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The concepts of marketing in management flashcard

Contents

  • Recommendation:

McNamara describes the construct of selling as aˆ¦.. ” doctrine of concern direction, based upon a company ‘ s broad credence of the demand for client orientation, net income orientation and acknowledgment of the of import function of selling in pass oning the demands of the market to all the carbon monoxide operate sections. ” Enterprenruship has been described as a accelerator for assorted concern developments, Innovation and growing, whereas SMEs is recognized as an entity which is by and large acknowledged as the seedcorn for industrial and commercial developments. ( Carson ) . He suggested that a mix of these constituents will give ina powerful attack to making business. Marketing and enterprenruship are concerned with placing chances in the market topographic point, to find the fesibility and to do the necessary parts for the terminal merchandise that will fulfill the sensed chance. Considering the assorted direction chances like direction planning, determination devising, working new chances and doing net income are the common positions of selling and enterpreneruship which are frequently seen in SMEs where the entrepreneurial selling impression can be perceived. ( Carson )

SMEs ‘ restrictions and selling features

It is good documented that SMEs have alone features that differentiate them from conventional selling in big organisations ( e. g. Carson, 1990 ) . These features may be determined by the built-in features and behaviours of the enterpriser or owner/manager ; and they may be determined by the built-in size and phase of development of the endeavor. Such restrictions can be summarized as: limited resources ( such as finance, clip, work force ) ; deficiency of expertness ( owner/managers tend to be Renaissance mans instead than specializers ) ; and limited impact at the market place. In add-on, SME selling is hit-or-miss and informal because of the manner an owner/manager handles concern ; they make most of the determinations on their ain, respond to current chances and fortunes and so determination devising occurs in a haphazard and seemingly helter-skelter manner, harmonizing to personal and concern precedences at any given point of clip ( Scase and Goffee, 1980 ) . Clearly such restrictions will act upon, so determine, the selling features of an SME. SMEs do non conform to the conventional selling features of marketing text edition theories ; alternatively their selling is characterised by the restrictions outlined above. Thus, SME selling is likely to be haphazard, informal, loose, unstructured, self-generated, reactive, built upon and conforming to industry norms. ( Dean et al. , 1997 )

Our apprehension of your concern

The briefing provided in the instance survey articulates the undermentioned cardinal points: –

Your concern of baby-garments has witnessed a diminution in gross revenues as rather a few figure of independent stores have closed down, which might necessitate reconsidering the mark market and selling schemes, which can be based on the recommendations provided in the papers.

Since the gross revenues are lower than expected, the 4P ‘ s of selling as discussed below can be reviewed for the current merchandise line. Alternate pricing and promotional activities might be utile for bettering the gross revenues of the merchandises.

The briefing besides mentions about use of web site for advancing gross revenues. With cyberspace being accessible to most consumers, it is indispensable that the concern should hold strong e-marketing practises in order to vie with the market. This papers besides highlights the critical elements that should be focussed on while make up one’s minding to advance merchandises online.

Another cardinal country is competitory advantage which gives border to any concern and helps to last in cut-throat competition. This advantage can be in signifier of merchandise design, schemes, providers, distribution channel and so on. Alternatively it is besides indispensable to analyse the rivals – whether they are large retail merchants or little independent store proprietors, the competition: if it ‘ s local or international, their 4P ‘ s etc. Once holding an apprehension of these elements, policies for the concern can be reshaped and consequently adjusted to crush the competition.

3. 0 Market Orientation:

Past survey indicates that high degrees of market orientation has a positive impact on houses public presentation ( Narver and Slater, 1990 ; Kohli and Jaworski, 1990 ) . Market orientation is positioned under organisational procedures and symbolizes to be a long term advantage to the company. It can non be easy generated and so may be considered as a distinct signifier of sustainable competitory advantage. Kohli and Jaworski, 1990. Based on the survey carried out by Laforet, it was clear that the SMEs are more advanced and market oriented than the big transnational companies. He besides suggested that these SMEs have to be more positive towards assorted market chances, unfastened to invention and besides have to take a lead in new merchandise development. The SMEs that are non technologically advanced face a batch of competition globally and invention is the lone key to success for these SMEs to prolong and vie in the market. ( Laforet, 2008, Laforet and Tann, 2006 ) . Internal organisational factors and external forces exert a considerable influence on the SMEs concern public presentation. Hence Market orientation was theoretically pointed out by Hunt and Morgan ( 1995 )

as a procedure to roll up the information consistently on the rivals and the company ‘ s clients,

To develop market cognition, the information gathered should be consistently analyzed and used suitably in assorted Fieldss.

