Summary
Summary Marketing International Business and 1q1
- Course
- Institution
Summary of marketing for international business in year 1 quarter 1. everything you need to know from the principles of marketing book.
[Show more]
Seller
Follow
lp4
Content preview
Marketing and salesWhat companies want and what companies do:
Needs (propositions) > orientation (communicate the offer) > purchase/install (transaction
management) > problem solving (help/service) > new needs (new propositions).
But there is a distance to bridge from one to another by the marketer. For example, personal contact,
social media, website, shops, service center, research and tv/radio/print.
The role of marketing:
-research and analyses
-product development and branding
-promotion and advertising
-pricing decisions
-distribution decisions
-direct and indirect selling
-customer service and customer relations
-strategic planning
Marketing defined is the process by which companies engage customers, build strong customer
relationships and create customer value in order to capture value from customers in return.
Marketing is about satisfying customer needs and managing customer relationships.
Marketing is defined as the activity, set of institutions and processes for creating, communicating,
delivering and exchanging offerings that have value for customers, clients, partners and society.
Marketing is all about delivering value to everyone who is affected by a transaction.
3 basic marketing principles
1. Customer orientation
-establishing and maintaining long term customer relationships
-focusing on customer needs
2. Organizational integration
-overall business philosophy
-more than one department and company involved
3. Mutually profitable exchange
-create value to capture value, win-win situation
-through exchanges, transactions and relationships
Understand the marketplace and customer needs, wants and demands
-needs: states of deprivation > physical, social, individual
-wants: desire to satisfy needs in specific ways > shaped by culture and individual personality
-demands: want backed by buying power > desires with resources needed to obtain them
-benefits: outcome sought by consumer that satisfies need of want and motivates buying behavior
The marketing process
This is about understanding the marketplace and customer needs > design customer driven
marketing strategy > construct and integrated marketing programme > build profitable relationships
and create customer delight (create value for customer). > capture value from customers to create
profits and customer equity (capture value from customer).
This is a process involving different people and functions inside and outside a company.
Marketing management orientations
There are five concepts: product concept, production concept, selling concept, marketing concept
and societal marketing concept.
,-Production concept
The idea that consumers will favour products that available and highly affordable. Therefore, the
organization should focus on improving production and distribution efficiency. This can lead to
marketing myopia.
-Product concept
The idea that consumers will favour products that offer the most quality, performance and features.
Therefore, the organization should devote its energy to making continuous product improvements.
Can also lead to marketing myopia.
-Selling concept
The idea that consumers will not buy enough of the firms products unless the firm undertakes a large
scale selling and promotion effort. It is practiced with unsought goods like life insurance or blood
donations. Carriers high risks because they do not focus on what the market wants but just to sell
what the company makes. It takes an inside-out perspective.
-Marketing concept
A philosophy in which achieving organizational goals depends on knowing the needs and wants of
target markets and delivering the desired satisfactions better than competitors do. Instead of a
make-and-sell philosophy, this is a sense-and-respond philosophy. It takes an outside-in perspective.
Customer driving marketing is understanding customers’ needs even better than customers
themselves do and creating products or services that meet both existing and latent needs, now and
in the future.
-Societal marketing concept
The idea that a company’s marketing decisions should consider consumers wants, the company’s
requirements, consumers long-run interests and society’s long-run interests.
Production- and product concept
-efficient manufacturing
-focusing on quality
-seller’s market
-examples: oil, raw materials, services like banking
Selling concept
-supply greater than demand
-aggressive selling techniques
-buyer’s market
-examples: energy, insurances, mobile phone subscription
Marketing concept
-increase in buying power and competition
-focus on the customer
-adapting to changes in the market
-integrated approach to marketing activities
-examples: Toyota, unilever, ikea, l’oreal
Societal marketing concept
-balance interest consumer, company and society
-influence of action groups like greenpeace
-examples, bodyshop, lush
The changing marketing landscape:
-the digital age
-changing economic environment
-the growth of not for profit marketing
, -rapid globalization
-call for sustainable marketing practices
Golden circle simon sinek
-why: everything we do, we believe in challenging the status quo. We believe in thinking differently.
-how: by making our products beautifully designed, simple to use and user friendly.
-what: we happen to make great computers, wanna buy one.
Market definition
Strategic market definition: focus on fundamental customer needs, defined value (turnover) or
volume (units, kilograms, liters) and the geographic definition
In marketing terms, a market is used to describe the various grouping of customers
-consumer markets > all individuals and households who buy or acquire goods and services for
personal consumption
-business markets > all the organizations that buy goods and services to use in the production of
other products and services or for the purpose of reselling or renting them to others at a profit
Business to consumer market B2C
-number of individuals
-number of households
Business to business market B2B
-number of companies
Customer is an individual, household or company who purchases products (goods and services).
Market share is the percentage of total sales (value or volume) in a market captured by a brand,
product or company.
Position map: low quality/high quality and high price/low price
Core of marketing: creating value and profitable relationships. Which customers and how to create
value to them > marketing programme (marketing mix)
*Mass marketing and target marketing
Four major steps in designing a customer driven marketing strategy
Select customers to serve
-segmentation > divide the total market into smaller segments
-targeting > select the segment or segments to enter
Decide on a value proposition
-differentiation > differentiate the market offering to create superior customer value
-positioning > position the market offering in the minds of target customers
Reasons and benefits of a customer driven marketing strategy
-you make efficient use of resources
-your marketing mix is targeted
-your customer is fully satisfied
-your competitors are outperformed
Market segmentation
Market segmentation involves dividing large, heterogenous markets into smaller segments that can
be reached more efficiently and effectively with products and services that match their unique needs
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lp4. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R134,33. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
66579 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now