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Running head: Marketing essentials
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Marketing essentials
Running head: Marketing essentials
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This paper will talk about marketing: the role of marketing and how it relates to other functional
unit of an organization, the marketing concept; marketing mix and market planning.
The American Marketing Association defined marketing as an organizational or managerial
function and a set of processes for creating, reaching and delivering value to customers and also
for managing relationships in such a way that benefits both the stakeholder and the organization.
On the other hand, Kotler defined marketing as a societal process by which persons and groups
get what they need or want through producing, offering and also freely exchanging products and
services of value with others. From these two definitions, we see marketing as a management
process which is responsible for anticipating, identifying and also satisfying the requirements of
customers while generating profits.
For a fact there is no doubt that marketing is a management process, this is because most
organizations that are successful see it as a crucial set of coordinated activities that must be
motivated from a calculated level of business. Most organizations have a senior director with the
functional responsibility for marketing and also is usually necessary for a strategized marketing
plan that is to be put in place or be implemented, with consistent goals and objectives set out in
the corporate plan. Even though a widely held perception that marketing is synonymous with
selling, the definition confirms that the scope of marketing extends more than just selling.
Undeniably, a business strategy built on selling and with no due attention to other important
marketing activities can have severe shortcomings this is maybe because the customer’s needs
may have been overlooked, the organization may have sold goods or services that the customer
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doesn’t need or maybe the customer may have needs for the organization’s goods or services but
may have purchased the wrong ones.
The whole essence of marketing is captured in three words; identifying, anticipating and
satisfying. These entail a process through which the organization must look out what customers
really need or even go out and carryout a research of what their customers need or want in the
future; the organization should then fulfill these needs by deploying the available resources in the
most appropriate manner. The process needs to be self-motivated because needs and preferences
change over time, making some goods or services less appropriate for their needs or even not
appropriate. There are numerous examples of products that have been able to fulfill needs in the
past but have been superseded by alternatives due to change in needs; a good example is audio
cassettes.
Most successful business organizations regard marketing as a continuous process by which
actual and also perceived customer need are regularly analyzed in order to fulfill all needs to the
extent the capability of the organizations or the available resources.
The marketing concept is the attitude that organizations should focus on and also satisfy
customer needs and by this doing, they being able to simultaneously generate profits. More
specifically, this entails identifying the target customers, understanding what they want and then
developing goods and services that are able to satisfy the needs of their customers better than
their competitors.
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Recent trends in marketing consist of; relationship marketing, industrial marketing and also
societal marketing. Modern or recent marketing also indissoluble from digital sphere. Emarketing and online marketing are some of the most essential tools for modern organizations.
Internet marketing is sometimes well thought-out to be wide in scope, not only referring to the
internet but also putting together with e-mail and also the wireless media as well as driving
audiences from traditional forms of product promotion.
Relationship marketing; it was first developed through direct response marketing campaigns
emphasizing customer retention and also satisfaction, rather than an overriding focus on sales
dealings. It differs from other forms of marketing when it comes to recognizing the long-term
value of relationships and extending communication beyond pushy promotional messages . in
this type of marketing it’s a short term arrangement where both the seller and the buyer have an
interest in providing a more satisfying exchange. This approach tries to go beyond the simple
after purchase exchange with a consumer to make a deeper relationship by providing a holistic,
personalized experience to create more strong ties. Relationship marketing is frequently applied
when there are competitive substitutes or alternatives which a customer can pick from and when
there is an ongoing of intermittent desire for the product or service.
The exercise of relationship marketing has been promoted by several contemporaries of customer
relationship management software that allow the tracking and also the analysis of the present
customer preferences, activities, tastes, what they like, what they don’t like and also their
complaints. With the current growth of the internet and also the present mobile platforms, this
type of marketing relationship marketing has continued to change and advance as technology
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opens more collaborative and social communication ways. This includes tools for maintaining
relationships that go far beyond the simple demographic and the customer service data. An
important principle of relationship marketing is the retention buyers through varying means and
practices to ensure repeated trade from the already existing customers or buyers by satisfying
their needs and wants in a way that is better to that of its competitors. The overall goals of
relationship marketing are to find, draw, and win new customers; nurture and retain those the
firm already has; allure former clients back into the fold and also trim down the costs of both
marketing and also servicing clients.