Therefore for an owner/manager of SME, market orientation is a cultural and behavioral procedure and the activities associated with it should be strong plenty to make and fulfill the client ‘ s demands by continual appraisals, which moves on to increase the public presentation of the concern ( Ruekert, 1992 ) . The grade to which the organisation utilizes the information from the client to develop a scheme to run into their demands and to be antiphonal to the clients, Ruekert described this as client orientation. ( Appiah-Adu and Singh, 1998 ) argued that the credence for client orientation is minimum in SMEs due to act uponing factors such as the internal administration and assorted external forces. But Laforet and Tann ( 2006 ) proved that client focal point is one of the drivers to company ‘ s innovativeness. Pelham and Wilson agreed to this and explicating that for SMEs, client orientation is likely to be an indispensable success factor as they lack fiscal resources to garner other beginnings of concern profitableness, like low cost leading and skilled staff to develop strategic programs for the company and research and development section. Hence clients are the best beginning of information for SMEs as it is besides explained as a set of belief ‘ s that puts the clients involvement foremost while non maintaining the interest holders and other people involved, money at interest and helps in developing a successful endeavor. ( Deshpande )

Recommendation: –

As the success of Bababoo depends on the satisfaction of the clients ( the female parents ) , the company should be more client orientated, instead than being Market oriented.

As Deshpande has exactly described clients as the chief beginning of information for SMEs so carry oning client studies to analyze their demands and demands will be truly helpful.

As publicity of the babe apparels is already done online, so the studies can besides be done by the same means or besides in the signifier of on-line feedback signifiers or mail studies. As the merchandise passes through different channels, deriving client questions, feedbacks, ailments and grudges will be an easy undertaking.

4. 0 Segmentation, Targeting and Positioning

Smith ( 1956 ) explained that sections are developed when there is heterogeneousness in the client needs. As mentioned by assorted writers, SMEs are the most of import in economic markets. They generate merchandises that need a strategic selling planning, which can be accomplished while sectioning the markets. ( TektaAY et al ) They defined market cleavage as actionable and effectual submarkets of the chief market. Porter suggested that even if the SME has limited resources, the director should prosecute a niche market in which the house will go a market leader though it does non possess a competitory advantage for the whole market. Cleavage can be at micro and macro degree, where, micro degree consists of sectioning within the state and macro is cleavage as taking a state to aim. The merchandise needs to be extremely differentiated and recognised by the client if cleavage is at macro degree. ( Larrson et al ) To be able to come on to macro degree, the house needs to set up itself and do the merchandise known at micro degree foremost. The micro or consumer cleavage can be used where is it difficult to happen the single consumers. ( TektaAY et al )

. Brassington and pettitt identified six chief bases that lay the foundation of consumer cleavage ( FIGURE 1 ) where each of these bases define their clients consequently

Figure1- Bases of consumer cleavage. ( beginning: Brassington and Pettitt, 2000 )

A frame of mention ( Figure 2 ) was developed by Larrson and Martinkauppi and many writers to give an thought approximately have to section markets domestically and internationally.

Final Decision

Micro Segmentation

Domestic Markets

Collection of Data as Basis for Market Segmentation

Macro Segmentation

Micro Segmentation

International Markets

Final determination

Figure 2- Frame of mention ( Beginning: Larrson and Martinkauppi, 2003 )

The information is collected based on experience and deficiencies updating in assorted little companies and was concluded that, the more the experience, the less the hazard involved. ( Larrson and Martinkauppi ) . They besides showed that the 4P ‘ s automatically segmented the market.

Placement is besides a major selling scheme which places the company in the right sectorial value added concatenation. ( Garau ) This procedure is really of import for SMEs as a incorrect measure or a determination can extinguish the house from the market. Proper placement is a challenge for dynamic, advanced engineering companies where the markets are characterized by tough competition and unstable demands. ( Yonggui and Lo, 2002 ) Industries such as biotechnology, telecommunication, electronics and package industries are extremely affected due to improper placement. ( March and Gunasekaran, 1999 ; Slatter, 1992 ) .

