The concepts of marketing in management Essay Example

marketing strategies based on the recommendations provided in the document. Since sales are lower than expected, it could be beneficial to review the 4P's of marketing for your current product line. You should consider alternative pricing and promotional activities to improve sales. The document also suggests utilizing a website for sales promotion.

Considering that most consumers have internet access, having strong e-marketing practices is crucial for your business to compete in the market. The document highlights important elements to focus on when deciding to promote products online. Competitive advantage is another key area that gives businesses an edge and helps them survive fierce competition.This text highlights the importance of market orientation in business. Market orientation encompasses various aspects such as product design, strategies, suppliers, and distribution channels. It is crucial to analyze competitors, regardless of their size or location, and consider factors like their 4P's (product, price, place, promotion). By understanding these elements, businesses can adjust their policies to effectively compete.

Previous research has shown that market orientation positively impacts a company's performance (Narver and Slater, 1990; Kohli and Jaworski, 1990). It is considered a long-term advantage for organizations and a unique form of sustainable competitive advantage.

Laforet's study discovered that small and medium-sized enterprises (SMEs) are more innovative and market-oriented compared to large multinational companies. To sustain competitiveness in the market, SMEs must be proactive in identifying market opportunities and open to innovation. Technologically advanced SMEs face significant global competition where innovation becomes the key to success (Laforet, 2008; Laforet & Tann, 2006).

Internal organizational factors along with external forces greatly influence the business performance of SMEs. Hunt and Morgan (1995) emphasized that market orientation is an ongoing

process involving consistent gathering of information about competitors and customers.This information should be analyzed and used appropriately in various areas to develop market knowledge. For SME owners and managers, market orientation is a cultural and behavioral process. It requires strong activities to understand and meet customer needs through continuous evaluations, which ultimately improves business performance (Ruekert, 1992). Ruekert also defined customer orientation as the extent to which an organization uses customer information to develop strategies and be responsive to them (Appiah-Adu and Singh, 1998). Appiah-Adu and Singh (1998) argued that SMEs have minimal acceptance of customer orientation due to internal organization factors and external influences. However, Laforet and Tann (2006) demonstrated that customer focus is a driver of company innovativeness. Pelham and Wilson also supported this idea, stating that for SMEs, customer orientation is likely a crucial success factor since they lack financial resources for alternative sources of business profitability, such as cost leadership or skilled staff for strategic planning and research and development (R&D). The text suggests that clients are the best source of information for SMEs and that focusing on their needs and satisfaction is crucial for success. Deshpande describes clients as the main source of information for SMEs and recommends conducting customer surveys to analyze their needs.The company can conduct surveys through online feedback forms or mail surveys, as it already promotes its baby products online. Gathering customer inquiries, feedback, complaints, and grievances will be easy as the product reaches different channels. Smith explains that market segments are formed when there is diversity in customer needs, and small and medium-sized enterprises (SMEs) play an important role in economic markets. Market segmentation is

defined by TektaAY et al. as actionable and effective submarkets within the main market. Porter suggested that SME directors should focus on a niche market to become a market leader, even without a competitive advantage for the entire market due to limited resources. Cleavage can occur at both micro and macro levels - segmenting within a country at the micro level or segmenting an entire country at the macro level. If cleavage occurs at the macro level, it is crucial for the product to be highly differentiated and recognized by customers. To reach the macro level, establishing itself and making the product known at the micro level is necessary for the company. Micro or consumer segmentation can be used when identifying individual consumers becomes difficult. Brassington and Pettitt identified six main bases that serve as foundations for consumer segmentation (Figure 1). Each of these bases defines their clients accordingly.
Larrson and Martinkauppi, along with other authors, have developed a reference framework (Figure 2) to provide an idea of how to segment markets domestically and internationally. The data collected for market segmentation is based on experience and deficiencies in various small companies. It was found that more experience leads to less risk involved (Larrson and Martinkauppi). Additionally, it was shown that the 4P's automatically segment the market. Placement is another important marketing strategy that positions the company in the appropriate sectorial value-added chain (Garau). This process is crucial for SMEs as a wrong step or decision can eliminate the company from the market. Proper placement is a challenge for dynamic, innovative technology companies where the markets are characterized by intense competition and unpredictable demands (Yonggui and Lo,

