Management Notes > University Of Exeter Management Notes > Marketing Notes

Principles Of Marketing Overview Notes

This is a sample of our (approximately) 17 page long Principles Of Marketing Overview notes, which we sell as part of the Marketing Notes collection, a 1st package written at University Of Exeter in 2012 that contains (approximately) 25 pages of notes across 2 different documents.

Learn more about our Marketing Notes

The original file is a 'Word (Docx)' whilst this sample is a 'PDF' representation of said file. This means that the formatting here may have errors. The original document you'll receive on purchase should have more polished formatting.

Principles Of Marketing Overview Revision

The following is a plain text extract of the PDF sample above, taken from our Marketing Notes. This text version has had its formatting removed so pay attention to its contents alone rather than its presentation. The version you download will have its original formatting intact and so will be much prettier to look at.

What Is Marketing Summary

Who marketers are where they work and marketing's role in a firm - Marketers come from many different backgrounds and work in a variety of locations, from consumer goods companies to NGO's to financial institutions to advertising and PR agencies. Marketing's role in the firm depends on the organisation. Some firms are very marketing orientated whereas others do not focus on marketing, therefore no matter what firm marketers work in their decisions affect and are affected by other firms operations.

What marketing is and how it provides value to everyone in the marketing process - Marketing is an organisational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders Therefore marketing is all about delivering value to everyone who is affected by a transaction.

The range of services and goods that are marketed - Any good, service or idea that can be marketed is a product even though what is being sold may not take a physical form. Consumer goods are the tangible products that consumers purchase for personal or family use. Services are intangible products that we pay for and use but never own. Industrial goods are those goods sold to businesses and other organisations for further processing or for use in their own business operations. NGO's, people and places can also be marketed.

Value from the perspectives of the customers, producers and society - Value is the benefits a customer receives from buying a product or service. Marketing communicates these benefits as the value proposition for the customer. For customers the value proposition includes the whole bundle of benefits the product promises to deliver not just the benefits of the product itself. Sellers determine value by assessing whether its transactions are profitable, whether it is providing value to stakeholders by creating a competitive advantage and whether it is providing value through its value chain. Society receives value from marketing activities when producers and consumers engage in ethical, profitable and environmentally friendly exchange relationships. One of the newest developments in marketing is that consumers themselves are playing an increasingly better role in generating value on behalf of marketers in addition to consuming it.

The basics of marketing planning and the marketing mix tools used in the marketing process - The strategic process of marketing planning begins with an assessment of factors within the organisation and in the external environment that could help or hinder the development and marketing of products, On the basis of this analysis, marketers set objectives and develop strategies. Many firms use a target marketing strategy in which they divide the overall market into segments and then target the most attractive one. Then they design the marketing mix to gain a competitive position in the target market. The marketing mix includes product, price, place and promotion. The product is what satisfies customer needs. The price reflects the customer assigned value or amount to be exchanged for the product. The place or channel of distribution gets the product to the customer. Promotion is the organisations efforts to persuade customers to buy the product,

The evolution of the marketing concept - Early in the 20th century, firms followed a production orientation in which they focused on the most efficient ways to produce and distribute products. Beginning in the 1930's some firms adopted a selling orientation that encouraged salespeople to aggressively sell products to customers. In the 1950's organisations adopted a consumer orientation that focused on customer satisfaction. This led to the development of the marketing concept. Today many firms are moving toward a New Era orientation that includes not only commitment to quality and value but also a concern for both economic and social profit.

Strategy and Environment Summary

Explain the strategic planning process - Strategic planning is the managerial decision process in which top management defines the firm's purpose and specifies what the firm hopes to achieve over the next five years or so. For large firms that have a number of self-contained business units the first step in strategic planning is for top management to establish a mission for the entire corporation. Top managers then evaluate the internal and external environment of the business and set corporate level objectives that guide decision making within each individual SBU. In small firms that are not large enough to have separate SBU's strategic planning simply takes place at the overall firm level. For companies with several different SBUs strategic planning also includes making decisions about how to allocate resources for the whole organisation and developing growth strategies,

Describe the steps in marketing planning - Marketing planning is one type of functional planning. Marketing planning begins with an evaluation of the internal and external environments. Marketing managers then set marketing objectives usually related to the firm's brands, sizes, product features and other marketing mix related elements. Next, marketing managers select the target markets for the organisation and decide what marketing mix strategies they will use. Product strategies include decisions about products and product characteristics that will appeal to the target market. Pricing strategies state the specific prices to be charged to channel members and final consumers. Promotion strategies include plans for advertising, sales promotion, public relations, publicity, personal selling and direct marketing used to reach the target market. Distribution strategies outline how the product will be made available to targeted customers when and where they want it. Once marketing strategies are developed they must be implemented. Control is the measurement of actual performance and comparison with planned performance. Maintain control implies the need for concrete measures of marketing performance called marketing metrics.

