Entreprenrskab September 8th 2011 Sales concept: to push the customers to buy stuff.

Polical EST Customer orientation You have B2C marketing vrs. B2B marketing Centrale begreber indenfor marketing 2 Et product er en serviceyldses da difineres some den samling af egenskaber, virksomeheden tilbyder til udveksling pa markedet med hendblik pa at tilfredsstille et onske eller behov Et brand er is kibination af navn, logo, desingn og symboler knyttet teil et product, en service en virksomhed eller person. Med den hensigt at skabe en srlig identitet der kan adskile den fra andra. YOU NEED TO MEMORIZE Porters five forces and how they work in relation to different markets.

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Chapter 3 Notes (September 19th 2011) Introduction into the chapter: 3.1 Going over the power/command structure of large companies. This is called the Corporate level! The corporate levels are based on Strategic business units(aka: SBUs). What you need to know about SBUs: a. The are ground level decision making groups. E.G. Big company (3M) and they own a bunch of small branches. They make a mission statement: Lets take over the EUs markes. And the lower SBUs try to make it happen. b. The big corp. have to be sure they get a competent marketer to head the SBU. i.e making presence in the supply chain & how they interact with other businesses, investment they are basically franchise owners on a bigger level (national level). c. The SBU the approach to the corporate mission statement needs to be flexible to react in changes in the market. (degree of autonomy) Emergent strategies.

Point 3.2 The company has a mission and a vision of accomplishing that. This has to be a feasible mission. There needs to be coherence in the company, and a good representation in the market or entry. Next: ask yourself: Who is the target group, What is it your good/service and How are you going to do it? WWH (Abell 1980) with the company (Abell 1980) This is the base model for the Strategic dialog between the CEOs, Marketing team and engineers etc. When you want to be a big Corp: -Recipe for successHomogenic customer demands Stable surrounding (market) High base investment Strong internal resources and competence

Entreprenrskab This give you the possibility for reaping the rewards of having a big corp. (economies of scales and experience effect(generally know how) without running a great risk. -Recipie for failure- (better to be small business/more fixable business) Heterogenic customer demands Unstable market Flexibility of a small firm, you can potentially gain from this kind of market. Its important to create consumer loyalty. Point 3.3: Portfolio models (markets entries) BCG matrix (Boston Consulting Group 1970.) High market share & Low Market Growth= High cash flow (Cash Cows) Keep the market shares, but dont invest more. Profits made can be reallocated as investments to question marks.. High Market Growth & Low Market Share= Negative cash flow (Question Market) Invest in things you thing will work out in the long run. (Immerging markets) High Market Share & High Market Growth (Star Market) A confirmed Question Market this becomes a Star Market Invest to maintain high market share After a while, it becomes a Cash Cow. Low Market Growth & Low Market Share: (Dogs) Dont invest, pull profits and drop it like it hot. For example Kiosks, Perfect competition firms.

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Short term and long term for interments/business practice: Keep a balance between business areas (markets, products etc.) and customer service/relationships. This will generate max cash flow. Portfolio thought process: (economic goals for each market portfolio/area ) cash flow Profit etc. The companys ideal goals strategy: competency in supplying the consumers demands effectively Development in this needs to be dynamic Mission statements of Corp/business need to be realized and perused by every one. (never contradicted by some assholes in Mc.Ds how have a grumpy day: Welcome to Mc Donnalds- Ma-nams Latifa. Take yo orda! Types of questions a firm should ask itself: (supplement to Abells) 1. Which competition positions you should aim for, and how this will be achieved 2. Which competition advantages does the firm want to exploit. Michael E. Porter: The Three generic strategies /Almengyldige(universal) How to conquer a completion position-how to score an advantage Major players in a given market have different strategies, reducing market rivalry (product differentiation)

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Focus (small firms): When you have high competition- generate customer loyalty. (service the masses or the high and fine (veblen goods) (general competation? ) Differentiation (branding): Make your good stand out in the competitive market (create customer value) Cost Leadership (protecting cost competitiveness): Making so you can offer competing or lower costs than the other within a big market. Development of competitive advantages: Product differentiation Cost competitiveness Creating consumer loyalty

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Porters Value Chainmarginal income overview (3.3) The value chain gives an overview of what Imput (resources/investment/infrastructure) to a given firm to put out/sell there product and make returns: Output. Giving a overview of marginal income. This is divided into two parts: Primary Activities----------------- >What gets made and distributed (logistics, production, marketing, sales) Supporting Activities------------- >The infrastructure that keeps things going (leadership, infrastructure innovation etc.) All these are costs and activities that give overview to the marginal income (I-C=MI???)

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Growth Strategies In businesses, the general wish is to grow as much a possible. But after a company has grown to about 40-50 personnel, it become more difficult to run the company with a coherent overview and find new customers. Key concepts organic growth & Alliance building (collusion) Models for paths of growth: Ansoffs Growth Matrix Focal points: Market------------- > Stable market vrs. Developing/New market Product------------ > Stable Product vrs. Developing/New Product Basically, if you want to grow, invest in ether product differentiation/development AND/OR market diversification.