Industrial marketing; this can be said to be the practice of selling goods and services to other
firms that either resell them or maybe use them as their resources to produce their goods or
services. They may also use those products to support their operations. It is also called business
marketing or the B2B marketing. The enormous growth and change in business marketing are
due to three revolutions that are happening around the world today. The first one is the
technological revolution. This is because the technology is changing at an extraordinary pace by
this speeding up the pace of new products and service development. The second revolution is the
entrepreneurial revolution. To remain competitive, most firms have downsized and also
reinvented themselves. Flexibility, adaptability, speed, assertiveness and innovation are the
secrets of remaining competitive. Marketing is taking the entrepreneurial front by finding market
segments, unexploited needs, and new clients for the existing products and also by creating new
processes for sale, supply and customer service. The third revolution is that one that is occurring
within marketing. Firms are looking far beyond ancient assumptions and adopting new-fangled
frameworks, theories, models, and concepts. They are also moving away from the throng market
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and being preoccupied with transactions. Relationships, partnerships and also alliances define
today's marketing. The cookie reaper approach is out. Organizations are customizing marketing
programs to personal accounts. Societal marketing; it holds that the organization’s tasks are to
determine the wants, interests, and needs of the targeted market and also to deliver satisfaction
more efficiently than its competitors and by this preserving or enhancing social, ethical and also
ecological well-being. Societal marketing is linked with corporate social responsibility and also
sustainable development. Societal marketing mainly focuses on consumer satisfaction and also
the wellbeing of the society at large, this I did by providing products that are eco-friendly
products. In terms of societal marketing, products are grouped in terms of long-term benefits and
products of immediate satisfaction: undersupplied products bring neither long or short-term
benefits; pleasing products bring a high level of instant satisfaction but can be of harm to the
society; salutary products bring low short- term satisfaction, but they are of benefit to the society;
desirable products put together both long term and immediate or instant satisfaction. Societal
marketing suggests that for the welfare of the general public, deficient goods should be
eliminated; products should be modified so as to reach the 4th category by incorporating missing
short- term benefits into beneficial products and long- term benefits into pleasant products and a
firm’s ultimate goal should be to develop attractive goods.
The external factors that influence marketing; the external environment of marketing is
comprised of factors whose control is outside an organization. These factors influence marketing
of a certain firm or organization because they don’t have control over them. Such factors include;
competition, government policies, natural occurrences, social and cultural forces, demographic
factors and technological changes among others.
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How competition impact on marketing; competition can be defined as the numbers of similar
competitive products or goods marketers in your industry, their size, and their market
capitalizations. While marketing, an organization may not have a direct impact on them, but it is
very important that it monitors its competitor's activities and then design effective strategies
using its controllable variables.
How government polices affect marketing; to start with, government policies refer to the laws
and policies that govern the land. They go a long way to affect an organization’s business
operations as a marketer. For example, government constraint on the importation of a particular
product might hold back the marketers playing in that particular field.
How natural forces influence marketers; natural forces refers to the physical environment, it
includes the available or lacks of natural resources that can vacillate or get in the way of an
organization’s production output.
How social and cultural forces influence marketing; social and cultural forces refers to the
organization and dynamics of people and groups and their behaviors, believes, thought patterns
and lifestyles and friendship just to mention a few, many of this trends goes a long way to affect
a firm’s marketing operations.
How demographic factors influence marketing; demography refers to study of people, such as
their age, sex, marital status, livelihood, family size, etc. despite the fact that, demography is
unruly because you cannot command the sex, age, marital status in your external environment,
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but right forecast of it goes a long way to enabling an organization in marketing to forecast
future trends and consumptions of its product.
How technological changes affect marketing; technology poses so many challenges to marketers,
it affects the kind of product that a certain organization or can offer while marketing, For
example, technology have changed products like typewriting machines into a more dexterous
computer systems. We cannot stop the advancement of technology, but we can learn to adapt to
its changes.
