In my Marketing Management course, we have been looking at different case studies and applying the key concepts from Chapters 1 and 2 in our book.
Consumers have basic needs, and we can distinguish 5 types:
STATED
REAL
UNSTATED
DELIGHT
SECRET
Marketers don’t create needs; they help promote something to satisfy a certain need you might have. Every company is oriented toward the marketplace. The philosophy by which a company guides its marketing efforts is determined by one of the following concepts of company orientation:
PRODUCTION
SELLING
PRODUCTION
MARKETING
HOLISTIC
For a business to be successful long-term, it needs to have a core competency. This is a source of competitive advantage that is difficult to imitate and can be applied to a variety of markets.
There are 10 main ways to grow a business:
Intensive Growth
- Market Penetration – current products, current markets (more locations)
- Market Development – current products, new markets (new locations)
- Product Development – new products, current markets (offer new services)
- Diversification – New products, new markets
Integrative Growth
- Backward – vendors (buy companies that provide your supplies)
- Forward – customers (buy companies that buy your supplies)
- Horizontal – competitors
Diversification
- Concentric – adding different types of products/services
- Horizontal – owning your vendors and customers
- Conglomerate – owning a wide range of companies