Globalization since the late 1980s, (Danish) firms have become more globalised. Generally though information technology. Ring in the water is a model that shows how firms become globalized. (page 72). -indirect exporter ---tohaving production plants in other counties -national-regional-global -product development(old-current- and newest) Becoming globalized is in the basic design goal/assumption in most starting firms. Tracking Development of a Firm SWOT (Strength, Weakness, Opportunities and Threats (see how these things change) Benchmarking: Compare yourself with other (competing) firms. And goal reaching. This needs abit of higher level organization and resources to get information and analyze.

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Chapter 4 September 22 2011 Whats up with the Customer and how do they think? Basic Considerations when looking at a market: Whos buying why they buying How they buying Where they buying How is the product evaluated What factors can influence the purchase in question

OoRah!

Consumer Market Types: Personal Consumption (Focus of ch.4) Families goods/services demand, social pressures play in as well. Industrial market Making stuff for the consumer market or other industries. (Focus of ch.5) General Cognitive decision Flow chart: Initiator( need) [(Affects: interest/budget):--Decision to buy] [(Affects:Product expert/information gathering):--Choose product] Buyconsumer goes home happy. Why do we buy? Because we have a need to for fill (..Duh..) Consider Maslows Hierarchy of needs (physical need to psychological needs)

When targeting a consumer group, we look at what kind of need are we for filling with a given product. Therefore we can market it more effectively.

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Types of buying: Consideration consumption (what do I need) Habit consumption (I eat lunch at Mc Ds cuz im lazy.) Impulse consumption (oh! shiny, cheap, tasty, buy it!!!) Functional goods: Have a need, and want something to get the job done. (geterduhn) shopping: go in-go out Symbolic goods: Things that affect our self-esteem and social crap. (higher order) personal identity. People by things not only for what they can, but also for what they mean (Levy.1959) Like to shop around Hedonistic Goods: Where you are selling the feelings associated with the good Experience/Pleasure/Action. (you buy a race car because you love going fast) General consumer though process before buying a product:

Any stage can be affected by physical, emotional, social pressures, Price/commitment brand name recognition, etc Consumer evaluation of a set of goods (generally substitutes of kinds) scale 1-5 Need: Value Good 1 Good 2 Good 3 Looks 2 5 3 2 Price 4 2 4 2 Mom likes it 5 0 1 5 Multiply Value to appropriate Good and take the summation. The one with highest summation should be chosen. The buyers level of involvement small price, not important, buyer is less careful in decision making and vice versa.

Entreprenrskab higher the pice/importance, more brand loyalty comes into play.

The Consumers Situation: Daily shopping (food) routine habits. Buying online (think about pros and cons) Cognitive dissonance: When you conflicting information. This is uncomfortable, so you change your beliefs in whatever way. E.g. smoking is bad. Im addicted (also bad). I am in a bad mood if I dont smoke, thus I do psychological gymnastics showing I am only happy when I smoke thusby smokes, and die happy and psychologically deranged. (Use a bit of common sense when thinking about what could affect any of these factors.)

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Chapter 5 Industrial markets The Industrial market place is Business 2 Business up-steam market raw materials production goods (machines and services) Who buying? Specialized professionals with different needs. That said, these people done mess around. They have specific goals to reach. Want stable relationships with the deliverer Generally have higher quality standards holding the partner accountable Corporate Social responsibility (CSR) is also taken into consideration (envioerment ect.) In many cases, the Supplier and Firm are very dependant economically on each other. Who is it being bought? Generally, you have a group of people (department leaders et. al.) that are communicating and decided with each other what goods to buy. This though process is often recorded, making it harder for priming and other psychological marketing techniques to work. (there keepin it realmore or less) The general though process is modeled for new suppliers and routine suppers.

Where do firms go shopping? Personal/interpersonal contacts Depos (messer) Google it Decided to do it yourself (if you want something done right, do it yourself) Evaluation of suppliers?: kind of arbitrary.Basically, do they do what there supposed to do? And how?

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Other effects: use common sense legal restrictions interpersonal relationships geographic issues Cultural work ethic technology lag etc.. Collusion & Cooperation between firms: Reasons Sharing information know how Personal gain Connections economic pressures Specializing Analysis of Industry relationships: Different kinds of general firm/market scenarios and interests for cooperation Transactional Relationships Price competitive Price of good is not dominating Low production costs High production costs learning curve (low) Learning curve (high) bite of the cake We are the cake (more perfect competition) e.g: Pizza shops vrs. (Few large/specialized producers) Customer development is key Container ship building

Internets effect: Cuts out the middle manbuy directly from the producer! :D straining some market relationships and areas like book stores or technology