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Summary - Marketing fundamentals
1 What is marketing?
What are external environmental factors?
Factors that companies can't influence. They must adapt to these trends or events
financial resources = how much money goes to investment?
commercial resources = available knowledge and experience
technical resources = technical know-how and expertise in production methods
natural resources = necessary raw and auxiliary materials
human resources = experienced managers and skilled and motivated employees
What does an environmental analysis entail?
The monitoring and evaluation of the external environment to determine the source of a company's opportunities and threats
Name 4 relevant external elements
- people (customers)
- organisations (competitors)
- circumstances (expansion of the EU)
- developments (aging of the population)
Which 3 environments influence the external environment?
define 'environmental scanning'
the process of collecting information about th eelemtns of a company's environment
What is the mesoenvironment?
The (branch of) industry or market in which the company operates. Here, the marketer or firm interacts with customers, suppliers, intermediaries such as distributors, competitors and public groups or stakeholders.
What is the essence of marketing?
Developing relationships with customers and satisfy their needs, so that both parties achieve their objectives
What are the 4 types of customer markets?
- Consumer market: products or services for individuals, families, households, etc.
- Industrial market: goods sold to and purchased by businesses
- Intermediary market organisations that buy products and resellt them without any further processing
- Institutional market: large-scale users, government agencies and other non-profit organisations
What is meant by 'multiple sourcing'?
Companies can buy from different suppliers, to reduce its dependency on them , as well as reduce costs
Explain the role of intermediaries
Intermediaries are companies that operate as a link between producers and consumers or, as middlemen, specialise in providing services to facilitate transactions between suppliers and customers
4 types of competition:
- Brand competition
- product competition
- generic competition (different products that could satisfy the same consumer needs)
- need competition (or budget competition): (kinds of need for which a customer is willing to pay
Primary competition = between brands
Secondary competition = between products
What is meant by 'benchmarking'?
Analysing the policies and performance of companies in a strategic group.
What are the 4 main public groups?
- Financial institutions
- the media
- interest groups
What is the macroenvironment?
Conditions and developments that a company faces as a whole.
What are the six macroenvironmental factors? (DE STEP)
- Demographic -->> population, households, purchasing
- Economic -->> economy, consumer confidence, competition
- Political-legal -->> regulations, subsidies, laws
- Ecological -->> pollution, government, environtmental movements
- Technological -->> product innovation, timing, technical know-how
- Socio-cultural -->> standard, values, consumerism
1.1 The meaning of marketing
What does marketing include?All the activities that bring buyers and sellers together
Name the 4 P's
What is the definition of marketing?Marketing is the process of developing , pricing, Promoting and distributing products, services or ideas that tailored to the market
Instead of trying to find buyers for your products, make sure to develop the right products and strategies for selected customers. Decisions should be based on market analysis
What are the basics of an organisation?Production and marketing
The 4 P's of the marketing mix are:
- Place (Distribution)
- Promotion (Communication)
What is a target market?The part of the market that an organisation concentrates on and wants to turn into customers