M.O.M
Proactive firms
"those who make things happen" - try to shape outcomes and influence the environment.
Identifying Possible Value Differences and Competitive Advantages
(an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices); a company can differentiate itself through products, services, channels, people or image.
The competing values framework (by Quinn et al. four cultural types)
- Rational goal - Internal process - Human relations - Open systems
The characteristics of bureaucracy are the followings:
- Rules and regulations -Impersonality -Division of labour -Hierarchy -Authority -Rationality
individual factors (of an ethical model)
- Stage of moral development - Ego strength - Locus of control
contextual factors (of an ethical model)
- Work-group norms - beliefs within the work group about right and wrong behavior. - Incentives - management policies on rewards and disciplines. - Rules and regulations - management policies about acceptable behavior.
Mary Parker Follet advocated
-Replacing bureaucratic institutions by networks -Enabling individuals to work in groups -Self-governing principle to support growth of individuals -Creating integrative unity of members -She thought labour devalued human creativity -Human and mechanical side should not be separated.
business market characteristics
-far fewer but larger buyers -inelastic and more fluctuating demand. -business demand is derived demand -more complex buying decisions - buying process tends to be longer and more formalized. -buyer and seller are much more dependent on each other
The competing value framework - Quinn et al.
-successive models of management complement, rather than contradict, each other. -Managers seek flexibility to cope with rapid change. -managers who are self-aware of their instinctive reaction to people and situations are more likely to use models effectively to guide what they say and do.
two goals of marketing
-to attract new customers by promising superior value -to keep and grow current customers by delivering satisfactions.
Vroom and Yetton's five leadership models
1. AI (Autocratic): You solve the problem or make the decision yourself using information available to you at that time. 2. AII (Information-seeking): You obtain the necessary information from you subordinate(s), then decide on the solution to the problem yourself. 3. CI (Consulting): You share the problem with relevant subordinates individually, getting their ideas and suggestion without bringing them together as a group. Then you make the decision that may or may not reflect your subordinates' influence. 4. CII (Negotiating): You share the problem with your subordinates as a group, obtaining their collective ideas and suggestions. Then you make the decision that may or may not reflect your subordinates' influence. 5. G (Group): You share the problem with your subordinates as a group. Together you generate and evaluate alternatives and attempt to reach agreement on a solution. You don't try to influence the group to adopt "your" solution, and you are willing to accept and implement any solution that has the support of the entire group.
factors to consider before doing business in a given country
1. Attitudes towards buying international products; whether the nation is receptive to foreign businesses. 2. Government bureaucracy. 3. Political stability; whether the country has international conflicts. 4. Monetary regulations; changing exchange rates and currency limits.
five sustainable marketing principles:
1. Consumer-Oriented Marketing 2. Customer Value Marketing 3. Innovative Marketing 4. Sense-of-Mission Marketing 5. Societal Marketing
Rangan et al (model in which Cr can contribute to wider strategy)
1. Corporate mission. The companies that place CR at the heart of their business. 2. Philanthropy and enlightened self-interest. Even though donors are unlikely to expect or receive any direct business benefits from this, Jones et al suggest that a positive reputation for responsible behaviour makes a company more attractive to potential employees. 3. Improving operations. Improving sustainability in a company's operations can be useful on two levels: a. Improving the sustainability to produce resources in order to, for example, insure that the company will still benefit from the resources later (e.g. Mars with cocoa) b. The ethical consumers - those who take ethical issues into account in deciding what to purchase. 4. Creating shared value. Porter and Kramer said that companies are more likely to perform well if they aim to create shared value, by balancing the interests of many stakeholders.
Deciding which markets to enter(ranked on potential factors)
1. Demographic characteristics 2. Sociocultural factors 3. Geographic characteristics: 4. Political and legal factors: 5. Economic factors
Frederick Taylor's five principles (worker reaching maximum efficiency)
1. Determine the one best way of doing a task with help of scientific methods, 2. Select best person to do the job so defined, 3. Train, teach, develop other workers to follow defined procedures, 4. Provide financial incentives, 5. Centralize responsibility of planning and controlling to the manager.
Henri Fayol's 14 principles of management
1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest to general interest. 7. Remuneration of personnel 8. Centralisation 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Esprit de corps
Code of ethics by American marketing association:
1. Do not harm - avoiding harmful actions by embodying high ethical standards 2. Foster trust in marketing system - striving for good faith and fair dealing (product, price, design) 3. Embrace ethical values - affirming core values: honesty, responsibility, fairness, respect, transparency, citizenship.
Chains of command Formal authority
1. Formal authority -refers to the person in a specified role that has to make decisions, allocate resources or give instructions. 2. Responsibility -refers to a person's duty to meet the expectations others have of them in their role. To fulfil this they require formal authority to manage resources. 3. Delegation- occurs when one person gives another the authority to undertake specific activities or decisions.
Dividing work internally (four structures)
1. Functional structure is when tasks are grouped into departments based on similar skills and expertise. 2. Divisional structure is when tasks are grouped in relation to their outputs, such as product, the needs of different types of customer or even geographical areas. 3. Matrix structure is when both functional and divisional structures are merged. (4. network)
Hackman 3 criteria to evaluate a team
1. Has it met performance expectations? 2. Have members experienced an effective team? 3. Have members developed transferable team-work skills?
Groupthink Symptoms
1. Illusion of invulnerability, (the belief that any decision they make will be successful.) 2. Belief in the inherent morality of the group, (justifying a decision by reference to some higher value.) 3. Rationalization, (playing down (underestimate) the negative consequences or risks of a decision.) 4. Stereotyping out-groups, (characterizing opponents or doubters in unfavorable terms, making it easier to dismiss even valid criticism from that source.) 5. Self-censorship, (suppressing legitimate doubts in the interests of group loyalty.) 6. Direct pressure, (strong expressions from other members (or the leader) that dissent to their favored approach to be unwelcome.) 7. Mind guards, (keeping uncomfortable facts or opinions out of the discussion.) 8. Illusion of unanimity, (playing down any remaining doubts or questions, even if they become stronger or more persistent.)
four strategies for each SBU
1. It can invest more in the business unit to build its share. 2. It can invest just enough to hold the SBU's share at the current level. 3. It can harvest the SBU, milking its short-term cash flow regardless of the long-term effect. 4. It can divest the SBU by selling it or phasing it out and using the resources elsewhere.
Four criteria evaluating an action
1. Moral principle, if someone acts in a way that conforms to accepted principles (do not steal, kill, hurt voluntarily, ...), it is right: if not, it is wrong. 2. Utilitarianism, people use this criterion when they evaluate an action on the total balance of pleasure and pain in the society. An act is right if it brings more pleasure than it hurts. 3. Human rights, people use this when they evaluate an action against its effect on human right that a society recognizes. 4. Individualism, people use this when they evaluate an action against its effect on their interests. An act is right if they can show that it serves a person's interests.
major cultural values of a society
1. People's Views of Themselves. 2. People's Views of Others. 3. People's Views of Organizations. 4. People's Views of Society. 5. People's Views of Nature. 6. People's Views of the Universe.
Rangan et al, three forms of corporate responsibility
1. Philanthropy, the practice of contributing personal or corporate wealth to charitable or similar causes, believed to be in one's best interest in the long term. 2. Improving operations, the responsible corporate activity of working on business processes to improve efficiency. 3. Creating shared value, this refers to situations where the company and the community work together to adapt part of the company's operating system to create shared value - creating value in a way that also creates value for society by addressing its needs and challenges.
five dimensions of culture (Hofstede)
1. Power distance 2. Uncertainty avoidance 3. Individualism/collectivism 4. Masculinity/Feminity 5. Long-term and Short-term orientation
Five characteristics of rate of adoption
1. Relative advantage. 2. Compatibility. 3. Complexity. 4. Divisibility. 5. Communicability.
The formal model of decision making
1. Setting goals (or objectives) - the ends 2. Specifying what has to be done to achieve the goals - the means 3. Implementing what has to be done 4. Monitoring progress
Katzenbach and Smith's (definition and criteria about a team )
1. Small number (between 4 and 8 being the most common.) 2. Complementary skills 3. Common purpose 4. Common approach 5. Mutual accountability
Four types of industrial structures
1. Subsistence economies: consumes its own outputs, few market opportunities (e.g. most African countries) 2. Raw material exporting economies: rich in one or more natural resources, but poor in other ways. Its economy depends on the export the raw material. 3. Emerging economies (industrializing economies): fast growing economies resulting from fast growing manufacture. (e.g. BRIC = Brazil, Russia, India and China) 4. Industrial economies: major exporters of manufactures goods, services and investment funds. They trade amongst themselves, have a large middle class, ...
four features of the formal structure
1. Tasks - the major activities of the organisation, 2. Subdivisions - which departments are responsible for which tasks, 3. Levels - the position of each post within the hierarchy, 4. Lines of authority - the link the boxes to show people who to report to.
five alternative concepts (which organizations design and carry out their marketing strategies)
1. The Production Concept 2. The Product Concept 3. The Selling Concept 4. The Marketing Concept 5. The Societal Marketing Concept
the three elements of a proposal
1. The claim or conclusion: the claim answers the question "what is this about" 2. The grounds or the facts and evidence to support the claim: the 'grounds' answers the question 'what leads you to say that?' 3. The warrant, or bridge between the claim and the grounds: the 'warrant' answers the question "How does your claim connect to the grounds you've offered?"
cultural environment (company must understand)
1. The impact of culture on marketing strategy; companies must understand the differences in culture among different countries to adapt their marketing strategy. 2. The impact of marketing strategy on culture; how global companies create a "global" world and sometimes lead to a "global" culture (e.g. the Americanization due to global American firms.)
government regulations (public policy) to regulate the markets
1. To protect companies from each other; (whether it's for competition, author's right, ...) 2. To product customers from unfair business practices;( to block firms to make shoddy products, invade consumer privacy, mislead consumers in their advertising, ...) 3. To protect the interests of society against unstrained business behavior; (regulations that ensure that firms take responsibility for the social costs of their production or products.)
