Chapter 15 Marketing Management PDF

Chapter 15: MARKETING MANAGEMENT PROF NADINE OOSTHUIZEN  Chapter 15: Marketing management Learning outcomes a) Understand the concept of marketing b) Explain the relevance of marketing for a business c) Understand the market place and customer needs d) Understand the marketing m...

Chapter 15: MARKETING MANAGEMENT PROF NADINE OOSTHUIZEN  Chapter 15: Marketing management Learning outcomes a) Understand the concept of marketing b) Explain the relevance of marketing for a business c) Understand the market place and customer needs d) Understand the marketing mix and its relevance to products and services e) Explain the marketing environment in which a business functions Introduction Through marketing, a business can communicate to its existing and potential customer base on the benefits of the products and services that it sells, as well as the value that it offers to the consumer segment. Therefore, without marketing, a business would not be able to promote its brand and offerings, thereby stimulating sales. Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER  A perspective on the concept of ‘marketing’ Definition 1 – ‘A social and managerial process by which individuals and businesses obtain what they need and want through creating and exchanging value with others’ (Kotler & Armstrong, 2015). Definition 2 – ‘The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large’ (AMA, 2020). Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER The relevance of marketing for a business Product Processes Price Elements of the marketing Physical evidence mix Place People Promotion INSPIRING POSSIBILITIES TOGETHER Understanding the market place and customer needs Five core customer and marketplace concepts: a) Needs, wants and demands b) Market offerings such as products, services and experiences c) Value and satisfaction d) Exchanges and relationships e) Markets Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Understanding the market place and customer needs Five core customer and marketplace concepts: a) Needs, wants and demands 1) Physical needs such as food, clothing, shelter 2) Social needs such as belonging and love 3) Individual needs that relate to education and the ability to express oneself b) Market offerings such as products, services and experiences Could also include a combination of different products or services that are offered to satisfy the needs and wants of customers Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Understanding the market place and customer needs Five core customer and marketplace concepts: c) Value and satisfaction Customer value is the satisfaction level experienced by a customer (in terms of expectation to experience) through a given action relative to its cost Customer satisfaction is the degree of happiness that a customer has towards a product, service or experience d) Exchanges and relationships e) Markets Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Explaining the marketing mix Marketing mix benefits for businesses in South Africa: a) Providing businesses with knowledge on how their products or services can be of value to their customers. b) Planning a suitable product offering to a specific target market. c) Developing and applying workable marketing strategies. d) Assisting businesses to use their strengths and ignore unnecessary costs. Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Explaining the marketing mix Marketing mix benefits for businesses in South Africa: e) Guiding businesses to become more proactive when facing business risks. f) Establishing to what extent the products and services businesses sell to customers are actually in demand by their target market. g) Understanding customer needs and expectations better. h) Guiding businesses towards promoting their products and services to their target market. Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Marketing mix and social media 4Ps relating to social media: Posting Photos Personality Performance Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER How digital media changes the marketing mix Ways digital media has influenced the traditional marketing mix: a) Multiple digital streams have advertising blockers or enable users to bow out of taking note of specific advertisement b) Through social media platforms, customers can raise their complaints online to thousands of people c) Marketers, brand managers and advertisers apply social media influencers d) Owing to the affordability of social media advertising, it has now become more accessible to market a broader consumer segment Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER The marketing environment The marketing environment of a business includes both the internal environment (business departments, employees, etc) and external environment (such as competitors, government, trade unions, etc) Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Components of the marketing environment Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER A perspective on consumer behaviour The different aspects that form part of the concept of consumer behaviour are: a) The behaviour of consumers both individually and in groups b) The reason(s) for the change in the behaviour based on the products and/or services that they purchase c) When consumers are most intent to buy Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER A perspective on consumer behaviour The different aspects that form part of the concept of consumer behaviour are: d) The feelings that consumers have before they make a purchase e) The feelings that customers have after they have made a purchase f) The factors that have an impact on consumer buying behaviour Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Steps in the decision-making process Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Factors that may influence consumer decision- making in South Africa over the next decade Trust is an increasingly important factor Building brand loyalty is more important than ever Businesses need to find a balance between personalization and privacy concerns The line is thin between convenience through artificial intelligence and trusting technology Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Marketing research Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Market segmentation Market segmentation can be described as a strategy element where businesses in South Africa approach specific customer segments/groups with the intent of marketing specific products and/or services to these consumer groups Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER The product lifecycle Introduction Maturity R&D Growth Decline Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Marketing communications Marketing communication can provide answers to the following questions: 1) Why do individuals want to use the product or service? 2) How can the product be used? 3) Who can use the product? 4) Where can the product be used? 5) When can the product be used? Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Marketing communications Marketing communication mediums Sales Public Advertising promotion relations Word-of- Interactive mouth Sponsorship marketing marketing Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER Marketing communications Social media platforms Facebook Pinterest Instagram Google + X (Twitter) Business Management: An African Perspective Second Edition 9781998962273 INSPIRING POSSIBILITIES TOGETHER