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among the potential consumers and sustain customers through offering of value
added services. With the help of the process of marketing, the consumers become
more knowledgeable about the merchandise or service presented by the corporate
organization and the organization in turn gets to increase sale and make surplus.
Due to the intense competition in the market, a product or a service is offered to the
consumers by multiple businesses. On what grounds do the product or service
provided by one organization is different from the one provided by other
organization, what are the qualities of the product or service that make it superior to
those being offered by other businesses and why should customer buy the product
from one business organization and not from the other are the kinds of goals which
can be achieved by marketing intelligently. Intelligent marketing process therefore,
enables a business organization to make new customers, retain customers, capture
maximum share of the market and enhance the trust of brand name. Due to such
profound effects of marketing on business organizations, most of the firms have
created a post for a marketing officer equal in rank to chief financial officer or chief
maintenance officer. The growth of an organization, retention of market share and
retention of customers are the biggest challenges faced by an organization all of
which are affected by how the organization carries its strategy regarding marketing.
The external factors which affect the marketing strategy of an organization are
numerous. Firstly, the demographic of the market greatly influence the marketing
strategy of an organization. The business can monitor the buying habits of the
customers and modify the plan according to the changing demographics. Secondly,
competitors operating in the target market are another factor which influences the
marketing plan. The business needs to monitor the operating principles of the
competitors and determine the basis on which they are competition. A thorough
study of this is required to formulate an effective marketing plan. Thirdly, the
suppliers and distributors in the operating area are also a big influence on the
marketing plan of an organization. Too few suppliers mean inconsistent behavior
and problems for businesses. Fourthly, government rules and regulations which are
implement for the safety and protection of the customers may vary from place to
place. Therefore a different marketing strategy is required for every place the
government has implemented a new regulation. Fifthly, the health of economy of the
region also has profound effect on the marketing strategy of an organization. With
the rise in inflation and unemployment, customers tend to spend only on necessities,
thus requiring a modified marketing plan with attractive prices and value for the
customers. Lastly, technology and media affect the way organizations practice their
marketing strategy. The ever changing technology being introduced in the
strategy. This action plan will depict the vision, mission and objectives of the
organization and how it wants to operate in the market. The next crucial element of
marketing process is the planning part in which the marketing planning is done by
the organization in order to achieve the laid down objectives of the company. This
includes but is not restricted to financial, sales and production planning. After
completing the phase of planning, the organization involves itself in the area of
implementing tactics which are small action plans to achieve long-term goals of the
company. Reduction in prices of the products for limited time duration is considered
a promotional tactic.
Principles of Marketing
Marketing mix comprises the marketing elements and the role played by each
element in order to promote the product or the service till its delivery to the existing
or potential customers. The elements of marketing mix comprise of marketing's 5Ps.
For quite sometimes, researchers have been using 4Ps as elements of marketing mix
however; recently, 5th P has also been added in the group. The 5Ps of marketing mix
are product, price, place, promotion and people. Product refers to the item or service
sold by the organization, its attributes and how it differs from the ones sold by the
competitors. Price refers to the cost of the item or service and how competitive it is
compared to the competitors. Place refers to the area where the product is being sold
whereas promotion refers to the means used by the organization to promote the
product of service. Lastly, people are the workforce of the company and encompass
their attributes and skill levels.
Market segmentation can be done in different basis: on the basis of geographical
location and on the basis of demography which includes segmentation on the basis of
age, income, gender, occupation, education and attitude. Through geographical
segmentation, organizations divide their business into sub-units which operate in
different areas and offer services according to local culture. In demographic
segmentation, people are divided into age groups-with a belief that same aged people
depict a similar behavior, into income groups with a view that same income group
people have similar spending habits, into educational groups with a view that people
with similar kind of education will have same preferences etc. Market segmenting is
reviewed periodically by the businesses in order to determine new segments and
target them according to their needs.
Market segmentation has many benefits for the business organization. One of the
most important is stronger positioning. Through segmentation, the organization is
better able to create a positive perception in the minds of its customers. Improved
Efficiency is another benefit of market segmentation. Efficiency is marketing can be
achieved by only focusing on the majority of target customers instead giving a
general message through a paid content. Yet another benefit of market segmentation
is that it helps the organization gain competitive advantage. By carefully segmenting
the market, a business can offer customized products and services to each segment of
customers. Targeted Media is another benefit which a company enjoys due to
segmentation. Due to narrow segments, the organization is able to choose correct
medium to approach them in order to deliver their message efficiently and
effectively.
According to experts, there are four basic methods of market research: qualitative,
quantitative, ethnographic and experimental techniques. The two methods are based
on the process of questioning whereas the other two researches are carried out
through observation. Qualitative method is basically used to explore a small
population of respondents e.g focus groups, through interviews or questionnaire
whereas, qualitative methods are used in order to describe results or analysis a
precise theory. Through ethnographic studies, the researchers observe a group at one
time or for extended time periods in order to find out a certain social behavior in the
group. Experimental techniques are used by researchers through creation of an
artificial environment and then varying one or more factors to get the desired result.
The intrusion of Technology has had a great impact on the today's marketing
practices. Internet has changed the buying pattern of the people and has influence
how a product is promoted to the customers. Extranets are also additional tools
which allow the customers to gain access to the internal web services of a company
through which organizations are gaining customer loyalty. Similarly, internet has
also proven to be great tool for customers in checking the prices and comparing them
with other business organizations. Now the customers can do shopping at home with
just a few clicks. Technology has also helped the organizations in keeping up with the
preferences of the customers through online polls, surveys and segmentation.
Technology has played wonders in the field of the way businesses promote their
products. From advertising to selling the product, everything can be done online now
which has increased the customer base and reduced costs of promotion.
Applications of Marketing Mix
Apple Iphone 5 has taken the market by storm. Its sleek, it's beautiful and very
expensive. However, Apple has still generated millions of dollars in sales in a very
short period of time. The obsession of Apple with making high quality products come
with a price tag. They tend to target customers with a little extra money to expend on
technology. Therefore segment of people who buy Apple good income grouped.
Positioning is a concept related to the idea that a business endeavors to build an
image of its product or service in the minds of the segmented target market. Effective
positioning of the item entails a process which includes identifying the target market,
identifying the product space or attributes, gathering data from customers regarding
their perception about the attributes of the product, analyze current position of the
product in market, analyze the correct combination of attributes preferred by
customers (ideal vector) and positioning the product as close to ideal vector as
possible.
Businesses can distribute their products in the market using direct or indirect
channels. Indirect channels are utilized by such businesses that do not trade with the
customers directly. This type of channel is used by manufacturers and suppliers of
the product. On the other hand, direct channel is utilized by businesses which trade
with the customers directly. Due to intrusion of internet, companies are now directly
in touch with their customers and tend to avoid indirect channels.
Pricing a product is an important element of marketing mix. Different strategies are
employed by the businesses to set a price for their products which they want to
introduce into the target market. A patented innovation, when introduced in the
market needs to be prices to skim the market or penetrate the market. If skimming is
the idea behind pricing, the initial price of the product is kept very high to target
specific segment of the market and to recover costs on innovation. However, if
penetration is the idea behind the pricing, the prices are kept to an affordable level to
target larger market segment.
Promotion is another important element of market mix and is used to build an image
of the brand in the minds of the customer. Different strategies are utilized by the
organizations to promote the product which include: selling personally- e.g through
salesperson, advertising e.g newspaper, magazines, journals and internet,
promotions for the customers e.g cash back, low prices for a limited periods, loyalty
cards etc, direct marketing e.g directly contacting the customer on internet and
communication through print media e.g printed broachers etc.