Deciding which markets to enter(before going abroad)
1. its international marketing objectives 2. what volume of foreign sales it wants 3. how many countries it wants to market 4.on the types of countries to enter.
five-step model of the marketing process
1. understand the marketplace and customer needs and wants 2. design a customer- driven marketing strategy 3. construct an integrated marketing program that delivers superior value 4. build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity
Beliefs and Attitudes.(psychological factors)
A belief is a descriptive thought that a person holds about something. While an attitude describes a person's relatively consistently favourable or unfavourable evolutions, feelings, and tendencies toward an object or idea.
Emotional attachment
A bias that is cause by feelings and attachment to something or someone.
ideal learning organization- Pedler et al:
A learning approach to strategy Participative policymaking Informative Formative accounting and control Internal exchange Reward flexibility Enabling structures Boundary workers as environmental scanners Inter-company learning A learning climate Self-development opportunities for all
Undifferentiated Marketing
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
Differentiated Marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
Concentrated Marketing
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
Developing cultures
A shared culture guides people on how they should contribute, and following this culture strengthens it and makes it hard to change
Organisation
A social arrangement for achieving goals that create value (does this by transforming tangible and intangible resources into goods and services.)
A Manager's Frame of Reference - Alan Fox
Alan Fox studied the relationship between managers and employees. Unitary perspective Pluralist perspective Radical perspective
Evaluating of Alternatives
Alternative evaluation, how consumers process information to choose among alternatives brands. Consumers use several evaluation processes. Either they will use careful calculations and logical thinking or do little evaluation and just go on intuition.
Components of cultures (three levels of culture)
Artefacts Beliefs and value Basic underlying assumptions
Family (social factors)
As family is the most important consumer buying organization in society, family members can strongly influence buyer behaviour. Marketers often use shifting roles to sell new products.
How to develop skills (Whetton and Cameron)
Assessment Learning Analysis Practice Application
Networking
Behaviors that aim to build, maintain and use informal relationships that may help work related activities
Power of buyers (customers)
Buyers seek lower prices or higher quality at constant prices, thus forcing down prices and profitability. Buyer power is high when: - The buyer purchases a large part of a supplier's output, - There are many substitute products, allowing easy switching, - The product is a large part of the buyer's costs, encouraging them to seek lower prices, - Buyers can plausibly threaten to supply their needs internally.
Shaper
Challenging, dynamic, thrives on pressure. Has the drive and courage to overcome obstacles.
Opinion seeker
Clarifier
advantages of functional structure
Clear career paths and professional development Specialization leads to high standards and efficiency Common professional interests support good internal relations
Rational model
Clear problem and goals High degree of certainty Much information about costs and benefits Rational choice to maximize benefit
Information seeker (task)
Compromiser (maintenance)
Bargaining power of suppliers
Conditions that increase the bargaining power of suppliers are the opposite of those applying to buyers. The power of suppliers relative to customers is high when: - There are few suppliers, - The product is distinctive, so that customers are reluctant to switch, - The cost of switching is high (e.g. if a company has invested in a supplier's software), - The supplier can plausibly threaten to extend their business to compete with the customer, - The customer is a small or irregular purchaser.
Political model
Conflict over goals Uncertainty and/or conflict Conflicting views about costs and benefits or alternatives Choice by bargaining among players
Organic structure
Contribute experience to common tasks Network structure of contacts Knowledge widely spread Horizontal communication Commitment to goals valued
Team worker
Cooperative, mild, perceptive and diplomatic. Listens, builds, averts friction, calms the waters.
Plant
Creative, imaginative, unorthodox. Solves difficult problems.
Disagreeing
Criticizing another person's statement
Resource allocator(decisional manager's role)
Decide who gets resources, schedule, budget, set priorities.
Supporting
Declaring agreement or support for an individual or their idea.
Managers and their contexts
Determinism Managerial Choice Interaction
Building
Developing or extending an idea or suggestion from someone else.
Leader(interpersonal manager's role)
Direct and motivate subordinates, train, advise and influence.
Implementer
Disciplined, reliable, conservative and efficient. Turns ideas into practical actions.
geographic segmentation
Dividing a market into different geographical units, such as nations, states, regions, counties, cities or even neighbourhoods.
Psychographic segmentation
Dividing a market into different segments bases on social class, lifestyle or personality characteristics.
Behavioural segmentation
Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
Demographic segmentation
Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
Three domains of human actions
Domain of Codified Law (Legal Standard) Domain of Free Choice (Personal Standard) Domain of Ethics (Social Standard)
internal value chain
Each company department can be thought of as a link in the company's internal value chain - the series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firm's products
Criteria of corporate social performance
Economic responsibility (Make a profit that can benefit the shareholders) Legal responsibility (Obey the law) Ethical responsibility (Do what is right, avoid harm) Discretionary responsibility (contribute to community, be philanthropic)
Board of directors
Elected by shareholder (or other stakeholders) to supervise the managers.
Local communities (stakeholders)
Employment, income, limits on pollution and noise
Employees (stakeholders)
Employment, security, safe working conditions, rewarding work, fairness in promotion, security and pay.
Middle Managers
Ensure that the first-line managers work well, they are responsible for a unit within a function.
External stakeholders
Entities not within a business, but are affected by its performance (government, customers..)
Internal Stakeholders
Entities within a business (ex. employees, shareholders)
Resource investigator
Extravert, enthusiastic, communicative. Explores opportunities. Develops contacts
Networking skills Trought suggested
Face to face networks Social media networks
Threat of new entrants (=potential entrants)
Factors that affect how easily new entrants can enter an industry include: - The need for economies of scale, which are difficult to achieve quickly, - The amount of capital investment required, - Available distribution channels, - Subsidies and regulations that benefit existing firms, - Need for tangible and intangible resources that existing firms control, - How loyal customers feel to existing firms.
Managers (stakeholders)
Fair income and career prospects, positive reputation for acting responsibly and sustainable
Suppliers (stakeholders)
Fair terms, prompt payment, long-term relationships
Shareholders (stakeholders)
Financially-centred investors: high return on investment. Ethical investors: strong CR policies, reputation, long-term financial return.
Disseminator(informational manager's role)
Forward information to others, send memos, make phone calls.
two philosophies of managing ethics issues
Free market and legal system should decide such issues, and Responsibility lays on individual mangers
advantages of divisional structures
Functional staff focus on product and customer needs Dedicated facilities meet customer needs quickly Common customer focus enables internal relations
4 different categories of segmenting consumer markets
Geographic, Demographic, Psychographic, Behavioural
Criticizing another person's statement
Giving or clarifying facts, ideas or opinions.
Garbage-can model
Goals and solutions are independent Ambiguity Costs and benefits are unconnected at start Choice by accidental merging of streams
Irving Janis and groupthink
Groupthink is a mode of thinking that people engage in when they are deeply involved in a cohesive in-group
Management skills
Identifiable sets of actions that individuals perform to produce an outcome they value.
Frank and Lillian Gilbreth
Implemented scientific management, by stating: ® How to reduce unnecessary action and fatigue ® What employers should provide ® Scientific management properly applied enables individuals to reach their potential
Overcoming the barriers in practice
In order to overcome the barriers, you need two things: language policy in the organization and behaviour of individuals in the organization.
perceptual positioning maps
In order to plan their differentiation and positioning strategies, markets use
Senior Managers
Includes functional or divisional heads. (Usually the CEO or Managing Director, MD).
Stakeholders
Individuals, groups or organizations who are affected by, what the organizations does.
