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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.