Tales Of Marketing 18525 Essay Example
Tales Of Marketing 18525 Essay Example

Tales Of Marketing 18525 Essay Example

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  • Pages: 5 (1300 words)
  • Published: October 27, 2018
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Field Of Marketing and Information Technology

New marketing based on information technology is exemplified by the Royal Bank. The bank invested $15 million in database technology to provide unique customer service, resulting in a significant increase in the response rate from 4% to 60%.

Nature and Scope of Marketing - Exchange as the Focus

Marketing occurs when one social unit exchanges something valuable with another social unit. The purpose of marketing is to generate and facilitate exchanges that satisfy human needs or wants. Exchange is one way a person can satisfy a want, whether through making clothes, borrowing them, coercion, or offering something valuable for voluntary exchange.

  1. For it to be considered as marketing exchange:
    • Two or more social units must be involved, each having unsatisfied wants. Exchange becomes unnecessary if self-sufficiency exists.
    • The parties involved must engage voluntarily, although monopolies may hinder this aspect.

    >

    Marketers play an active role in stimulating and engaging the target audience through marketing programs. These programs are developed, implemented, and repeated over time to create exchange within the market consisting of social units where customers establish or have the potential to establish relationships with marketers.

    The market is composed of individuals with different roles, including decision makers, consumers, purchasers, and influencers. Additionally, there are certain marketing aspects to consider such as Worth Baseball conflicting with tradition and needs being categorized as physiological necessities. The product being marketed can take various forms like tangible goods, services, ideas, individuals or even places seeking tourism. Furthermore, establishing a relationship in an exchange situation is vital by engaging voluntarily, communicating effectively, contributing value and mutually satisfying each other's needs or wants.Long-term relationships involving multiple exchanges and interactions over several year

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are typically of great value to those involved, as they lead to a better understanding and satisfaction of needs. In the context of marketing, books define it as a total system of business activity that aims to plan, price, promote, and distribute products, services, and ideas satisfying the wants of target markets. The purpose is to achieve the objectives of both the consumer and the organization. Thus, marketing is a comprehensive system involving planning, pricing, promoting, and distributing valuable products within the context of a valuable relationship.

The purpose of marketing is to fulfill the needs and objectives of consumers and the firm. When implemented correctly, this definition has implications for businesses. It is a comprehensive definition that should be understood and applied by everyone in the company. The entire system of business or organizational activities should prioritize customers and focus on building high-quality customer relationships, recognizing and effectively meeting their needs and desires. The marketing program begins with an idea for a product or service and continues until customers are fully satisfied, even if it takes some time after the initial transaction.

The marketing program, also known as the marketing mix, usually consists of four coordinated elements: a range of products or services, pricing structure, distribution systems and channels, and promotional activities. However, it's important to note that implementing the marketing mix alone cannot guarantee customer satisfaction.

Marketing in Canada can be traced back to French and English settlers during pioneer times who established relationships with various Native groups. Marketing has undergone three successive stages of development: production orientation, sales orientation, and marketing orientation.In the production orientation stage, firms primarily focused on increasing output with the assumption

that customers would seek out and purchase reasonably priced and well-made products. Executives in production and engineering played a significant role in shaping the firm's planning, while finding customers was considered less important. This dominant stage persisted until the early 1930s, although some mining firms continued to operate under this approach. However, after the Great Depression, there was a shift towards the sales orientation stage which emphasized that the main challenge now lay in selling goods rather than producing them. Merely having superior products was no longer sufficient for success. Presently, marketing has transitioned to focus on processes involved in providing services and developing marketing relationships. All firms are currently at varying stages of marketing development. It became evident that promotional efforts were necessary, marking the beginning of the sales orientation stage where selling activities gained increased respect and responsibility from company management. This stage remained prevalent until the 1950s when the marketing era began to emerge.MARKETING ORIENTATION STAGE: In response to WWII, there was a strong demand for consumer goods that had been pent up during wartime. As supply caught up with demand postwar spending slowed down, prompting firms to find ways to sell their excess capacity. This marked the beginning of the sales orientation eraDuring this stage, consumers gain more knowledge and the range of products expands. Companies in the marketing orientation stage now tailor all their activities to efficiently meet consumer needs. Unlike just selling, firms in this stage focus on marketing. Although often used interchangeably, "marketing" and "selling" are different concepts. Selling is focused on what is available and meets organizational needs while marketing focuses on customers' needs and how products

or services can fulfill them. In the past two decades, there has been a shift from goods production to service production within service-oriented industries. Consequently, meeting consumer needs through efficient, effective, and high-quality service has become paramount.Services can be classified as non-tangible products or services accompanying tangible product sales.Differentiating between core elements and noncore features is helpful.

