Marketing Concepts And Processes

There are numerous international brands that have become extremely successful globally through their extremely well executed marketing mix. From Unilever’s Head & Shoulders to Apple’s I Phone to Marks & Spencer’s food Stores, successful brands not only have invested in their product development but are gaining competitive advantage over its rival through their marketing strategies. Is it because of their high quality product, their memorable advertising or ease of online buying or all of these?

TASK 1;

Investigate the concept and process of Marketing.

Compare alternative DEFINITIONS of marketing, (Differences & Similarities between 2 Definitions)

American Marketing Association Definition:

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

American Heritage Dictionary’s Definition of marketing:

The commercial functions involved in transferring goods from producer to consumer.

Similarities:

The similarities between above of the two definitions are transferring goods from producer to individual or organization.

Differences:

The main differences between the above two definitions are to satisfy the individual or organizational objectives.

Identify the main characteristics of marketing oriented organization.

The main feature of the marketing oriented organization is that they are aimed to stay closer to the customers and ahead of their competitors. The reason is that the basic aim of these organizations is to attract the customers. There are FOUR major characteristics which define the marketing oriented organizations as follows:

Shared Values

Organizations

Strategy

Stakeholders

Firstly, all decisions of these companies consider the customers first and they share the common value of superior quality of products. Secondly, their organizational structure has very few layers and their policies are not very difficult. Thirdly, the strategy of a market oriented organization is long term, flexible and participative. Finally, they consider the expectations of the stakeholders before making any important decision

Explain the various elements of the marketing concepts.

There are FIVE alternative marketing concepts under which organizations design and carry out their marketing strategies as follows:

1. The Production Concept:

The production concept holds that consumers will favor products that are available and highly affordable. Therefore, management should focus on improving production and distribution efficiency. This concept is one the oldest orientations that guides sellers.

2. The Product Concept:

The product concept holds that consumers will favor that offer the most in quality, performance, and innovative features. Under this concept, marketing strategy focuses on making continuous product improvements. Product quality and improvements are important parts of most marketing strategies.

3. The Selling Concept:

Many companies follow the selling concept, which holds that consumers will not buy enough of the firm’s production unless it undertakes a large-scale selling and promotion effort. The concept is typically practiced with unsought goods, those that buyers do not normally think of buying, Such as insurance or blood donations. These industries must track down prospects and sell them on product benefits.

4. The Marketing Concept:

The marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desires satisfaction better than competitors do. Instead of a product-centered “make and sell” philosophy the marketing concept is a customer-centered “sense and response” philosophy. It views marketing not as “hunting”, but as “gardening”. The job is not to find the right customers for your product, but to find right products for your customers.

5. The Societal Marketing Concept:

The societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumers short-run wants and consumers long-run welfare. The societal marketing concept holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and the society’s well-being.

Reference: (Principles of Marketing 12th Edition by Philip Kotler and Gray Armstrong)

Identify and Assess the benefits and Costs of a marketing Approach.

Sorry for not write the answer of this question, please do it yourself because I did not find anything about this topic if you can provide some clue/hints in this regard I will prepare this.

TASK 2;

Explore the concepts of segmentation, targeting and positioning.

Identify and Explain Macro and Micro Environmental factors which influence marketing decisions.

MICROECONOMIC ENVIRONMENT

The microenvironment consists of the actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors and publics.

1. The Company:

In designing marketing plan, marketing takes other company groups into account, group such as top management, finance, research and development (R&D), purchasing, operations, and accounting.

2. Suppliers:

Suppliers form an important link in the company’s overall customer value delivery system. They provide the resources needed by the company to produce its goods and services. Supplier problems can seriously affect marketing.

3. Marketing Intermediaries:

Marketing intermediaries help the company to promote, sell, and distribute its product to final buyers. They include resellers, physical distribution firms, marketing services agencies, and financial intermediaries.

4. Customers:

The company needs to study five types of customer markets closely. Consumer markets consist of individuals and households that buy goods and services for personal consumption. Business markets buy goods and services for further processing or for use in their production process. Reseller markets buy goods and services to resell at profit. Government markets are made up of government agencies that buy goods and services to produce public services or transfer the goods and services to others who needed them. Finally, International markets consist of these buyers in other countries, including consumers, producers, resellers and governments.

5. Competitors:

The marketing concept states that to be successful, a company must provide greater customer value and satisfaction than its competitors do.

6. Publics:

The company’s marketing environment also includes various publics. A public is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. Various types of publics are as follows:

Financial Publics

Media Publics

Government Publics

Citizen-action Publics

Local Publics

General Public

Internal Publics

MACROECONOMIC EVIRONMENT

The macroenvironment consists of the larger societal forces that affect the microenvironment—- demographic, economic, natural, technological, political, and cultural forces.

1. Demographic Environment:

Demography is the study of human population in terms of size, density, location, age, gender, race, occupation and other statistics.

2. Economic Environment:

The economic environment consists of factors that affect consumer purchasing power and spending patterns.

3. Natural Environment:

The natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.

4. Technological Environment:

The technological environment is perhaps the most dramatic force now shaping our destiny. It forces that create new technologies, creating new product and market opportunities.

5. Political Environment:

The political environment consists of laws, government agencies and pressure groups tat influence or limit various organizations and individuals in a given society.

6. Cultural Environment:

The cultural environment is made up of institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviors.