MARKETING MANAGEMENT TERM PAPER GUIDEL Essay Example
MARKETING MANAGEMENT TERM PAPER GUIDEL Essay Example

MARKETING MANAGEMENT TERM PAPER GUIDEL Essay Example

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  • Pages: 9 (2372 words)
  • Published: March 14, 2018
  • Type: Case Study
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The author criticizes the trendy use of the term "marketing" and argues that it does not change the essence of the role. They point out that many sales managers are now called "marketing vice presidents," resulting in higher costs and salaries. The author asserts that what is often labeled as "marketing" is essentially organized selling, coordinating tasks like sales forecasting, warehousing, and advertising. However, they emphasize that marketing still revolves around our products, customers, and technology.

The author highlights the distinction between selling and marketing beyond semantics. Selling focuses on the seller's needs, while marketing aims to satisfy the buyer's needs. Selling primarily aims to convert products into cash for the seller, while marketing involves creating, delivering, and consuming products in a way that meets customer needs.

This quote is from Theodore Levitt's classic 1960 Harvard Bu

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siness Review article "Marketing Myopia." Levitt differentiates between the selling concept and the marketing concept in this influential piece frequently referenced in modern marketing literature.

The text discusses the relationship between marketing and selling, as well as the cost-effectiveness of different promotional tools. It highlights a statement made by Trucker in his book "Managing for Results" that marketing should aim to understand and satisfy the customer's needs so well that selling becomes unnecessary. The text also mentions that Personal Selling is still considered the most cost-effective tool for gaining orders, along with Sales Promotion. Figure 1 illustrates the varying cost effectiveness of different promotional tools for consumer and business markets, with priority given to sales promotion, advertising, personal selling, and public relations in the consumer market, and personal selling, sales promotion, advertising, and public relations in the business market.Th

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prevalence of personal selling is higher in business markets that deal with complex, expensive, and risky goods, as well as markets with fewer and larger sellers. Therefore, regardless of the effectiveness of other marketing functions, Personal Selling remains essential, particularly in the business or industrial market.

In terms of selling, the focus lies on the product and the manufacturing company. The management is driven by sales volume and short-term planning for existing products and markets. The emphasis is on meeting the needs of the seller, viewing business as a production process. Existing technology maintenance and cost reduction are prioritized with separate departments working independently. Price determination is based on costs where customers are seen as the final link in business.

On the contrary, marketing emphasizes consumer needs and desires. Firstly, companies identify these needs and wants before determining how to deliver a satisfying product. Management aims for profitability while focusing on long-term growth, new products, future markets, and buyer satisfaction. Business is perceived as a consumer-producing process that strives to meet buyers' needs and wants. There's an emphasis on innovation providing superior technology for better value to customers. All departments work together harmoniously to generate consumer satisfaction through integrationThe customer determines the price, which then determines the cost. In marketing, the customer is seen as the very purpose of the business, making traditional selling unnecessary. The goal of marketing is to deeply understand the customer and tailor the product or service to their needs, resulting in a self-selling outcome. The first theory emphasizes the importance of innovation in marketing, as it allows for creating even greater value in the future. This continuous cycle of discovering new

challenges and opportunities fuels growth.

Additionally, the second theory highlights how selling plays a significant role in creating customers. Marketing and innovation are considered essential functions of a business, while all other activities are regarded as costs. To maintain market share, companies must consistently outthink and outproduce competitors in terms of product selection, services, and prices.

In essence, all companies must continuously strive to discover how they can better satisfy consumers' needs and wants.Trucker used "marketing" instead of "sales," reflecting our transparency about our identity and purpose here. Both marketing (and selling) involve sharing one's ability to create value with potential beneficiaries.

Sharing the message and demonstrating value to customers is a challenging and costly task for businesses. However, with the advent of digital tools, it has become easier, cheaper, and more effective than ever before. The ultimate goal is to create loyal customers through providing value. This crucial aspect determines success or failure in the business game. In this disruptive age, complacency should be avoided at all costs. Marketing efforts and client acquisition must be continuous. Innovation and finding new ways to add value are essential for retaining clients. Selling or marketing plays a critical role in achieving growth, while sustained growth necessitates innovation and offering even more compelling value propositions.

Understanding customers is paramount as they do not always buy what businesses think they are selling them. Instead, they pay for satisfaction which cannot be directly manufactured or provided; only means to attain it can be sold and delivered. Trucker's statement highlights the need for further investigation to validate this generalization about customer behavior. Trucker stresses the significance of comprehending customers and markets since commonly held

beliefs within businesses regarding their target audience can often prove inaccurate rather than accurate.Trucker believed that the main focus of a business should be the customer and the market, rather than purely profitability. He saw marketing as more than just a tool for generating profits; it was a philosophy for identifying and seizing valuable customer opportunities. Providing valuable insights into the thoughts of one of the greatest thinkers of the twentieth century, Trucker on Marketing is a must-read for marketing professionals and fans of Peter Trucker.

Marketing to the Customer: Regardless of whether your company targets consumers or businesses, here are some important considerations for successfully marketing to customers as their enthusiasm grows and their wallets become more open. Take advantage of their pent-up desire. Sales of men's underwear have increased as an indicator of the improving economy, according to Time magazine.
In difficult times, individuals postpone restocking basic necessities like boxers and briefs. Whether it is discretionary items like cosmetics and tablet computers or essentials like underwear and copy paper, customers have been cutting back for years. However, they are now eager to splurge and make purchases.
It is important to recognize that customers are still seeking value. Although customers have a pent-up desire to buy, they will not go crazy with their budgets. Both businesses and consumers have learned to make do and search for the best value in recent years.Understanding that the best value does not always mean the lowest price is crucial. By demonstrating how your product or service can save customers money or time, or provide a longer-lasting solution, they will be willing to pay for it even if it is not the

cheapest option available. Highlighting rewards is also essential. Customers do not want to appear excessive or greedy, but they believe they deserve some form of reward after years of frugality, saving, and sensible spending. Marketing messages that present your products or services as a well-deserved treat, reward, or indulgence will greatly persuade customers to make a purchase.

Keep in mind that small splurges will initially be the best sellers as we emerge from a recession until consumers and businesses gain more confidence. It's important to be prepared for change as there is a shift occurring in the economy; both businesses and consumers will be more open to making changes in the products, services, and vendors they use. They will be ready to replace mediocre service providers with those who offer better quality and services. Additionally, take the time to work on capturing new leads and re-engaging old ones you may have previously given up on.

Emphasizing optimism is key since Americans are optimistic people who prefer positive messages in advertising. Even fear-based products like burglar alarms sell better with positive messages such as "protect your family".Demonstrate how your product or service can enhance the customer's life, family, or business and make it more positive, resilient, and joyful. Utilize optimistic language and uplifting visuals. After going through a challenging period, people are now willing to invest money in achieving positivity. Stay up-to-date with technology. Consumers and businesses have become adept at finding top-notch products, services, and prices using tools like mobile phones, tablets, review sites, ratings platforms, and local search engines.

Make sure your business capitalizes on this new shopping approach by listing on search engines, review sites, and

optimizing your website for mobile use. This enables customers to easily find you wherever they may be searching for what you offer. To effectively sell to customers, be prepared by offering a variety of complementary products. For instance, if you specialize in selling antique furniture items provide high-quality wood-polish as well for impromptu cross-selling opportunities.

Similar to popular travel websites such as Asset and Expedite consider providing additional products or services that complement the initial purchase. Always remember to inquire whether customers are interested in the add-on item while ensuring it is affordable and requires a quick decision-making process. The complexity of the product might affect cross-selling success; hence ensure your staff is knowledgeable about all available products and their compatibility with one another.To enhance your online sales, take inspiration from supermarkets and newsagents by strategically placing affordable impulse buys near checkout queues. This tactic can encourage additional purchases that complement your top-selling products. To effectively implement this strategy on your website, ensure it is well-equipped. One advantage of selling online is the abundance of data at your disposal. You can even automate cross-selling opportunities based on other customers' past purchases. If automation is not feasible for you, use common sense to showcase related products. For instance, if a customer searches for "tomato seeds," offer them a seedling tray, compost, and a cellophane cover alongside it. Utilize Google Analytics' "site overlay" feature to determine which products work best together based on customer interactions. Additionally, analyze your sales data to identify frequently purchased product combinations. Make sure buyers can easily find information on additional purchases without leaving the original product page. Optimize every page of your website

to promote cross-selling, with special attention given to the checkout page. Consider using recommended shopping carts like Prestos.Com, commerce.Com, and X-Cart.Com that are specifically designed for cross-selling purposes. Amazon achieved impressive sales results in 2006 with 35% attributed to cross-sells.
Amazon's expertise in cross-selling is evident through features like "Customers who bought this item also bought" and "Frequently bought together." These features leverage the trust you have in people with similar tastes, seamlessly leading to a cross-sell without any apparent influence from Amazon. This approach ensures that there is no hint of a hard sell. Furthermore, it displays products that are likely to be enjoyable for you.

To replicate this effect on your website, there are two options: automating recommendations at a cost or manually uploading items in relevant sections such as the 'Also bought' category. The latter option is cheaper but more time-consuming. You can utilize sales data on frequently purchased items or rely on common sense to determine what items should be recommended together.

In-person interactions provide another opportunity to promote cross-selling by casually mentioning other customers with similar tastes and their recent purchases. Additionally, offering tempting incentives like free shipping for orders above a certain amount can encourage customers to make additional purchases. Discounts or gift vouchers for orders over a specified amount, as well as double loyalty points for reaching spending thresholds, are also effective strategies commonly used in reward card programs.

To give customers an extra push towards making additional purchases, it is advised to use a combination of the techniques mentioned above and below. Another successful strategy involves bundling together products that naturally complement each other at an attractive price point—similar to meal

deals.Without these deals, we might be slimmer and slightly wealthier. The consumer perceives a sense of saving on products they may want or purchase anyway. Discover the ideal price tag that feels like a bargain while still yielding a profitable return. Then, make the offer conspicuous to customers and display all the included products in close proximity to each other.

In terms of product copy, if you have ever absentmindedly read the back of a shampoo bottle while showering (which is quite common), you might recall the familiar marketing tactic used in cosmetics and beauty products: "For best results, use in conjunction with [insert same-brand product of choice]". If you have your own line of branded products, this strategy is a no-brainer. If you lack control over the product copy, consider leveraging the recommendations of experts on which two or three products yield the most effective results when used together. Take on the role of the expert if necessary, as you possess a better understanding of your niche compared to your customers (hopefully!). Articulate this knowledge or incorporate quotes from other experts and articles.

Emulate the successful approach employed by small wine shops and bookstores by utilizing handwritten cards detailing employees' favorites. However, apply this concept to two products rather than just one. For example: "Julie's favorite: I have this heavenly-scented violet candle in my home."Whenever I have guests over for dinner, I enjoy placing the food on my unique darkroom candle-stand instead of using flowers. When you have a face-to-face meeting with a customer, whether it's in a meeting room or at a cosmetics counter, take advantage of the opportunity to introduce cross-selling early on. As

you discover what issues your prospect is facing, take mental notes and tailor your pitch around those specific points. Then, when it comes time to close the deal, bring up those initial pain points again and offer products that can address them - maybe even with a discount. Offering discounted second purchases has become popular among mobile phone companies recently as they provide additional appealing products at a slightly lower price. This gives customers the perception that they are getting a good deal while allowing the company to profit from selling two services instead of just one. Without this enticing offer, customers may not have been inclined to purchase the second item. Boots also utilizes this concept with their "Buy two get third free" promotion, although there is more financial risk involved in this case.

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