Download The marketing concept The definitions of marketing explored

1 -The marketing concept
The definitions of marketing explored
(Marketing consists of individual and organizational activates that facilitate and expedite
satisfying exchange relationships in a dynamic environment through the creation,
distribution, promotion and pricing of goods, services and ideas).
Table 1.1 page 10
Marketing mix is set of marketing tools that work together to affect the market place which
are product, place/distribution, promotion, price and people.
-
-
1234-
The marketing of products or services effectively requires many activities. Some are
performed by producers, some by intermediaries and some by purchasers. It doesn’t
include all human and organizational activities, only those aimed at facilitating and
expediting exchanges.
All organizations perform marketing activities to facilitate exchanges. Businesses as
well as not-for-profit and public sector organizations, such as colleges and
universities.
An exchange is the provision or transfer of goods, services and ideas in return for
something of value
four conditions must exist for an exchange to occur;
Two or more individuals, groups or organizations must participate.
Each party must have something with value.
Each party must have willing to give up what it has in order to receive the value held
by the other
The parties must be able to communicate with each other to make the exchange
available.
In an exchange, products are traded either for other products or for financial
resources, such as cash or credit.
The exchange should be satisfying to both the seller and the buyer. Which lead to
customer satisfaction
o
Customer satisfaction is a state that results when exchange meets the needs and
expectations of the buyer.
-
Customer satisfaction is the most important concept in marketing. Marketing
activities should be oriented towards creating and maintaining satisfying exchange
relationships.
-
The marketing environment consists of many external changing forces within the
trading environment as; lows, regulations, political activities and social pressure.
Each of these dynamic forces has an impact on how effectively marketing activities
can facilitate and expedite exchanges. For example; the development and
acceptance of internet in home PCs has given organizations another way to promote
their products.
-
Marketing means more than advertising or selling a product, it involves developing
and managing a product that will satisfy certain needs. It focuses on making the
product available at the right place, at the right time, with an acceptable price to
customers with appropriate service support. And it requires transmitting the kind of
promotional information that will help customers determine if the product be able
to satisfy their needs.
o
o
o
o
-
A product is viewed as being a good, a service or an idea.
A good is a physical entity that can be touched. Like Kellogg`s cornflakes.
A service is the application of human and mechanical efforts to people or objects in
order to provide intangible benefits to customers. Like air travel.
Ideas are concepts, philosophies, images and issues. Like marriage counselor.
The more recent definition of marketing suggested by the American marketing
association;
Marketing is an organizational function and a set of processes for creating,
communicating and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders.
The marketing concept and its evolution
Marketing concept
Is a management philosophy that an organization should try to satisfy customers` needs
through a coordinated set of activities that allows the organization to achieve its goals.
-
-
Customer satisfaction is the major aim of the marketing concept.
First, an organization must find out what will satisfy customers. With this
information, it then attempts to create satisfying products. The organization must
continue to alter, adapt and develop products to keep going with the customers`
changing desires and preferences.
The marketing concept stresses the importance of customers and emphasizes that
marketing activates begins and end with them.
The evolution of marketing concept
The marketing concept emerged during the 1950s, as the marketing era succeeded the
production era and sales era.
Four philosophical concepts to the market place to guide organizational activate.
1- The production era,
Consumers will prefer product that are available and not expensive. Therefore
managers focus on improving production and making products more attractive for
competitive market.
This concept is the oldest philosophy that guides sellers.
2- The selling era,
Consumers will not buy enough of the organization's product unless it undertakes
an aggressive selling and promotion effort.
- Once the product is manufactured, the sales campaigns begin.
- Business people believed that the most important marketing
3- The marketing era,
- Companies have first to determine what customers wanted and then produce it.
- Unlike the selling concept, it focuses on customer`s needs.
4- The relationship marketing era,
- It views of marketing was often largely transaction based.
-
-
-
the priority for marketing was to identify customer`s needs, determine priority
target markets and achieve sales through marketing programs. The focus was on the
individual exchange.
The relationship marketing era recognized that the long term success and market
share gains depend on individual exchange and also depend on maintaining
customer`s loyalty and depend on gaining sales from existing customers.
The relationship marketing era is the newest of the Marketing management
philosophies.
Implementing (applying) the marketing concept
Implementing the marketing concept requires an efficient system and sometimes the
restructuring of the organization.
Marketing programs (the 5P's)
- Marketers must specify a set of marketing mix ingredients that become marketing
programs designed to implement the agreed marketing strategy.
- Product, Place (distribution), promotion, price and people. These components are
called marketing mix decisions variables, because a marketing managers decides
which type of each component to use and in what amount.
- Marketing mix is built around the buyer. And the forces of marketing environment
affect the marketing mix variables in many ways.
- Marketing mix variables are often viewed as controllable variables because they can
be changed.
- The 5P's of the marketing mix;
1- The product variable
The aspect of the marketing mix that deals with researching consumers' product
want and designing a product with the desired characteristics.
2- The place/ distribution variable
It deals with making the products available in quantities desired to as many
customers as possible and keeping the total inventory, transport and storage
costs as low as possible.
3- The promotion variable
It relates to activities used to inform one or more groups of people about an
organization and its product.
4- The price variable
It relates to activates associated with establishing pricing policies and
determining product prices.
5- The people variable
It reflects the level of customer service, advice, sales support and after sales
back-up required, involving recruitment policies, training and motivation of key
personnel.