Entrepreneur(decisional manager's role)
Initiate new projects, spot opportunities, identify areas of business development.
Initiator (task)
Initiator (maintenance)
Dimensions of context
Internal context Historical context External context
disadvantages of functional structures
Isolation from wider interests damages promotion prospects Conflict over priorities Lack of wider awareness damages external relations
Escalating commitment
It is a bias that leads to increased commitment to a previous decision despite evidence that it may have been wrong.
Optimism bias
It is a human tendency to see the future in a more positive light than is warranted by experience.
Illusion of control
It is a source of bias resulting from the tendency of overestimate one's ability to control activities and events.
Prior hypothesis bias
It results from a tendency to base decisions on information that supports their beliefs and ignoring what is inconsistent.
Representative bias
It results from a tendency to generalize inappropriately from a small sample or a single vivid event.
Mixed forms
Large organisations usually combine functional, product and geographical structures within the same company.
How do managers shape their environment?
Lobbying (persuading governments and other agencies to act in their favor)
Morgan identified eight ways of seeing an organization
Machines Organisms Brains Cultures Political systems Psychic prisons Flux and transformation Instruments of domination
Liaison(interpersonal manager's role)
Maintain information links in and beyond the organisation
Customers (stakeholders)
Majority - price, quality, durability and safety Minority - fair-trade sources, fair treatment of staff, care for environment
Folklore(4 of the four folklore about the manager's job)
Management is, or at least is quickly becoming a science and a profession.
Historical context
Managers focus on the current issues, however history influences them. People welcome familiar things and resist and fear change.
Coordinator
Mature, confident, a good chairperson. Clarifies goals, promotes decision making, delegates well.
Environmental campaigners (stakeholders)
Minimise pollution, emissions, waste, and assist recycling. Use Fairtrade sources when possible.
two types of marketing control
Operating control: involves checking ongoing performance against the annual plan and taking corrective actions when necessary. Strategic control : involves looking at whether the company's basic strategies are well matches to its opportunities.
Non-for-profit organizations
Organizations that aim to add value by educating people, counseling the troubled or caring for the sick.
Commercial organisations
Organizations that create wealth by adding value to resources.
Co-operative Organizations
Organizations which are usually commercial, owned by either the customers or the employee, which receive a share of the profits as a dividend.
Completer
Painstaking, conscientious, anxious. Searches out errors and omissions. Delivers on time.
Government (stakeholders)
Pay taxes, obey laws, provide economic development, policies that support (e.g.) government renewable energy targets.
Diagnoser
Peacekeeper
Entrepreneurs
People who see opportunities in a market, and quickly mobilize the resources to deliver the product or service profitably.
Figurehead (interpersonal manager's role)
Perform ceremonial and symbolic duties, receive visitors.
Personality and Self-Concept. (Personal Factor)
Personality refers to the unique psychological characteristics that distinguish a person or a group. While the self-concept (or self-image) says that people's possessions contribute to and reflect their identities.
Maslow's Hierarchy of Needs (psychological factors)
Physiological needs, safety needs ,belongingness and love needs, esteem needs, and self-actualizations
Management tasks
Planning Organizing Leading Controlling external environment must also be taken into account
different factors PESTEL
Political factors: they shape what managers can and cannot do. (e.g. taxation policies, people in the government) - Economic factors: how the economy affect the organization (both the people and the government. (e.g. IKEA in 2012 due to money shortage in the recession) - Socio-cultural factors: demographic changes, trends, people's priorities (e.g. people with Alzheimer and dementia in stores, Adidas with the Vegan Stat Smith) - Technological factors: the company's physical infrastructure. - Environmental factors: the natural resources available in an economy. (e.g. Climate change) - Legal factors: laws that help (or not) the company. (the actual legal laws)
Four P's of Marketing
Product --> (acceptability) Price -->(affordability) Place -->(accessibility) Promotion-->(awareness)
Creditors (stakeholders)
Prompt payment
Multiple Cultures (by Martin)
Proposed that large organizations have multiple cultures, towards which observers take on of three perspectives: - Integration: a focus on identifying consistencies, and acts that support a common goal. - Differentiation: a focus on conflict, identifying different and possibly conflicting views. - Fragmentation: a focus on the fluidity of organizations, and of changing views about events.
categories of communication
Proposing Supporting Building Disagreeing Giving information Seeking information
Proposing
Putting forward a suggestion, idea or course of action.
Spokesperson(informational manager's role)
Represent the unit to outsiders in speeches and reports.
Negotiator(decisional manager's role)
Represent unit during negotiations with unions, suppliers, and generally defend interests
advantages of centralisation
Response to change: Through debate of issues Use of expertise: Concentration of expertise at the centre makes it easier to develop new services and promote best practice methods Cost: Economies of scale in purchasing and using common systems (e.g. IT) Policy implications: Possibly less risk of local managers acting illegally Staff commitment: Backing of centre ensures wide support Consistency: Provides consistent image to the public - less variation in service standards
disadvantages of centralizatiom
Response to change:Slower response to local conditions Use of expertise: Less likely to take account of local knowledge or innovative people Cost: Local suppliers may give better value than remote corporate ones Policy implications: Possibly more risk of local managers acting illegally Staff commitment:Staff motivated by more responsibility Consistency: Local staff discouraged from taking responsibility - can blame centre
Project managers
Responsible for managing a project.
General Managers
Responsible for the performance of a distinct unit in an organization
Line managers
Responsible for the performance of activities that directly meet customers' needs.
Functional managers
Responsible for the performance of an area of technical or professional work
ways to E-procurement
Reverse auctions: putting purchasing requests online and inviting suppliers to bid Trading exchanges: working collectively to facilitate trading process Own company buying sites: posting of buying needs, invitation of bids, negotiating of terms, ... Extranet with key suppliers: direct procurement accounts with suppliers
Rational Goal Models (frederick taylor)
Scientific management refers to the attempt to create a science of factory production. -relationship between the worker and machine-based production systems. -Wanted to secure maximum prosperity for employer, coupled with max prosperity for employee
Monitor(informational manager's role)
Seek and receive information, scan reports, maintain interpersonal contacts.
Seeking information
Seeking facts, ideas or opinions from others.
Human Relations Models (Mary Parker Follett)
She saw the group as an intermediate institution between solitary individual and the abstract society
Specialist
Single-minded, self-starting, dedicated. Provides knowledge and skills in rare supple.
Monitor-evaluator
Sober, strategic and discerning. Sees all options, judges accurately.
Manager
Someone who gets things done with the aid of people and other resources within an organization
Decision manager
Standard setter
Intensity of rivalry among competitors
Strong competitive rivalry lowers profitability, and occurs and when: - There are many firms in an industry, - There is slow market growth, so companies fight for market share, - Fixed costs are high, so firms use capacity and overproduce, - Exit costs are high, specialized assets or management loyalty deter firms from leaving the industry, which prolongs excess capacity and low profitability, - Products are similar, so customers can easily switch to other suppliers.
Threat of substitutes
Substitutes are products in other industries that can perform the same function - such as using cans instead of bottles - and such close substitutes constrain the ability of firms to raise prices. This threat is high when: - Technological developments reduce the advantages of existing providers or open the way to the new ones, - Buyers are willing to change their habits, - Existing firms have no legal protection for their position.
Evaluator
Summariser
Disturbance handler(decisional manager's role)
Take corrective actions during crises, resolve conflicts amongst staff, adapt to changes.
Management
The activity of getting things done with the aid of people and other resources. (two types)
People doing the work
The actual people getting the work done in order to deliver the goods or the services.
Need Recognition
The buyer recognizes a problem or a need. A need can be triggered either by an internal stimulus (when one person's normal needs rises to a level high enough to become a drive) or by an external stimulus (e.g. advertising).
Evaluation
The consumer considers if buying the product is useful and makes sense.
Adoption
The consumer decides to make full and regular use of the product.
Awareness
The consumer is aware of the product but has no information about it.
Interest
The consumer seeks information.
Trial
The consumer tries the product on a small scale to improve their estimate of its value.
Relative advantage.
The degree to which the innovation appears superior to existing products.
Compatibility
The degree to which the innovation fits the values and experiences of potential consumers.
Communicability
The degree to which the results of using the innovation can be observed or described to others.
Divisibility
The degree to which to innovation may be tried on a limited basis.
Folklore(2 of the four folklore about the manager's job)
The effective manager has no regular duties to perform
Determinism
The external context determines an organisation's performance
Internal context
The immediate context of the manager's work; the culture, objectives; structure; technology; power; people; business processes and finance.
Managerial Choice
The manager influence events and shape their context.
Folklore (1 of the four folkore about the manager's job)
The manager is reflective, systematic planner.
External context
The micro- and macro- environment that affect a manager's performance.
