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-­‐-­‐-­‐   Name:  Joost  van  Abeelen   Student  Nr.

:  101889     Course:  MR1  –  Marketing  communication  –  Summary   -­‐-­‐-­‐     Chapter  2:  Strategy  and  environment     Business  planning:  An  on-­‐going  process  of  making  decisions  that  guide  the  firm   both  in  the  short  term  and  for  the  long  haul.     A  business  plan  is  like  taking  a  picture,  you  first  focus  on  what’s  at  hand,  and   then  you  snap  to  set  thing  in  motion.     Marketing  Plan:  A  document  that  describes  the  marketing  environment,   outlines  the  marketing  objectives  and  strategies,  and  identifies  how  the   strategies  imbedded  in  the  plan  will  be  implemented  and  controlled.     The  three  levels  of  business  planning     Strategic  planning:  Is  the  managerial  decision  process  that  matches  the  firm’s   resources  (such  as  it’s  financial  assets  and  workforce)  and  capabilities  (the   things  it  is  able  to  do  well)  to  It’s  market  opportunities  for  long  time  growth.     Functional  planning:  The  marketing  planning,  how  are  you  going  to  achieve   your  objectives,  do  you  have  enough  money  and  resources  for  it?   Includes  both  a  broad  five  year  plan  to  support  the  firm’s  strategic  plan  and  a   detailed  annual  plan  for  the  coming  year.     Operational  planning:  The  actual  ‘planning’  thatFocuses  on  the  day  to  day   execution  of  the  functional  plans  and  includes  detailed  annual,  semi-­‐annual  or   quarterly  plans.     The  strategic  planning  can  be  seen  as  the  ‘What?’   The  functional  planning  as  the  ‘how?’   The  operational  planning  as  the  ‘when?’     Strategic  planning:  Framing  the  picture     Strategic  business  units  (SBU’s)  –  Self  contained  divisions  of  a  company  that   are  different  enough  to  have  their  own  mission  objectives,  resources  etc.  (think   of  Disney  themepark,  movies,  cruise  etc.)     Step  1:  Define  the  mission  through  a  mission  statement.  A  formal  document  that   describes  the  organisation’s  overall  purpose  and  what  it  hopes  to  achieve.          

 What  they  also  do  is  Product  competition  where  they  offer  the  same   ‘type’  of  product  in  same  category  of  wants  and  needs.  The  third  option  they  have  is   Brand  competition  where  various  companies  offer  similar  goods  or  services.  standards  of  living.Step  2:  Evaluate  the  Internal  and  External  Environment     Look  at  strengths  and  weaknesses  within  the  Internal  Environment  and  after   that  start  looking  at  Opportunities  and  Threats  within  the  External  Environment.     The  economic  environment   One  way  to  look  for  market  potential  is  the  country’s  economic  health.     The  external  environment  consists  of  elements  outside  the  firm  that  may  affect  it   either  positively  or  negatively.  the  intelligence  is  gathered  from  sources  like  news.  The  total   value  of  goods  and  services  a  country  produces  within  it’s  border  annually.  or  new  advertising  to  maintain  or   gain  market  share.  internet   and  governmental  documents.   there  are  4  structures  in  which  competition  can  arise.  Marketers  are  also  focused  on  the  economic  future  of  a  country   called  the  Level  of  economic  development  they  look  at  what  steps  are  taken  to   reduce  poverty.     Most  marketers  compete  for  the  consumer’s  Disposable  income  that  is  the   amount  of  money  that  people  have  left  after  paying  for  their  necessities  (vaste   lasten).     The  competitive  environment   Firms  must  keep  abreast  of  what  the  competition  is  doing  so  they  can  develop   new  product  features.     .   Developing  countries  -­‐    An  economy  that  shifts  it’s  emphasis  from  agriculture   to  industry.  education  and  the  use  of  technology  rise.  There  are  three  levels   Less  developed  Country  (LDC)  –  The  lowest  stage  of  economic  development  in   most  cases  focused  on  agricultural  income   Standard  of  living  -­‐    An  indicator  of  the  average  quality  and  quantity  of  goods   and  services  a  country  consumes.   Whether  located  within  the  country  or  not.  Think  of  offering  coffee   instead  of  tea  when  consumer  long  for  a  hot  drink.     Marketers  also  need  to  consider  whether  they  can  conduct  ‘business  as  usual’  in   another  country.  The  Economic  infrastructure  is  the  quality  of  a  country’s   distribution.     Marketers  need  to  understand  the  total  structure  of  the  industry  that  they  are  in.  new  pricing  schedules.   More  and  more  firms  use  Competitive  Intelligence  (CI)  to  learn  more  about   their  competitors.  The  standard  of  living  is  low.  Indicated   by  the  Gross  domestic  product  (GDP)  (Bruto  Nationaal  product).     The  overall  pattern  of  changes  or  fluctuations  of  an  economy  is  called  the   Business  cycle  the  cycles  is  especially  important  to  marketers  because  of  it’s   effect  on  consumer  buyer  behaviour.   Similar  to  that  is  the  Gross  National  Product  (GNP)  which  measures  the  value   of  all  goods  and  services  produced  by  a  country’s  individuals  or  organisations.  inequality  and  unemployment.

