Entrepreneurship Chapter 5 – Exam Key Points

Chapter 5 Key Points | MARKETING

• Terms
  1. Need
  2. Wants
  3. Demands
  4. Product
  5. Value
  6. Cost
  7. Exchange
  8. Transaction
  9. Market
• kinds of utility that marketing provides
  1. Form Utility
  2. Place Utility
  3. Time Utility
  4. Information Utility
  5. Possession Utility
• Marketing Philosophies / concepts
  1. production concepts
  2. product concept
  3. selling/sales concept
  4. marketing concept
     • Selling and Marketing Concept Contrasted
       • Selling
         1. Starting point – Factory
         2. Focus Existing – product
         3. Means – Selling and promotion
         4. End – Profit through Volume
       • Marketing
         1. Starting point – Market place
         2. Focus – Customer need
         3. Means – Integrated marketing
         4. End – Profit through satisfaction
  5. Societal marketing concept
  6. Relationship Marketing Concept

Marketing Information Systems

• Marketing Research
  1. Role (Significance) Of Marketing Research In Decision Making
     • Descriptive Function
     • Diagnostic (analytical) Function
     • Predictive Function
  2. Marketing Research Components
     • Market size
     • Market Share
     • Market penetration
     • Brand equity research
     • Buyer decision processes research
  3. Customer Satisfaction Research
     • Distribution channel audits
     • Marketing effectiveness and analytics
     • Mystery Consumer or Mystery shopping
     • Positioning research
     • Price elasticity testing
     • Sales forecasting
     • Segmentation research
     • Test marketing
  4. Marketing Research Process
     • Step 1: Define the research purpose or objectives
     • Step 2: Research Design Formulation
     • Step 3: Gather at this stage secondary data
     • Step 4. Gather Primary Data
       • Primary data collection techniques can be categorized as
         1. Observational techniques
         2. Focus groups
         3. Experimentation
         4. Survey techniques ( Mail questionnaires, Telephone interviews, Personal interviews) 
     • Step 5: Data Processing and Analysis
     • Step 6: Report Preparations and Presentation

Marketing Intelligence

• Marketing intelligence benefits
  1. Market and customer orientation – promote external focus
  2. Identification of new opportunities
  3. Smart segmentation
  4. Early warning of competitor moves
  5. Minimizing investment risks
  6. Quicker, more efficient and cost-effective information
• Ways to Undertake Marketing Intelligence
  1. Unfocused scanning
  2. Semi-focused scanning
  3. Informal search
  4. Formal search

Competitive Analysis

• Steps of Competitive Analysis
  1. Identify your competitors
  2. Gather information about competitors
  3. Gathering Information on Competitors
  4. Analyzing the Competition
  5. Develop a pricing

The Marketing Mix Strategy

• The 4 P’s Of Marketing/The Marketing Mix
  1. Product
  2. Pricing
  3. Place
  4. Promotion
• Marketing Strategy
  1. Pricing Strategy
     • TR = Price * Quantity, Profit = TR – TC 
     • pricing strategies mostly applicable in the real world scenario
       • Price Skimming
       • Penetration Pricing
       • Cost-plus pricing
       • Mark-up pricing
       • Competition Oriented Pricing
       • Odd-even pricing
  2. Promotion Strategies
     • Advertising
     • Personal selling
     • Public relations
     • Sales promotion
  3. Distribution Strategies
     • Channels are divided into
       • Direct channels
       • Indirect channels
     • factors to select the best channel
       • Company Factors
       • Market Characteristics
       • Product Attributes
       • Environmental Forces

Selling and of Customer Service

• Distinctive features of services as opposed to goods
  1. Intangibility
  2. Inseparability
  3. Variability
  4. perishability 
• major reasons to lose customers are
  1. Poor service
  2. Poor quality

Rude behavior