Marketing and Business Operations: Key Concepts
Market Definition and Research
A market is a set of activities for the sale of a product, undertaken by vendors and buyers, involving the product, enterprise, and consumer.
Market Investigation involves six phases:
- Define the purpose of research for the target audience and the desired outcome.
- Design the research model, including how it will be carried out.
- Collect survey data from the target population.
- Classify and structure the collected data.
- Analyze and interpret the data.
- Present the findings.
Research methods include inquiry, observation, and experimentation.
Brand loyalty often stems from a fear of making the wrong choice.
Market Segmentation and Niches
Market segmentation is the process of dividing a market into homogeneous groups of customers based on their needs.
A niche market is a portion of a segment.
Examples of segmentation criteria:
- Washing machines: family type
- Stories: age, sex
- Age: loyalty
- Prepared dishes: loyalty, family type
Marketing and the Marketing Mix
Marketing is a set of activities that a company develops consistently to meet consumer needs and generate profit.
The marketing mix consists of elements or techniques that a company uses to act coherently to satisfy needs and achieve maximum profit. These include product, price, promotion, and place (distribution).
Product Differentiation
Companies differentiate their products to make them appear new and different to consumers, encouraging them to choose their products. This can be achieved through practical packaging that is easy to fill, disposable, and easier to transport and store.
Advertising Functions
Advertising functions to:
- Attract attention
- Arouse consumer interest
- Generate desire
- Drive sales
Price Setting Techniques
- Economic theory: The company sets the product price to maximize income.
- Costs: Add a profit margin to the product cost.
- Competition: Base pricing on competitor analysis.
- Other: Round numbers, psychological pricing, or confusing prices.
Distribution
Distribution ensures that the product is in the right place at the right time to be acquired by the consumer.
Distribution channels:
- Direct: The company sells directly to the consumer.
- Indirect: The company distributes to wholesalers who sell large quantities to retailers, who then sell to the final consumer.
Sales Promotion and Merchandising
Sales promotion is a set of business activities conducted to increase product sales for a short period.
Merchandising is a set of media used to help give visibility to products within a sales center (e.g., high accessibility, proximity, lighting).
Human Resources Management
Functions of the Human Resources Department
- Organize the workforce
- Design jobs
- Define roles and responsibilities
- Provide for staffing needs
- Establish compensation and promotion systems
Steps in Personnel Selection
- Determine the profile of the ideal candidate.
- Recruit candidates.
- Select a shortlist of candidates.
- Choose the most appropriate candidate.
- Hire the selected candidate.
Key Points of an Employment Contract
- Probationary period
- Duration
- Content of work presentation
- Wages and wage supplements
- Work time
Classification of Contracts by Duration
- Indefinite: No fixed end date.
- Determined: A fixed end date is established.
Salary Components
- Gross salary: Total earnings (base salary, allowances, bonuses).
- Net salary: The difference between gross salary and total deductions.
Importance of Training in Companies
Training is important because it enables workers to perform their jobs correctly and develop their skills.
Workers’ Rights
- Daily rest of 12 hours
- Average workweek of less than 40 hours
- 30 days of vacation
- Non-discrimination
- Freedom to organize
Unions and Collective Bargaining
A union is an organization of employees formed to defend their common interests.
A collective bargaining agreement is a contract negotiated by various city employees and employers to regulate working conditions.
ERE (Expediente de Regulación de Empleo)
An ERE is a process requested from the labor authority to extinguish or suspend the employment relationship between a company and its employees. This should be due to organizational, technical, economic, or production circumstances, force majeure, or termination of the contractor’s legal status.
Bodies Representing the Company
- Company committee: Represents companies with 50 or more workers.
- Staff representatives: Represent companies with up to 50 workers.
Employer Responsibility
Employers must assess potential risks and try to avoid them.