Business Foundations Module 3

Marketing

The process of identifying, anticipating, and satisfying customer needs and wants through the creation, promotion, and distribution of products and services

Why is marketing important for the survival of business?

• Attracting customers

• Building brand awareness

• Generating revenue

• Keeping up with competitors

Target market

The specific group of consumers or businesses that a company aims to sell its products or services to

Branding

The process of creating a distinctive identity or image for a product or service in the minds of consumers 

Positioning

The process of creating a unique place in the market for a product or service by emphasizing its unique features or benefits

Segmentation

The process of dividing a market into distinct groups of consumers with similar needs, characteristics, or behaviors

Marketing mix

Product, price, promotion, and place (distribution)

Product

The goods and services that a company offers to its customers

Price

The amount that customers are willing to pay for a product or service

Promotion

Various methods that companies use to communicate with their target audience, such as advertising, public relations, and sales promotions

Place (distribution)

Getting products and services to customers, through retail stores, online marketplaces, or direct sales

Market research

The process of gathering and analyzing information about a target market to inform marketing strategy and decision-making

Advertising

A form of promotion that uses paid media channels to communicate with target audiences

Public relations

The practice of building and maintaining positive relationships with key stakeholders, including consumers, media, and the broader public

Digital marketing

Allows business to reach customers through online channels such as social media, email marketing, search engine optimization, and paid advertising 

Personalization

Businesses tailor their messages and offerings to the individual preferences and behaviors of their target audience

Influencer marketing

By partnering with influencers who have a large following on social media, business can promote their products or services to a wider audience

User-centric experience

The shift of the focus of marketing from solely promoting products or services to creating a positive customer experience 

Data analytics

By analyzing customer behavior and campaign performance, businesses can optimize their marketing strategies to achieve better results

Consumer behavior

The study of how individuals, groups, or organizations choose, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants

Factors that influence consumer behavior

• Cultural factors (shared beliefs, values, customs, behaviors, artifacts)

• Social factors (family, reference groups, social roles, status)

• Personal factors (age, gender, income, education, occupation, lifestyle, personality)

• Psychological factors (perception, motivation, learning, beliefs, attitudes)

Perception

The way that people interpret and make sense of the world around them, including the products and services they encounter

Motivation

The internal drives or needs that influence consumer behavior

Attitudes

A consumers overall evaluation of a product or service

Beliefs

A consumer's subjective ideas about a product or service, and can be either true or false

Consumer decision making process

? → Need recognition → Information search → Evaluation of alternatives → Purchase decision → Post-purchase behavior 

Supply chain management (SCM)

The management and coordination of activities involved in the flow of services, information, and finances across the entire supply chain, from the sourcing of raw materials to the finished products to end customers

Components of the supply chain

• Suppliers

• Manufacturers

• Distributors

• Retailers

• Customers

Suppliers

Entities or organizations that provide the raw materials, components, or services required for the production process

Manufacturers

Transform raw materials or components into finished products

Distributors

Intermediaries that help in the movement of goods from manufacturers to retailers or customers

Retailers

Entities that sell products directly to end customers

Customers

End-users or consumers of the products or services offered by the supply chain

Why is SCM very important?

• Cost efficiency

• Agility and responsiveness

• Customer satisfaction

• Competitive advantage

• Collaboration and integration

• Risk management

• Innovation and continuous improvement

Operations management

The field of management that focuses on designing, overseeing, and controlling the processes involved in the production and delivery of goods and services

Key activities of operations management

• Planning (setting objectives, defining strategies, and determining the best course of action to achieve operational goals)

• Organizing (designing the structure of the operations function and establishing clear lines of authority)

• Controlling (monitoring and measuring performance against predetermined standards, objectives, and benchmarks)

Important concepts in operations management

• Efficiency (using least amount of resources)

• Effectiveness (operations are successful in achieving their intended goals and objectives)

• Productivity (efficiency with which resources are utilized to produce goods or services)

Operations strategy

• Involves making decisions and setting objectives for the operations function that support the organizations broader goals and competitive priorities 

• By aligning operations with the business strategy, companies can achieve a competitive advantage and effectively meet customer needs

Key components of operations strategy

• Cost

• Quality

• Delivery speed

• Flexibility

• Innovation