Marketing Management
What is marketing?
'Satisfying needs and wants through an exchange process'
Market Orientation
A market orientated company puts the customer at the "heart" of the business; all activities in the organisation are based around the customer. The customer is truly king!. A market orientated organisation endeavours to understand customer needs and wants, then implements marketing strategy based on their market research; from product development through to product sales. Once sales have begun further research will be conducted to find out what consumers think about the product and whether product improvements are required. As markets continuously change, market research and product development is an ongoing process for a market orientation company
Competitive advantage
A superiority gained by an organization when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation. Competitive advantage results from matching core competencies to the opportunities.
What is a need ?
Problems that customers intend to solve with the purchase of a good or service. See also customer expectations and customer requirements.
The marketing audit
its a fundamental part of the marketing planning process. It is conducted not only at the beginning of the process, but also at a series of points during the implementation of the plan. The marketing audit considers both internal and external influences on marketing planning, as well as a review of the plan itself.
Marketing
it´s the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." (Definition approved by the American Marketing Association Board of Directors, July 2013.)
Holistic Marketing:
"A holistic marketing concept is based on the "A holistic marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies. Holistic marketing recognizes that 'everything matters' with marketing and that a broad, integrated perspective is necessary to attain the best solution. Four main components of holistic marketing are: relationship marketing, integrated marketing, internal marketing, and socially responsible marketing."
Product Orientation
A product orientated company believes that its product's high quality and functional features make it a superior product. Such a company believes that if they have a superior product customers will automatically like it as well. The problem with this approach is that superiority alone does not sell products; superior products will not sell unless they satisfy consumer wants and needs.
Sales Orientation
A sales orientated company's focus is simple; make the product, and then sell it to the target market. This type of orientation involves the organisation making what they think the customer needs or likes without relevant research. However as we know sales usually aren't this simple. An effective marketing strategy requires market and marketing research, prior to product development and finally an effective promotion strategy
THE MARKETING MIX:Promotion
A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. Promotion is any activity to raise awareness of a product or to encourage customers to purchase a product. Advertising is a form of promotion but not all promotions are advertisements. Promotional activities for consumer sales will be different to promotional activities for business to business sales. The following things will influence how a firm chooses to promote its product: Promotional campaign purpose The budget for the promotional campaign Legal rules about what you can promote and how The target market for the product The marketing environment in which the firm operates.
Core competences
A unique ability that a company acquires from its founders or develops and that cannot be easily imitated. Core competencies are what give a company one or more competitive advantages, in creating and delivering value to its customers in its chosen field. Also called core capabilities or distinctive competencies. See also core rigidities.
1.- The Value Delivery Process brakes into three distinct phases
A) Choosing the value where Marketing Management does its own "homework marketing" before any product exists (e.g. market segmentation, targeting and positioning as the essence of the first phase of strategic marketing. B) Providing the value where Marketing Management decide the marketing mix criteria (For example, Marketing tactics) that will provide a strong competitive and thus a differential advantage (see previous posts). C) Communicating the value where Marketing Management decides on the actual implementation process - utilization of the Sales Force, Sales Promotion, Advertising and other integrated communication tools.
Targeting (or target market selection) refers to:
An organization's proactive selection of a suitable market segment (or segments) with the intention of heavily focusing the firm's marketing offers and activities towards this group of related consumers.
Product Concept
Another marketing management orientation is the product concept. This concept is based on the belief that consumers prefer high-performing and high-quality products that serve an individual or unusual purpose. To implement the product concept, managers focus on producing superior products with innovative features. Typically, these products are also easily improved over time. One disadvantage of this concept is at times, managers tend to become extremely engaged with their product and lose track of what the consumer actually wants.
THE MARKETING MIX:Product
As the product is the item being sold to the customer, the thing that will bring in money, its features and design need careful consideration. Whether the firm is manufacturing the product or purchasing the product for resale, they need to determine what product features will appeal to their target market. When an organization is considering introducing a product into a market, they should ask themselves the following questions: 1. Who is the product aimed at 2. What benefit will customers expect from it 3. What will be its advantage over competitor products? Or its unique selling point? 4. How does the firm plan to Position the product within the market? The answers to these questions will help a firm design, package and add value to its products. To learn more about product strategies within the marketing mix click on the following link: Marketing Mix and Product strategies.
The Value Delivery Process
Marketing is the process of Value Exchange. Value actually represents the exchange of tangible goods, services, ideas, time and maybe other intangibles between buyers and sellers. In fact, the key to a successful exchange is that each party has some value desired by the other. This has got an impact on the entire Marketing Concepts' philosophy design and implementation.
