Chapter 1 The world of marketing

Space Gap
Geographical space or distance between the manufacturer and consumer
Time Gap
Products are not available at the time consumers would like to purchase
Information Gap
Consumers are not well informed about products
Ownership Gap
The gap between purchasing and owning a product
Value Gap
Consumer must see value in the product they are purchasing
Exchange
All activities associated with someone giving up something to receive something they would rather have
Intermediaries
Middlemen, Sales intermediaries, Auxiliary enterprises
Middlemen
Directly involved in taking title of products which are sold to others.
Sales intermediaries
Agents who do not take title of products they sell. They provide services to facilitate the sales process and are paid for their services
Auxiliary services
Are not directly involved in the transfer of title but provide support services to facilitate the selling process.
Primary marketing activity
Transportation
Auxiliary marketing activities
Sourcing and supplying info, standardisation and grading, storage, financing and Risk-taking
Production Orientation
Internal capacity of the organisation is the main focus rather than the desires and need of the marketplace.
Sales Orientation
Focus is on sales. People will buy more if aggressive sales techniques are used. High sales equal high profits.
Marketing Orientation (pure marketing concept)
Focuses on the customer orientation, profit orientation as well as organisational integration of all activities directed towards satisfying consumers’ needs and making a profit
social responsibility
Strike a balance between customer needs and wants, customer’s long term interests, society’s long term interest and the organisational long term financial goals. Human welfare, company profits and consumer satisfaction
Green Marketing
The promotion of products and services based on environmental factors of awareness. It is aimed at changing consumer attitudes towards a brand and focuses on the environmentally friendly marketing efforts a business uses. These may include corporate social responsibility plans and sustainability efforts
Relationship Marketing
Focus is on the long term relationships between the organisation, the government, the public, suppliers of raw materials as well as current and potential customers.
Relationship marketing implies
People and processes need to be added to the four marketing P’s.
TQM principle
Underlies relationship marketing. Strives towards total customer satisfaction.
Extended Market
Current customers, Potential customers, Suppliers, Potential employees, reference groups, Influencers and Current employees
Definition of Marketing
Combination of management tasks and decisions aimed at meeting opportunities and threats in dynamic environment in such a way that its market offerings lead to the satisfaction of customer needs and wants so that objectives of the enterprise, the consumer and society are achieved.
Marketing function
Regarded as a key function because of its proximity to the consumer and contribution to profits
Synergy
The whole is more that the sum of the parts. When all variables support each other they reinforce the quality image of the product
Marketing management
The process of setting marketing goals for an organisation (considering internal resources and market opportunities), the planning and execution of activities to meet these goals and measure progress towards them
Management Tasks
Continuous process of planning, implementing and controlling marketing activities
Planning
Continuous process of utilising marketing opportunities, countering threats and achieving marketing objectives.
Adaptive planning
Is a framework for organising information, analysis, issues and opinions that form part of the strategic decision making
Contingency Planning
Deals with events that were foreseen but unlikely to occur
Implementation
Organising (creation of an organisational structure) and coordinating and leading (staffing, communicating and motivating).
Contingent-reward leadership
Management closely supervises personnel and facilitates all staff activities and tasks
Laissez-faire leadership
Opposite of contingent-reward leadership in that management in minimally involved in the daily activities of personnel
Management-by-exception leadership
Managers intervene only when personnel’s performance standards have not been met
Transformational Leadership
Leaders use inspiration and charisma. Ultimate goal is to move personnel beyond their own self interests towards those of the organisation
Control
Regulatory task, purpose is to align actual performance with marketing plans.
Exercising control
Firstly set standards, secondly measure actual marketing performance against the standard set, thirdly evaluate the difference between actual performance and standard and lastly take corrective measures where needed
Strategic Marketing
Decisions of the marketing department with the aim of long term growth and survival in a competitive market. Continuous process that takes place at top level management. Impossible to establish where planning starts and ends. Is the task of marketing management and consists of planning, implementation and control of marketing and market strategies
Strategic business units
Strategic marketing takes place through independent divisions in large multi-product organisations. Marketing strategies of individuals SBU’s differ but compliment each other and are co-ordinated by the parent company.
Strategic Fit
Degree to which the growth strategy that allows the business to achieve its performance objectives, can be implemented within the constraints imposed by past strategic commitments, resource availability and other historical rigidities