The core product in the hotel industry is the room for the night that a traveler purchases when checking in. Along with this, customers expect various services such as cleaning, air conditioning, and friendly employees.

  • Figure 1-2 illustrates the factors that drive customer satisfaction.
  • The affective dimensions of the interaction with the hotel and its employees play a significant role in customer satisfaction.
  • The technical performance of the hotel, including the ability to meet customer expectations, is another important driver of satisfaction.
  • The processes and support provided by the hotel, such as reservation services, billing systems, and location convenience, contribute to customer satisfaction.

The core product is the fundamental service or product offered by the hotel. It can be either a service or a physical product. Additionally, the hotel's process and support services at the second level, including reservation services and room service menu, affect customer satisfaction. This is followed by technical performance at the third level, which determines if the hotel meets customer expectations. Interaction with the hotel and its employees at the fourth level can be face-to-face or through other technology. Finally, aspects such as subtle messages and overall

impression are considered at the fifth level, as customer dissatisfaction may not always be related to service or product quality.

Relationship Marketing: Relationship marketing involves building personal, long-term connections with customers. It goes beyond market orientation and requires delivering quality products and services within a trustworthy and ethical framework.

The Marketing Concept: The marketing concept emphasizes customer orientation and coordinating marketing activities to achieve mutual long-term goals for both the customer and the organization.

Nature and Rationale (See Fig 1-3): Customer satisfaction is of utmost importance in all planning and operations within an organization. All departments and employees should contribute to meeting customer needs. Marketing activities, including product planning, pricing, distribution, promotion, and customer service, must be coordinated under one executive's authority to ensure consistent results. This customer-oriented approach is essential for achieving organizational performance objectives while fulfilling customer requirements.

Strategies:

  1. Strategy: Strategy refers to an organization's overall plan of action aimed at achieving its objectives.
  2. Tactic: Tactic refers to the specific method or approach through which a strategy is implemented.
  3. Example Objectives: One example objective could be increasing sales by 8% in the upcoming year compared to the current year.

1) Intensify marketing efforts in domestic markets.

  1. Expand into foreign markets.
  2. Increase customer retention by reducing account closings by 10%.

Strategy Tactics: Direct our promotion to males aged 25-40.

  1. Advertise in magazines read by this group of people.
  2. Advertise on TV programs watched by these people.

Increase revenue from existing customers.

  1. Redesign the customer info system.
  2. Create a loyalty program for light and medium users.
  3. Retrain account analysts and service personnel.

Scope of Planning

  • Strategic planning is usually long-range, covering 3,5,10 or infrequently 25 years.
  • Short-range planning typically covers 1 year or less.
  • Planning at the three different levels:

    • Strategic company planning: At this level, management defines an organization's mission, sets long-range goals, and formulates broad strategies to achieve these goals.
    • Strategic marketing planning: The top marketing executives set goals and strategies for an organization's marketing effort.
    • Annual marketing planning: Short-term plans should be prepared for a firm's major functions.

    Based on the strategic marketing plan, the Strategic Company Planning consists of four essential steps, which are defining the organizational mission, analyzing the situation, setting organizational objectives, and selecting strategies to achieve these objectives. The situational analysis involves gathering and studying information pertaining to one or more specified aspects of an organization while the organizational strategies represent broad plans of action by which an organization intends to achieve its goals and fulfill its mission. On the other hand, Strategic Marketing Planning is a five-step process that includes conducting a situation analysis, developing marketing objectives, determining positioning and differential advantage, selecting target markets and measuring market demand, and designing a strategic marketing mix. The situation analysis involves analyzing the company's marketing program, enables the firm to know if it needs to revise or devise plans, and normally covers external environmental forces and internal non-marketing resources. Many organizations perform a SWOT assessment as part of the situational analysis to identify and evaluate their most significant strengths, weaknesses, opportunities, and threats.Marketing Objectives – Each objective should be given a priority based on its urgency and potential impact on the marketing area, as well as the organization. Positioning and Differential Advantage

    – This entails two complementary decisions: how to differentiate the company from its competitors.

