Summary
Summary John Fahy and David Jobber - Foundations of Marketing, 5th edition
- Course
- Institution
- Book
A useful and clear summary of 39 pages. Summarizes chapters: 1-12.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Marketing - Foundations of Marketing - 5th edition (John Fahy and David Jobber)
-
Samenvatting Foundations of Marketing IBK2
-
Foundations of Marketing by John Fahy (1ZAEUA0)
16 reviews
By: rashed-almnhali • 5 year ago
By: aliciacastellanos • 5 year ago
By: linoscar7799 • 4 year ago
By: tomwilliams • 6 year ago
By: jeroen-gerritsen • 6 year ago
By: anatolyibragimovichbaykulov • 6 year ago
By: senasarkaya • 7 year ago
Seller
Follow
TBKLeo
Reviews received
Content preview
Chapter 1 The Nature of Marketing (pg. 2-31)The basic function of marketing is to attract and retain customers at a profit:
1. marketing is placed as a central role for business success since it is concerned with the creation and retention
of customers
2. it is a reality of commercial life that it is much more expensive to attract new customers than to retain existing
ones
3. since most markets are characterized by strong competition, the need to monitor and understand competitors
is high, since it is the rivals that customers will turn if their needs are not being met
Marketing concept (modern) the achievement of corporate goals through meeting and exceeding
customer needs better than the competition
Key components of the marketing concept:
customer orientation: corporate activities are focused upon providing customer satisfaction
integrated effort: all staff accept the responsibility for creating customer satisfaction
goal achievement: the belief that corporate goals can be achieved through customer satisfaction
Customer value perceived benefits minus perceived sacrifice
Perceived benefits can be derived from the product, the associated service and the image of the company. Perceived
sacrifice is the total cost associated with buying the product.
A further key to marketing success is to ensure that the value offered exceeds that of competitors.
The Kano model helps to separate characteristics that cause dissatisfaction, satisfaction and delight (figure on the
right):
Four core forms of customer value:
price value: a product is perceived as being
cheaper than those offered by competitors
performance value: a product is perceived
as being the best than those offered by
competitors
emotional value: a product is preferred by
the customer because of good experiences
or general taste
relational value: the quality of the service
received by the customer plays an
important role
Organizations should try to become a value leader
on one of the four dimensions to gain a customer
value proposition or unique selling point (USP).
Lifetime value of a customer recognition by the company of the potential sales, profits and
endorsements that come from a repeat customer who stays with the
company for several years
Customer Relationship Management systems companies use to get to know their customers better and to
(CRM) interact with them on a regular basis
Value is increasingly being seen as not something is created by organizations for customers but rather something that
is co-created between organizations and customers.
Marketing the delivery of value to customers at a profit
The two core elements of marketing are value and profit.
Page 1 of 39
,Alternative business orientations: production orientation:
Timeline:
product orientation (c. 1930s)
sales orientation (c. 1950s)
customer orientation (c. 1960s and 1970s)
Social marketing concept marketing strategy should deliver value to customers in a way that
maintains or improves both the consumer’s and society’s well-being
Market-driven or outside in firms seek to anticipate as well as identify consumer needs ad build the
resource profile necessary to meet current and anticipated future
demand
Differences between market-oriented businesses and internally oriented businesses:
Market-orientated businesses Internally oriented businesses
Customer concern throughout business Convenience comes first
Know customer choice criteria and match with marketing Assume price and product performance key to most
mix sales
Segment by customer difference Segment by product
Invest in market research (MR) and track market Rely on anecdotes and received wisdom
changes
Welcome change Cherish status quo
Try to understand competition Ignore competition
Marketing spend regarded as an investment Marketing spend regarded as a luxury
Innovation rewarded Innovation punished
Search for latent markets Stick with the same
Be fast Why rush?
Strive for competitive advantage Happy to be me-too
Marketing planning the process by which businesses analyse the environment and their
capabilities, decide upon courses of marketing action and implement
those decisions
Key questions when thinking about marketing planning decisions:
Where are we now?
Where would we like to be?
How do we get there?
Business mission a broadly defined, enduring statement of purpose that distinguishes a
business from others of its type
Page 2 of 39
,The differentiation strategy and cost leadership strategy seek competitive advantage in a broad range of market or
industry segments, whereas differentiation focus and cost focus strategies are confined to a narrow segment.
Marketing audit a systematic examination of a firm’s marketing environment,
objectives, strategies and activities, which aims to identify key
strategic issues, problem areas and opportunities
An internal audit concentrates on those areas that are under the control of marketing management, whereas external
audit focuses on those forces over which management has no control.
SWOT analysis strengths, weaknesses, opportunities and threats analysis
The definition of marketing objectives may be derived from the results of the marketing audit and the SWOT
analysis:
Decisions regarding how the company chooses to grow are summarized in the Ansoff growth matrix:
Strategic objectives for each product also need to be agreed:
to build
to hold
to harvest
to divest
Marketing objectives need to be SMART (specific, measureable, achievable, realistic and timed).
The core elements of marketing strategy involve decisions related to market segmentation, targeting and positioning.
The set of decisions that has traditionally been described as the company’s marketing mix which normally comprises
the 4Ps:
product decisions refer to choices that are made regarding the products/services and benefits that are going
to be offered to a particular customer group
price refers to all the decisions that are made regarding the different price points used for products in the
company’s range as well as those decisions regarding the raising or reducing of prices in response to
competitor activity and consumer demand
promotion refers to all decisions regarding promotion, sponsoring, using social media etcetera
place refers to distribution activity, that is, the processes by which products and services are delivered to
customers
All marketing plans need to be evaluated to determine whether the objectives set out at the beginning of the plan have
been achieved or not.
The relationship between market orientation and profitability is strongly linear, with the businesses displaying the
highest level of market orientation achieving the highest levels of profitability, and those with the lowest scores on
market orientation having the lowest profitability figures.
Value-based marketing the objective of marketing is seen as contributing to the maximization
of shareholder value
The chain of marketing productivity demonstrates how marketing investments eventually reflect firm outcomes.
Page 3 of 39
, There are two key elements of marketing measurement:
effectiveness of operational marketing activity
the impact of marketing on the bottom line
The marketing concept, tools and techniques apply to other contexts too other than commercial contexts.
Page 4 of 39
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 TBKLeo. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.22. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now