Download Definations The management process responsible for identifying

Definations
The management process responsible for identifying , anticipating and satisfying customer requirements
profitably
- by Chartered Institute of Marketing
Marketing is the process of planning and executing the pricing, promotion, and distribution of goods,
ideas, and services to create exchanges that satisfy individual and organizational goals."
- by American Marketing Association
My personal Defination ::
Marketing is a set of activities, which will satisfy the objectives of both the organizations and its
stakeholders including the customer.
There are two major aspects of marketing which is the recruitment of new customers (acquisition) and
the retention and expansion of relationships with existing customers (base management).
The four general sets of activities in marketing are :
1st Products- Products management aspect of marketing deals with the specifications of the actual good
or services, and how it relates to the end-user’s needs and wants.
2nd Pricing- setting a price for a product, including discounts.
3rd Promotion- Advertising, sales, promotion, publicity and personal selling, and refers to the various
methods of promoting the product, brand or company.
4th Placement (distribution) - How the product gets to the customer(example-point of sale placement
or retailing).
These four P’s models are useful when marking low value consumer products
Importance of Marketing in organizational success
The concept of marketing has been derived from the basic concept of sales which evolved from the
concept of exchange. This has an origin in terms of people trying to get hold of items which they wanted
to have in exchange for other types of items which they had in excess but were in demand among
certain sections of people who did not have these items. The position has now changed to a certain
extent as the society now has more elements of products than they need and this is inevitable in the
days of mass production using the concept of power which has been generated from natural resources
like water, coal, wind, oil and other similar materials. (Is Anybody Out There? The New Blueprint for
Marketing Communications in the 21st Century)
The marketing environment has been changed tremendously in the last five years than when compared
to the last fifty years. Consumers have also changed beyond doubt. Their behavior is considered to be
more complex, their media habits have now become varied, and they are found to be more outspoken
than ever before.. In most of the instances, their demand is considered to be defined in terms of
“brands” which are being identified with certain levels of quality and types of images and the
manufacturers in order to sell their brands use modern methods of marketing. (Is Anybody Out There?
The New Blueprint for Marketing Communications in the 21st Century).
It stresses the "mixing" of various decision factors in such a way that both organizational and consumer
objectives are attained. The most common variables used in constructing a marketing mix are price,
promotion, product and distribution (also called placement).
Product: Defines the characteristics of your product or service that meets the needs of your customers.
Price: Decide on a pricing strategy - do not let it just happen! It means deciding the price which
consumer has to pay including discount structure.
Promotion: This includes all the weapons in the marketing armory - advertising, selling, sales
promotions, Public Relations, etc.
Place (or route of distribution): Some of the revolutions in marketing have come about by changing this
P. Think of telephone insurance and the Internet! A bit of lateral thinking here might reap rewards for
your business. (Kotler, 1998)
When building a marketing program to fit the needs of his firm, the marketing manager has to weigh the
behavioral forces and then juggle marketing elements in his mix with a keen eye on the resources with
which he has to work. A separate marketing mix is usually crafted for each product offering or for each
market segment, depending on the organizational structure of the firm.
The interesting fact is that marketing of all goods and services purchased impact every one who
consumes. This is because it is already incorporated in the price of the merchandise. So, consumers
actually pay for all marketing costs of purchased goods. Of course the cost is on the back end but never
the less we do compensate for it. Marketing can be considered an activity created by communicating,
delivering and exchanging offerings that hold value to society
It is important that marketing focuses on customer needs and specific target audiences (Perreault,
2004). If this is done correctly the product will sell itself. A great example of this is demonstrated by the
Lamborghini, Porsche, and Rolls Royce companies. All three of these organizations do very little
marketing and rely on their reputations to promote the marketing of the products. This is a prosperous
tactic for them and works. Not all companies are able to rely on reputation alone. There are different
strategies that are appropriate for each industry and product.
Marketing can also be considered the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services of organizations (Carpenter, 2004). Other
companies rely heavily on marketing to promote consumer consumption of their goods. Prime examples
of this are Mc Donald’s and Burger King. These fast food giants utilize commercials, billboards, and all
sorts of advertisement available to acquire sales.
Success stories
Walmart
In the fiscal year ending January 31, 2002, Wal-Mart had $219 billion in sales and $6.6 billion in net
income. It employs over 1 million people in the United States at 3,400 stores and 1.4 million people
worldwide at 4,500 retail units in 10 countries: the United States, Mexico, Puerto Rico, Canada,
Argentina, Brazil, China, Korea, Germany, and the United Kingdom (where it owns the ASDA chain of
supermarkets).
Wal-Mart Stores, Inc. (Wal-Mart) operates retail stores in various formats worldwide. The Company
organizes its business into three principal segments: Wal-Mart Stores, SAM'S CLUB and International.