    Positioning is the perception of a product in relation to similar products and other products from the same company. It involves creating a differential advantage, which is any desirable and distinctive characteristic of an organization or brand compared to competitors.

    Target Markets and Market Demand

    A market comprises individuals or companies with needs, spending power, and the willingness to spend. A target market refers to a particular group of people or organizations that a company focuses its marketing efforts on.

    Markiting Mix - The marketing mix is the combination of a product or service, its distribution and promotion, and its price. Traditionally, it consists of four elements that meet the needs of the organization's target markets and achieve its marketing objectives.

    Product: Strategies are needed to manage existing products over time, introduce new ones, and discontinue unsuccessful products. In addition, decisions must be made about service levels, branding, packaging, warranties, and other product features.

    Price: Strategies are necessary to determine customer locations, price flexibility, related items in a product line, and terms of sale. Pricing strategies for entering a market are also important considerations.

    Designing a new product is especially important. Distribution involves managing the channels through which products are transferred from producers to customers, including the systems for moving goods from production to final purchase location. Marketing communications require strategies to integrate various methods like advertising, personal selling, and sales promotion into a coordinated campaign.

    The customer service component involves the handling of customers during their interactions with the firm. The marketing mix elements are interconnected. The Annual Marketing Plan acts as a comprehensive blueprint for a specific

    division or major product's marketing activities over the course of a year. It is advisable to create a separate plan for each major product and company division. This plan outlines the strategies and tactics that will be utilized to achieve specific objectives in the upcoming year, serving as a "what-to-do" document. It also focuses on the implementation process by detailing responsibilities, activities, timelines, and budgets. Typically, it is prepared by the executive responsible for the covered division or product. The planning process commences around 9 months before the planned year begins and is mostly completed 3 months prior to that date. The specific contents of the marketing plan should be determined based on an organization's circumstances. For instance, firms operating in highly competitive industries may have a separate section dedicated to evaluating competitors.

    In another industry, a firm would include the assessment as part of the situational analysis using SELECTED PLANNING MODELS (Table 3-4).

    A. Executive summary: This section, typically 1 or 2 pages long, provides a description and explanation of the main points of the plan. It is intended for executives who desire an overview of the plan but may not be knowledgeable about the details. Bibliography.

    MARKETING

    INFORMATION TECHNOLOGY

    • New marketing strategies based on information technology. For example, the Royal Bank invested $15 million in database technology to provide unique customer services.
    • This investment led to an increased response rate from 4% to 60%.

    NATURE AND SCOPE OF MARKETING

    EXCHANGE AS THE FOCUS

    • Marketing occurs whenever one social unit (person or organization) exchanges something of value with another social unit.
    • Marketing consists of activities designed to generate and facilitate exchanges that

    satisfy human needs or wants.

    Exchange is one of three ways in which a person can satisfy a want. For example, they can manufacture clothes, borrow them, use some form of coercion to obtain them, or offer something of value to another person who will voluntarily exchange with them. The only approach that is considered an exchange in the context of marketing is the last one mentioned.

    For marketing exchange to take place, certain conditions must be met:

    • There must be two or more social units involved, and each unit must have wants to satisfy. If one is self-sufficient, there is no need for an exchange.
    • Voluntary participation is necessary for parties involved in trade, although monopolies may hinder this.
    • Both parties must have something valuable to offer and believe that they will benefit.
    • Communication is essential, even if it is conducted through a third party, as trade cannot occur without it.

    Marketers take the lead in stimulating and facilitating exchanges by developing marketing plans and programs that can be repeated over time.

    • The market, which consists of social units targeted by marketing programs, plays a crucial role in accepting or rejecting offers from marketers.