When external factors or forces affect one organization or business, it may be a good opportunity
to another. So while marketing, organizations need to be on the look, so as to be able to fore cast
possible changes in the external environment so as to be able to design effective plans on how
you should be able to adapt.
In the world today, the role of marketing in organizations is crucial. Big and small organizations
are today competing for the same market, and the most innovative and proactive have emerged
profitable. Today’s worldwide economy has realized the importance of small organizations and
is more and more giving them the much-needed support to sustain their growth. End of the result,
a company’s survival is reliant upon their smart marketing efforts joined by financial operational
among other functions within their structure.
Competition has gone higher more than ever and as main inroads are achieved in the use of
technology, the state of affairs is not getting any better. Social media avenues have been
encroached by organizations in search of better capturing of the audience with their produce and
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service offerings. The majority of them have certainly achieved much accomplishment, and
customers are more knowledgeable than they were a few years back.
Marketing plays a very important role in setting up relationships between consumers and the
organizations offering to the market. It gives us the self-assurance to want to try a new product in
the market as opposed to conditions where the products enter the market without advertising.
This makes the marketing function critical in every organization irrespective of whether the
organization is a profit or non-profit centered. Marketing shapes the image of the organization,
how people correlate the organization's products or services and indeed give people the
assurance about their products or services.
When it come to the profit-motivated firms, marketing is responsible for the increase in revenue
and by extension increase in the organization's profitability. The function also helps to grow of
the customer or clients base for the organization. This is especially so when the organization is
dealing with more of corporate consumers, and where decisions engage more than one party.
The marketing function is also tasked with the branding of the firm, partaking in publicity
activities, advertising and customer dealings through response collection. Every product
commences starts with marketing and an end with marketing where by the department
establishes the needs of the customers and after introducing the product, the department seeks to
identify whether the customer’s desires were met.
Organizations are contending to be at the top of the consumer's mind and at the same time trying
to protect their market share. Marketing is at the center of creating consumer loyalty and
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customer maintenance. The end result, the function carries out promotions, campaigns from time
to time; this has been proven to be a successful initiative in also attracting more customers.
Devoid of marketing, our brands will not be clarified, our organizations would also be lifeless.
Business’s success is not only determined by the prudent application of funds to the various
portfolios venture but also by the relationship established with the customers, which is a function
of marketing.
The marketing mix is a representation used when bearing in mind the range of activities
necessary to construct and implement an all-inclusive marketing strategy. It is most usually
articulated regarding ‘the four Ps’ of product, price, promotion and place. ‘Place’ in this
circumstance refers to all activities associated with circulation or distribution.
Product.
This element of the marketing mix considers the practical features, benefits, and restrictions on
the product or products offered by the company. Depending on the kind of the business, products
can be physical goods or maybe services.
The technical features of the product are significant because they will decide whether it will meet
the genuine or expected needs of the consumer. Features are articulated as technical stipulations
and capabilities, and sometimes the confines to which the product is subject.
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Benefits are the usefulness to the consumer and corroborate what may be expected of the
product. Benefits have a significant role to play when planning promotional activities and are
consequently the central linking the product and promotion elements of the mix.
Some goods are subject to a derived demand so that the features may be somewhat discrete from
the benefits of the end product. For instance, no one actually wants credit, as this represents a
large, long-term financial commitment. The advantage lies in owning an apartment or house, and
without the mortgage, of course, few people can realize this ambition in the short term.
Product planning
Considers the circumstances of the product within the portfolio of products offered by the
organization, and the prospective contribution the product has to make to its prospect success.
Almost all products may be considered with allusion to the product life cycle. This model
suggests that goods pass in sequence through various stages over time, with revenues increasing
through the induction and growth stages, then tailing off and eventually weakening as shakeout,
maturity, and decline take place. The product of able firms is the services they offer, which are
mainly immaterial but may sometimes be produced as reports and other outputs.
