Definition of marketing
Marketing is communicating the value of a product, service or brand to customers, for the purpose of promoting or selling that
product, service, or brand. Marketing techniques include choosing target
markets through market analysis
and market segmentation, as well as understanding consumer behaviour and advertising a product’s value to the
customer. Marketing could also be referred to as the management process through which goods and
services move from concept to the customer. It includes the coordination of four elements called the 4 P’s of
marketing:
product, service, or brand. Marketing techniques include choosing target
markets through market analysis
and market segmentation, as well as understanding consumer behaviour and advertising a product’s value to the
customer. Marketing could also be referred to as the management process through which goods and
services move from concept to the customer. It includes the coordination of four elements called the 4 P’s of
marketing:
·
identification, selection and development of a product,
identification, selection and development of a product,
·
determination of its price,
determination of its price,
·
selection of a distribution
channel to reach the customer’s place, and
selection of a distribution
channel to reach the customer’s place, and
·
development and
implementation of a promotional
strategy.
development and
implementation of a promotional
strategy.
For example, new Apple products are developed to include improved applications and systems, are set at different prices depending on how much capability the customer desires, and are sold in places where other Apple products are sold. In order to promote the device, the company featured its debut at tech events and is highly advertised on the web and on television.
Marketing is based on thinking about the business in terms of customer
needs and their satisfaction. Marketing differs from selling because selling concerns itself with the tricks and techniques of getting people to exchange their cash for your product. It is not concerned with the values that the exchange is all about. And it does
not, as marketing invariable does, view the entire business
process as consisting of a tightly
integrated effort to discover, create, arouse and satisfy customer needs.” In other words, marketing has less to do
with getting customers to pay for your product as it does developing a demand for that product and fulfilling the customer’s
needs.
needs and their satisfaction. Marketing differs from selling because selling concerns itself with the tricks and techniques of getting people to exchange their cash for your product. It is not concerned with the values that the exchange is all about. And it does
not, as marketing invariable does, view the entire business
process as consisting of a tightly
integrated effort to discover, create, arouse and satisfy customer needs.” In other words, marketing has less to do
with getting customers to pay for your product as it does developing a demand for that product and fulfilling the customer’s
needs.
Marketing strategies
Marketing strategy is the fundamental goal of increasing sales and
achieving a sustainable competitive
advantage.
Marketing strategy includes all basic, short-term, and long-term activities in
the field of marketing that deal with the analysis of the strategic initial
situation of a company and the formulation, evaluation and selection of
market-oriented strategies and therefore contributes to the goals of the
company and its marketing objectives.
achieving a sustainable competitive
advantage.
Marketing strategy includes all basic, short-term, and long-term activities in
the field of marketing that deal with the analysis of the strategic initial
situation of a company and the formulation, evaluation and selection of
market-oriented strategies and therefore contributes to the goals of the
company and its marketing objectives.
The
process of developing a marketing strategy generally begins with a scan of the
business environment, both internal and external, which includes understanding
strategic constraints. It is generally necessary to try to grasp many aspects
of the external environment, including technological, economic, cultural,
political and legal aspects. Goals are chosen. Then, a marketing strategy or marketing plan is an explanation of what specific actions will be
taken over time to achieve the objectives. Plans can be extended to cover many
years, with sub-plans for each year, although as the speed of change in the
merchandising environment quickens, time horizons are becoming shorter.
process of developing a marketing strategy generally begins with a scan of the
business environment, both internal and external, which includes understanding
strategic constraints. It is generally necessary to try to grasp many aspects
of the external environment, including technological, economic, cultural,
political and legal aspects. Goals are chosen. Then, a marketing strategy or marketing plan is an explanation of what specific actions will be
taken over time to achieve the objectives. Plans can be extended to cover many
years, with sub-plans for each year, although as the speed of change in the
merchandising environment quickens, time horizons are becoming shorter.