2002). Industries such as biotechnology, telecommunication, electronics, and software are heavily impacted by improper placement (March and Gunasekaran,1999;Slatter, 1992). Targeting is also a significant aspect of marketing where different consumer segments are targeted for differentiated promotional activities.The significance of targeting has greatly increased in order to achieve effective and efficient strategies. There have been demands from consumers for a sharp and focused target marketing approach. Smith and Martin (1997) argue that both grasp and aiming have faced criticism for their vulnerability when targeting adult consumers. Based on studies, Brassington and Petite (2000) suggest that Bababoo should segment its population based on demographics and purchasing behavior to identify target markets. Since Bababoo has a small customer base, expensive macro analysis is not currently necessary. Alongside demographic segmentation, the company should also focus on psychographic segmentation. According to Brassington and Petite (2000), analyzing customer perceptions and meeting their desires will lead to favorable outcomes.

The marketing mix benefits from the combination of marketing and entrepreneurship theories in creating value, as described by Morris et al.(2002). This interface has been particularly important in marketing small and medium-sized enterprises (Gilmore and Coviello 1999; Hoy 2008). The traditional selling theories have overlooked crucial elements of entrepreneurship such as invention, risk-taking, and proactiveness (Morris et Al, 2002).Scholars studying SME marketing activities argue for a paradigm shift in understanding the entrepreneurial personality (Hill and Wright, 2000, p.43). Multiple studies suggest that entrepreneurs may excel in their fields but not in marketing (Carson et al., 1995; Stokes, 2000; Zontanos and Anderson, 2004). Martin.D (2009) asserts that despite limited knowledge of formal marketing theories, entrepreneurs play a significant role in their own success. Kotler (2001)

states that successful corporate marketing relies on the four P's: Placement, Price, Promotion,and Product. However, McKenna (1991,p.13) argues that these four P's overlook key fundamentals such as adaptability, flexibility,and responsiveness.To better comprehend marketing basics for entrepreneurial firms, Anderson and Zontanos propose an alternative framework: the four P's of marketing for entrepreneurs are individuality,purpose,process,and practices.Martin suggests that entrepreneurs should have a strong grasp of traditional marketing mix theories before transitioning to entrepreneurial marketing.He also recommends scholars researching entrepreneurial marketing mix consider entrepreneurial characteristics and abilities.Similarly,Kotler(2001)emphasizes pricing as a crucial element generating revenue and supporting other three elements.Determining the position of a product in terms of quality should be done before setting a price, with a careful balance between price and quality, as advised by experts like Kotler and Jobber. It is important for managers to be aware of competitors' actions, particularly regarding pricing, product costs, and profit margins. Research conducted by Carson et al revealed differences in marketing strategies used by SMEs and larger companies. The study concluded that SMEs typically use a cost-plus approach to set prices based on all fixed and variable costs plus a markup for expected return on investment. To increase competitiveness, most small businesses strive to keep their costs low by changing suppliers and obtaining better deals. SMEs also differentiate themselves through cost reduction efforts. For those who prefer not to use the cost-plus approach, market demands are taken into consideration when setting prices. Negotiation plays a crucial role in developing business for small businesses, as they negotiate with suppliers for better material deals and aim for the best possible trade outcomes. SMEs are vulnerable to industry or market factors when

