Building Profitable Relationships With Customers Marketing Essay

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From this assignment I had learned about the basic concepts of marketing and the steps in the marketing process for build profitable relationship with targeted consumer. Then I look deeper into the first step of the marketing process which understands the marketplace and customer needs and wants. Through this assignment, I discover that marketing operation in a complex and changing environment. Other actors in this environment - supplier, intermediaries, customers, competitors, public, and other-may work with or against the company. Major environment forces-demographic, economic, natural, technological, political, and cultural-shape marketing opportunities, pose threats, and affect the company's ability to serve customers and develop lasting relationship with them.

1. Distinguish between the production, product, selling, marketing, and societal marketing


1.1 The production concept:

The production concepts hold that consumers will favour products that are available and highly affordable. For example, computer market Lenovo dominates the highly competitive, price-sensitive Chinese PC Market through low labour cost, high production efficiency, and mass distribution. The production concept can also lead to marketing short-sightedness but run a major risk of focusing too narrowly on their own operations and losing sight of the real objective.

1.2 The product concept:

The product concept holds that consumers will favour products that offer the most in quality, performance, and innovative features. Product quality and improvement are important parts of most marketing strategies. For example, some manufacturers believe that if they can "build a better mousetrap, the world will beat a path to their door." But they are often rudely shocked. Buyers may well be looking for a better than a mousetrap.

1.3 The selling concept:

The selling concept, which holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort. The aim often is to sell what the company makes rather than making what market wants.

1.4 The marketing concept:

Marketing concept is the marketing management philosophy which holds that achieving organisational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.

The Selling Concept

Starting point




Existing Products

Selling and Promoting

The Marketing Concept

Starting point




Customer needs

Integrated marketing

1.5 The societal marketing concept:

This concept is the idea that the organisation should determine the needs, wants and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitor in a way that maintains or improves the consumer's and society's well-being. Consider the Pepsi Company. Most people see it as a highly responsible corporation producing fine soft drink that satisfies consumer taste. Yet some consumer and environmental group have voiced concerns that Pepsi has little nutritional value, can harm people's teeth, contains caffeine and add to the litter problem with disposable bottles and cans.

2. Select a sport and leisure footwear company .What micro-environment trends will

affect the success of the company in the decade ahead? What marketing plans would

you make to respond to these trends?

2.1 A Sports and leisure footwear company that I had choose is Adidas:

The Adidas brand, which has been around since the 1940s, continues to dominate the athletic shoe industry, right behind archrival Nike. In an effort to expand beyond its traditional niche, Adidas acquired Salomon, a French sporting goods manufacturer, for $1.4 billion in 1997. Typifying its strategy of making strategic divestitures as well as acquisitions, Adidas sold Salomon in 2006 and bought Reebok to focus on its more profitable footwear, apparel, and golf sectors. And with the sale, the company changed its name to the Adidas Group. In recent years, the company has also opened retail outlets in several countries, to gain visibility with consumers and to help differentiate itself from its non-Nike competitors. In 2004, the company acquired Valley Apparel Company, which makes professional and collegiate sportswear. In 2005, the company introduced a new line of women's sportswear designed by fashion designer Stella McCartney, daughter of Paul and Linda McCartney. Adidas won sponsorship rights for the 2008 Olympics to be held in Beijing, and as part of its planned global expansion (and strategy to beat Nike in China), announced it will open an average of one and one-half stores a day in China for the next two years, substantially adding to the 2500 already in operation there. The firm also has plans to buy out Reebok distributors worldwide to regain control over the brand. And in April 2006, Adidas signed a deal to be the NBA's official supplier of uniforms and other products for 11 years.

What micro-environment trends will affect the success of the company in the decade ahead?

2.2 Supplies:

Suppliers provide the resources needed by the company to produce its goods and services, so in the decade ahead Adidas Company maybe will faced lack of sources problem, for example the company lack of material or components such as rubber to produce their product such as shoes and this may take effect on their business profit.

2.3 Company:

As the top management of the Adidas company they need to sets the company's mission, objective, broad strategies, and polities to face a decade ahead problem such as lack of labour, lack of capital, and changing in global economic.

2.4 Marketing Intermediaries:

Marketing intermediaries help the company to promote, sell, and distribute its products to final buyers. In the decade ahead maybe Adidas Company resellers will change other product company such as Nike, this will give a big affect on Adidas Company to promote their product by make a direct sales in all country.

2.5 Customers:

Costumer market consists of individual and households that buy good services for personal consumption. As the trend is changing very fast now day Adidas Company maybe will face a changing in customer taste for example changing in the pattern of football shoes.

2.6 Competitor:

No single competitive marketing strategy is best for all companies, so Adidas company must have a preparation to compact with their competitor in the decade ahead because a new company maybe will enter the market and compact their company other then Nike , Asadi and other company.

2.7 Publics:

Any group that has an actual or potential interests in or impact on an organisation's ability to achieve its objectives. For example Media Publics carry news, features and editorial opinions. They include newspapers, radio and television stations.

2.8 What marketing plans would you make to respond to these trends?

Marketing plans that should make by Adidas company to respond to these trend is the marketing manager must watch supply availability as supply shortages or delay, labour strikes, and other events can cost sales in the short run and damage customer satisfaction in the long run. Adidas company also must always increase their product quality or pattern to prevent from customers changing their taste. In other hand, Adidas Company also should always do a survey to make sure or observe what customers want and costumers trends now day, so that it can help company to produce the latest product in market. Besides that, Adidas company also must always know about what their competitor product and strategy so that it can help the Adidas Company to make a better improvement on their product and strategy. Last but not least, the Adidas Company also must do a lot of strategy advertisement to abstract their customers about Adidas Company product.

3. Younger consumers are becoming more concerned about the natural environment. How

would this trend affect a company that markets plastic sandwich bags? Discuss Some

effective responses to this trend.

Now day younger consumer are becoming more concerned about the natural environment, this is a very good reaction to save our earth. To save this environment government had made a lot of campaign to reduce the usages of plastic. This reaction will give a big impact to a company that markets plastic sandwich bags. First the company will faced a big financial problem because they can't gain any profit if the usages of the plastic totally stopped by the government. Maybe all of the markets plastic sandwich bags factory need to stop their operation. There a lot of effective responses to this trend. First, the increased of pollution can be control for example global warming can controlled, and this automatically can slyly decrease the dangerous level of water and air pollution. Furthermore, it also can decrease the number of patient who gets skin cancer. Secondly, the shortage of raw materials can be controlling, firms making product that require non-renewable recourses can get the maintain price for their renewable recourses. Thirdly, the governmental intervention also can be decrease so that government can give a concentration on other sector, this also help to save a lot of advertising cost.