Ideally,
strategies are both dynamic and interactive, partially planned and partially
unplanned, to enable a firm to react to unforeseen developments while trying to
keep focused on a specific pathway; generally, a longer time frame is
preferred. There are simulations such as customer
lifetime value models which can help marketers conduct “what-if” analyses to
forecast what might happen based on possible actions, and gauge how specific
actions might affect such variables as the revenue-per-customer and the churn rate. Strategies often specify how to adjust the marketing mix; firms can use tools such as Marketing
Mix Modeling to help them decide how to allocate scarce resources for different
media, as well as how to allocate funds across a portfolio of brands. In
addition, firms can conduct analyses of performance, customer analysis, competitor
analysis,
and target market analysis. A key aspect of marketing strategy is
often to keep marketing consistent with a company’s overarching mission statement.
strategies are both dynamic and interactive, partially planned and partially
unplanned, to enable a firm to react to unforeseen developments while trying to
keep focused on a specific pathway; generally, a longer time frame is
preferred. There are simulations such as customer
lifetime value models which can help marketers conduct “what-if” analyses to
forecast what might happen based on possible actions, and gauge how specific
actions might affect such variables as the revenue-per-customer and the churn rate. Strategies often specify how to adjust the marketing mix; firms can use tools such as Marketing
Mix Modeling to help them decide how to allocate scarce resources for different
media, as well as how to allocate funds across a portfolio of brands. In
addition, firms can conduct analyses of performance, customer analysis, competitor
analysis,
and target market analysis. A key aspect of marketing strategy is
often to keep marketing consistent with a company’s overarching mission statement.
The
following are some of the notable strategies used in marketing
following are some of the notable strategies used in marketing
·
Strategies based on market
dominance: In this scheme, firms are
classified based on their market share or dominance of an industry. Typically
there are four types of market dominance strategies: leader, challenger, follower
and nicher.
Strategies based on market
dominance: In this scheme, firms are
classified based on their market share or dominance of an industry. Typically
there are four types of market dominance strategies: leader, challenger, follower
and nicher.
·
Market growth strategies: In the early growth stage, the marketing manager
may choose from two additional strategic alternatives: segment expansion or
brand expansion.
Market growth strategies: In the early growth stage, the marketing manager
may choose from two additional strategic alternatives: segment expansion or
brand expansion.
·
Market maturity strategies: In maturity, sales growth slows, stabilizes and
starts to decline. In early maturity, it is common to employ a maintenance
strategy where the firm maintains or holds a stable marketing mix.
Market maturity strategies: In maturity, sales growth slows, stabilizes and
starts to decline. In early maturity, it is common to employ a maintenance
strategy where the firm maintains or holds a stable marketing mix.
·
Market decline strategies: At some point the decline in sales approaches
and then begins to exceed costs.
Market decline strategies: At some point the decline in sales approaches
and then begins to exceed costs.
How marketing is practised inprofit and non-profit
oriented organisations
oriented organisations
Publicity is equally
important in the marketing of for-profit and nonprofit organizations. Nonprofit
and for-profit businesses have multiple similarities and multiple differences.
The process of marketing also differs, with the biggest differing factor being
that the purpose of for profit marketing is to encourage customers to buy,
while the purpose of nonprofit marketing is usually to encourage people to
give. This means that the return on investment differs between the two.
Although the principles of marketing remain the same, some of the methods must,
of necessity, be different.
important in the marketing of for-profit and nonprofit organizations. Nonprofit
and for-profit businesses have multiple similarities and multiple differences.
The process of marketing also differs, with the biggest differing factor being
that the purpose of for profit marketing is to encourage customers to buy,
while the purpose of nonprofit marketing is usually to encourage people to
give. This means that the return on investment differs between the two.
Although the principles of marketing remain the same, some of the methods must,
of necessity, be different.
Profit Oriented Organisation
Marketing
The objectives of marketing in the for profit
environment are usually to let potential customers in your target market know
about your product or service and how it can benefit them, with a view to
selling it in exchange for money. The corporation keeps the money, and the
customer enjoys the product or service he has bought. For profit marketing also
focuses on developing new markets for existing products or identifying markets
for new product lines.
environment are usually to let potential customers in your target market know
about your product or service and how it can benefit them, with a view to
selling it in exchange for money. The corporation keeps the money, and the
customer enjoys the product or service he has bought. For profit marketing also
focuses on developing new markets for existing products or identifying markets
for new product lines.