Intangible resources
The non-physical assets of an organization
Tangible resources
The physical assets of an organization
Folklore(3 of the four folklore about the manager's job)
The senior manager needs aggregated information, which a formal management information system best proves
Hofstede's work has some limitations
The small (and so possibly unrepresentative) number of respondents in some countries; - Reducing a phenomenon as complex as a nation's culture (whose population includes many class, social, ethnic and religious divisions) to five dimensions; - Basing the original sample on the employees of one global company; - The likelihood of differences of culture within IBM.
Knowledge and the development of behavioural skills
Three important skills which mutually reinforce each other: 1.Knowledge 2. Awareness and reflection (or Mindfulness), becoming aware of your own behaviour. 3. Behaviour, changing your behaviour.
Ignorance of models (Pfeffer and Sutton)
Trust personal experience more than they trust research; Prefer to use a method or solution that has worked before; Are susceptible to consultants who vigorously promote their solutions Rely on dogma and myth - even when there is no evidence; Uncritically imitate practices that appear to have worked well for famous companies.
Administrative, incremental and intuitional models
Vague problems and goals High degree of uncertainty Little information about costs and benefits or alternatives Satisficing choice- good enough
Evaluating Market Segments
When evaluating market segments, a firm must look at three different factors: Segment size and growth, Segment structural attractiveness, and Company objectives and resources
Interaction
When managers are influenced by, and themselves influence, the context.
Management as a role
Whenever a person takes on the role of the manager
Management as a universal human activity
Whenever people take responsibility for an activity and consciously try to shape its progress and outcome
Post-purchase Behaviour
Whether the consumer is satisfied or not depends on the relationship between the consumer's expectations and the product's perceived performance. Almost all purchases will result in cognitive dissonance - since every purchase involves compromise, consumers often feel uneasy about acquiring the drawbacks of the chosen brand. Thus, many marketers try to delight customer and not only satisfy them.
Mechanistic structure
Work on specialised tasks Hierarchical structure of control Knowledge located at top of hierarchy Vertical communication Loyalty and obedience valued
cognitive dissonance
a buyer discomfort caused by post purchase conflict
working group
a collection of individuals who work mainly on their own but interact socially and share information and best practices.
Segment size and growth
a company must decide on a segment that fits its capacities in terms of size and growth.
Sense-of-Mission Marketing
a company should define its mission in broad social terms rather than narrow product terms.
Societal Marketing
a company should make marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests. Products can be classified according to their degree of immediate consumer satisfaction and long-run consumer benefits:
Customer Value Marketing
a company should put most of its resources into customer value-building marketing investments.
Innovative Marketing
a company should seek real product and marketing improvements.
Consumer-Oriented Marketing
a company should view and organize its marketing activities from the consumer's point of view.
joint ownership
a cooperative venture in which a company creates a local business with investors in a foreign market who share ownership and control.
global firm
a firm operating in more than one country, gains research and development (R&D), production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic producers.
Codes of practice
a formal statement of the company's values, setting on the "rules" of the firm.
Adapted global marketing
a global marketing approach that adjusts the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return.
Standardized global marketing
a global marketing strategy that basically uses the same marketing strategy and mix in all of the company's international markets.
market segment
a group of consumers who respond in a similar way to a given set of marketing efforts.
Open system model states
a manager should think of their organization not as a system but as an open system that interacts with its environment.
Economic Situation(Personal Factor)
a person's economic situation will affect his or her store and product choices.
Occupation (Personal Factor)
a person's occupation affects the goods and services bought. Marketers try to identify the occupational groups that have an above-average interests in their products and services.
The Marketing Concept
a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
Operational research
a scientific method of providing managers with a quantitative basis for decisions regarding the operations under their control.
Segment structural attractiveness
a segment's attractiveness depends on Porter's five forces.
team
a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.
mission statement
a statement of the organization's purpose, what it wants to accomplish in the larger environment -should be meaningful and motivating
Bureaucracy
a system in which people are expected to follow precisely defined rules and procedures rather than use personal judgment
PESTEL analysis
a technique for identifying and listing the Political, Economic, Socio-cultural, Technological, Environmental and Legal factors in the general environment most relevant to an organization.
Core marketing
activities refers to consumer research, product development, communication, distribution, pricing, and service.
differentiation
actually differentiating the market offering to create superior customer value.
Early mainstream
adopters are deliberate; they adopt new ideas before the average person.
Thomas and Inkson
advocate that those working across culture should develop cultural intelligence, being skilled and flexible about understanding a culture, and learning about it as they interact with it.
Product specification
after defining need, developing specifications with help of value analysis
interpretive consumer research (psychological factors)
aims to dig deeper into consumer psyches and develop better marketing strategies.
internal environment (marketing environment)
all other company groups (top management, finance, operations, human resources,...) - has to be taken into account while designing marketing plans as they all have to coordinate to understand the customers' needs and creating customer value.
Social Media Marketing
all the marketing that takes place on social medias
General environment
all the other factors that can affect the organizations (macro-environment)
metaphor
an image used to signify the essential characteristics of a phenomenon. -can represent an organization
Consumerism
an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.
five marketing management functions
analysis, planning, implementation, organization and control.
experiential goods
are based on a moment
Early adopters
are guided by respect, they are opinion leaders in their communities and adopt new things carefully.
Material goods
are physical thing
Late mainstream
are sceptical, they adopt an innovation after a majority of people have tried it.
Lagging adopters
are suspicious of changes and adopt the innovation only when it has become something five chaof a tradition itself.
Subsystems
are the separate but related parts that make up the total system.
Virtual teams
are those in which the members are physically separated, using communications technologies to collaborate across space and time to accomplish their common task
Aspirational groups (social factors)
are those to which the individual wishes to belong.
Innovators
are venturesome, they try new ideas at some risk.
Controversial issues of malpractice
arise when: organisations give generous rewards to senior staff; banks sell customers unnecessary insurance; and when retailers source foods from factories that pay little attention to workers' safety. These practices can damage one's reputation.
Positioning
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customers.
Double-loop learning (argyris)
asks the question "is that an appropriate target in the first place?"
Supplier performance review
assessment of supplier's performance by buyer
Stages in the adoptions process
awareness, interest, evaluations, trial, adoption
Financial intermediaries
banks, credit companies, insurance companies, and any other business that help finance transactions and secure risks associated with buying and selling goods.
Governance systems
based on the principle that those managing an organization are accountable for their actions, and create mechanisms to do that.
Rivals (porter's five forces)
between different brands (not necessarily in the same industry)
Non-tariff trade barriers
biases against its bids, restrictive product standards, or excessive host- country regulations or enforcement.
True Friends
both profitable and loyal. -strong fit between their needs and the company's offerings. -firm wants to make continuous relationship investments to delight these customers.
corporate marketing ethics
broad guidelines that everyone in organisation follows - can help. As countries vary in ethics, companies should make a commitment to common set of shared values worldwide.
New task (type of buying situation)
business situation in which buyer purchases a product or service for first time (marketer's greatest opportunity and challenge)
Straight rebuy (type of buying situation)
business situation in which buyer routinely reorders something without any modifications
Modified rebuy (type of buying situation)
business situation in which buyer wants to modify product specifications, prices, terms, suppliers
Business markets
buy goods and services for further processing or use in their production process.
Reseller markets
buy goods and services to resell at profit.
Systems/solutions selling /type of buying situation)
buying a packaged solution to a problem from a single seller, thus avoiding all separate decisions involved in a complex buying situation
organization buying activity( two parts)
buying centre (people involved) the buying decision
Social responsible marketing
calls for segmentation and targeting that serve not just the interests of the company but also the interests of those targeted
Simple puzzles of a technical nature
can be done effectively by competent staff working independently.
Product value analysis
carefully analysing a product's components to determine if they can be redesigned and made more effectively to provide greater value, approach to cost reduction
Media publics
carries news, features, editorial opinions, and other contents. (e.g. television stations, newspaper, social media, blogs, magazines, ...)
Andrews and Boyne
cautious about changing structures. -believe that the short-term disruption might not always be worth the long-term benefits. -As people value stability, changing structure might endanger this.
decision making
choices that are part of a wider process which organizations create a plan to solve a problem.
Choosing the Right Competitive Advantages
claims that a company should only develop one selling proposition, a unique selling proposition (USP), however some companies focus on two different selling proposition, sometimes more.
Product management organization
companies with many different products create different marketing strategies for all of them.
a marketing mix
company develops marketing plans and program that will deliver the intended customer value.
Export department
composed of a sales manager and a few assistants whose jobs are to simply shipping out goods.
complexity theory
concerned with complex dynamic systems that have the capacity to organize themselves spontaneously - Systems learn and adapt from their internal experiences and from their interactions with similar systems -arises from feedback between the parts of linked systems
Hofstede's comparison of national cultures
concluded that culture is a collective programming of people's minds, which influences how they react to events.
self managing teams
conservative control represents the possibility of workers reaching negotiated consensus on how to shape their behavior according to a set of core values.
