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Summary MNM2602 Notes
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- University Of South Africa (Unisa)
MNM2602 Notes will really help you focus on those important areas. You can use in conjunction with the eBook.
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By: bmakinita616 • 3 year ago
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1Study Unit 1 – Marketing Management
What is Marketing SU 1 pg. 4-5; par. 1.1 & TB Ch. 1 pg. 1-7; par. 1.1-1.3
Marketing is a:
- way of thinking/philosophy that permeates every aspect (& departments) of business;
- strategic process/sequence of steps that need to be followed in order to satisfy consumer needs profitably.
discover
consumer
needs &
wants
Traditional Definition
of Marketing
price; promote;
deliver create
goods/services goods/
which meet services
identified that meet
needs & wants needs &
wants
Marketing's core aim = ensure customer's needs & wants are understood, met & satisfied.
The Development of Marketing: SU 1 pg.4-5; par 1.1.1 & TB Ch. 1 par 1.2-1.3
Gaps between production & consumption of a product can only be filled by marketing activities:
Space Gap •Geological space between consumer and manufacturer
Time Gap •between time of production and time of consumption
Information Gap •Informing consumers on correct product to use for specific needs eg. medicine
Ownership Gap •Providing finance/documents for a purchase eg. banks
Value Gap •that buyers & sellers must bridge to agree on acceptable exchange rate
Intermediaries: Offer specialised services that bridge the gap between buyer & seller, acting as go- between for
participants who are no longer in close contact:
Middlemen •Take title of products which are later sold to others e.g. Ackermans
•Agents (not taking title)
Sales Intermediary •Provide & are paid for services to facilitate sales process
•Not directly involved in title transfer
Auxilliary Enterprises •Provide support services to facilitate selling process e.g. Ad. agencies
Functions & activities of marketing: used to fill the gap between consumers and producers.
8 Universal marketing functions/activities categorised into 3 groups i.e. Primary; Auxiliary; Exchange
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Marketing Functions/Activities
Primary
Facilitating Function Exchange Function
Function
Transport Securing Selling
Storing Standardise Financing
Deliver Risk Taking Marketing Info Match
Holding & grading Funding Buying
product or risk of Collect info on between
goods production of between Buy
serivice in matching consumers, org.
until goods to channel products
fastest/ supply with competitors, offering &
needed certain members consumers
most future demand channel consumer
Closes standards set e.g. offering will find
efficient/ exposure to members to need using
time by credit at cost appealing
safest way loss/damage assist in decision promotion
gap government of interest
possible making sales, ads.
The Marketing Concept SU 1 pg. 5-6; par. 1.2 & TB Ch. 1 pg. 7-12; par. 1.4
Marketing Orientations – Marketing's role strongly influenced by its philosophy/orientation:
Production Orientation
•Focus lies on increasing production and internal capability
•Cost reduction and control
•Increase in profit due to increase in sales
•Disadvantage: does not consider whether goods/services produced also meet market needs
Product Orientation
•Consumers will favour products that offer most in performance, innovation and quality
•Marketing strategy = continuous product improvement
•Company core focus = improving products & quality control
•Assume good quality products will sell themselves
•Quality products leads to increased sales and profit
Sales Orientation
•Focus is on clearance of stock
•companies make use of forceful sales and promotion strategy
•companies earn profits through quick sales and high volumes
Marketing Orientation
•Focus is on consumer needs to distinguish products from offerings of competitors
•Intergrate all org functions to satisfy needs and wants of market
•Achieve long term goals and objectives by satisfying consumers needs and wants responsibly and legally
The Marketing Concept – Everyone in the organisation aims to satisfy the consumer completely while making money
and satisfying the long term needs of society. Consists of 4 Pillars = Marketing Thought:
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,3
•All org.'s actions •While meeting •A group of units •Business is part of
directed towards customer needs & working together to society in which they
satisfying customer wants also aim to achieve a shared exist and is
needs. meet primary objective. accountable to society
•Aim to delight objective - maximizing •All activities are for their performance
customer profit integrated to satisfy
•Customer is focal customer needs and
point of dicision achieve ROI
making
The Marketing Process SU 1 pg. 6-7; par. 1.3 & TB Ch. 1 pg. 14-19; par. 1.6
Identify Long-term
Marketing Ensure that value
Target relationships & = Profit &
Strategy/Programm for customers is
Market - customer happiness Customer
e (4 P's) to meet exceeded in the
Know wants (return business & Equity
consumers' needs integrated plan
& needs referrals)
Occurs within marketing environment & in turn is influenced by org. decision making
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, 4
Study Unit 2 – The Marketing Environment SU 2 pg. 10-15; par 2.1 & TB Ch. 2 pg. 30-50;
In this study unit pay particular attention to the following:
1. The marketing environment and its influence on the organisation
2. Micro Environmental Variables
3. Market Environmental variables and the influence it has on an organisation
4. The Macro Environmental variables and the influence it has on an organisation
- ALL ORGANISATIONS OPERATES WITHIN AN ENVIRONMENT WHICH INCLUDES INTERNAL AND EXTERNAL FACTORS.
THIS ENVIRONMENT IS DYNAMIC AND CHANGEs ALL THE TIME
- BUSINESS AND SOCIETY INFLUENCE EACH OTHER AND DEPEND ON EACH OTHER FOR THEIR EXISTENCE
- ORGANISATIONS SHOULD MONITOR THE ENVIRONMENT IN WHICH THEY OPERATE CONTINUOUSLY
COMPONENTS OF THE MARKETING ENVIRONMENT:
Macro-Environment
Political/legal
International
Physical
Market Environment
Technological
Economic
Consumers
Socio-cultural
Competitors
Suppliers
Micro-Environment
Mission Statement Resources, skills, abilities Strengths &
Threats & Threats & Marketing Objectives Marketing Instruments Weaknesses
Opportunities Opportunities
MICRO ENVIRONMENT - Inside organisation itself - Variables directly controlled by management
Variables in Micro-Environment: (Table 2.1 p 32)
1. Business Aim
Mission & strategy: explain why business exist / declaration of "reason for being"
When formulating the mission statement consider the following questions:
a) Who is the customer?
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