Definition of marketing In classical terms marketing is defined as the performance of nosiness activities that direct the flow of goods and services from producer to consumer and users. The classical definition of marketing is oriented to physical movement of goods and services,that’s why it has several weaknesses. Disadvantages: 1 . The role of physical distribution and market channel is overvalued 2. Government and non-profit organizations are not included in this definition. 3. Throng impact of market activities by many publics such as employees,stockholders groups,and government agencies are not considered. The modern definition is much broader,because a good definition of marketing should not Just include economic services,but also non-profit organizations people,places and ideas.. The central to any definition of marketing should be consumer orientation. Market-is not Just concerned with enlarging demand and selling goods such activities as promotion,ethics,product safety need to be included in marketing definition.
The modern definition was officially recognized by the American marketing association in 1985,when it replaced the classical definition with this one. Marketing-is the process of planning and executing the conception,pricing,promotion and distribution of ideas,goods and services in order to create exchanges that satisfy individual and organizational objectives. Marketing- is the anticipation management and satisfaction of demand through the exchange process involving goods,services organizations,people places and ideas (Philip Kettle) This definition has several terms: 1 . Anticipation of demand-requires a company to do consumer research on a regular basis in order to develop and introduce product that are desired by consumer. 2. Management of demand include 3 types of tasks: stimulation task-makes consumer to want the company products through an attractive design,convenient packaging intensive promotion, reasonable prices. – regulating task-is needed when there are big difference between demand and supply. -facilitation task-is the process through which the company make easy to buy its product through convenient locations well-informed sales people or availability of credits. . Satisfaction of demand- involves actual performance safety and availability of products options. For consumers to be satisfied the goods,services they buy must fulfill their expectations. Marketing evolution The earliest use of marketing activities may be considered barter period. During the industrial revolution the modern system of marketing started. It includes the following stages: 1 . Production period -(during the initial stages of the industrial revolution output was limited and marketing activities were focused on the physical distribution of the products.
Because,demand was high and competition was low,companies DOD not have to conduct consumers research,modify products or adapt to consumers needs. The main goal was to increase production to keep up with marketing research By windrow s higher a sales force to sell its inventory. Firs,the company,developed its products without analyzing the needs and wants of its consumer. Marketing activities were to convince that the produced goods feed to consumers needs and wants. Production- selling-consumption 3.
Marketing period include 2 stages -marketing department period-as competition grew supply began to exceed demand,and the company coil not survive without marketing activities. So a marketing department was created. Lat conducted consumer research and advice management on how to design,to promote,to price and sell products. Marketing apartment participated in company’s decisions,but it had a subordinated position to production or sales departments. -marketing company period- during this stage the central role of marketing has been recognized.
Marketing department has become equal to other in the company. The most important decisions are made on the basis of consumer research and analysis . The company is concerned about satisfying its customers,better than it competitors. It’s also concerned about brand image of its products and building brand loyalty. Marketing approaches 1 . Production concept-consumers will prefer products that are available and affordable,so the management of the company focus on improving production and distribution efficiency (production period) 2. Reduce concept- consumers will prefer products that offer the most quality performance and product options,so an organization should focus on developing continuous product improvements. (production period) 3. Selling concept- consumers will not buy enough of the company’s products,unless it performs a large selling and promotion effort (sales period) 4. Marketing concept – achieving organizational goals depends on determination the needs and the wants of argent markets and delivering the desire satisfaction,more efficiently than competitors. . Societal concept-the organization should analyze the needs,wants and interest of target market and deliver the desired satisfaction more efficient than competitors in a way,that maintains and improves the consumers and society’s well being. 6. Relationship concept- a company should satisfy the needs the wants,deliver the desired satisfaction more efficiently than competitors but it should focus on building long-term relationship with its customers and creating loyal clients. Marketing functions and performers 1 . Racketing research and analysis-includes monitoring and adapting to external factors that affect the success of a company. It also includes affecting data to solve specific marketing issues. 2. Marketing management- planning,implementing and controlling marketing program and individual marketing functions. 3. Production planning //product) includes developing and maintaining products,product images,brands,packaging,product features and the decisions of deleting existing products. 4. Price planning -determining price levels and ranger,pricing 5. Motion planning-includes communicating with customers and the general public through advertising public relations,personnel selling and sales promotion. 6. Distribution,planning-includes establishing relations with distribution channel,physical distribution,inventory management,transportation,warehousing,hotels and retailers. 7. Consumer analysis- evaluating consumer characterizing needs and purchase processes,and also selecting the groups of consumers at which to aim marketing efforts. 8. Broadening the organizations marketing goal-deciding on international market,activities or the use of societal or relationship approaches.
Marketing performers are the organizations or individuals that undertake one or more marketing functions;’ 1 . Final con summers-families and persons that buy goods and services for personal or family use 2. Organizational consumers-include institutions and organizations or persons that buy goods and services for use in their business activity. 3. Hole sales-include establishments and persons that buy goods in order to resell them to retailers or other organizational consumers. 4. Retailers- include organizations or persons whose activities involve the sale or final of goods ND services to final consumers. . Manufactures- companies or persons that produce a good or offer a service. 6. Marketing specialist-firms or persons concentrate on performing a specific marketing function Team 2 . Marketing Environment Marketing environment includes all the factors outside marketing that affect managements ability to develop and maintain successful transactions with its target customers. Micromanagement-forces close to the company that affect directly its ability to serve its customers.