 Local  content  rules  are  a  form  of  protection  stipulating  that  a   certain  proportion  of  a  product  must  consist  of  components  supplied  by   industries  in  the  host  country  or  economic  community.     The  technological  environment   Changes  in  technology  can  dramatically  transform  an  industry.  how  they  should  be  made.  each  holding  substantial  market  share.  Perfect  competition  mostly   happens  within  agricultural  markets.  Oligopolies  are  often  companies  that  require   substantial  investment.  and  the  culture  that  reflects  the  values  and  beliefs  of  the  society  (Yes.     Every  society  has  a  set  of  Cultural  values  this  explains  why  marketing  efforts   that  are  big  in  one  country  completely  flop  in  another.  offering  basically  the  same  service  or  good.  Whenever  they  found  one  they  try  to   patent  it  meaning  they  create  a  legal  document  that  gives  inventors  or   individuals  and  firms  the  exclusive  rights  to  produce  and  sell  the  particular   invention.  Adidas  etc.   CS2  IS  haunting  you!).  in  a   market  consisting  of  many  buyers.  national  and  global  laws  and   regulations  that  affect  businesses.     The  political  and  legal  environment   This  environment  refers  to  the  local.  the  people  who  live  in  that   society.1.       .     4.  that  is  why   marketers  focus  on  new  improvements.  education.   It  is  called  expropriation  when  a  domestic  government  seizes  a  foreign   company’s  assets.  No  single  firm  has   a  substantial  larger  market  share  than  the  other.  Perfect  competition   Many  small  sellers.  age.  Monopolistic  structure     Only  ‘one’  seller  controls  the  market  so  he  can  decides  his  own  prices.  state.       Governments  and  economic  communities  impose  numerous  regulations  about   what  products  should  be  made  of.  Oligopoly  structure   A  relatively  small  number  of  sellers.   think  of  sportshoe  sellers  like  Nike.  Global  firms  know  that  political  actions  taken   by  a  government  can  drastically  affect  the  business  operations  of  outsiders.     The  socio-­‐cultural  environment   This  terms  refers  to  the  characteristics  of  society.  It  is   called  nationalisation  when  the  domestic  government  reimburses  (vergoeden)   a  foreign  company  for  its  assets  after  taking  over  the  company.  gender.  and  what  can  be   said  about  them.   The  first  step  is  to  look  at  a  country’s  demographics:  Size.  ethnic   group.  income.     2.  Monopolistic  competition   Many  sellers  who  compete  for  buyers  but  only  offer  a  slightly  different  product.     3.  like  an  airline.  occupation  and  family  structure.

    Step  4:  Establish  the  business  portfolio     For  company’s  with  several  SBU’s  it  is  important  to  see  how  they  can  use  their   resources  the  ensure  growth  for  the  whole  organisation.  There  is  more  focus  on  personal  goals.     Values  are  general  ideas  about  good  and  bad  behaviour.  furnish  a  house.  Often  involves  a  taboo.   such  as  division  of  labour  in  a  household.     After  constructing  a  mission  statement.  See  figure  below:                                 .     Conventions  are  norms  regarding  the  conduct  of  every  life.  such  as  incest  or  cannibalism.  these  goals  are  derived  from  the   mission  statement  and  broadly  identify  what  the  firm  hopes  to  accomplish   within  the  general  timeframe  of  it’s  long  range  businessplan.  Relevant.  The  correct  way  to   dress.  top  management  translates  that  mission   statement  into  organisational  or  SBU  objectives.     Marketers  also  need  to  take  care  of  the  language  of  the  country  they  want  to  sell   in.     Mores  are  customs  with  a  strong  moral  overtone.     Step  3:  Set  organisational  or  SBU  objectives.  Attainable.  or   forbidden  behaviour.       In  marketing.  Measurable.  the  tendency  to  prefer  products  of  people  of  one’s  own  culture   over  those  from  other  countries  is  called  ethnocentrism.Collectivist  cultures  is  where  people  tend  to  abandon  their  personal  goals  to   those  of  a  stable  community.  The  objectives  need   to  be  SMART:  Specific.  In  individualistic  cultures  the  opposite  is  true   however.  eat  dinner  etc.  From  these  values  flow   norms  some  specific  types  are     Custom  –  A  norm  handed  down  from  the  past  that  controls  basic  behaviour.  Time-­‐bound.

