Summary
Summary Chapter 14 - Business Management 114
- Course
- Business Management 114
- Institution
- Stellenbosch University (SUN)
Summary of 3 pages for the course Business Management 114 at SUN
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Chapter 14 – Building Customer Relations through EffectiveMarketing
Marketing – activity, set of institutions, and processes fro creating,
communicating, delivering or exchanging offerings of value to
customers.
Managing Customer relations
Relationship Marketing – marketing decisions made to create
long term satisfying relationships with companies
Customer Relations manager (CRM) – Using customer
information to create marketing strategies to develop and
sustain desirable customer relationships. (Increase long term
profitability by keeping customer loyalty)
Customer lifetime value – used for CRM as it determines
customers worth to business over entire lifetime
Utility: Value of added marketing
Utility – ability of good to satisfy a person
Types of utility
1. Form Utility – Created by converting raw materials into
finished products. Finished product must suit customer
need e.g. size
2. Place Utility – Created by making a product available at
a specific place
3. Time Utility – Created by making a product available at a
specific time
4. Possession Utility – Created by transferring ownership of
a product from owner to buyer
Marketing concept – business philosophy that a firm should provide
goods/services that satisfy customers through a coordinated set of
activities
Classification of Markets
Consumer Markets – purchasers intends to benefit from
product
Business to Business Markets or industrial markets are further
classified
1. Producer – products are purchased to manufacture other
products
2. Reseller – Buy goods to sell at a profit
3. Governmental – Buy products to provide citizens with
such products e.g. highways
4. Institutional – Non-profit organizations e.g. church,
hospitals
Developing a marketing Strategy
, *Plan that will enable a organization to make best use of its
resources and advantages in order to meet goals
Consists of
1. Selecting the target market
2. Creating and maintaining the correct market mix (combination
of product, price, distribution and promotion)
Target Market Selection and evaluation
Undifferentiated approach- assumes all customers in target
market have similar needs thus satisfied by same market mix
e.g. sugar and salt
Market segmentation approach – market mix focuses on
specific segment of market. E.g. yachts in boat market on
specific people
Marketing Environment
Affects market but cannot be controlled by business
Economic forces – Customers ability or willingness to buy
Sociocultural forces – changes in attitudes/beliefs or lifestyles
Political Forces – influence from elected officials
Competitive Forces – actions of competitors
Legal and regulatory forces – laws that protect customers
Technological forces – can create new marketing opportunities
or cause products to become obsolete.
Types of buying Behavior
Buying behavior – Decisions made buy buyer when buying product
Consumer buying behavior – purchase products to use in
household
Affected by
1. Situational influences e.g. surroundings, time
2. Psychological influences e.g. learning, personality
3. Social Influences e.g. Family, peers, culture
Consider
1. Quality
2. Price
3. Service provided
Business Buying Behavior
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4. Quality
5. Price
6. Service provided
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