What is marketing?
Marketing is a series of activities responsible for identifying, anticipating and satisfying customer requirements profitably (www.cim.co.uk)
“Marketing is the art of creating and satisfying customers at a profit” (http://www.atkinsmarketingsolutions.com)
‘Marketing is the identification and anticipation of customers’ needs and the profitable satisfaction of those needs’ (Eric Davies, Successful marketing book, 2012, page 8)
Background of marketing:
Starting In the 1920’s it was the production era. A product was thought to be good if it was bought by a customer. Producers could only sell what they could produce. From the 1950’s marketing was shown in a sales era. Customers didn’t buy anything unless they needed it. Communication and persuading customers to buy your good was now stronger then it was so some companies goods were better than others. From the 1960s onwards most markets have become saturated (the size of the market remains the same). This means that there is now intense competition for customers. The sophistication of marketing management has therefore developed into what we now see in a modern marketing department. Marketers are involved at a strategic level within the organisation and therefore inform an organisation about what should be produced, where it should be sold, how much should be charged for it and how it should be communicated to consumers. Modern marketers research markets and consumers. They attempt to understand consumer needs (and potential needs) and allocate organisational resources appropriately to meet these needs. Modern marketers are particularly interested in brands. They are also increasingly interested in ensuring that employees understand marketing, i.e. that everyone within the organisation involves themselves with marketing activities. Started from the 1990’s organisation had to start considering what customers actually want and had to form relationships to create ‘loyal customers’.
Function of marketing:
“The function of marketing is to encompass the whole process of deciding which product and services the customer will want and how will they be delivered to the customer”. (Travel & Tourism book 1, Page 112)
What are the aims of marketing?
* Meet customers’ needs
* Know the competition
* Manage any threats
* Research customers need
* Know the market
The marketing mix describes the key elements that an organisation uses to inform and persuade and meet the customers’ needs using the 4 P’s. The 4 P’s are: * Product
Product: “a product is anything that is offered to the marketplace that can satisfy a customer’s perceived need” (Eric Davies, Successful marketing book, 2012, page 78)
Price: How much the product is being sold to the customer for? Place: The place of marketing focus of how the product is contributed to the customers and where it is being stored. Promotion: who the product is being sold to (target audience) Marketing Segmentation: marketing segmentation is the way how the target market is divided into different sectors that are a best fit for them. The 4 groups are: * Demographic
Demographic segmentation: “Gender, age, income, housing type, and education level are common demographic variables.” (http://www.decisionanalyst.com)
Social-economic segmentation: Mainly split you’re through your personality. The main groups are consumer attitudes, values, behaviours, emotions, perceptions, beliefs, and interests. Geographical segmentation: This is based on where you live e.g. post code Psychographic segmentation: “This is perhaps the most common form of market segmentation, wherein companies segment the market by attacking a restricted geographic area. For example, corporations may choose to market their brands in certain countries, but not in others.” (http://www.decisionanalyst.com)...