SD- are usually less expensive quicker to obtain and more available. Lat can be of two types. Internal sources: A good place to start for collecting information is without the organization. The following sources may be consulted. *past marketing plans-this sources include statistical information such as market shares,sales per product,or total revenues. They also include strategic information such as previous marketing strategies,marketing opportunities and barriers that the company faced. Sales department-this sources may contain important information about competitors activities,consumer perception,changes in attitudes or behavior by the channels of distribution -accounting department-it collect big amount of detailed information on all transactions that the company has. It may include information about relies,wholesales,product sales analyses,production costs. -research and development departments-they not only focus on bringing your company’s products improvements and new ideas but may also analyze competitors products and services.
They collect information about competitors cost,technology,product quality,consumer demand. Include information collected by external organization for public use. A company may have the following sources: -trade associations-this industry organizations often collect information about the members,company’s sales and profits. -general business publications-they include magazines,newspapers that may offer useful information about the companies activity,product introductions,company’s strategy. Read publications-these publications often provide detailed information about companies slaves and market share,new product strategies,companies promotional activities -academic publications:articles,books -The internet -government publications-often used by foreign companies interested in extending their market share -corporate reports-this report actually may contain information about competitors which is sent for foreign investors for statistical analyses and others. Primary data sources Informal sources Are use in order to collect information from friends,relatives,customers or competitors. E company may use informal observation. Although this sources may not be representative such information can help to form same ideas about the problem is analyzed. Qualitative research Usually involves small sample of customers and produces information that does not lead directly to decision but is an important input for market research. CRY-may be conducted using the following techniques. -focus group- is the most quietly used method of research. It usually includes small group of people from 9 to 1 1 .
That are chosen from different target groups of interests Focus group is usually led by a professional moderator. People that are invited are brought together in a room,and have a discussion about a problem or a topic chosen by the market manager. The moderator usually develops a report on his conclusions. The most common disadvantage of focus group is: -attempting to use the information to draw general conclusions. T his may be an inexpensive way to do research,but ,because the groups are small and not all behavior may be generalized the result can be MIS leading. Observation’s all observational research is informal a common observation in a supermarket retail outlet. In this way the marketing anger can observe the behavior of consumers in different demographic group. The researcher might count the different items that are analyzed by consumers,calculate how much time is spent considering a purchase in a product category or evaluate the indirections with the sale person. Quantitative research Involves big samples of consumers and involves statistical analysis of data in order to provide descriptive results.
CRY-provides with more detailed and concrete information,because it’s applied to a large number of respondents. Company may use 3 types of CRY. -surveys-means administrating questionnaire too big number of re taken,the various surveys approaches that can be used. The company may use the following approaches : personal interview,phone survey,mail,internet The main criteria for evaluating the survey alternatives: -cost-most market managers have a fixed budget for research,so cost considerations are very important.
The most expensive choice is personal interview. -control-it refers to how much control the data collector has in the data collection process;personal control,phone, -response rate-this is the percentage of completed surveys -time to obtain data -flexibility-these characteristics describes how many different kinds of questions can e used -panel- is a set of customers who are enlisted to give responses or to provide data resending over a period of time.
The main benefit of a panel is the ability to observe changes in consumers behavior caused by changes in marketing variables and marketing strategies. There are several problems with panels. The mist important is : -panel drop out-it’s difficult for marketer to keep panel members sufficiently interested to remain on panel -the data are not always representative It applies a small number of participants -experiment-in science and experiment to determine the cause and effect allegations.
It’s to allow the market manager to show how different variable indirect and how they influence. The e societal marketing concept holds that the organization should determine the needs,wants and interest of target market and deliver the desired satisfaction more efficiently and effectively than competitors in a way that maintains or improver the consumer’s and society’s well being. The pure marketing concept overlooks possible conflicts between short-run consumer and long run consumer welfare . Example.
Coca cola company; people see as a highly responsible company but other hint it’s coke has little nutritional value can harm people’s teeth,contains caffeine and adds to the litter problem with disposable bottles and cans. Setting marketing policies: Company profits Consumer wants Society interest Now many companies are beginning to think of society interest when making their marketing decisions. One of such companies is Procreate and Gamble. Which strives community and environments responsibility.
Societal interest is summarized Nina documentary called”our credo” which serves honesty,integrity,and putting people before profits. Advantages and disadvantages of consumer relationship marketing Relationship ether data on consumers and transactions for use in marketing and sales programs. Lat expanded in the first decade of the 21 SST century to involve a company as consumer relationship management. This process includes data collection analysis and development of targeted marketing efforts/ Advantages Its overall emphasis’s on perpetually improving the total consumer experiences. His is all of the vital product and service components of your business that affect the customers experience. By giving all employers access to efficiently have positive,efficient interactions across all of the your company’s touch points – enraging retention and loyalty. -by providing a great customer experience,you generate loyalty that has cumulative affect over time through increased revenue and lower costs. Loyal consumer buy consistently and inn large volume over time.
They typically require less invest to retain than new consumers cost to require. -includes the provision of self-service tools online and in store that reduce ,manual aspects of store operation while giving customer efficiency control of parts of their experience Disadvantages Costs Building a CRM program can have significant costs related to the time involved by CRM names to develop and implement plans,as well as training of employees on new roles. CRM can involve a complete build up of technology infrastructure depending on what an organization has in place.
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