Marketing

Marketing is a economic process by which goods and services are exchanged between the producers and consumers and their values is determined in terms of money prices.

Scope of marketing

It is seen as the task of creating ,promoting & delivering goods & services to customers & business. Marketers are skilled in stimulating demand for the company’s products tey are responsible for demand management .marketing managers seek to influence the level , timing & composition of demand to meet the organizations objectives

Marketing people are involved in marketing ten types of entities Goods Services Experiences Events Persons Places Properties Organizations Information Ideas

A. Goods: Physical goods constitute the bulk of production and marketing efforts.

B. Services: A growing portion of business activities are focused on the production of services. The U.S. economy today consists of a 70-30 services to goods mix.

C. Events: Marketers promote time-based events such as trade shows, artistic performances, and the Olympics.

D. Experiences: By orchestrating several services and goods, a firm can create and market experiences such as Walt Disney World's Magic Kingdom.

E. Persons: Celebrity marketing is a major business.

F. Places: Cities, states, regions and whole nations compete actively to attract tourists, factories, and new residents.

G. Properties: Are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds).

Concepts of marketing

Marketing thinking starts with the fact of human needs and wants. We all have some needs residing in ourselves. These needs exist. Remember that needs can never be created.

Needs:Needs are the basic human requirements. People need food, air, water, clothing & shelter to survive. People also have needs for recreation, education and entertainment.

Eg: Hunger food.According to Abraham Maslow’s need hierarchy, all the human needs can be categorized asshown in the diagram

Wants:

The needs become wants they are directed to specific objects that might satisfy the needs.Eg: Mercedes

Demands:

Demands are wants for specific products that are bagged by an ability and willingness to buythem.

MARKET

A market is a common place or locality where things are brought and sold and where buyers and sellers usually meet to affect purchase and sale.

The Marketplace is physical, as when one goes for shopping in a store.

Marketspace is digital, as when one goes shopping on the internet.

• Available Market (who have interest, income and access to a particular offer)

• Target Market or Served Market (a co. can go for serving whole available market or can concentrate on certain segments)

• Penetrated Market (set of buyers who are buying the co.’s product

MARKETING MANAGEMENT

Marketing management is demand management or it involves the task of influencing the level, timing and composition of demand. At times the actual demand level may be below, equal to, or above the desired demand level and the major task of marketing management is to regulate the level of demand.

MARKETING TASKS

The process of marketing management is about attracting and retaining customers by offering them desirable products that satisfy needs and meet wants.

Marketing management in a customer-orientated business consists of five key tasks summarised in the table below:

Marketing Task Commentary

Identify target markets

Management have to identify those customers with whom they want to trade. The choice of target markets will be influenced by the wealth consumers hold and the business' ability to serve them

Market researchManagement have to collect information on the current and potential needs of customers in the markets they have chosen to supply. Areas to research include how customers buy (which

marketing channels are used) and what competitors are offering

Product developmentBusinesses must develop products and services that meet needs and wants sufficiently to attract target customers to wish and buy

Marketing mixHaving identified the target markets and developed relevant products, management must then determine the price, promotion and distribution for the product. The marketing mix is tailored to offer value to customers, to communicate the offer and to make it accessible and convenient

Market monitoringThe objective in marketing is to first attract customers - and then (most importantly) retain them by building a relationship. In order to do this effectively, they need feedback on customer satisfaction. They also need to feed this back into product design and marketing mix as customer needs and the competitive environment changes

 

MARKETINGCONCEPT

The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have adopted the marketing concept, but this has not always been the case. In 1776 in The Wealth of Nations, Adam Smith wrote that the needs of producers should be considered only with regard to meeting the needs of consumers. While this philosophy is consistent with the marketing concept, it would not be adopted widely until nearly 200 years later. To better understand the marketing concept, it is worthwhile to put it in perspective by reviewing other philosophies that once were predominant. While these alternative concepts prevailed during different historical time frames, they are not restricted to those periods and are still practiced by some firms today.

The Production Concept

The Production concept holds that consumers will prefer products which are widely available & inexpensive.

– Achieving high production efficiency

– Low costs

– Mass distribution

– less developed countries

– Market expansion

The Product Concept

The Product concept holds that consumers will favor the most quality , performance or innovative features

– Product Excellence & Quality Assurance

– The Management & Product Love Affair

– Marketing Myopia

The Selling Concept

The Selling concept holds that consumers & businesses if left alone ,will ordinarily not buy enough of the organizations products.

