation etc.
(4) Social → population, religion, lifestyle changes, age profiles, cultural differences, gender etc.
(5) Technological → changes in transport, medical, communication, tech innovation, research, green tech
(6) Competition → direct (coke vs pepsi), indirect (jacket vs shoe) main competitors, monopolies etc. (7) Organisation → R&D, finance, budget, reputation, staff turnover, quality of personnel
(8) Market → motivation to buy, purchasing decisions, brand loyalty, media habits, changes in fashion
PREST Macro Environment
→ Macro consists of the larger societal forces that affect the microenvironment: demographic, economic, natural, technological, political and cultural forces
P→ (a) Government (b) Special interest, lobbying, pressure groups (c) Trade unions (d) political parties R→ (a) Laws (b) Codes of practice (c) Customary practice
E→ (a) Economic indicators (b) Interest rates (c) Inflation
S→ (a) Population growth (b) demographic trends (c) Attitude changes (d) Patterns of behaviour
T→ (a) Improvements in tech infrastructure such as information, communication, transportation, production
COM Micro Environment
→ Micro consists of the actors close to the company that affect its ability to serve its customers :the company, suppliers, marketing intermediaries, customer markets, competitors and publics C→ (a) direct competitors (with similar products) (b) Close competitors (with alternative products) (c) Substitutes (products with similar functions) (d) Indirect products (replacing the product)
O→ (a) Internal environment of the organisation such as staff, skills, finance, location, image etc. M→ (a) Looking at customers needs, tastes, purchasing behaviour, product use behaviour etc.
The 3 C’s
(1) Country → History & geography
(2) Currency → Stability
(3) Culture → + subcultures
SWOT Analysis
→ A business tool that helps an organisation assess its competitive advantages in the marketplace and understand its external environment. Internal = can be influenced by the business, External = outside changes that there’s no control over but a business can respond to it properly.
(1) Strengths (internal) → What do you do well? What do customers think is good? What advantages? (2) Weaknesses (internal) What are the complaints received? When is the business vulnerable? (3) Opportunities (external) → What opportunities can the project open up? What does the market tell us? (4) Threats (external) → Can the project negatively affect the day-to-day business? Are there roadblocks to overcome?
Shortcomings include that it can be outdated very fast. There can be a lack of focus and a lot of bias.