Market opportunities
Newly identified need, want, or demand trend that a firm can exploit because it is not being addressed by the competitors
Marketing Concept
One of the five marketing management orientations is the marketing concept. The marketing concept is based on the belief that a company must create, deliver and market products more efficiently than the competition in order to turn a profit. To implement this concept, managers focus on researching the target market and customer's needs along with marketing the product in an integrated manner.
And positioning (which is sometimes referred to as product positioning) is:
Positioning is the target market's perception of the product's key benefits and features, relative to the offerings of competitive products.
What is Proactive Marketing?
Proactive marketing requires you to do something creative with your marketing. Proactive marketing campaigns are campaigns that do not mirror campaigns of your competitors and are completely new ideas.
Mass Customization
Production of personalized or custom-tailored goods or services to meet consumers' diverse and changing needs at near massproduction prices. Enabled by technologies such as computerization, internet, product modularization, and lean production, it portends the ultimate stage in market segmentation where every customer can have exactly what he or she wants.
What is Reactive Marketing?
Reactive marketing refers to marketing that is a "reaction" to the marketing of your competitors. For example, if your competitor offers a sale, you decide to have your own sale, maybe even with a slightly sharper discount.
THE MARKETING MIX:Place
The Place element of the marketing place is about where the product is made, where is it stored and how is it transported to the customer. The place for each of these things should ensure that the product gets to the right place at the right time without damage or loss. The ideal place will be Convenient for the customer and the business Accessible for the customer if it is the place where the product is sold Low cost or free for the customer if it is the place where the product is sold Reasonable cost to the business
Target marketing
The STP process demonstrates the links between an overall market and how a company chooses to compete in that market. It is sometimes referred to as a process, with segmentation being conducted first, then the selection of one or more target markets and then finally the implementation of positioning. The goal of the STP process is to guide the organization to the development and implementation of an appropriate marketing mix, as highlighted in the following diagram.
What did Peter Drucker mean when he said: "The aim of marketing is to make selling superfluous?"
The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.
Societal Marketing Concept
The final marketing management orientation is the societal, or holistic, marketing concept. This concept is similar to the marketing concept in that a company focuses on the wants, needs and interests of a target consumer market and delivers the product more effectively than any competitor delivers. The societal marketing concept is also based on the belief that a company should carry out the marketing concept in a manner that enhances or preserves society's well-being. The societal marketing concept takes into consideration how a company's marking affects society as a whole.
Production Orientation
The focus for the business is to reduce costs through mass production. A business orientated around production believes that the "economies of scale" generated by mass production will reduce costs and maximise profits. A production orientated business needs to avoid production efficiency processes which affect product design and quality. Compromising product design and quality for the sake of production is likely to reduce the product's appeal to customers.
Market segmentation can be defined as:
The process of splitting a market into smaller groups with similar product needs or identifiable characteristics, for the purpose of selecting appropriate target markets.
Production Concept
The production concept, the oldest marketing concept, is based on a belief that consumers prefer low prices and product availability. To implement the production concept, managers concentrate on low costs, mass distribution and high production efficiency. The production concept is mostly useful in developing countries where consumers are focused on obtaining products, rather than focused on the features of a product.
Which is More Effective? Proactive or Reactive
The question as to which type of marketing is more effective on its own has been debated by experts for decades. Unfortunately, they still have not come to a conclusion. Yet, most of them agree that you should do some of both types of marketing.
Selling Concept
The selling concept is based on the belief that consumers and businesses will not purchase products from companies without aggressive selling and promotional efforts. To implement this concept, managers focus on selling what the company creates rather than focusing on making what the consumers want. Managers also focus on creating a comprehensive advertisement campaign to coax consumers into purchasing their products.
THE MARKETING MIX:Price
There are lots of different pricing strategies but every strategy must cover at least your costs unless the price is being used to attract customers to the business (loss leader pricing). A product is only worth as much as people are prepared to pay for it. The amout your target market are prepared to pay for your products/services depends on product features and the target market's budget. You will also need to consider competitor pricing and factors within your marketing environment. Effective pricing involves balancing several factors, to find out more about pricing including example pricing strategies click here.
THE MARKETING MIX: introduction
To effectively market a product or service there are four things you need to get right: Product, Price, Place and Promotion. These four elements are known as the marketing mix or the 4Ps. The four elements should be viewed as one unit and structured to support each other; Otherwise a firm's marketing strategy will be confusing and uncoordinated. This article provides you with a quick introduction to each element and links if you would like more information.
Marketing Plan -
Your marketing plan is how you are going to achieve those marketing goals. (How) it's the application of your strategy a roadmap that will guide you from one point to another.
Marketing Strategy
Your marketing strategy is an explanation of the goals you need to achieve with yourmarketing efforts. (What) Your marketing strategy is shaped by your business goals. Your business goals and your marketing strategy should go hand-in-hand.