Targeting is besides an of import facet of marketing where different consumers sections are targeted for differential promotional activity. The importance of aiming has increased widely to accomplish effectual and efficient schemes. There were demands from the consumers for a crisp and focused mark selling pattern. ( Smith and martin1997 ) . But they even argued that along with grasp, aiming has besides been criticized where merchandises targeted to adult consumers were considered to be vulnerable.

Recommendation

Brassington and Pettite ( 2000 ) have described demographic cleavage as one of the foundation of consumer cleavage. Therefore my recommendation is based on the feedback from the studies, bababoo can section the population on demographic and clients purchasing behaviour. This will assist the company to put mark markets.

As the client base for bababoo is non rather big, therefore making macro analysis which involves expertness advice and high cost can be avoided for the minute.

Along with concentrating on demographic cleavage, the company should besides seek and concentrate on Psychographic cleavage. Brassington and Petite, ( 2000 ) , said that at any point of clip, psychographic cleavage is critical as it marks the client ‘ s ain perceptual experience, so analysing the same as to what makes the client purchase the merchandise and giving them what they want will ensue in favourable result.

5. 0 Marketing Mix

As described by Morris et Al, 2002, many bookmans have noted that both the theories of selling and entrepreneurship benefit the construct of making value. Many other combined the foundational construct of both the theories and named it as marketing / entrepreneurship interface, which was concerned with the selling in SMEs ( Gilmore and Coviello 1999 ; hoy 2008 ) . It was concluded that traditional selling theories ignores the nucleus elements of entrepreneurship which are invention, hazard pickings and proactiveness Morris et Al, 2002. Scholars working on these have noticed that a paradigmatic displacement will be utile to convey about the entrepreneurial personality in the selling activities in SMEs. Hill and Wright ( 2000, p. 43 ) A general surveies says that enterprisers are specializers in their Fieldss but non in Marketing. ( Carson et al. , 1995 ; Stokes, 2000 ; Zontanos and Anderson, 2004 ) . ( Martin. D 2009 ) marked that enterprisers are involved in their entrepreneurial success as they have negligible or no cognition about formal selling theories. As mentioned by Kotler, 2001, the ground behind successful corporate selling lies in the familiar four P ‘ s: Placement, Price, Promotion and Product. Although some argue that these four PS miss out the basicss of marketing i. e. adaptability, flexibleness and reactivity. ( McKenna, 1991, p. 13 ) . Anderson and Zontanos put forward a better frame to understand the entrepreneurial houses marketing basicss. They offered the four P ‘ s of selling for enterprisers as individual, intent, procedure and patterns. But Martin argued that the enterprisers should foremost hold a deeper apprehension about the traditional selling mix theories and so they can travel on to the entrepreneurial selling. It has besides been suggested by Martin that for farther research on entrepreneurial selling mix, bookmans should see the entrepreneurial features and competences to the selling attempts.

Pricing

Kotler ( 2001 ) describes Pricing as one of the nucleus elements of the selling mix which generates gross for the company, and supports the other 3 elements of this mix. He recommended that before puting up a monetary value foremost the determination should be taken as to where the merchandise is postioned with regard to quality. He suggested that there should be a all right balance between monetary value and quality. Both Kotler and Jobber along with theoretician besides added that the director should be cognizant about the rivals actions at least pricing degree and besides about the merchandise costs and hence its border of net income.

Surveies carried out by Carson et al reveal that there are a few differences with regard to the selling scheme attacks followed by the SMEs and the larger houses. In the survey carried out by Carson et Al, it was concluded that the SME use the cost -plus attack. They set up their monetary values taking into history all of their fixed and variable costs and added a grade up which allowed them a predicted and pre-determined return. So bulk of the houses try to maintain their costs down which will heighten their fight. ( Carson et al ) . To represent on this he suggested that one manner to convey about a difference in the costs of their merchandises was their willingness to alter the providers so as to accomplish better and competitory trades.

There is a uninterrupted attempt by SMEs to derive distinction with cost decrease being prevailing. For houses that were non excessively enthusiastic in accepting the cost -plus attack, used the market considerations as an attack, where they set their monetary values harmonizing to the market ‘ s demands. ( Carson et al ) Negotiation, harmonizing to Carson ‘ s research, ever played an of import function in developing concern for the little houses, where negociating with providers for better trades on natural stuffs, and to seek and acquire the best possible trade for the company. Carson concluded by stating that with respects to pricing, SMEs are comparatively susceptible to the industry or the market

Topographic point:

Topographic point ( frequently referred to as the distribution channel ) includes the location at which your merchandise is available and is accessible. These include assorted physical and practical shops as good. ( http: //www. scribd. com/doc/12864224/The-Extended-Marketing-Mix ) In the age of computing machines, because of the creative activity of new electronic market channels, IT selling has become really of import. Due to this assorted database -driven direct selling channels, tele-shopping, and place based shopping are emerging really rapidly. assorted practical shops have merged for illustration supermarket on wheels which supply food markets, which were ordered online by electronic mail, at your door stairss. ( Peattie )

Promotion:

The assorted beginnings through which a individual sells his/her merchandises in the market topographic point represents publicity. A merchandise can be promoted though assorted elements, publicizing your merchandise, word of oral cavity, assorted public dealingss and point of gross revenues. Surveies have shown that enterprisers prefer synergistic selling. They have strong penchants for personal contacts with clients instead than mass publicities. harmonizing to Orr, the troughs of SMEs have the ability to do meaningful duologues with the clients, which subsequently on physiques up to be their alone merchandising point. He besides found that these troughs spend bulk of their clip interacting with clients. On other manus, mass publicity involves immense outgo which SME ‘ s can non believe of incurring it. Besides, Mass publicity helps in covering big client base and non the little clients base that SME ‘ s are providing to. Another survey showed that Entrepreneurs to a great extent rely on the word of oral cavity publicity selling technique over the others. Literature has shown that word of oral cavity selling sometimes makes it hard to buy determinations for the clients and concern to concern markets. ( Stokes )

Last, a 5th “ P, ” for Passion, is of import to our apprehension of the day-to-day committedness one makes to his or her venture Martin. D 2009. Smilor ( 1997, p. 342 ) described entrepreneurial passion as the “ ‘ fire in the abdomen ‘ that makes the unlikely possible. ”

Passion sustains entrepreneurs through the uncertainnesss of day-to-day determinations, the bang of

new inventions and the challenges and reverses that line the route to success. Martin. D 2009

Recommendation

Since this is most of import component of selling success for any organisation, it is for the proprietor to make up one’s mind the 4P’s. However provided with sufficient informations, optimal policies can be worked out.

( you can see composing some characteristics mentioned in the parity ‘ s above and include them here )

6. 0 Networking and Relationship Marketing

Entrepreneurial networking has become an of import subject of research in recent old ages. ( Dodd, 1997 ) . For concern it can be considered as an of import key to the assorted resource restraints and the restrictions under which the SMEs work. ( ( Deakins, 1991 ;

Gilmore, Carson, & A ; Grant, 2001 ; Johannisson, 1990 ) . Audrey Gilmore, David Carson, Steve Rocks ( 2006 ) found that selling in SMEs is informally structured, and Granovetter, 1985, agreed to this and recognized that this informality can be utilized in assorted networking activities. Falemo, ( 1989 ) ; ( Welsch and young, 1983, ) shared the same position, that networking would be of import in relation to marketing determination of SMEs where the owners/manager needs to use their limited resources efficaciously to vie with their powerful rivals. ( Chetty & A ; Holm, 2000 ; Gilmore et al. , 2001 ) were besides of the same position. As explained by ( Gilmore et al. , 2001 ) . Network can be built with normal interactions and assorted activities of the SMEs proprietor or director. Networking activities like pass oning with people, both inside and outside the channel, ( Audrey Gilmore, David Carson, Steve Rocks ( 2006 ) ) their ain personal contacts, assorted concern webs and besides different industry and selling webs. ( ( Rocks et al. , 2005 ) are majorly carried out by the proprietor or the director of the SMEs. Attending assorted trade carnivals and exhibitions and other industry related events, interacting with assorted owners/managers within the distribution channel are besides some of the networking activities which can be used to garner information about their rivals. As networking will non merely heighten the cognition of concern activities to be carried out but besides keeps you updated about the market trends that alterations day-to-day. ( Audrey Gilmore, David Carson, Steve Rocks ( 2006 ) . ( Audrey Gilmore, David Carson, Steve Rocks ( 2006 ) besides concluded that SMEs can construct up on their resources and strengths by working together in a webs specially in clip of dynamic crisis. Therefore to do their selling activities more effectual and efficient and to procure a topographic point in the competitory market, the SME ‘ s should construct up their webs which help them in planning, refinement and implementing their activities. ( Audrey Gilmore, David Carson, Steve Rocks ( 2006 )