– Aggressive selling & promotion effort

– Unsought goods & non profit areas

– Hard Sell v/s consumer wants

– Overcapacity

The Marketing Concept

The Marketing concept holds that consumers a business should start with the determination of consumer wants & end with the satisfaction of those wants.

– Consumer Orientation

– Integrated Management

– Customer Satisfaction

– Competitor Intelligence

– Realization of Organizational Goals

Societal Marketing

Societal Marketing =

Consumer Satisfaction + Company ‘ s Profits + Society’s well being.

Societal marketing focuses on satisfying customer needs and wants while enhanchig individual and societal wellbeing.

Marketing mix

Marketing mix is a set of marketing variables that the firm uses to pursue its marketing objectives in the target market.

The term marketing mix became popularized after Neil H . Borden published his 1964 article , “The concept of marketing mix”. The ingredients in bordens marketing mix included product ,planning ,pricing ,branding ,distribution channels ,personal selling ,advertising ,promotions ,packaging ,display ,servicing ,physical handling and fact finding and analysis. E.Jerome McCarthy later grouped these ingredients into four categories that today known as 4 P’s of marketing they are

PRODUCT

PRICE

PLACE

PROMOTION

The Four Ps are:

Product: The Product management and Product marketing aspects of marketing deal with the specifications of the actual good or service, and how it relates to the end-user's needs and wants.

Pricing: This refers to the process of setting a price for a product, including discounts.

Promotion: This includes advertising, sales promotion, publicity, and personal selling, and refers to the various methods of promoting the product, brand or company.

Placement or distribution refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been

called Place, referring to "where" a product or service is sold, e.g. in which geographic region or industry, to which segment (young adults, families, business people, women, men, etc.).

MARKETING STRATEGIES

Marketing strategies explain how the marketing function fits in with the overall strategy for a business. Examples of marketing strategies could be:

Business Strategy Example Marketing Strategies Grow sales Launch new products

Expand distribution (e.g. open more shops)

Start selling products into overseas markets

Increase profits Increase selling prices

Reduce the amount spent on television advertising

Build customer awareness

Implement a public relations programme

Invest more in advertising

Once a strategy has been identified, then the business must develop an action to turn the strategy into reality. The starting point for this plan is the setting of marketing objectives.

Marketing objectives are the specific targets for marketing set by the business to achieve their corporate objectives.

Examples of marketing objectives might be:

Increase sales by 10% Launch a new product by the end of the year Achieve a 95% customer satisfaction rating Increase the number of retail outlets selling our products by 250 within 12

months

It is important for a business to set marketing objectives because managers can then have targets for their work. They can then measure more effectively the success or failure of their marketing strategies to achieve these objectives.

The marketing strategy then involves:

Segmentation

Targeting (target market selection)

Positioning the product within the target market

Value proposition to the target market

The marketing environment

The marketing environment is defined as the external forces that directly or indirectly influence an organization’s capability to undertake its business.

The macro marketing environment consists of six core forces: political, legal, regulatory, societal/green, technological, plus economic/competitive issues.

The micro marketing environment includes more company-specific forces: types ofcompetition, supplier power, buyer power, and a business’s other publics.

The Company’s Microenvironment

The forces close to the company that affect its ability to serve its customers - the company, market channel firms, customer markets, competitors and publics, which combine to make up the firm’s value delivery system.

• Company’s Internal Environment- functional areas such as top management, finance, and manufacturing, etc.

• Suppliers - provide the resources needed to produce goods and services.

• Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.

• Customers - five types of markets that purchase a company’s goods and services.

• Competitors - those who serve a target market with similar products and services.

• Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives.

The Company’s Macroenvironment

The larger societal forces that affect the whole microenvironment - demographic, economic, natural, technological, political and cultural forces.

The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company.

• Demographic - monitors population in terms of age, sex, race, occupation, location and other statistics.

• Economic - factors that affect consumer buying power and patterns.

• Natural - natural resources needed as inputs by marketers or that are affected by marketing activities

• Technological - forces that create new product and market opportunities.

• Political - laws, agencies and groups that influence or limit marketing actions.

• Cultural - forces that affect a society’s basic values, perceptions, preferences, and behaviors.