 competitors  don’t  often  enter  the  market.  the  range  of   different  business  that  a  large  firms  operates  is  called  it’s  Business  portfolio.  Portfolio  analysis  is  a  tool  that  management  uses  to  asses  the   potential  of  a  firm’s  business  portfolio.     4.  The  Boston  Consulting  Group   developed  the  BCG  Growth-­‐market  share  matrix  which  recognizes  4  different   types  of  SBU’s     1.  Cash  cows   Dominant  market  share  in  a  low-­‐growth  potential  market.Just  as  the  different  stock  an  investor  owns  is  called  a  portfolio.  Dogs   A  small  share  of  a  slow-­‐growth  market.     2.           .  Businesses  that  off  specialised  products   in  limited  markets  that  are  not  likely  to  grow  quickly.   Mostly  they  represent  different  product  lines  and  operate  with  their  own  budget   and  management.  Because  there  is  not   much  opportunity  for  new  companies.  Several  models  are  available  to  assist   management  in  the  portfolio  analysis  process.  but  also  require  a  lot  of  funding.  SBU’s  with  low  market  shares  in  fast-­‐ growth  markets.  Stars   SBU’s  with  products  that  have  a  dominant  market  share  in  high-­‐growth  markets.  It  shows  that  the  business  has  failed  to  compete  successfully.   Stars  generate  large  revenues.  Question  marks   Sometimes  called  ‘problem  children’.     3.

 Reaching  new  customer  segments.       Marketing  planning:  Selecting  the  camera  setting   Step  1:  Situation  analysis   Step  2:  Set  marketing  objectives   Step  3:  Develop  marketing  strategies   (Loot  at.  pricing.  They  look  at  the  day-­‐to-­‐day  execution  of  the   marketing  plan.  This  is  called  Counter   trade.  Market  development  strategies   Introduce  existing  products  to  new  markets.  An  embargo  is  a  extreme  quota  that  prohibits  specified   foreign  goods  completely.  promotion.  non-­‐users  and  users  of  competing  brands.  This  may  mean   extending  the  firm’s  product  line  by  developing  new  variations  of  the  item.   improving  distribution  etc.  That’s  what   operational  plans  are  for.  Diversification  strategies   Emphasise  both  new  products  and  new  markets  to  achieve  growth.     3.       Many  governments  set  import  quotas    on  foreign  goods  to  reduce  competition   for  domestic  industries.  distribution  called  the  marketing  mix)   Step4:  Implement  and  control  the  marketing  plan   (see  how  it  works  out  by  looking  at  the  Return  on  marketing  investment   (ROMI)  )     Creating  and  working  with  a  marketing  plan:  Snapping  the  picture     The  best  plan  ever  written  is  useless  if  it  is  not  actually  carried  out.   To  hide  from  taxes  and  regulations  trading  forms  work  out  elaborate  deals  in   which  they  trade/barter  their  products  with  each  other.  The  group  that  made  this  rule  is  known  as  the  World  Trade   Organization  (WTO).     2.       International:  The  complicated  world  of  global  marketing   World  trade  refers  to  the  flow  of  goods  and  services  among  different  countries.  Market  penetration  strategies   Seek  to  increase  sales  of  existing  products  to  existing  markets  such  as  current   users.  Product  development  strategies   Create  growth  by  selling  new  products  in  existing  markets.Step  5:  Develop  growth  strategies     Within  the  marketing  department  we  can  recognize  4  different  growth   strategies:     1.    Besides  that  governments  also  use  tarrifs  (tarieven)   .  They  do  this  by  cutting  prices.  Established  under  the  united  nations  after  the  second  world  war  is  the   General  agreement  on  Tariffs  and  Trade  (GATT)  which  did  a  lot  to  reduce  the   problem  that  protectionism  (rules  that  give  home  companies  an  advantage)   creates.  A  firm’s  Corporate  culture  is  important  for  it’s  internal   environment.  product.       4.