Supplier selection
consideration of supplier's attributes (quality, reputation, on-time delivery etc)
'Vertical' teams
consist of a manager and his subordinates within a single department or function.
International Markets
consist of any of the buyers in other countries.
'Horizontal' teams
consist of staff from roughly the same level, but from several functions.
target market
consists of a set of buyers sharing common needs or characteristics that the company decides to serve.
Government markets
consists of government agencies that buy goods and services to produce public services or transfer the goods and service to people in need.
Consumer markets
consists of individuals and households that buy goods and services.
cultural environment
consists of institutions and other forces that affect a society's basic values, perception, preferences, and behaviors.
Roles (social factors)
consists of the activities people are expected to perform according to the people around them.
marketing environment
consists of the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.
micro-environment
consists of the actors close to the company that affect its ability to engage and serve its customers.
social contract
consists of the mutual obligations that society and business recognize they have to each other. In the ethical responsibility, managers may act on their view of the social contract.
Vroom and Yetton's decision model
contingency model of decision making aims to influence one's decision making process by facilitating it.
Low-context cultures
correspond to those in which information is explicit and clear (where the culture differs between families and work areas...)
High-context cultures
correspond to those in which information is implicit and where everything is together
Characteristics Affecting Consumer Behaviour
cultural, social, personal, psychological
customer-managed relationships
customers connect with companies and with each other to help forge their own brand experiences.
Programmed (or structured) decisions
deal with problems that are familiar and where the information required is easy to define and obtain.
Non-programmed (unstructured) decisions
deal with situations that are unusual or new, and so require a unique and new solution. It requires a custom-made solution when information is lacking or unclear.
Bell (team composition)
defined the team composition as the configuration of members' attribute (e.g. number, abilities, demographics, personality, values, attitudes) in a team.
choosing a target strategy
depending on different factors: 1. company's resources 2. product variability 3. product's life-cycle 4. market variability (tastes, amounts, reactions) 5. competitor's marketing strategies
Customer Satisfaction
depends on the product's perceives performance relative to a buyer's expectations - product's performance falls short of expectations, the customer is dissatisfied - product's performance matches expectations, the customer is dissatisfied
Berle and Means
described the dilemma facing owners who become separated from the managers they appoint to run the business. -The principals (owners) then face the risk that managers may not act in their (the principals') best interests: they may take excessive investments risk for example, ... -The principals are then at the disadvantage to the agents (=managers).
Ambiguity
describes a situation in which the intended goals and the best way to achieve them are uncertain and unclear.
certainty
describes a situation where all the information de decision maker needs is available.
Selective distortion(psychological factors)
describes the tendency of people to interpret information in a way that will support what they already believe.
General need description
description of characteristics and quantity of needed items
skeuomorphic
design features (1), which adds an "old" side to something new (e.g. writing on a "paper image" on the new IPad.
whole-channel view
designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network - of the problem of distributing products to final consumers. -varies greatly from nation to nation
what must a company turn its broad mission statement into
detailed supporting objectives for each level of management
Porter's five forces
determine industry profitability, through their effects on prices, costs and investment requirements. - Threat of new entrants -power of buyers -threat of substitutes -bargaining power of suppliers -intensity of rivalry among competitors
Tuckman and Jensen (stages of a team)
developed a theory that groups potentially pass through five different stages of development: - Stage 1 - Forming, (when members choose or are asked to join a team. They get to know the other members and their task.) - Stage 2 - Storming, (the team gets to know each other and faces difficulties with the members' differences.) - Stage 3 - Norming, (the members begin to accommodate differences and establish adequate ways of working together. People create or clarify roles and responsibilities. The outcome of an effective norming stage is that members agrees on both the administrative and social aspects of working together.) - Stage 4 - Performing, (the group is working well, get the job done.) - Stage 5 - Adjourning, (the team completes its task and disbands.)
Henry Mintzberg
developed the fact that management skills (business awareness and social awareness) should be added to academic theory while learning to be a manager. Enhanced by, and enhance critical thinking
Functional organization
different marketing activities are headed by a functional specialist.
Paul Nutt on 'idea discovery' and 'idea imposition'
distinguished an "idea discovery process", which usually led to success, and an "idea imposition process", which usually led to failure.
Decision-making models (Thompson)
distinguished decisions in two dimensions 1. agreement 2. the beliefs about cause-and-effect relationships
Resellers
distribution channel firms that help the company to find customers or make sales to them. ex retailers, walmart
Market segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.
Belbin (teams)
each team need to find a balance, depending on their task.
Actionable
effective programs can be designed for attracting and serving the segment.
How managers spend their time (rosemary stewart)
emissaries- spent most time out of the company writers- most sum reading and writing discussers- spend most time with other people and colleagues Trouble-shooters- fragmented work pattern, many brief contacts, especially subordinates Committee members- most internal contacts, spend a lot of time in formal meeting
human relations approach
emphasizes the importance of social processes at work -Advocates believe that employees will work better if managers are interested in their well-being and supervise them humanely.
Direct investment
entering a foreign market by developing foreign-based assembly or manufacturing facilities.
Joint venturing
entering foreign markets by joining with foreign companies to produce or market products or services.
Exporting
entering foreign markets by selling goods produced in company's home country, often with little modification.
Licensing
entering foreign markets through developing an agreement with a licensee in the foreign market.
Mintzberg Decisional roles
entrepreneur, disturbance handler, resource allocator, negotiator
Ethical decision-making models
examine the influence of individual characteristics and organizational policies on ethical decisions.
David Vogel (corporate responsibility and strategy)
explained how companies who have an interest in being sustainable will do so, but that won't increase the global amount of companies that will go sustainable.
Contrasting management systems (Whitley)
explained that despite the growth of international trade and the growing interdependence of business around the world, countries varies substantially in the way they organize economic activities
Deciding how to enter the market
exporting, joint venturing, direct investment
Mintzberg interpersonal roles
figurehead, leader, liaison
Order routine specification
final order and specifications like quantity needed, expected times of delivery, return policies, warranties
Global organization
firms that don't see themselves as national marketers that sell abroad anymore but global marketers - strategies, communication, decisions are globally formed.
Marketing intermediaries
firms that help the company to promote, sell and distribute its product to final buyers.
technological environment
forces that create new technologies, creating new product and marketing opportunities
Orlitzky et al
found a positive relationship between behaviour and financial performance.
Eccles et al.
found that high-sustainability companies were more likely to: a. Assign responsibility for sustainability to a specific Board committee, b. Make executive pay depend on environmental, social and reputational measures, c. Establish a more comprehensive and engaged stakeholder management process, d. To measure and disclose information related to employees, customers, and suppliers.
Likert (outcome of teams for the members)
groups are effective because of the principle of supportive relationships.
Regional Free Trade Zones / Economic communities
groups of nations organized to work toward common goals in the regulation of international trade. In order to do so, they create policies on trade with non-member countries, reduce barriers to free flow products, finances, labour among member countries, ...) (e.g. The EU, NAFTA, ...)
consumer-generated marketing
growing form of customer-engagement marketing which consists of all the forms where the customer can be the source of a company's marketing
The Societal Marketing Concept
he idea that a company's marketing decisions should consider consumer's wants, requirements, consumer's long run interests, and society's long run interest
Physical distributions firms
help the company stock and move goods from their point of origin to their point of destination.
A strong and distinct culture
helps to integrate individuals into the team or organizations, and so helps performances.
Stars (SBU)
high-growth, high-share business or products. They need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows.
Barnacles
highly loyal but not very profitable -limited fit between their needs and the company's offerings. -most problematic customers
value proposition
how it will create differentiated value for targeted segments and what positions it wants to occupy in these segments.
three ways of organizing international divisions
i. Geographical organisations: country managers are responsible in their respected countries. ii. World product groups: each group is responsible for worldwide sales of different product groups. iii. International subsidiaries: each group is responsible for their own sales and profits.
critical thinking (Brookfield)
identifies the assumptions behind ideas, relates them to their context, imagines alternatives and recognizes limitations.
market development
identifying and developing new markets for its current products.
Informal contacts
impact the effectiveness of work: "Tips and tricks" are exchanged, as well as new ideas or inspiring talks.
flat organisation
includes a wide spans of supervision.
tall organisation
includes narrow spans of supervisions.
Internal publics
includes workers, managers, volunteers and the board of directors.
Financial publics
influence the company's ability to obtain funds (e.g. Banks, stockholders)
TheOrganization'sEnvironment
inner circle represents -internal environment -competitive environment -general environment All together these form the external environment
5 differing values of adopter groups
innovators, early adopters, early mainstream, late mainstream, lagging adopters
Competitors (porter's five forces)
inside the same industry
International divisions
internationally active firms whose composition consists of marketing, manufacturing, research, finance, planning and personnel specialist.
