Summary
Summary - Marketing Management 214 (MM214)
- Institution
- Stellenbosch University (SUN)
Comprehensive notes for Marketing Management that can assist with A1, A2, A3 and the project. Used these notes and achieved a final mark of 76%
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By: miamarx04 • 5 months ago
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MARKETINGMANAGEMENT 214
(SEMESTER 1)
SUMMARIES
1
,Table of Contents
Chapter 1: An overview of marketing.........................................................................................................................1
Introduction............................................................................................................................................................1
What is Marketing?................................................................................................................................................1
Customer Satisfaction.............................................................................................................................................2
Measuring Customer Satisfaction.......................................................................................................................2
Customer satisfaction or customer dissatisfaction?...........................................................................................3
The benefits of customer satisfaction and loyalty..............................................................................................3
The Concept Of Exchange.......................................................................................................................................3
Five conditions must be satisfied for any kind of exchange to take place:.........................................................3
Marketing Management Philosophies....................................................................................................................4
Production orientation.......................................................................................................................................4
Product orientation............................................................................................................................................4
Sales orientation.................................................................................................................................................4
Consumer orientation........................................................................................................................................4
Societal marketing orientation...........................................................................................................................4
Relationship marketing orientation....................................................................................................................5
Implementing the marketing concept in existing firms..........................................................................................5
Changes in authority and responsibility.............................................................................................................5
The importance of new opportunities................................................................................................................5
The firm's business.............................................................................................................................................6
The importance of a competitive advantage......................................................................................................6
Service quality as competitive advantage...........................................................................................................6
Customer value as competitive advantage.........................................................................................................6
Customer satisfaction can also be used as a competitive advantage.................................................................6
Well-trained employees as competitive advantage............................................................................................7
Employee empowerment as competitive advantage.........................................................................................7
Teamwork as a competitive advantage..............................................................................................................7
Other ways to establish a competitive advantage include:................................................................................7
The position and role of marketing in the firm.......................................................................................................8
Why are there critics of marketing?.......................................................................................................................8
Why study marketing?............................................................................................................................................8
Chapter 2: Analysing the marketing environment......................................................................................................9
Marketing’s influence in the marketing environment............................................................................................9
Understanding the external environment............................................................................................................10
Methods of environmental scanning....................................................................................................................10
Environmental management................................................................................................................................10
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, Social factors....................................................................................................................................................11
Demographic factors........................................................................................................................................12
Universal Living Standards Measure (LSM).......................................................................................................12
Using LSM and other demographic factors to understand the markets...........................................................12
Economic factors..............................................................................................................................................12
Technological factors........................................................................................................................................13
Political factors.................................................................................................................................................13
Legal factors.....................................................................................................................................................15
Chapter 3: Understanding consumer decision-making.............................................................................................16
Model of consumer behaviour.............................................................................................................................16
A model of consumer behaviour......................................................................................................................16
The consumer decision making process...............................................................................................................18
Types of consumer buying decisions and consumer involvement........................................................................20
Factors determining the level of consumer involvement.....................................................................................21
The marketing implications of consumer involvement.....................................................................................21
Individual factors influencing consumer buying decisions....................................................................................22
Maslow’s Hierarchy of Needs...........................................................................................................................23
Values, beliefs, and attitudes............................................................................................................................24
Personality, self-concept, and lifestyle.............................................................................................................24
Social factors influencing consumer buying decisions..........................................................................................25
Culture values in South Africa...........................................................................................................................25
The influence of the purchase situation on buying decisions...............................................................................27
Buying “New to the World” products...................................................................................................................27
Chapter 4: Analysing the competitive situation........................................................................................................29
competitors according to the degree to which they compete for a buyer’s choice.........................................30
Customer-based approach...............................................................................................................................30
Strategic-group approach.................................................................................................................................30
The competitive arena..........................................................................................................................................31
The competitive structure of an industry.............................................................................................................32
Porter’s Five forces Model................................................................................................................................32
Threat of substitute products...........................................................................................................................33
Bargaining power of buyers..............................................................................................................................33
Bargaining Power of Suppliers..........................................................................................................................33
Rivalry among existing competitors..................................................................................................................33
Analysing key competitors....................................................................................................................................34
Understanding current competitors.................................................................................................................34
Evaluating competitors’ strengths and weaknesses.............................................................................................35
The Key success factor (KSF) model..................................................................................................................35
Step 2: Rate firm and competitors on each KSF................................................................................................35
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, Step 3: Consider the implications for competitive strategy..............................................................................36
Anticipating competitors’ actions.........................................................................................................................36
Deciding which competitors to attack and which to avoid...................................................................................36
Chapter 5: Information for marketing decision-making and marketing research.....................................................38
The need for managerial information...................................................................................................................38
Marketing decision support systems....................................................................................................................38
Database marketing and micro-marketing...........................................................................................................39
The importance of database marketing................................................................................................................39
The role of marketing research............................................................................................................................39
The functions of marketing research....................................................................................................................39
The relationship between marketing research and DSS...................................................................................40
Management uses of marketing research........................................................................................................40
The steps in a marketing research project............................................................................................................41
STEP 1: Define the marketing problem.............................................................................................................41
STEP 2: Conduct a situation analysis STEP 3: Formulate the research objective..............................................41
STEP 4: Exploratory research by collecting secondary data..............................................................................41
STEP 5: Planning the research design...............................................................................................................43
Data collection techniques...............................................................................................................................43
Questionnaire design........................................................................................................................................43
Questionnaire design principles:......................................................................................................................43
Measuring perception and attitudes................................................................................................................44
STEP 6: Collecting the data STEP 7: Analysing the data....................................................................................45
STEP 8: Preparing and presenting the report....................................................................................................45
When should marketing research be conducted?................................................................................................45
Characteristics of good research..........................................................................................................................45
Chapter 6: Segmenting and targeting markets.........................................................................................................46
The nature of market Segmentation....................................................................................................................46
The importance of market segmentation.............................................................................................................46
The criteria for successful Segmentation..............................................................................................................46
1. Segmentation enables marketers to identify groups of customers with similar needs and analyse the
characteristics and buying behaviour of these groups.....................................................................................46
3. Segmentation is consistent with the marketing concept - satisfying customers wants................................47
Bases for segmenting consumer markets.............................................................................................................48
Single-variable segmentation...........................................................................................................................48
Multiple-variable segmentation.......................................................................................................................48
Behavioural segmentation................................................................................................................................48
Geographic segmentation................................................................................................................................49
Demographic segmentation.............................................................................................................................49
Psychographic segmentation............................................................................................................................49
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