.

Figure-1 SME networking, Selling activities and public presentation. ( Gilmore, A. et Al ( 2006 )

Along with Networking, Relationship Marketing is besides an of import factor that has established itself in recent old ages. It has been accepted because of the turning scenarios and growing of the merchandise para, addition in client edification, monetary value sensitiveness, reduced cost effectivity of traditional promotional media, of all time increasing competition. ( Marketing usher ) . Various research surveies prove that entrepreneurial SME houses are most likely to utilize relationship selling more suitably and in an effectual manner ( Day et al, 1998 ) . Relationship selling assists the SMEs to develop a close relation with the clients. The more the company is educated by the clients, there are less opportunity that the clients will near another provider or another house as suggested by Clark and Payne1994, Peppers and Rodgers1994 ) . Secondly the company can supervise the demands of the client as it has direct cognition about what the clients want. ( Gronroos )

The company and the clients both are fiscal benefitted after being in a long term relationship as they now know how to interact with each other and this will ensue in the lessening in the relationship costs, due to which the clients will be allowed to pay a premium monetary value for the merchandises after a certain period of clip. ( cited in ) ( Congram, Gronroos, Clark and Payne, Fay, Gronroos, Peppers and Rodgers, Reichheld and Sasse, Desatnick, Reichheld and Kenny ) Studies have shown that the SME non merely have to follow the internal cultural facets of relationship selling but bring forth a originative, advanced and entrepreneurial direction civilization in the SME. Without these traits, success will be really limited. ( Day et al, 1998 ) .

Recommendations

Bababoo should seek and construct webs by normal interactions with other SME proprietors /managers in assorted exhibitions and trade carnivals, pass oning inside every bit good as outside the distribution channel, trade associations, Chamberss of commercialism, adult females entrepreneurship associations, charitable associations such as Rotary Club would be an added advantage. Women ‘ s Associations and trade association are one of the cardinal beginnings for support and information.

I besides recommend the proprietor Ms Linda besides networks through your personal contacts, and different concern and selling webs.

Clark et Al ( 1994 ) have directed the SMEs towards developing a close focal point on CRM ( client relationship direction ) activities. Hence my recommendation is that Bababoo formulates a MIS to enter contact history. It will assist maintain records of loyal clients and work out on policies to keep relationship for long term profitabililty.

Relationship with cardinal providers, manufacturers, distributers besides impacts the manner SMEs performe, so keeping resonance is rather indispensable. Bababoo should stress on modern tendencies. ( like client penchant, gustatory sensation, merchandise credence degree, demands of the channel spouses )

8. 0 Internet and Internationalization selling in SMEs

Internet selling

Porter ( 2001 ) described Internet to be a critical factor in heightening houses ‘ s market range and operational efficiency. The assorted cyberspace based engineerings provide an chance for the SMEsto compete expeditiously with the bigger constitutions. ( Dholakia and kshetri ) . Levy and Powell depict internet acceptance as a agency to better fight in little houses. However some of them see the strategic potency and so originate to put in e-buisness. For now there are really few houses who have adopted internet selling as one of the beginning to advance their products. There are two different footings in which the engagement of Internet is exemplified. One is by ownership of the web site besides known as acceptance and the usage of cyberspace for selling intent which is besides known as routinization ( Dholakia and Kshetri ) . According to the studies conducted it was confirmed that the SMEs acknowledge the advantages of e- commercialism and enlisted a clump of grounds back uping the idea. however it was concluded that despite all the advantages Actual acceptance of cyberspace for e-commerce application is limited as it requires a major alteration in concern theoretical accounts for the company and besides assorted communicating and information engineerings will besides hold to be dadopted. ( Dholakia and Kshetra ) .