Proposal solicitation
invitation of qualified suppliers to submit proposals
Marketing planning
involves choosing marketing strategies that will help the company attain its overall strategic objectives. It addresses the "what and why" of marketing strategies.
Market segmentation
involves dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviours and who might require separate marketing strategies or mixes.
Digital and social media marketing
involves using digital marketing tools such as websites, social media, videos, blogs, ... to engage with consumers anywhere, at any time, via their digital devices.
new product
is a good, service or idea that is perceived by some potential customers as new. Whether the product is actually new or not doesn't matter.
Motivation (psychological factors)
is a need that is sufficiently pressing to direct the person to seek satisfaction (also called a motive or drive; a drive is a strong internal stimulus that calls for action, a drive becomes a motive when it is directed toward a particular stimulus object.)
Opinion leader (social factors)
is a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others.
adoption process
is the mental process through which an individual passes from first learning about an innovation to final adoption - the decision by an individual to become a regular user of a product.
Perception(psychological factors)
is the process by which people select, organize, and interpret information to form a meaningful picture of the world. People can't possibly pay attention to all the competing stimuli surrounding them;
Culture (cultural factors)
is the set of basic values, perceptions, wants, and behaviours learned by a member of society from family and other important institutions.
product position
is the way a product is defined by consumer on important attributes; the place a product occupies in consumers' minds relative to competing products.
macro-environment
larger societal forces that affect the micro-environment.
Exchange controls
limits on amount of foreign exchange and exchange rate against other currencies
Quotas
limits on the amount of foreign imports that they will accept in certain product categories.
open system approach
links internal parts of a system with the whole system
Dogs (SBU)
low growth, low share business products they may generate enough cash to maintain themselves but do not promise to be large sources of cash
Cash Cows (SBU)
low-growth, high-share businesses or products. They need less investment to hold their market share. Thus, they produce a lot of cash that the company uses to pay its bills and support other SBUs that need investment.
Question marks
low-share business units in high-growth markets they require a lot of cash to hold their share. Management has to think hard about which it should try to build into stars and which should be phased out.
deeper market penetration
making more sales in its current product example, making adjustments to its product design, advertising, pricing, and distributions efforts.
customer-engagement marketing (new marketing)
making the brand a meaningful part of consumer's conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences and community. - beyond just selling a brand
internal environment
manager's most immediate context
Free market and legal system should decide such issues
managers are not responsible they do what is allowed.
Unitary perspective
managers believe that organisations aim to develop rational ways of achieving common interests
Pluralist perspective
managers believe that the division of labour in modern organisations creates groups with different interests
Radical perspective
managers believe that the vertical and horizontal division of labour sustains unequal social relations that will keep managers and employees in conflict
Managers in small businesses (O'Gorman et al)
managers in small businesses move frequently from one role to another.
Market or customer management organization
market managers are responsible for developing marketing strategies and plans for their specific market or customers.
Marketing dashboards
meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance.
Greater consumer empowerment
means that companies can no longer rely on marketing by intrusion, instead they must practice marketing by attraction. -ex. social media
Requirements for Effective Segmentation
measurable, accessible, substantial, differentiable, actionable
Internal process (Quinn et al)
members focus on internal matters with the goal of making the unit efficient, stable and controlled. Tasks are repetitive, methods stress specialization and rules. Motivating factors include security, stability and order. i.e. Public authorities dislike changes.
Rational goal (Quinn et al)
members value rationality and efficiency. They define effectiveness in terms of economic goals that satisfy external requirements. Motivating factors include competition and achieving goals. i.e. Large established business.
product stewardship
minimize not only pollution from production and product design but also all environmental impacts throughout the full product life cycle while at the same time reducing costs.
Mintzberg Informational roles
monitor, disseminator, spokesperson
secondary beliefs and values
more open to change.
The buyer decision process- 5 stages
need recognition, information search, evaluation of alternatives, purchase decision, post purchase behavior
Familiar tasks with moderate degrees of uncertainty
need some sharing of information and ideas, but the main work can be done mostly alone.
SWOT analysis
needed in order to complete a marketing analysis
Size and life cycle - Weber
noted that small organisations tend to be informal while large organisation had formal, bureaucratic structures (confirmed by Pugh and Hickson)
span of control
number of subordinates reporting directly to the person above them in the hierarchy.
product development
offering modified or new products to current markets.
linear system
one in which an action leads to a predictable outcome.
non-linear system
one in which an action leads to less/unpredictable outcomes.
socio-technical system
one in which outcomes depend on the interaction of both the technical and social subsystems
informal group
one that emerges when people come together and interact regularly and develop common interests.
learning organisation
one that has developed the capacity to continuously learn, adapt and change.
formal team
one that management has deliberately created to perform specific tasks to help meet organizational goals.
organic structure
one where people are expected to work together and to use their initiative to solve problems; job descriptions and rules are few and imprecise.
self-managing team
operates without an internal manager and is responsible for a complete area of work. -Members are responsible for doing the work but have a high degree of autonomy in how they do it: they manage themselves.
The World Trade Organization
organisations that are designed to promote world trade by reducing tariffs and other international barriers.
Environmentalism
organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment.
company's marketing strategy
outlines which customers it will serve and how it will create value for these customers.
Core beliefs and values
passed on from parents to children and are reinforces by schools, businesses, religious institutions, and government
Generation Z
people born after 2000. They represents a high number of today's consumers (partly them and partly their parents) but they also represents tomorrow's consumers. The links they create with brands today will shape their purchases of tomorrow. Most of them shop online, but not only. They do research products before buying, especially on social medias.
Baby Boomers
people born in the years following World War 2 up to 1964. They constitute 70% of the US disposable income and 50% of all consumer spending.
Age and Life Stage (Personal Factor)
people change the goods and services they buy over their lifetimes. Taste in food, clothes, furniture and recreating are often age related. This can also relate to a family life stage (e.g. getting married, having kids, kids going to college, ...)
Human relations (Quinn et al)
people emphasis the value of informal interpersonal relations. They try to nurture and support members, aiming for their well-being and commitment. Motivating factors include cohesiveness and membership. i.e. voluntary groups and small professional or creative firms.
Open systems (Quinn et al)
people see the external world as a vital source of ideas, energy and resources. They also see it as turbulent, requiring entrepreneurial leadership and flexible, responsive behavior. Motivators are creativity and variety. i.e. start-ups and new businesses.
Role culture (Charles Handy)
people's activities are strongly influenced by clear and detailed job descriptions and other formal signals as to what is expected of them.
product/market expansion grid
portfolio planning tool for identifying company growth opportunities through market penetration, market development, or diversification.
Butterflies
potentially profitable but not loyal. -not there for long -company should enjoy them in the moment
Charles Handy distinguished four cultures
power, role, task and person
Ps of marketing
product, price, place and promotion.
Contingency theories
propose that the performance of an organisation depends on having a structure that is appropriate to its environment.
Suppliers
provide the company with the resources it needs to produce its good and services.
Purchase Decision
purchase decision will go for the preferred brand. But two factors can affect this between the purchase intention and the purchase decision. ® Attitudes of others; if someone you care about tells you to buy another product, you are more likely to do so. ® Unexpected situational factors; if an unexpected offer from a competitor comes out, or some unexpected expenses happen then your choice might change.
Timothy Devinney
questioned the feasibility of the completely 'socially responsible firm' since corporations can be made more 'virtuous' one some dimensions but this will inevitably involve a price on other dimensions, like most aspect in life, has very few, if any, win/win outcomes
Problem recognition
recognition of need that results from internal or external stimuli
Online social networks (social factors)
refer to online communities - blogs, social networking websites, and other online communities - where people socialize or exchange information and opinions.
Lifestyle(Personal Factor)
refers to a person's pattern of living as expressed in his or her activities, interests and opinions. Even though people come from the same subculture, social class and occupation they might have different lifestyles.
Individualism
refers to a society where everyone is expected to look after themselves and themselves only.
Collectivism
refers to a society where people are integrated into groups in order to protect and help each other.
consumer market
refers to all the individuals and households that buy or acquire goods and services for personal consumption.
Buying centre
refers to all the individuals and units that play role in purchase decision-making process, not fixed and formally identified within buying organisation.
Mobile Marketing
refers to all the marketing linked to mobile smartphones.
Market targeting
refers to evaluating each market segment's attractiveness and selecting one or more segments to enter.
intermarket (or cross- market) segmentation
refers to forming segments of consumers who have similar needs and buying behaviours even though they are located in different countries.
Subculture (cultural factors)
refers to groups of people with shared value systems based on common life experiences and situations. (e.g. nationalities, religion, geographical groups, ...)
Membership groups (social factors)
refers to groups that have a direct influence and to which a person belongs.