Understand how factors in the external business environment influence marketing strategies and outcomes - The economic environment refers to the economic health of a country that may be gauged by its GDP and its economic infrastructure, its level of economic development and stage in the business cycle. Marketers use competitive intelligence to examine brand, product and discretionary income competition in the micro environment and in the structure of the industry within the macro environment. A country's political and legal environment includes laws and regulations of individual countries that affect business, international regulations developed by WTO and regional agreements among countries that form economic communities. In addition marketers must understand the local political situation, the prospects for nationalisation or expropriation of foreign holdings, regulations such as local content rules and labour and human rights regulations. Marketers also examine a country's sociocultural environment including demographics, values, norms and customs, language and ethnocentricity.

Explain operational planning - Operational planning is done by first line supervisors such as sales managers, marketing communication managers and marketing research managers and focuses on day to day execution of the marketing plan. Operational plans generally cover a shorter period of time and include detailed directions for the specific activities to be carried out, who will be responsible for the time lines and for accomplishing the tasks.

Explain the key role of implementation and control in marketing planning - Any plan is only as good as its ability to actually be implemented. To ensure effective implementation, a marketing plan must include individual action plans or programmes, that support the plan at operational level. Each action

plan necessitates providing a budget estimate, schedule or timeline for its implementation and appropriate metrics so that the marketer can monitor progress and act on discrepancies or variation from the plan. Sometimes variance from a plan requires shifting or increasing resources to make the plan work, other times it requires changing the objectives of the plan to recognise changing conditions. The key is that marketing plans aren't written in stone and marketers must be flexible enough to make such changes when warranted.

Discuss some of the important aspects of an organisation internal environment - The internal environment includes the controllable elements inside an organisation that influence how well the organisation operates, including the firms technologies, its physical facilities, its financial stability, its reputation, the quality of its products and services and its employees. Ultimately much of the internal environment of a firm is related to its corporate culture.

Explain how countries seek to protect local industries by establishing roadblocks to foreign companies and by bonding together into economic communities - Some governments adopt policies of protectionism, with riles designed to give home companies an advantage. Such policies may include trade quotes, embargoes or tariffs that increase the costs of foreign goods. The WTO works to reduce such protectionism and encourage free trade. Many countries have come together to form economic communities to promote free trade.

Explain the strategies that a firm can use to enter global markets - Different foreign market entry strategies represent varying levels of commitment for a firm. Exporting of goods entails little commitment but allows little control over how products are sold. Contractual agreements such as licensing or franchising allow greater control. With strategic alliances through joint ventures commitment increases. Finally the firm can choose to invest heavily by buying an existing company or starting a forging subsidiary ion the host country.

What are the arguments for standardisation versus localisation of marketing strategies in global markets - Firms that operate in two or more countries can choose to standardise their marketing strategies by using the same approach in all countries or choose to localise by adopting different strategies for each market. The firm needs to decide whether to sell an existing product, change an existing product or develop a new product. In most cases the promotional strategy must be tailored to fit the needs of the consumers in another country. The product may need to be priced differently, especially if income levels are not the same in the new market. Finally different methods of distribution may be needed especially in countries lacking solid infrastructure that provides adequate transportation, communications and storage facilities.

Marketing Research Summary

The role of the marketing information system and the marketing decision support system in decision making - A marketing information system is composed of internal data, marketing intelligence, marketing research data, acquired databases and computer hardware and software. Firms use a marketing information system to gather, sort, analyse, store and distribute information needed by managers for marketing decision making. The marketing decision support system allows managers to use analysis software and interactive software to access marketing information system data and to conduct analyses and find the information they need.