Nonprofit Oriented
Organisation Marketing
A nonprofit organization markets the work it
does or the cause it supports, instead of a product or service. The purpose of
marketing is to build awareness of an issue and to gain financial support from
the public for its cause. The “customer” gives his money to the organization in
exchange for the opportunity to contribute towards its philanthropic work. As
with for profit marketing, the result is that the corporation keeps the funds,
while the individual retains the knowledge that the organization uses his money
to make a difference for its cause.
does or the cause it supports, instead of a product or service. The purpose of
marketing is to build awareness of an issue and to gain financial support from
the public for its cause. The “customer” gives his money to the organization in
exchange for the opportunity to contribute towards its philanthropic work. As
with for profit marketing, the result is that the corporation keeps the funds,
while the individual retains the knowledge that the organization uses his money
to make a difference for its cause.
Similarities between Profit
and Non-Profit Oriented Organisation Marketing
For profit businesses market using a variety of
common methods, such as the marketing mix, target market identification,
positioning, branding, public relations and advertising. Nonprofits may also
use the majority of these methods; for example, the nonprofit marketer will
conduct market analysis to identify potential donors and sponsors. The
nonprofit advertises the work it does using similar media as the for profit,
such as online and print, radio and possibly television advertising. Public
relations professionals work just as hard as they do in for profit environments
to build the visibility of the organization, maintain its reputation and
establish its image as an authority in its field, while direct sales are likely
to take the form of a request for a donation.
common methods, such as the marketing mix, target market identification,
positioning, branding, public relations and advertising. Nonprofits may also
use the majority of these methods; for example, the nonprofit marketer will
conduct market analysis to identify potential donors and sponsors. The
nonprofit advertises the work it does using similar media as the for profit,
such as online and print, radio and possibly television advertising. Public
relations professionals work just as hard as they do in for profit environments
to build the visibility of the organization, maintain its reputation and
establish its image as an authority in its field, while direct sales are likely
to take the form of a request for a donation.
Differences between Profit
and Non-Profit Oriented Organisation Marketing
The major difference between the marketing of
the two types of corporations is the fulfilment of the customer need. The for
profit marketing customer has a need of his own that he fulfils by the purchase
of the goods or services; the non-profit “customer” recognizes the need of
others and his ability to help fulfil it through donation of his time, money or
service. For this reason, retail sales of the primary product or service do not
apply to the non-profit corporation. Many nonprofits do conduct retail sales of
promotional items to help raise funds, but this is not their primary product or
service.
the two types of corporations is the fulfilment of the customer need. The for
profit marketing customer has a need of his own that he fulfils by the purchase
of the goods or services; the non-profit “customer” recognizes the need of
others and his ability to help fulfil it through donation of his time, money or
service. For this reason, retail sales of the primary product or service do not
apply to the non-profit corporation. Many nonprofits do conduct retail sales of
promotional items to help raise funds, but this is not their primary product or
service.
References
Baker, M. (2008). The Strategic Marketing Plan Audit
Homburg, C., Sabine, K. & Harley, K. (2009): Marketing Management
– A Contemporary Perspective (1st ed.), London.
– A Contemporary Perspective (1st ed.), London.
Shaw, E.
(2012). “Marketing strategy: From the origin of the concept to the
development of a conceptual framework.” Journal of Historical Research
in Marketing, 4(1), 30–55.
(2012). “Marketing strategy: From the origin of the concept to the
development of a conceptual framework.” Journal of Historical Research
in Marketing, 4(1), 30–55.
Kotler, P. & Kevin, L. (2009). “1”. A Framework for
Marketing Management (4th ed.). Pearson Prentice Hall.
Marketing Management (4th ed.). Pearson Prentice Hall.
Adcock, D. & Caroline, R. (2001). “Introduction”. Marketing: principles and practice (4th
ed.). Xavier thomas. p. 15
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