Business Administration
Business Administration University of St. Gallen
Business Administration University of St. Gallen
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Lernkarten
Definition: Brand
A symbol or a name that has a monopoly position for a specific use in the consumer's mind.
Notions in the stakeholder's minds that assume an identification and differentiation function and influence the decision behavior.
--> brand-name products = products the consumer spontaneously connects with a particular need.
--> made up of logo/trademark, a brand claim and brand content.
Description: A brand's design
Result of brand essence (brands substance,luxury), the core brand identity (reliability) and the extended brand identity (a particular lifestyle).
--> market value --> sum of disadvantages and advantages of those associations
Description: Important determinants for market value
Brand awareness/Brand loyalty/Assumed or perceived quality/Brand associations/Brand availability/Perceived purchase risk/Brand satisfaction/patents, trademarks...
Description: measuring of a brand's strength
Measured by brand awareness and brand profile
Description: Customer acquisition process
Can be depicted in impacts models like the AIDA model. --> First step of attracting attention to raising interest, which leads to a deepends evolution phase generating a deeper interest (desire) that finally leads to purchasing (Action).
Description: Customer retention
Important part of customer process. --> Acquiring a new customer is comparatively up to 9 times more costly than retaining an existing customer.
= supporting customer during usage phase + make sure that desired customer value is reached and recognized by the customer to create loyalty and willingness to repeat purchase.
Description: Innovation processes
About the constant renewal of products, performance processes and markets
--> product innovations: necessary through change in demand/needs, through emerging subsitute or competing products or changes in the environment.
Description, Aspects: Product life cycle
Describes the development or maturation of a product. Fice ideal-typical phases.
--> Introduction phase --> growth phase --> maturity phase --> saturation phase --> decline phase
Description: Introduction phase (of product life cycle)
Pioneer customers buy the product that is largely unknown. --> positioning is shaped. --> too low priced: hard to reach a quality image later. --> too high: market penetration not successful enough.
--> small quantity of sales: requires high investments in production, opening new markets and positioning.
Description: Growth phase (in product life cycle)
Sales rise rapidly due to new costumers + higher consumpion. --> vital to assure quality for sufficient cost optimization.
druing escalating sales: excessive costs may be not be taken into account.
Description: Saturation phase (product life cycle)
Sales decline. Competition permanently shifted from a quality and positioning competition into a cutthroat and cost competition.
Description: Decline phase (product life cycle)
Only those (with optimum cost structures or reserves from earlier years) who have enought leeway for a relaunch, --> products with new disign, image... will survive. --> After decline: fundamental innovation required
Description: performance process innovations
Prompted by global competition --> companies do themselves what they are particularly good at or that they can do more cost effectively than competitors.
Description: Company as a specialist
When a company restricts itself to delivering one value-adding stage for different added-value chains.
(call center: complaints center for that company/booking center for that company)
--> risk of being outdone by other companies if it does not have an end-customer market. (internal call center)
Description: Company as an Integrator
When a company is in control of every value-adding stage of a value-creation process.
(tour operator running own travel agencies, ariline,...)
--> save on transaction costs --> risk of having to accept cost disadvantages due to lack of specialization.
Description: Company as a market maker
Combining different performance elements of a value-creation process. --> car 4 you
Focus the flood of information and lower transaction costs for the market partners. --> create added value for involved partners by communication information. --> risk: company being passed over: customers turn directly to the supplier.
Description: Company as an Orchestrator
Does many things in its added-value chain itself. --> buys several products + services. --> manufacturer of motorcycles who buys frame, etc from different suppliers. --> always buy from specialists --> gain quality + cost advantages compared to producing components themselvews.
risk--> transaction costs/ if a key supplier drops out --> standstill
Definition: Marketing
The planning, coordination and control of all the business activities aimed at current and potential markets.
A function on one hand and a management philosophy on the other hand.
function: concerned with implementation of business activities --> that guide stream of goods+ services from produc. to consum.
management philosophy: market-oriented decision behavior for whole enterprise + conscious market oriented management.
Description: Opening of markets phase
When there were hardly any appropriate means of transportation and marketing had a purely logistic function,. --> get product from producer to consumer
Description: market cultivation
After technological development --> companies' delivery areas overlapped
--> Customer awareness of the product or service had to be created. --> advertising
Description: Segment-oriented marketing approach
Increasing competition --> The manufacturer who best met his customers' individual needs had an advantage. --> goods/services differentiated --> segments of the specific needs of individual customers.
Description: one-to-one marketing
The sharper the focus on customers, the better one can satisfy their specific needs. --> more individualized focus on customers due to technological possibilities --> personalize watches etc.
Description: C2C marketing
Customers can communicate with eachother --> back then: face to face, today: on virtual platforms.
emancipation of markets lead to increase of relevance of C2c communication.
companies try to influence it by providing content through email/social media
Definition: Communities
Groups of customers with similar views and values and who communicate with each other.
Definition: Marketing concept
A conclusive, integrated action plan that is guided by the intended marketing objectives, selects appropriate strategies to realize them and determines the necessary marketing tools on their bases.
today: complemented by controlling + innovation processes
Descritpion/aspects: Stages of the marketing concept
- Market analysis
- marketing strategy
- Product design and performance
- designing marketing tools
- marketing controlling and innovation
Description: Relation of the management three horizon's of meaning and the marketing concept
Marketing objectives should stem directly from the normative level (mission statement and vision) or from the strategic (definition of business areas and strategic resources, such as core competencies.)
On operational level: specific processes (advertising planning) have to be geared to management tools (budget)
Description: Objectives of management
- generate a sufficient demand (customers) or incidents of use or purchasing
- generate sufficient appeal that generates willingness to pay (respect. market)
- generate appropriate delivery and handling costs.
Definition: Markets (traditionally)
Places where supply and demand meet.
--> can be real (geographically, market)
--> institutional (stock market)
--> virtual: data system (ebay)
Description, Aspects: Identification of different transaction costs
--> Initiation: costs for information and selection of transaction partners
--> Negotiation: costs for negotiating , writing contract and completing contract
--> Settlement: cost for coordinating, controlling and customizing the contract
=> the more conventions (sandard contract/rules) + infastructure (information exchange) the lower the costs.
Definition: communities
Systems of customers with similar values, who exchange views about a topic or a product.
Description: What does a customer system consist of?
--> A customer
--> social elements that influence the customer that can be depicted in a stratigraphic model.
Description: Customer repeat-purchase cycle
Compromises the phases of initial purchase, usage, repeat purchase, compementary and replacement purchase.
Description: word of mouth
Satisfied customers that recommend the customers to others.
--> lead to acquisition of new customers
Description: Standardization (customer)
Gradually decreasing costs after initial high investments in acquisition. --> One knows the customer, what he wants --> build relationship of trust.
Description: cross selling
Sale of new kinds of products to existing customers. (selling not only one but different kinds of products/services)
(post office that sells books)
--> customer return increases --> customer's critical attitude dimishes (lower servicing/warranty costs)
Description: 3 types of intermediaries and their contribution
--> Brokers
--> Architects
--> Classic retailers and wholesalers
--> Reduction of the transaction costs
Description: Broker (type of intermediaire)
Mediates between demanders and suppliers by exchanging information and pooling demanders and goods and services.
(insurances, packages) --> negotiate with different companies on behalf of their clients.
Description: Architect (type of intermediarie)
Advises individual customers and negotiates with suppliers if necessary. They represent the customer in doing so.
Description; Classic retailers and wholesalers (type of intermediaries)
Connect suppliers and buyers and take on logistic, collection, consulting and range-of-goods functions for their own accounts.