The marketing research process - The research process begins by defining the problem and determining the research design or type of study. Next, researchers choose the data collection method, that is, whether there are secondary data available or if primary research with a communication study is necessary. Then researchers determine what type of sample is to be used for the study and then collect the data. The final steps in the research are to analyse and interpret the data and prepare a research report.

The differences among exploratory, descriptive and causal research and some research techniques available to the market - |Exploratory research typically uses qualitative data collected by individual interviews, focus groups or observational methods such as ethnography. Descriptive research includes cross sectional and longitudinal studies. Casual research goes a step further by designing controlled experiments to understand cause and affect relationships between marketing individual variables such as price changes and dependant variables such as sales.

The different types of data collection methods and types of samples that the researchers us - Researchers may choose to collect data via survey methods and observation approaches. Survey approaches include mail questionnaires, telephone interviews, face to face interviews or online questionnaires. A study may utilise a probability sample such as a simple random or stratified sample in which interferences can be made to a population on the basis of sample results. Non-probability sample methods include a convenience sample and a quote sample. The research tries to ensure that the data are valid and reliable and representative. Validity is the extent to which the research actually measures what it was intended to measure. Reliability is the extent to which the research measurement techniques are free of errors. Representativeness is the extent to which consumers in the study are similar to a larger group which the organisation has an interest in.

The growing use of online research - Online research accounts for more than 25% of all marketing research. Online tracking uses cookies to record where consumers go on a website. Consumers have become increasingly worries about privacy and how this information is used and made available to their internet companies. The internet also provides an attractive alternative to traditional data collection methods because of its speed and low cost.

Consumer Behaviour Summary

Define consumer behaviour and explain why consumers buy what they buy - Consumer behaviour is the process individuals or groups go through to select. Purchase, use and dispose of goods, services, ideas or experiences to satisfy their needs and desires. Consumer decisions differ greatly ranging from habitual, repeat purchases (low involvement) to complex, extended problem solving activities for important, risky (high involvement) purchases.

Describe the pre purchase, purchase and post purchase activities that consumes engage in when making decisions - When consumers make important purchasing decisions they go through a set of five steps. First they recognise there is a problem to be solved and search for information to make the best decision. They then evaluate a set of alternatives and judge them on the basis of various evaluative criteria. At this point they are ready to make their purchasing decision. Following the purchase consumers decide whether it matched their expectations.

Explain how internal factors influence consumer's decision making process - Several internal factors influence consumer decisions. Perception is how consumers select, organise and interpret stimuli. Motivation is an internal state that drives consumers to satisfy needs. Learning is a change on behaviour that results from information or experience. Behavioural learning results from external events, while cognitive learning refers to internal mental activity. An attitude is a lasting evaluation of a person, object or issue and includes three components; affect cognition and behaviour. Personality traits such as innovativeness, materialism, self-confidence and sociability and the need for cognition may be used to develop market segments. Marketers seek to understand a consumer's self-concept in order to develop product attributes that match some aspects of the consumer's selfconcept. The age of consumers and their lifestyle also are strongly related to consumption preferences. Marketers may use psychographics to group people according to activities, interests and opinions that may explain reasons for purchasing products.

Show how situational factors at the time and place of purchase influence consumer behaviour - Situational influence include our physical surroundings and time pressures. Dimensions of the physical environment including décor, smells, lighting, music and even temperature can influence consumption. The time of day, the season of the year and how much time one has to make a purchase also affect decision making.

Explain how consumers relationships with other people influence their decision making processes - Consumers overall preference for products are determines by the culture in which they live and their membership in different subcultures. Social class, group memberships and opinion leaders are other types of social influences that affect consumer choice. A reference group is a set of people a consumer wants to please or imitate and this affects the consumers purchasing decisions. Purchases also often result from conformity to real or imagined group pressures. Another way social influence is felt is in the expectations of society regarding the proper roles for men and women. Such expectations have led to many sex typed products.

Show how the internet offers consumers opportunities to participate in consumer to consumer marketing - Consumer to consumer marketing ecommerce includes marketing communication and purchases between individuals. C2C activities include virtual communities that allow consumers to do such things as share their enthusiasm or dislike for a product or company. Virtual communities

****************************End Of Sample*****************************

Buy the full version of these notes or essay plans and more in our Marketing Notes.