    Customers, who are individuals or groups with whom marketers have an existing or potential exchange relationship, form the market. They play various roles in the market.

    1. Decision maker: is the individual or organizational unit with authority to commit to an exchange.
    2. Consumer: is the user or consumer of the product.
    3. Purchaser: is the party responsible for carrying out the exchange.
    4. Influencers: are individuals who influence the decisions of others due to their expertise, position, or power.

    Worth Baseball is a new, safer ball that clashes with tradition. Needs

    are viewed strictly in a physiological sense, where food, clothing, and shelter are necessities while everything else is considered a want. A product refers to the objective of the exchange or what is being marketed. This can include tangible, physical products, services, ideas, people, or places. For example, corn flakes is a tangible product, accounting advice is a service, an advertising slogan is an idea, an individual applying for a marketing position is a person, and a provincial government trying to attract tourism is an example of marketing a place as the product.

    The concept of relationship in exchange: A relationship can develop when two people or organizations voluntarily engage in an exchange situation and communicate with each other. In this exchange, both parties contribute something of value to mutually satisfy their needs or wants. Relationships are typically long-term in nature and involve multiple exchanges and interactions over a number of years. The longer a relationship lasts, the more likely it will be of special value to those involved.The better the understanding between individuals, the more effectively their needs can be met. Marketing has various applications and can be defined as a comprehensive business activity that involves planning, pricing, promoting, and distributing products, services, and ideas to target markets. The aim is to achieve the objectives of both the consumer and the organization. Marketing is a holistic system that encompasses planning, pricing, promoting, and distributing valuable products, services, and ideas within the framework of a beneficial relationship with target markets, including present and potential household consumers or business users.

    The objective of satisfying the needs of both consumers and the firm has implications when marketing is properly

    applied. It is a systems definition that should be understood and applied by everyone in the firm. The entire system of business or organizational activities must be customer-oriented and focus on the quality of the customer relationship. The customers' needs and wants must be recognized and effectively satisfied. The marketing program begins with an idea for a product or service and does not end until the customers are completely satisfied, which may be some time after the exchange. The marketing program, also known as the marketing mix, usually consists of four coordinated elements: a product or service assortment, a pricing structure, distribution systems and channels, and promotional activities. However, the marketing mix does not guarantee customer satisfaction. The evolution of marketing in Canada began with French and English settlers in pioneer times, who laid the foundations for marketing relationships with various Native groups. Since then, marketing has evolved through three successive stages of development: production orientation, sales orientation, and marketing orientation. As a result of the last stage, marketing now focuses more on the processes involved in providing service and developing marketing relationships.

    • All firms today are at different stages of marketing.

    DIFFERENCES BETWEEN MARKETING ;SELLING ORIENTATIONS

    • The terms marketing and selling are often used interchangeably, but really are vastly different.
    • The basic difference is that selling is orientated to what is available to the organization's needs, while marketing is orientated to the customers' needs and how a product ;service mix can satisfy them.

    SERVICES

    • There has been an experienced shift from goods production to service production over the last 20 years.
  • This has resulted in meeting the needs of consumers through providing efficient, effective, and high-quality service.
  • We can think of services as falling into 2 different categories:
    1. A non-tangible product to be sold, such as a cleaning service.
    2. A service accompanying the sale of most tangible products, such as the delivery of a stove.

    -It is useful to distinguish between core elements and noncore features. For example, a core product for a traveler checking into a hotel is purchasing a room for the night. Once checked in, the customer will expect all sorts of services like cleaning, air conditioning, nice employees, etc.

    The above example presents five levels of customer satisfaction called drivers of customer satisfaction. The core refers to the basic product or service provided by the firm, which can be either a service or product. The second level, known as process support for hotels, includes reservation services, billing systems, convenience of hotel location, and room service menu. The third level, known as technical performance, determines whether the service provider meets customer expectations in terms of the core product and support services. Emphasis is placed on meeting customer expectations.

    Interactions with a firm and its employees can occur through face-to-face interaction or through other technologies. These interactions can have affective dimensions, as they can create positive or negative feelings towards the company. Subtle messages sent by the firm to customers can sometimes cause dissatisfaction, even if the service or product quality is not the issue.

    Relationship marketing is a concept that involves building personal, long-term bonds with customers. It is a further step in the development of market orientation.

    The development of a strong relationship marketing program is influenced by factors such as providing quality products and services, and conducting marketing relationships within a trusting and ethical framework.

    The marketing concept is a philosophy that emphasizes customer orientation and the coordination of marketing activities to achieve mutual long-term objectives between the customer and the organization.

    The nature and rationale of the marketing concept are illustrated in Figure 1-3. According to this, all planning and operations should be customer oriented, and every department and employee should focus on contributing to customer satisfaction. All marketing activities within an organization should be coordinated, including product and service planning, pricing, distribution, and promotion.The design of customer service should be unified and consistent, with one executive having overall authority for all marketing activities. Customer-oriented and coordinated marketing is crucial for achieving the organization's performance goals while meeting customer needs. The societal marketing concept emphasizes social responsibility, which can be compatible with the marketing concept depending on the breadth and time dimensions of a firm's goals. By considering not only buyers but also those affected by its operations, a firm practicing the societal marketing concept fulfills its social responsibility. A long-term view of customer satisfaction and performance objectives should be taken into account. The firm must satisfy the wants of its product buying customers, meet the societal needs of others affected by its activities, and achieve its performance objectives. Trust, ethics, andMarketing relationships involve various tools that marketers use to connect with customers. These tools include the design, price, message, channel, and level of service for a product or service.

    Ethical behavior refers to following the accepted standards of behavior in society. It

    is important to create an ethical environment by conducting workshops and setting up committees. Additionally, it is necessary to ensure that employee performance demands are reasonable.

    Ethical behavior has several benefits, one of which is building trust with consumers. Successful firms rely on strong relationships with suppliers, customers, and employees, and unethical behavior undermines this trust.

    Quality is defined as the absence of variation in products and services. To better serve customers, it is essential to have variance control. Quality control, which is limited to inspection, can be misleading. The true indication of quality is how well a product meets both the consumer's expectations for the product and service, rather than just the production department's expectations.

    Total quality management involves delegating quality control to multiple departments to meet customer expectations. Goals

    1. Improve product and service quality, making them more appealing and consistent.
    2. Speed up the process from design to delivery, ensuring a more consistent outcome.
    3. Increase flexibility in addressing customer needs.
    4. Reduce costs through quality enhancements.

    Marketers must accomplish two tasks:

    1. Ensure all marketing activities contribute to creating realistic customer expectations.
    2. Eliminate variations in customers' experiences.

    INSTILLING QUALITY

    • Study others' high standards of performance in areas like delivery delays, eliminating defects, and training.

    The process known as benchmarking involves striving to improve customer contact performance. It is necessary for all members of the company to constantly work towards improving the business. Forming partnerships allows for the exchange of ideas for improvements. Measuring the quality of products and services, as well as resulting customer satisfaction, is important.

    In the global economy, marketing holds significant importance. It is not just facing competition from

    Japan, Europe, and the U.S., but also from the broader global economy. There has been a reduction in trade barriers worldwide, creating more opportunities but also increased competition.

    Within the Canadian system, there is now a growing trend of mass customization. Manufacturing products in Canada has become relatively easy, but marketing them has become challenging.

    Between 25 and 33 percent of the Canadian labor force is engaged in marketing activities. On average, 55 cents out of every dollar spent by consumers goes towards covering marketing costs.

    Creating customer value is crucial. The value or utility of a product is determined by its quality and its capability to satisfy wants.

    In organizations, marketing is the only activity that directly generates revenue. According to a survey from 1997's Stats Can report, one in five small ventures will survive past 10 years.According to a survey of 3000 companies, it was found that service marketers are placing more importance on the service itself rather than the actual product. Not-for-profit marketers, even charities, have also recognized the need to market themselves due to increased competition among organizations and the necessity to improve their image in order to secure more funding. There are six types of utility: form utility, which is primarily associated with production; place utility, which exists when a product is easily accessible to potential customers; time utility, which means having a product available when desired; information utility, created by informing prospective buyers about a product's existence; possession utility, created when ownership of a product is transferred to the buyer; and satisfaction utility.

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