 even  so  that   companies  already  start  as  a  Global  market  itself.  Besides  that  companies  can  also  completely   buy  out  a  firm  (direct  investment)     The  appeal  of  catering  to  global  market  becomes  bigger  and  bigger.  This  is  often  a  Joint  venture   whereby  two  or  more  firms  create  a  new  entity  to  allow  the  partners  to  pool   their  resources  for  common  goals.on  imported  goods  to  give  domestic  competitors  and  advantage  in  the   marketplace.       A  firm  can  make  a  commitment  to  a  foreign  market  by  setting  up  a  licensing   agreement  that  gives  another  firm  the  right  to  produce  and  market  its  product   in  a  specific  country  or  region  in  return  for  royalties.         .  These  are  called  born-­‐global   firms.       An  even  deeper  commitment  is  created  by  setting  up  a  strategic  alliance  with   one  or  more  domestic  firms  in  the  target  country.   Besides  that  Franchising  is  a  form  of  licensing  that  gives  the  franchisee  the  right   to  adapt  an  entire  way  of  doing  business  in  the  host  country.

 Another  unethical/illegal  practice  is  dumping  in  which  a   company  prices  it’s  products  lower  than  they  are  offered  at  home.   .     Distribution  decisions   Establishing  a  reliable  distribution  system  is  essential  if  a  marketer  is  to  succeed   in  a  foreign  market.     2.  Product  adaptation  strategy   Recognises  that  in  many  cases  people  in  different  cultures  do  have  strong  and   different  product  preferences.  Straight  extension  strategy   Retains  the  same  product  for  domestic  and  foreign  markets.  Product  invention   Develops  a  new  product  as  it  expands  to  foreign  markets.     Promotion  decisions     Is  it  necessary  to  modify  their  product  in  a  foreign  market?     Price  decisions   Grey  market  goods  are  items  that  are  imported  without  the  consent  of  the   trademark  holder.Product  level  decisions     Product  decisions   There  are  three  ways  to  sell  a  product  in  a  foreign  market:     1.     3.

 Some  firms  resell  these  goods  and  services.             .  Other  firms  use  the  goods  and  services  they  buy  to   produce  other  goods  and  services  that  meet  the  needs  of  their  customers  or  to   support  their  own  operations  these  are  called  business  to  business  markets  or   organisational  markets.     There  are  many  major  and  minor  differences  between  organisational  and   consumer  markets.  so  they  are  part  of  a   channel  of  distribution.        Chapter  5:  Business-­‐to-­‐business  marketing     Business  markets:  Buying  and  selling  when  the  stakes  are  high   Business-­‐to-­‐business  (B2B)  marketing  is  the  marketing  of  goods  and  services   that  businesses  and  other  organisations  buy  for  purpose  other  than  personal   consumption.  marketers  must  understand  these   differences  and  develop  strategies  that  can  be  effective  with  organisational   customers.  To  be  successful.

 If  more   people  want  to  fly.     Geographic  concentration   Business  customers  are  often  located  in  a  small  geographic  area  rather  than   being  spread  out  across  a  country.  That   means  no  TV  advertising.  and  the  satisfaction  of  that  need.  If  the  supply   of  one  of  these  parts  decreases  it  will  be  difficult  to  manufacture  the  product.     Number  of  customers   Marketing  is  different  because  the  potential  market  of  buyers  is  smallers.                   .Large  buyers   In  business  markets  you  need  to  look  at  the  company  as  a  whole.     1.  A  business’s  demand  for  goods  and   services  comes  either  directly  or  indirectly  from  consumer  demand.  When  they  buy  a  new  coffee  machine.  There  are  four   different  ways  in  demand  can  be  derived.  Also   business  buy  infrequently  (You  don’t  buy  a  new  plane  every  year  or  so).  if  they  up  that  with  €0.  KLM  will  need  more  planes.  Inelastic  demand   It  usually  doesn’t  matter  if  the  price  of  business-­‐to-­‐business  product  goes  up  or   down.  everyone  within  the  company   needs  to  ‘like’  it.   Even  small  changes  in  consumer  demand  can  change  the  way  for  business   demand  (if  people  don’t  want  to  fly  anymore.  Think  of  the  A4  paper   again.  Joint  demand   Occurs  when  two  or  more  goods  are  necessary  to  create  a  product.  KLM  has  too  much  planes).  business  customers  still  buy  the  same  quantity.     Business  to  business  demand   Demand  in  business  markets  differs  from  consumer  demand.  not  an   individual.     2.  Fluctuating  demand   There  are  greater  fluctuations  within  business  demand  than  consumer  demand.  Understanding  these  is  important  for   marketers  in  forecasting  sales  and  planning  marketing  strategies.  Derived  demand   A  need.20  NHTV  couldn’t  care  less.     4.  but  full  focus  on  the  power  of  your  product  and  a   strong  sales  force     Size  of  purchases   Demand  is  much  larger.     3.  think  for  instance  of  the  amount  of  A4  paper  the  NHTV   uses  on  daily  basis.