One of the key success factors fo the Wal-Mart is the degree of customer intimacy, community building,
and one-to-one marketing. While it can be argued that Wal-Mart has successfully created a “community
feel” within its bricks-and-mortar stores, and by virtue of their omnipresence and comprehensive
information management systems have garnered superior knowledge of consumer purchasing habits, it
would be a stretch to state that Wal-Mart excels at customer intimacy. For example they invested in a
satellite system connecting all stores was initially installed in 1983, and grew into a complex
communication network that included all stores, headquarters, and distribution centers, as well
suppliers. This system facilitated a modified just-in-time process of inventory control, a feat virtually
unheard of in general merchandise retailing. Put simply, as each store sells an item, a message is
automatically sent to the supplier of that item, who then knows to include a replacement in the next
shipment (usually that day) to the nearest distribution hub. This degree of connectivity allows rapid
response to inventory needs, and reduces dramatically the amount of inventory required.
A second area of major investment was in distribution technology. Wal-Mart established a network of
innovative hubs which used “cross-docking” to minimize distribution center inventory and to facilitate
the need-based inventory delivery system enabled by the satellite network. In this model, as shipments
arrive at the warehouse, merchandise is moved directly to the trucks carrying the outbound shipments
to specific stores. In many cases, the same trucks can even be used for inbound and outbound
shipments, including those carrying new merchandise to stores and those carrying returned, outdated,
or unneeded merchandise from stores, thus minimizing round-trip shipping costs.
Success of Harley Davidson
Harley-Davidson had a strong domestic market share in the American motorcycle industry. Built on
tradition and name recognition, Harley’s are a part of American culture. Unique products and loyal
customer’s are the foundation of Harley-Davidson Inc. Production has increased and profits are very
good. Harley-Davidson has many Japanese competitors that have yet to hurt the sales of the core super
heavyweight motorcycles.
As many enthusiasts may describe it, the pride of owning a Harley-Davidson is the pride of owning an
'American Icon'. Harley-Davidson's (HDI) positioning strategy can best be defined by its mission
statement: "We fulfill dreams through the experience of motorcycling- by providing to motorcyclists and
to the general public an expanding line of motorcycles, and branded products and services in selected
market segments."
HD's most important promotional tool is the brand image of a truly American product. Such a tool
appeals to the domestic market, and owning a Harley-Davidson bike fits well into supporting the
national feelings of pride for America.
HD's strength's of its powerful brand image, maintaining good customer relationships, strong financial
position, and superiority of technology and design .
Since the 1950’s, Harley-Davidson has been an integral part of American pop culture. The days of the
lone rider crossing a long stretch of highway that extends as far as the eye can see sparks nostalgia in
any red blooded American. It is has been this key relationship with the name Harley-Davidson that
powers the thirst for people to purchase an American road bike. Name recognition is very important in
the business world and often people refer to any heavyweight motorcycle as a “Harley”.
McDonalds
McDonald's is the leading global foodservice retailer with more than 31,000 local restaurants serving
more than 58 million people in 118 countries each day. More than 75% of McDonald's restaurants
worldwide are owned and operated by independent local men and women.
McDonald's Brand Positioning and Messaging
One of the greatest attributes of McDonald's is its "everyday affordability" message that drives
customers to McDonald's restaurants. Think of your children - they know McDonald's by the time they
are two years old. Chanting "Mickey D's", you can't possibly drive by a 'golden arches' without having to
stop.
Flanked by great integrated campaigns centered around such initiatives as the Olympics, the Kung Fu
Panda film and fresh "I'm Lovin' it" ads, McDonald's continues to keep their marketing edge (and brand)
ahead of the pack (its sales are three times that of No. 2 burger chain Burger King).
Ongoing Innovation and Knowing When to Make Changes
For McDonald's it will continue to be a year of innovation. According to CMO Mary Dillon: "We are the
kind of business and brand that is never happy with yesterday. We are always looking to tomorrow and
how do we get better?" This type of thinking and marketing philosophy has always kept the fast-food
giant in the black.
Global Reach
By combining fundamentally sound operational practices with innovative marketing strategies, Ray Kroc
(McDonald's originator) laid the foundation for McDonald's global success. Today, McDonald's values
transcend borders and cultures. Each and every day, 47 million consumers worldwide visit McDonald's
because they know and love the Golden Arches, Ronald McDonald and Big Mac sandwiches.
Reference:
1. walmartstores.com
2. Harleydavidson.com
3. Mcdonalds.com
4. En.wikipedia.org
5. Learn Marketing.Net
6. Marketing Management by P.Kotler
7. Past papers