it comes to pricing decisions. Distribution channels, known as "place," encompass physical locations as well as online stores where products are available.The significance of IT marketing in the computer age is emphasized by the advent of electronic market channels (Carson et al, http://www.scribd.com/doc/12864224/The-Extended-Marketing-Mix). The rapid emergence of various direct selling channels, such as tele-shopping and place-based shopping, is facilitated by diverse database-driven technologies. For instance, practical shops like supermarket on wheels have emerged, allowing customers to order food markets online through email and have them delivered to their doorstep (Peattie). In terms of promotion, there are multiple avenues available for individuals to sell their products including advertising, word of mouth, public relations, and point of sales. Studies have shown that entrepreneurs prefer interactive marketing which values personal connections with customers over mass promotions (Orr). Small and medium-sized enterprises (SMEs) excel at engaging in meaningful conversations with their clients as it becomes their unique selling point. SME managers dedicate a significant portion of their time to interacting with customers while mass advertising involves substantial expenses that SMEs cannot afford. Moreover, mass promotions target a larger customer base compared to the smaller customer base catered by SMEs.Entrepreneurs heavily rely on word of mouth as their preferred marketing technique, which can sometimes make it difficult for customers and business-to-business markets to make decisions (Stokes). Passion is crucial in understanding the daily commitment entrepreneurs have towards their venture (Martin.D 2009). According to Smilor (1997, p.342), entrepreneurial passion is defined as the "fire in the abdomen" that enables the unlikely to become possible. This passion sustains entrepreneurs through uncertainties, new inventions, and challenges on their path to success (Martin.D 2009).

To

achieve marketing success, owners are recommended to determine the 4Ps and gather sufficient data to develop optimal strategies. Networking and relationship marketing have gained importance in recent years as research topics (Dodd, 1997). They are considered crucial keys for businesses to overcome resource constraints and limitations faced by SMEs (Deakins, 1991; Gilmore, Carson & Grant, 2001; Johannisson, 1990). Audrey Gilmore, David Carson, and Steve Rocks conducted a study in 2006 which found that selling in small and medium enterprises (SMEs) follows an informal structure. Granovetter (1985) also agrees with this notion and recognizes that this informality can be utilized in various networking activities.Falemo (1989) and Welsch and Young (1983) both believe that networking is crucial for SMEs to make marketing decisions and effectively compete with more powerful rivals. Chetty & Holm (2000) and Gilmore et al. (2001) also support this perspective. According to Gilmore et al. (2001), networks can be developed through regular interactions and various activities of SME owners or managers, such as communicating with people inside and outside the channel, utilizing personal contacts, business networks, industry networks, and marketing networks. Rocks et al. (2005) explain that the owner or manager usually handles major networking activities in SMEs. Attending trade fairs, exhibitions, and other industry events, as well as interacting with owners/managers within the distribution channel are important networking activities that provide information about competitors. Audrey Gilmore, David Carson, and Steve Rocks (2006) state that networking not only improves business knowledge but also allows SMEs to capitalize on their resources during dynamic crises by collaborating in networks. Therefore, establishing networks is essential for SMEs to enhance the effectiveness and efficiency of their marketing activities

and secure a position in the competitive market by aiding in the planning, refining, and implementation of their marketing strategies.Figure-1 showcases the connection between SME networking, marketing activities, and performance (Gilmore, A. et al., 2006). Alongside networking, Relationship Marketing has gained significance due to changing scenarios, increased customer awareness, price sensitivity, reduced cost effectiveness of traditional promotional media, and intensified competition (Marketing Guide). Multiple research studies indicate that entrepreneurial SMEs effectively utilize relationship marketing (Day et al., 1998). It assists SMEs in establishing strong relationships with their customers. According to Clark and Payne (1994) as well as Peppers and Rodgers (1994), a company's level of awareness about its clients reduces the likelihood of clients seeking other providers or competitors. Moreover, it enables the company to better cater to client's demands by having direct knowledge of their needs (Gronroos). Both parties benefit financially from long-term relationships as they develop effective interaction methods leading to decreased relationship costs. This allows clients to eventually pay a higher price for products over time (Congram, Gronroos, Clark and Payne, Fay, Gronroos, Peppers and Rodgers , Reichheld and Sasse , Desatnick , Reichheld and Kenny ).Studies indicate that for SMEs to achieve success, they must integrate internal cultural aspects of relationship marketing and cultivate a management culture that promotes creativity, innovation, and entrepreneurship (Day et al., 1998). To expand its network, Bababoo should actively participate in networking activities with other SME owners/managers at various events such as exhibitions, trade shows, trade associations, chambers of commerce, women entrepreneurship associations, and charitable associations like the Rotary Club. These interactions can occur within or outside the distribution channel and provide additional advantages for the