Subliminal advertising(psychological factors)
refers to marketing messages that are not always clear at first sights. Consumers will have the effect of marketing without even noticing it.
Marketing control
refers to measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.
E-procurement
refers to purchasing through electronic connections between buyers and sellers
social class (cultural factors)
refers to relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviours.
price escalation
refers to selling a product at a high price in a foreign market because of cost of transportation, tariffs, importer margin, wholesaler margin, retailer margin that are added to the factory price.
Risk
refers to situations where the decision maker can estimate the likelihood of the alternative outcomes.
Corporate responsibility (CR)
refers to the awareness, acceptance and management of the wider implications of corporate decisions.
Business buyer behavior
refers to the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others.
Consumer buyer behavior
refers to the buying behaviour of final consumers - individuals and households that buy goods and services for personal consumption.
Learning(psychological factors)
refers to the changes in an individual's behaviour arising from experience.
Socially Responsible Behavior
refers to the companies which are willingly looking beyond the regulations and try to "do the right thing."
degree of dynamism
refers to the degree to which the PESTEL factors remain the same or changes
Vertical specialisation
refers to the extent to which responsibilities at different levels are defined
Selective retention(psychological factors)
refers to the fact that people tend to retain information that supports their attitudes and beliefs, thus they are likely to remember good points made about a brand they favour and forget goods points made about competing brands.
Word-of-mouth influence (social factors)
refers to the impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behaviour.
Technology
refers to the knowledge, equipment and activities used to transform inputs into outputs.
political environment
refers to the laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society.
Customer-centred measures
refers to the measures that not only capture current marketing performance but also future performance resulting from stronger customer relationships.
Market myopia
refers to the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.
degree of complexity
refers to the number and similarity of PESTEL factors. (The order of stability goes from 1 to 4)
Customer relationship management
refers to the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
natural environment
refers to the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
share of customer
refers to the portion of the customer's purchasing that a company gets in its product categories.
Outsourcing
refers to the practice of delegating selected value chain activities to an external provider. (Benefits: help save capital for new companies. Drawback: the company depends on others working to their required standard.)
Cross-cultural marketing / total marketing strategy (cultural factors)
refers to the practice of integrating ethnic themes and cross-cultural perspectives within their mainstream marketing.
business buying process
refers to the process by which business buyers determine which products and services their organisations need to purchase and then find, evaluate, and choose among alternative supplier and brands.
Feedback
refers to the provision of information about the effects of an activity
Corporate governance
refers to the rules and processes intended to control those responsible for managing an organization.
The supplier development
refers to the systematic development of networks of supplier-partners to ensure a dependable supple for products and materials for use in making products or reselling them to others.
Selective attention(psychological factors)
refers to the tendency for people to screen out most of the information to which they are exposed.
Marketing implementation
refers to turning marketing strategies and plans to marketing actions to accomplish strategic marketing objectives.
Groups (social factors)
refers to two or more people who interact to accomplish individual or mutual goals.
Partner Relationship Management
refers to working closely with partners in other company departments and outside the company to jointly bring the greater value to customers.
status (social factors)
reflecting the general esteem given to it by society.
Model
represents a complex phenomenon by identifying its major elements and relationships. -aim to identify the main variables in a situation or between situations.
common approach
represents how the team members are successfully going to pass the norming stage.
Market offerings
represents some combinations of products, services, information, or experiences offered to a market to satisfy a need or want. -can also represent different things such as: an ad to travel to a particular city or a campaign trying to limit car accidents.
economic environment
represents the economic factors that affect consumer purchasing power and spending pattern
General public
represents the global public image of the company.
Local publics
represents the neighborhood residents and community organizations; they are usually charitable organization to which the companies donate to.
Stakeholders (corporate governance)
represents the people with a legitimate claim on an organization. This claim can arise from different contributions -shareholders -creditors -managers -employees -customers -suppliers -local communities -general public
Generational Marketing
represents the process of segmenting the population into different age ranges. However, consumers might have common characteristics among their group age, it is important to divide the population more (by sub-ages, lifestyles, common values, ...) and at the same time to open a product for other generations to buy.
A high degree of uncertainty and relatively unknown problems
require high levels of information sharing and deep interpersonal skills, thus requiring a team.
Vogel
said that firms that spend more on marketing are not necessarily more profitable than those that spend less, there is no reason to expect more responsible firms to outperform less responsible ones.
Rangan et al.
said that no matter what approaches a company chooses, it must construct appropriate monitoring systems to ensure that it works well.
agency theory
seeks to explain what happens when one party (the principal, the owner) delegates work to another party (the agent, the manager).
Direct exporting
sellers handle their own exports (more investment and risk, but a greater potential return.)
Geographic organization
sells internationally, its sales and marketing people are assigned to specific countries or region
Reference groups (social factors)
serve as direct (face-to-face interactions) or indirect points of comparison or reference in forming a person's attitude or behaviour
marketing mix
set of tactical marketing tools that the firm blends to produce the response it wants in the target market.
Industrial Structure
shapes its product and service needs, income levels, and employment levels.
Strangers
show low potential profitability and little projected loyalty. -little fit between the company's offerings and their needs. -relationship management for them is: don't invest anything in them; make money on singular transactions.
Ambec and Lanoie
show seven mechanisms that enable firms to improve environmental and economic performance.
Jones et al.
show that companies that are sustainable tend to be more attractive to potential employees. Three mechanisms support this: a. The job-seekers' anticipated pride in being associated with such a firm, b. Their perception of a close fit between their and the company's values c. Their expectations that such companies would treat staff well.
Alfred Chandler
showed that growth and diversification placed too many demands on centralised structures. -noticed that strategy-shaped structure,allow managers at headquarters to provide overall guidance and control and leaving the detailed of divisions running to local managers, usually work better. - studied the way that structure can influence strategy.
organisation chart
shows the main departments and senior positions in an organisation and the reporting relations between them
Competences
skills and abilities that an organization uses to deploy resources
disadvantages of divisional structures
solation from wider professional and technical developments Costs of duplicate resources Potential conflict with other divisions over priorities Focus on divisional, not corporate, needs.
decision
specific commitment to action (usually a commitment of resources), in the form of a plan to deal with a problem
Burns and Stalker - environment
stable, predictable environments would encourage a mechanistic structure; while, volatile, unpredictable environments would encourage an organic structure.
Long-term orientation (LTO)
stands for the fostering of virtues orientated towards future rewards
short-term orientation (STO)
stands for the fostering of virtues related to the past and present.
diversification
starting up or buying businesses outside of its current products and markets.
Human needs
states of felt deprivation
contingency management
states that the managers must adapt the structure of the organisation to external conditions
Luthans adovated
successful managers spent most time networking effective managers spent most time on communication and human resources management
Mechanism of Corporate Governance (Mallin)
suggests that to provide adequate oversight, governance systems require: - An adequate system of internal controls that safeguards assets, - Mechanisms to prevent any one person having to much influence, - Processes to manage relationships between managers, directors, shareholders and other stakeholders, - The ability to balance the interests of shareholders and other stakeholders, - To encourage transparency and accountability, which investors an many external stakeholders expect.
First-Line Managers
supervise the people who are doing the work (sometimes work along their staff and manage)
Micro-marketing
tailoring products and marketing programs to the needs and wants of specific individuals and local customer, it includes: ® Local marketing: tailoring brands and marketing to the needs and wants of local customer segments - cities, neighbourhoods, and even specific stores. ® Individual marketing: tailoring products and marketing programs to the needs and preferences of individual customers.
Rational Goal Models (Adam Smith and Charles Babbage)
talked about the rational goal models as a new type of working strategy as they applied it to the new factories.
Tariffs or duties
taxes on certain imported products designed to raise revenue or protect domestic firms.
Stakeholder theory
term used for ideas trying to explain the evolving relationship between an organization and its stakeholders
Human relations model (Elton Mayo)
tested the effect of the physical environment on the output and came to the conclusion that rather the social situation that the physical environment can be related to an increase in output.
Maslow (outcomes of teams for the members)
that people value a positive response from others, which helps to build and maintain their self-esteem
Nonaka and Takeuchi
the ability to create and solve problems has become a core competence in many businesses; everyone is a knowledge worker.
Exchange
the act of obtaining a desired object from someone by offering something in return
marketing management
the art and science of choosing target markets and building profitable relationships with them.
business portfolio
the collection of businesses and products that make up the company -involves two steps: first, the company must analyze its current business portfolio and determine which business should receive more, less or no investments. Second, it must shape the future portfolio by developing strategies for growth and downsizing.
Contract manufacturing
the company contracts with manufacturers in a foreign market to produce its product or provide its service.
Customer Value
the customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers.
horizontal specialisation
the degree to which tasks are divided among separate people or departments.
Complexity
the degree to which the innovation is difficult to understand or use.