 churches.  or  leasing  to  other   businesses.     Organisations   Governments  may  be  the  only  customers  for  certain  products  (think  of  the  Joint   Strike  Fighter).     The  buying  situation   A  buy  class  framework  identifies  the  degree  of  effort  required  by  the  firm’s   personnel  to  collect  information  and  make  a  purchase  decision.  a  successful  business-­‐to-­‐business   marketer  needs  to  understand  how  his/her  customers  make  decisions.                                 In  addition  marketers  can  identify  potential  customers  using  the  Standard   Industrial  Classification  system  (SIC)  this  is  a  numerical  coding  system   whereby  companies  that  operate  within  specific  industrial  sectors  (their  SIC   code)  can  be  identified.  renting.  To  inform  possible  vendors  about  purchases  they  are  about  to   make  governments  regularly  make  information  on  future  purchases  available  to   bidders.     Resellers   Buy  finished  goods  for  the  purpose  of  reselling.  There  are  three   different  classes:     1.  Not-­‐for-­‐profit  institutions  are  organisations  with  educational.  universities.  Firms  use  this  to  find  new  customers.  Straight  re-­‐buy   .Types  of  business-­‐to-­‐business  markets   We’ll  look  at  the  three  major  classes  of  business-­‐to-­‐business  customers:     Producers   Purchase  products  for  the  production  of  other  goods  and  services  that  they  in   turn  sell  to  make  profit.   museums  etc.   community  and  other  public  service  goals:  Hospitals.     The  nature  of  business  buying   Just  like  companies  that  sell  to  end  consumers.

    The  group  of  people  in  the  organisation  who  participate  in  the  buying  process   are  referred  to  as  the  Buying  Centre  a  cross  functional  team  of  decision  makers.  a   participant  may  assume  one.   Depending  on  the  complexity  of  the  purchase  and  the  size  of  the  buying  centre.     The  professional  buyer   Professional  purchasers  focus  on  economic  factors  beyond  the  initial  price  of  the   product.  or  delivery  times.  and  they  need  the  most  effort  because  the  buyer   has  no  previous  experience  on  which  to  base  a  decision.  including  transportation  and  delivery  charges.  or  all  of  the  six  roles.The  routine  purchase  of  items  that  a  B2B  customer  regularly  needs  (think  of   office  equipment  like  paper.  New-­‐task  buy   A  first  time  purchase  is  a  new-­‐task  buy.   quality.   For  straight  re-­‐buys  a  simple  order  will  be  placed  and  the  decision  process  stops.  Uncertainty  and  risk  characterise  buying   decisions  in  this  classification.)         2.  several.  Modified  re-­‐buy   Occurs  when  a  firm  want’s  to  shop  around  for  suppliers  with  better  prices.     3.                                     The  business  buying  decision  process     Step  1:  Problem  recognition   The  first  step  occurs  when  someone  sees  that  a  purchase  can  solve  a  problem.  Modified  re-­‐buys  require  more  time  and  effort  than   regular  re-­‐buys.  pens  etc.           .

    .Step  2:  Information  search   The  buying  centre  searches  for  information  about  products  and  suppliers.     Step  3:  Evaluation  of  options   The  buying  centre  assesses  the  proposals.     Step  4:  Product  and  supplier  selection   The  purchase  decision.  Multiple  sourcing  means  buying  a  product  from  several  different   suppliers.  the  selection  of  the  best  product  and  supplier  to  meet  the   firm’s  needs.  weight.  They   want  Product  specifications  like  seize.  features.  After  that  they  need  to  identify  potential  suppliers   and  obtain  proposals.  Single  sourcing  occurs  when  a  buyer  and  seller  work  quite  closely   together.  colour.  service  terms   and  delivery  requirements.  Outsourcing  occurs  when  firms  obtain  outside  suppliers  to  provide   goods  or  services  that  might  otherwise  be  supplied  in-­‐house.     Step  5:  Post  purchase  evaluation   Asses  whether  the  performance  of  the  product  and  the  supplier  live  up  to  the   expectations.

        .     Internet  is  the  primary  source.  In   contrast  there  is  also  an  Extranet  that  allows  certain  suppliers.  customers  and   other  outside  the  organisation  to  access  a  company’s  internal  system.Business-­‐to-­‐business  ecommerce   Refers  to  an  online  exchange  between  two  or  more  business  or  organisations.  but  companies  also  use  intranets  that  only  give   acces  to  authorized  employees  (comparable  to  the  system  of  N@Tschool).