Summary Complete Summaries Of Marketing Management 214
23 views 1 purchase
Course
Marketing 214
Institution
Stellenbosch University (SUN)
Book
Marketing
These notes clearly state all the work covered in the class, textbook and slides for marketing management 214.
The notes are complete with all the chapters needed for A2/A3.
I used them and did very well in my exams.
Unlock Success with the [Essentials of Marketing,Lamb,6e] 2023-2024 Test Bank
All for this textbook (2)
Written for
Stellenbosch University (SUN)
Marketing 214
All documents for this subject (1)
Seller
Follow
viankeherbst
Reviews received
Content preview
Marketing
Management
214
2023
, lOMoARcPSD|22421257
Chapter
CHAPTER 1 - what is marketing
1: OVERVIEW
What is markeng?
- Philosophy/atude/perspecve and management orientaon that stresses customer
sasfacon
- Set of acvies used to implement the philosophy
Denion: the acvity, set of instuons and processes for creang, communicang,
delivering and exchanging oers that have value for customers, clients, partners and society
Markeng means ancipang and sasfying consumer needs by means of mutually
benecial exchange processes, and doing so more eecvely than competors. Customer
sasfacon is the primary goal of markeng.
CUSTOMER SATISFACTION:
This is the feeling that a product has met or exceeded the customer’s expectaons. It can be
explained by the “disconrmaon paradigm”:
Consumer sasfacon is a customer’s response to a product or service in terms of the extent
to which consumpons meets their expectaons.
1. Measuring Customer Satisfaction
- Measurement of customer sasfacon should be a permanent, ongoing process (use
their needs and expectaons to make decisions)
- A customer-sasfacon programme should dene what customers want in respect
products/services in terms of aributes and quality level
- Informaon can be collected in many ways:
Formal research surveys should be conducted
Analysis of customer complaint data and interviewing sta
Collecng informaon about needs from intermediaries (retailers, agents)
Downloaded by Vianke Herbst (viankeherbst@gmail.com)
, lOMoARcPSD|22421257
2. Satisfaction/Dissatisfaction
What do consumers do if they are dissased with a rm or a product?
- They oen complain to other sources (other consumers or the Ombudsman), buy
less and less, stop buying altogether or switch to a competor
- Modern technology allows consumers to complain in a manner that can cause
serious harm to the rm’s brand and reputaon
- It is therefore very important for a rm to do research and assess the sasfacon of
consumers (keeping customers sased brand loyalty)
Herzberg’s Two Factor Model:
1. Hygiene Factors: contribute to dissasfacon
- Collecvely constute a minimum level or sasfacon and failure to meet the
minimum will cause customers to be dissased
- Example: Customers expect a hotel room to be clean therefore, would be
dissased if it wasn’t clean but wouldn’t noce if it was (basic minimum)
2. Sasers: contribute to sasfacon
- Once expectaons of hygiene factors have been met, sasers have the
potenal to create higher levels of sasfacon
3. Benefits
Keeping customers sased, increases the chances that they will stay loyal to the brand. The
favourable economic outcomes of customer loyalty are:
i. Lower acquision costs:
- Costs of recruing new customers (includes cost of adversing)
- A rm with a large, loyal customer base does not need to generate as many
new customers to sustain protability
ii. Base prot:
- Prot on charging a higher price for basic purchases
- Longer a rm keeps customers loyal, the longer it earns a base prot
iii. Revenue growth:
- Revenue per customer grows if a rm can retain loyalty
iv. Cost savings:
- Collaborave learning between the customer and the rm creates
producvity advantages that directly translate into lower costs
v. Referrals:
- Sased customers recommend a rm/brand to others (word-of-mouth)
vi. Price premiums:
- Loyal customers tend to be less price-sensive when they feel like they’re
geng superior value (less likely to respond to competors)
Downloaded by Vianke Herbst (viankeherbst@gmail.com)
, lOMoARcPSD|22421257
CONCEPT OF EXCHANGE:
Exchange means that a person (buyer) gives up something of value to a seller to receive
something in return. Usually, money is thought to be a ‘medium of exchange’ as a buyer
‘gives up’ money to get a product/service.
Five Condions of Exchange:
1. At least two pares (buyer and seller)
2. Each party must have something the other party values
3. Each party must be able to communicate and deliver
4. Freedom to accept or reject an oer
5. One party must want to deal with the other party
Exchange will not necessarily take place if all these condions exist, but they are necessary
in order for exchange to be possible.
Exchange of value (buying and selling) leads to benets for both pares in terms of income
for the seller and need sasfacon for the buyer.
MARKETING PHILOSOPHIES
1. Producon Orientaon:
- Philosophy that focuses on the internal producon or manufacturing
capabilies of a rm
- Management assesses the rm’s internal resources
- When compeon is weak or demand > supply, a producon-orientated rm
survives and prospers
2. Product Orientaon:
- Firms believe that they will be successful if they manufacture good-quality
products (with special product features)
- Not focused on consumer needs or acvies of competors
3. Sales Orientaon:
- Based on the idea that people will buy more goods/services if aggressive sales
techniques are used (high sales volumes = high prots)
- Lack of understanding the needs and wants of consumers = fundamental
problem
4. Consumer Orientaon:
- Based on the knowledge that a sale depends on a thorough understanding of
consumers’ needs (buy products because of the need-sasfying properes
they possess)
- Philosophy referred to as the ‘markeng concept’:
Customer sasfacon (needs and wants) key to successful
markeng
Downloaded by Vianke Herbst (viankeherbst@gmail.com)
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 viankeherbst. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.52. You're not tied to anything after your purchase.