company. Utilizing women's associations, trade associations, personal contacts, and business networks is suggested as valuable resources for support and information for Bababoo. The author also recommends implementing a CRM strategy and establishing a Management Information System (MIS) to document customer contact history for long-term profitability. Maintaining relationships with key suppliers, manufacturers, and distributors is crucial for SME performance; therefore staying updated on modern trends is vital. Moreover, internet marketing and internationalization are emphasized as important factors in enhancing market reach and operational efficiency in SMEs. Dholakia and Kshetri argue that accepting internet technologies can enhance competitiveness among small businesses which has led some to invest in e-commerce.At present, only a limited number of companies have embraced internet selling as a means to promote their products. The engagement with the internet can be viewed from two perspectives: website ownership (acceptance) and utilizing the internet for marketing purposes (routinization). Research has revealed that small and medium-sized enterprises (SMEs) acknowledge the advantages of e-commerce but face obstacles in fully adopting it due to the requirement for significant changes in business models and the adoption of various communication and information technologies. In today's global economy, access to information regarding opportunities and events in other countries is more accessible than ever before. This sharing of knowledge has facilitated international trade and financial flows. SMEs play a vital role in global economic systems, being closely connected to international trade and investment programs (Acs et al., 2001). With increasing globalization, SMEs have gained even greater importance. As stated by Acs et al. (1996), SMEs are key drivers of innovation, and their internationalization contributes to the worldwide dissemination of knowledge and innovation. Numerous

developed and developing nations across Asia, Europe, and North America have witnessed a rise in the participation of SMEs in international trade (Economist, 1993; Luostarinen et al., Nakamura et al., Rennie et al., Gupta).The phase theory of internationalization, as described by Johanson and Weidersheim (1975), suggests that internationalization progresses gradually from simpler to more complex models of international activity. This process is also applicable to SMEs, which experience a gradual and lengthy journey towards internationalization influenced by the owner's global outlook and its impact on global performance (Glas et al., 1999). However, entering and exploring international markets can be particularly challenging for SMEs owned and managed by individuals due to their lack of export experience, limited marketing support in foreign markets, and reluctance to take risks in global expansion. Such expansion requires careful consideration of factors like customer reach, significant investment, accurate market analysis, predictability of product acceptance, insufficient information about foreign markets, and other business services (Glas et.al., 1999).

A beneficial strategy for advanced SMEs is partnering with multinational companies possessing market access and legal expertise. This collaboration allows for the generation and introduction of innovations into the market. Consequently, the SME can serve the entire market without engaging in direct exports or establishing subsidiaries in foreign markets.To increase its profits through globalizing its innovation, the SME can utilize this strategy without investing in marketing operations abroad (Acs, et al., 2001). It is recommended that Bababoo explores e-commerce channels further, as they have already embraced online selling. Recognizing the importance of the internet in today's world, small and medium-sized enterprises like Bababoo need to compete with larger baby apparel brands. Alongside promoting their clothing on

a website, leveraging social networking sites such as Facebook and professional networking sites like Linkedin can help establish connections with individuals who share similar interests. This modern marketing approach allows buyers and sellers to showcase their products or services to the appropriate audience at the right time and place. Once Bababoo establishes itself as a well-known brand in the UK market, internationalization becomes a viable opportunity. Diversifying into countries like India can be advantageous due to variations in taste, preference, behavior, perception, and a large population. Notably, India's retail industry is not only the largest sector within the country but also globally ranks fifth. As an international trade name in India, utilizing distribution channels will facilitate faster reach and appeal to a broader audience.The cost-effective bulk production in China ensures that pricing is not a concern. After establishing success and recognition in India's wholesale market, the next objective is to target retail merchants for increased revenue and profit margins. As the product reaches its peak in the Product life cycle, partnering with multinational companies in India and China for baby apparel can help maintain the brand's presence. By utilizing these strategies, specialized companies can effectively handle marketing and distribution.