Price
This refers not just to the price of the product, but to all costs related to the purchase. It might be
expressed in pecuniary terms, a rate of interest, costs, fees, or a combination of all these
components. The price may be a one- off payment or a series of payments over time. It may be
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subject to time limits. It may also be restrictive on buying other products, or a minimum lock-in
period, such as a mobile telephone contract with a minimum span.
Promotion
Promotion refers to all activities that are meant to inform the customer and affect the purchasing
decision. The array of promotional media deployed by an organization is sometimes referred to
as the promotional mix. This incorporates:
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publicity
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direct sale, such as individual interactions and phone or online sales
•
public relations
•
selling
•
Support.
Promotion may be highly distinct to individual products or a range of products or may enhance
brand perception in respect of the organization’s public image. In some cases, the name of the
product may become synonymous with the organization itself. For instance, the ballpoint pen
was once referred to habitually as a ‘biro’; it was both the inventor’s last name (Laszlo Biro) and
the name of his business. Similarly, a vacuum cleaner is still called a Hoover by many clients,
Hoover being the name of just one producer.
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The promotional mix varies broadly from organization to organization. Fast moving consumer
goods producers rely expansively on publicity, while life assurance corporations have
customarily used direct selling to a much greater level.
Market segmentation can be utilized for both research and planning objectives. It is highly
relevant when considering the promotional mix, and is also necessary when considering the other
elements of the marketing mix. Market segmentation involves the study of the market with an
orientation to uniform subsets that share like characteristics. Usually used segments include:
•
age
•
gender
•
geological situation
•
socio-economic groups
•
Psychological circumstances, such as risk appetite, desire to conform or be different, and so
on.
Segmentation provides insights into strategic opportunities and options. For instance, some
companies choose a highly focused approach to targeted marketing aimed at very specific market
segments, while others apply differentiated marketing strategies to address several sections
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deploying different marketing mixes, fast moving buyer goods companies often produce low
price brands and quality priced brands within their product selections.
As legal constraints and globally accepted professional standards have changed over time, the
promotional mix used by professional firms has changed completely in recent years. In many
countries, accountants, lawyers, and doctors were forbidden from marketing at all and had to rely
on affidavits and personal referrals, and even when such rules were relaxed, many professionals
glared upon promotion in the conventional sense. Such attitudes are rarely met today.
Place
This refers to all actions related to moving the product from the manufacturer to the buyer. It is
concerned with distribution through the generator’s channels to market.
Distribution may entail physically moving the product to the consumer, or to intermediaries who
take responsibility in different stages of distribution, such as agents, retailers, and wholesalers. In
retail industries, distribution was at one time only concerned with transferring goods from the
point of production to the apex of sale, but the logistics have now changed as more companies
clinch online orders and home delivery alongside their stores.
Advancements in information technology have changed the face of shipping in the previous
twenty years. In many nations, it has become obvious that retail shops are finding it more and
more difficult to contend with the more direct channels facilitated by e-commerce. While for the
foreseeable future consumers will continue to rely on the traditional shopping encounter for
specific goods, such as fresh food and fashion, it is clear that certain businesses cannot expect
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their conventional business model to be sustainable. This has been borne out by the fall of some
inveterate companies and the difficulties encountered by others.
Proficient firms now rely heavily on virtual channels to market, having formerly been highly
reliant on face-to-face interaction.
In addition to the four Ps, some organizations slot in additional elements into their marketing mix
to make them seven Ps. The most ordinary of these are people, processes and physical evidence.
People
this component of the marketing mix is of particular importance:
•
when goods offered are considered to be uniform by customers
•
For services, which are impalpable and therefore have to be distinguished in an effective
manner
People are the most capricious resource employed by an organization, as the contribution of any
individual can change from day to day, or even during any single day. People facilitate
interactions amid the business and the customer, so it is very necessary that workers add value at
the apex of trade and in back office roles. Some authors refer to every synergy between the client
and any individual worker as a moment of truth. Every moment of truth is an opening to pleasure
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the customer or simply satisfy the customer, but it is also a moment when unsuitable behavior,
attitudes, mood or language can drive the customer away, perhaps never to return again.
