Summary
micro business 1 marketing/management summary
- Course
- Institution
samenvatting van micro business 1 management in marketing
[Show more]
Seller
Follow
lucvanpol
Content preview
SummaryChapter 1: Marketing principles and society
- 1.1: what is marketing?
Definition: marketing is the management process responsible for identifying,
anticipating, and satisfying customer requirements profitably.
The difference between customer and consumers: the customer is the one who buys
the product and the consumer is the one who uses the product.
The difference between market orientation and marketing orientation: a company
with a marketing orientation is a company that recognizes the importance of
marketing within the company. A market orientation not only involves marketing,
but it also involves:
1. Customer orientation: creating superior value by continuously developing
offerings to meet customer needs
2. Competitor orientation: understanding of the short-term and long-term
strengths and weaknesses
3. Interfunctional coordination: requires all functions of an organization to work
together for long-term profit growth.
What do marketers do? Look at fig. 1.1 on page 9:”a functional map of marketing.
- 1.2: the principal principles of marketing
Marketing involves series of highly complex interactions between individuals,
organizations, society and government.
There are some generalizations that apply to all 4:
1. Advertising has a direct and positive influence on total industry (market) sales. All
advertising done at industry level serves to increase sales within that industry
2. Selective advertising has a direct and positive influence on individual company
(brand) sales: advertising undertaken by a company tends to increase the sales of the
particular brand for which it was spent.
3. The elasticity of selective advertising on company (brand) sales is low (inelastic): for
frequently purchased goods, advertising has only a very limited effect in raising sales.
4. Increasing store shelf space (display) has a positive impact on sales of non-taple
grocery items, such as products bought on impulse (e.g. ice cream) rather than those
that are planned ourchases. Which are less important, but perhaps more luxurious.
With impulse goods, the more shelf space you have, the more likely you are to sell it.
5. Distribution has a positive influence on sales, the more outlets a company has, the
more sale they get.
, Marketing is two-way exchange process. Marketers sell the product and customers
buy them. Marketers can’t read customers minds, so customer have to specify.
The marketing mix and the 4 p’s:
1. Product
2. Price
3. Place (distribution)
4. Promotion
- 1.3: the extended marketing mix
There are added another 3 p’s to reflect the need to market services differently:
5. Physical evidence: the tangible components of services are strategically
important
6. Process: emphasizes the importance of the service delivery.
7. People: emphasizes the importance of customer service personnel, sometimes
experts and often professionals interacting with the customer.
Chapter 2: understanding customers behaviour
- 2.1: Consumer proposition acquisition
6 stages:
1. Motive development: identifying the need
2. Information gathering: two types: active (overt search) or passive. Search can be
internal (we know enough information) or external (we don’t know enough
information)
3. Proposition evaluation: ‘’consideration stage’’ evoked set (list of choices)
4. Proposition selection: different options can be available
5. Acquisition / purchase: selection has taken place, but different approaches to
purchasing might exist. (the purchase can be routine or specialized).
6. Re-evaluation: there can be a difference between expectations and reality: Cognitive
consonance vs cognitive dissonance (agreement vs disagreement). To reduce
dissonance we try to neutralize it by selectively forgetting information, denial or
minimizing importance. We select only information that support our own choice.
- 2.2: perception, learning and memory
Perception = a mental picture based on existing attitudes, beliefs, needs and stimulus
factors and factors to our situation
Perceptual mapping is used to display how people think about particular offerings.
Think-feel (rational vs emotional) and high-low involvement
, 3 theories of human learning:
1. Classical conditioning: we lean by associating one thing with another. This approach
is frequently used in marketing (e.g. perfume: samples so you associate the
advertisement with the smell).
2. Operant conditioning: the typical in-store sales promotions (e.g. letting customers
taste a sample of yoghurt: costs no time and money so they’ll try it).
3. Social learning: we learn by observing other people’s behaviour, usage of role
models.
- 2.3: influence of buying behaviour
Motivation: a logical tool to understand how we prioritize our own needs and therefore
buy what we need.
Maslow’s hierarchy of needs: fig.2.3 p. 46
Theory of planned behaviour: this theory explains that behaviour is brought by our
intention to act in a certain way.
- 2.4: organizational buyer behaviour
About satisfying organization-wide needs and hence requires marketers to adopt
processes that take into account the needs to different people, not a single individual.
Decision making unit (DMU) or buying centre is the group of people involved in
organizational purchasing processes.
6 memberships:
1. Initiators: start the whole process by requesting the purchase of an item. They may
also assume other roles within the DMU or wider organization.
2. Influencers: very often help to set the technical specifications for the proposed
purchase and assist the evaluation of alternative offerings by potential suppliers.
They can also be consultants hired to complete a particular project.
3. Deciders: the ones who make the purchasing decisions. They are the most difficult to
identify, because they don’t have the formal authority to make the purchasing
decisions, yet they are sufficiently influential internally that their decision carries the
most weight.
4. Gatekeepers: have the potential to control the type and flow of information to the
organization and the members of the DMU. Can be assistants, technical personnel,
secretaries or telephone switchboard operators.
5. Users: literally use the product once it has been acquired and they will also evaluate
its performance. Sometimes, they are also involved in the specification process.
6. Buyers: select suppliers and manage the process whereby the required products are
produced. They may not decide which product is to be used. They will assume the
role of an initiator and a buyer.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lucvanpol. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.78. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
64450 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 15 years now