Citizen-action publics
the different organisations that might question the company's decision (e.g. consumer organization, environmental groups, minority groups, ...)
five major developments (marketing landscape)
the digital age, the changing economic environment, the growth of not-for-profit marketing, rapid globalization and the call for sustainable marketing practices.
Management contracting
the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products
Uncertainty avoidance
the extent to which members of a culture feel threatened by ambiguous or unknown situations.
Power Distance (PD)
the extent to which the less powerful members of organizations within a country expect and accept that power is distributed unevenly high one shows people accept inequality.
Responsibility lays on individual mangers
the firm needs to have a social conscience regardless of what the system allows.
Task culture (Charles Handy)
the focus of activity is towards completing a task or project using whatever means are required. The focus is on securing resources and people as well as combining their diverse skills to a common purpose.
Wants
the form human needs take as they are shaped by culture and individual personality.
Corporate responsibility structure and reporting
the formal systems and roles that companies create to support responsible behavior
The Production Concept
the idea that consumers will favor products that are available and highly affordable -organization should focus on improving production and distribution efficiency
The Product Concept
the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvement - focusing only on the company's products can also lead to marketing myopia
The Selling Concept
the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort -focuses on creating sales transactions rather than on building long-term relationships.
Government publics
the laws a firm has to take into account, and the government in general.
Accessible
the market segment can be effectively reached and served.
Substantial
the market segments are large or profitable enough to serve, it should be a large homogenous group.
Marketing services agencies
the marketing research firms, advertising agencies, media firms and marketing consulting firms that help the company target and promote its products to the right markets
Marketing return on investment (or marketing ROI)
the net return from a marketing investment divided by the cost of the marketing investment. -hard to measure
Generation X
the people born between 1965 and 1976 in the "birth dearth." They are less materialistic, they price experience, not acquisition. They value family a lot (both kids and parents), the most educated generation yet and the highest buying power.
Millennials (Generation Y)
the people born between 1977 and 2000. They are a bigger amount than Baby Boomers. They were the first generations to be born with technology. However, they represent a high number of unemployment, debts and little bank accounts. Due to the big amount of them though, they are a big marketing possibility.
ethical audit
the practice of systematically reviewing the extent to which an organisation's actions are consistent with its stated ethical intentions.
Formalisation
the practice of using written or electronic documents to direct and control employees. They include rules, procedures, instruction manuals, job descriptions, ...
Ethical relativism
the principle that ethical judgement can't be made independently of the culture in which the issue arises.
Marketing
the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.
business portfolio analysis
the process by which management evaluates the products and businesses that make up the company
Strategic planning
the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities - focuses on finding the game plan for long-run survival and growth of a company.
Market targeting
the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
Company objectives and resources
the segment must match the company's long-term objectives and resources.
Differentiable
the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
market
the set of actual and potential buyers of a product or service.
brand's value proposition
the set of benefits or values it promises to deliver to consumers to satisfy their needs.
Organization culture
the set of values, beliefs, norms and assumptions that are shared by a group and that guide their interpretations of, and responses to, their environment
Measurable
the size, purchasing power and profiles of the segments can be measured.
competitive environment
the specific environment of the industry (micro-environment)
Information Search
the stage of the buyer decision process in which the consumer is motivated to search for more information
structure of an organisation
the sum total of the ways in which it divides its labour into distinct tasks and then achieves co-ordination among then.
Single-loop learning (argyris)
the system maintains performance at the set level, but is unable to learn that the temperature is set too high or too low.
high customer equity
the total combined customer lifetime values of all of the company's current and potential customers
informal structure
the undocumented relationships between members of the organisation that emerge as people adapt systems to new conditions and satisfy personal and group needs.
Administrative management
the use of institutions and order rather than relying on personal qualities to get things done.
Boston Consulting Group (BCG) growth-share matrix
the vertical axis, the market growth rate provides a measure of market attractiveness. On the horizontal axis, relative market share serves as a measure of company strength in the market.
John Child disagreement with contingency theories
theorists ignore the degree of structural choice (the scope that management has to decide the form of the structure, irrespective of environmental conditions) that managers have.
strategic business units (SBUs).
to identify the key businesses that make up the company evaluated on two dimensions: the attractiveness of this market or industry, and the strength of this position in that market or industry.
motivation research (psychological factors)
to learn about the subconscious motivations underlying consumer's motivations.
The four main tasks of the manager
to organize, coordinate, plan and control
contingency approach
tries to identify those aspect of the environment
Task forces
use: For a single unique project
Customer service teams
use: Selling products and services
Human service teams
use: Taking care of people
Top management teams
use: To set organizational direction
Performing groups
use:Playing to audiences
Professional support groups
use:Providing expert assistance
Production teams
use:Turning out the product
value of a company
value of its current and future customers
supply chain management
what marketers must use o strengthen their connections with partners all along the supply chain.
Centralisation
when a relatively large number of decisions are taken by management at the top of the organisation
Decentralisation
when a relatively large number of decisions are taken lower down the organisation in the operating units.
masculine society
when emotional gender roles are clearly distinct men assertive women modest
feminine society
when emotional gender roles overlap; both men and women can feel the same way.
Power culture (Charles Handy)
when one dominant central figures strongly influences people's activities and work. It relies on the individual, not consensus.
Uncertainty
when people are clear about their goal but have little information about which course of action is most likely to succeed.
Leading by example
when senior managers set the tone for an organisation by their actions.
collaborative network
when tasks required by one company are performed by other companies with expertise in those areas.
Person culture (Charles Handy)
when the individual is at the center and any structure or system is there to serve them. The form is unusual - small professional, communal and artistic organizations are probably closest.
mechanistic structure - Burns and Stalker
when there is a high degree of task specialisation, people's responsibility and authority are closely defined and decision-making is centralised. This also refers to a vertical hierarchy.
environmental sustainability movement,
where companies go beyond the state regulations and create sustainable markets, products
Income Distribution
whether a household has low-, medium- or high- income.
customization
which adds the feeling of more control.
Indirect exporting
working through independent international marketing intermediaries. (less investment)
different systems of coordinating work
® Direct supervision - when a manager directly supervises people. Drawback: hard with geographical separation. ® Hierarchy - whenever the decisions are taken by a certain common supervisor. In a large hierarchy, this can take a lot of time. ® Standardising inputs and outputs - when the staff receive the same training before starting to work. ® Rules and procedures - these contains the indications of how a person should do their work. ® Information systems - they ensure people have common information so they can be coordinated. Homberg et al. concluded that the best performance was in firms where managers had both, developed strong structural links between the two functions, especially by using teams, and requiring staff to plan projects jointly as well as ensured that staff in both functions had high market knowledge by rotating them between functions to learn about customers and competitors. ® Direct personal contact - when human talk to each other. Mintzberg found that people use this method in both the simplest and the most complex situations.
Marketing planning (consists of)
® Executive summary (a brief summary of the main goals) ® Current marketing situation (describes the target market and the company's position in it. It consists of the following: market description, product review, review of competition and review of distribution.) ® Threats and opportunities analysis (= SWOT analysis) ® Objectives and issues (states the marketing objectives) ® Marketing strategy (specific strategies for: target markets, positioning, marketing mix, marketing expenditure levels, how to create value) ® Action programs (what, when, who, how much?) ® Budgets ® Controls
business buyer decision process
® Problem recognition ® General need description ® Product specification ® Product value analysis ® Supplier search ® Proposal solicitation ® Supplier selection ® Order routine specification ® Supplier performance review
properties of a collaborative network Miles et al
® Shared interests - shared resources or common goals ® Collaborative values - willing to share knowledge and contribute to the success of fellow community members, and to seek fairness in contributions and rewards. ® Community-orientated leadership - focus on facilitating growth sustainability, collaboration and promoting collaborative values and practices. ® Infrastructure to support member collaboration - systems, processes and norms that support both direct and pooled collaboration among members. ® Expandable resources - knowledge and other resource pools that all members contribute to and draw from.
how departments are affected by environment and how they differ- Lawrence and Lorsch
® Those facing unstable environments had less formal structures that those facing stable ones. ® The greater differentiation (when the parts of an organisation develop particular attributes in response to the demands posed by their relevant external environments) between departments, the more effort was needed to integrate their work. ® Successful firms achieved more integration (the processed of achieving unity of effort among the various subsystems in the accomplishment of the organisation's task) between units by using a variety of integrating devices such as task forces and project manager with the required interpersonal skills. ® The less effective companies in the uncertain environment used rules and procedures.
Relationship between technical complexity and company structure - Joan Woodward
® Unit and small-batch production - firms make unique goods to a customer's order. ® Large-batch and mass production - standard productions move along an assembly line, with people complementing the machinery. ® Continuous process - material flows through complex technology making the product, as people monitor the process and fix faults.