Principles of management ch 1 & 2

Ch 1 dawg

Disconfirmation paradigm

This is the effect on the comparison of expectations and performance

2- factor model of customer satisfaction

Hygiene factors- Contributes to customer dissatisfaction

Satisfiers- Contributes to customer satisfaction

3 ways to measure customer satisfaction

1. Formal research survey

2. Analysis of customer-complaint data

3. Collecting information about customer needs and expectations from intermediaries (the people that sell your products)

6 benefits of customer satisfaction

1. Lower acquisition cost (cost less to get new customers)

2. Base profits (more loyal customers the more people buy)

3. Revenue growth (customer spending increases over time)

4. Cost saving (over time customers need less help from employees and can specifically request what they want)

5. Referrals (satisfied customers recommend things)

6. Price premium (loyal customers are less price sensitive)

the concept of exchange and the 5 conditions for it

1. There must be at least 2 parties

2. Each party has something the other party values

3. Each party must be able to communicate and deliver

4. Each party must be free to accept or reject

5. Each party must want to deal with the other party

Marketing management philosophies- Production orientation

When a manager looks at the internal resources and equipment to determine what is easiest to produce (can cause customer needs to be ignored)

Marketing management philosophies- Product orientation

This is focusing on how to improve product production to improve product features or quality (may get fixated of features and not listen to customer needs)

Marketing management philosophies- Sales orientation

When they believe high volume sales results in high profits with aggressive sales techniques (can lead to a lack of understanding of what the customer wants)

Marketing management philosophies- Consumer orientation

Trying to understand customer needs and cater to it, goal is maximum customer satisfaction

Marketing management philosophies- Societal marketing orientation

Meeting customer needs and wants while also trying to better society like how kfc makes kids meals

Marketing management philosophies- Relationship marketing orientation

Focuses on building long term relationships and brand loyalty with stuff like loyalty programs

Steps to implementing the marketing concept

1. Changes in authority and responsibility

2. Importance of new opportunities

3. The firm’s business (what, why, whom, where)

4. Importance of competitive advantage

Marketing process steps

1. Firm’s objectives

2. Setting marketing objectives

3. SWOT analysis

4. Develop marketing strategies

5. Implement marketing strategies

6. Design performance measures

7. Periodically evaluate marketing efforts

Methods to differentiate

1. Service quality

2. Customer value

3. Customer satisfaction

4. Customer-orientated personnel

5. Well-trained employees

6. Employee empowerment

7. Teamwork

The marketing mix

Product, place, promotion, price

Internal environment

You look at your strengths and weaknesses of the business

External environment

You have no influence on the macro environment but you look at those factors and identify threats and opportunities

Environmental scanning

You collect and evaluate external data which can reveal threats and opportunities and you deal with them by looking at your strengths and weaknesses.

PESTCLE analysis

Political, economic, social, technological, competitive, legal, environmental