In a individual planetary economic system, on the entry of the twenty-first century, researching cognition about assorted chances and events available in other states has ne’er been so deep and instantly available this cognition sharing has favoured growing in international trade and fiscal flows internationally. SMEs are going strong pillars of the universe economic systems, as they are better interconnected with planetary trade and investing programs. ( Acs, et al., 2001 ) SME ‘ s have gained importance as the economic systems have become more globally intergrated. Globalization in itself is a procedure of entrepreneurial find. . ( Acs, et al., 2001.. Acs et Al. ( 1996 ) describes SMEs to be the most of import instigators of invention and internationalisation of these houses will take to the planetary diffusion of cognition and invention. A batch of developed and developing states like Asia Europe and north America have shown a rise in the figure of SMEs that are involved in international trade. ( Economist, 1993 ; Luostarinen ; Nakamura ; Rennie and Gupta. ) Johanson and weidersheim ( 1975 ) have described the phase theory as one of the theory of internationalisation. Harmonizing to this theory, internationalisation evolves in an ascending mode i. e from a less to really complex theoretical accounts of international activity. ( Glas, et. al 1999 ) . It besides explains internationalisation of SMEs as an incremental and a really drawn-out procedure. ( Glas, et. al 1999 ; Boter and Holmquist, 1996 ) . The ground behind this lies chiefly on the proprietor ‘ s planetary mentality and its consequence on planetary public presentation. ( Glas, et. al 1999 ) .

Entrance and researching the international market is a hard undertaking for the SMEs, particularly for those who are owned and managed by persons. These persons may non hold export experience, may hold really limited selling support in international markets, may besides hold low hazard appetency as traveling planetary requires batch of other factors such as client range, immense investing, accurate market analysis, merchandise credence predictability, no beginnings of information sing the international markets and other concern services. ( Glas, et. al 1999 )

The combination of an advanced SME with the multinational ‘ s market entree and the ability to manage the legal affairs are complimentary to each other by making inventions and conveying them to the market. By following this, the SME can bring forth for the full market without making any direct export and by non developing any subordinates in the foreign markets. By making this, the SME benefits without building it owns marketing operations in the foreign states and additions net income by globalising its invention. ( Acs, et al., 2001 )

Recommendation:

As Bababoo has adopted cyberspace for on-line merchandising of its products. It knows the importance of cyberspace in today ‘ s worls. So Bababoo can travel one measure further in following e – commercialism channels. As these are the most of import channeles for the SMEs to competive in the market with other large babay apparels brands. Along with advancing the apparels through a web site, these yearss societal networking sites such as Facebook or concern networking sites such as Linkedin hekp people to construct contacts with froup of people sharing the same common involvement. Such networking sites are a modern twenty-four hours of merchandising your merchandise, where purchasers and Sellerss come together to set forward their merchandise or service, you merely have to link to the right people at the right topographic point and at the right clip.

Internationalization can be achieved one time your merchandise is a good known trade name in the UK markets. Internationalization can be one of the future chances to your bing concern. The babe apparels are manufactured in China as of now, but subsequently on you can place in India as your sweeping market to sell it and so for fabricating chiefly due to diverseness in countries of gustatory sensation, penchant, behaviour, perceptual experience, immense population. Retail industry is the biggest sector in India and 5th biggest globally. As this is a international trade name for India, the penchant and the range will be faster among the distribution channels and therefore concluding clients. Pricing will besides non be a job as the production will be from China as it is renowned for majority production at a lower cost.

After the success of your trade name or one time the trade name is good known and accepted in India with the sweeping market

Further measure would be heading towards retail merchants where you can churn good gross, increase gross revenues and besides earn nice border.

Gradually, when the merchandise reaches its extremum harmonizing to the Product life rhythm, to prolong the trade name in the market, tie ups with transnational companies for babe apparels in India every bit good as China. As the theories mentioned above your invention can so be good utilised and the strategizing, selling, distribution can be taken attention by the companies with good potency in the same line of concern.

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