When judging this section of the marketing mix, the organization has to consider issues such as:
•
the obligations that should be carried out by people, and how these obligations should be
allocated among them
•
the level to which tasks can be computerized, making the service experience more effective
and efficient, but without thinning value to the customer
•
the prospects of consumers when dealing with people in the organization
•
The level to which competitive benefit can be obtained by enhancing the supplement that
agents may potentially make, which can be achieved through learning, training, development,
inducements and other motivational stimuli.
Processes
Processes are crucially important when they can impact on the effectiveness of delivering
benefits to the consumer. Computerization and the linking of processes have parts to play here.
Successful businesses capitalize on the use of technology to take on tasks that are accomplished
better by devices than people, while at the same time urging their people to fulfill roles that only
people do fine.
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Many companies have seen a revolution in the way that consumer needs are discussed by
focusing on process changes. These include the systems used by shuttles for booking, ticketing
and moving customers through terminals and into airplanes, and the systems used by financial
institutions to provide inaccessible banking services, including current accounts and card
commodities.
Adding value through changes in methods may be achieved by tuning and refining existing
systems, or by re- engineering processes entirely.
Physical proof
When considering the buying of a good, the customer may react to physical prompts, such as if
the packaging is gratifying on the appreciation or even whether the good itself is aesthetically
eye-catching. In the cases of the widespread marketing mix, physical proof is especially
appropriate to services. As affirmed earlier, services are subtle, so those responsible for
marketing can design and put into practice physical cues to which the customer may respond
optimistically.
Marketing plans serve as the outline for your organization’s sales strategy. They lay out each
detail of what's to come over the subsequent year and may be subject to modification or
assessment because of changes in the market. Marketing shouldn’t be set in activity and left
single-handedly, but continuously reviewed, evaluated and attuned to befit the needs of the
corporation and the wants of the consumer. Understanding how to adjudicate whether your
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marketing plan is achieving the best possible results can save you time and capital and help
ensure the success of your business
Return on the venture is always a major worry when it comes to marketing or any other business
expenditure. The idea is to ensure whether the capital you put into your marketing plan has
resulted in profit. You must gauge the amount spent on each operation, against a number of sales
each operation brought in exclusively. You can compute an overall measurement, but a more
precise breakdown of each marketing plan will tell you exactly which operations worked and
which fell short.
Consumer response in all its diverse forms can help you to decide what type of reactions your
marketing creates. Surveys online and in person, universal customer service response and online
comments can all expose what your consumers think of your marketing and which operations
have the greatest impact. Simple questions like "How did you discover out about our seasonal
auction?" can disclose which schemes are reaching the consumer and which market sections are
making purchases.
If your marketing reach is increasing, the efficiency of your plan is the likely cause. Marketing
that makes its way into new areas either by customer suggestion or natural growth shows both a
prosperous and popular product or experience and a compelling marketing message. The
enlargement of your marketing budget is an extra indication that your plan is operating well and
has gained more support from the business.
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Your marketing partners will offer response about whether your marketing plan is working.
Partner feedback reveals the effectiveness of your efforts in relation to associated brands,
suppliers, and sellers. These external members of the team might feel the effects of a victorious
operations before you do because they are often on the frontal lines and might have more
straightforward customer interaction. The same goes for an off-putting testimony. If your
associates are asking when you will be delivering new marketing efforts, it might be time to
refurbish the marketing plan.
The actions of your entrants or the competitors’ can often are very telling when it comes to the
victory or downfall of your marketing plan. If competitors dash to copy what you've done or try
their best to one-up your initiatives, the plan is working. If your operations go largely ignored, or
there is an instant off-putting response, there may be an issue or at least a question about what
you've set in action
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References
Grönroos, C. (1994). From marketing mix to relationship marketing: towards a paradigm shift in
marketing. Management decision, 32(2), 4-20.
Veryzer, R. W. (2005). The roles of marketing and industrial design in discontinuous new
product development. Journal of Product Innovation Management, 22(1), 22-41.
Cohen, W. A. (2005). The marketing plan. John Wiley & Sons.