Marketing in 21st Century

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Chapter 1 Marketing in the 21st century

Marketing tasks

Three stages through which marketing practice might pass

1)Entrepreneurial marketing: Most companies are started by individual who live by their wits. They visualize an opportunity and knock on every door to get attention Ex. A person sold beer door to door and such direct selling. Slowly he became market leader in selling his products.

2)Formulated marketing: when small companies achieve success, they move to formulated marketing i.e. already laid down advertising methods, like thru TV etc.

3)Intrepreneurial Marketing: some companies rely on formulated marketing, without much success. They need to develop some creative out of the box ideas to market their products.

Scope of Marketing

Marketing people are involved in 10 types of entities:

1)Goods like eggs, steel, cars (Maruti!!!! Wow)
2)Services like airlines, hotels, barbers
3)Experiences like Walt Disney world’s magic kingdom, at planet Hollywood 4)Events like Olympics, trade shows, sports events
5)Persons like celebrity marketing by making major film star as brand ambassador etc. 6)Places like cities, states, nations to attract tourists, factories, company headquarters, and new residents, like we use TAJ or say Nainital 7)Properties like real state owners market properties or agent markets securities 8)Organizations thru’ Corporate identity ads like by using tag line ‘Lets make things better’, or like Richard branson (virgin) or Phil knight of Nike are some identity 9)Information like thru encyclopedias, CDs and visit the Internet for information. This is information marketing 10)Ideas like the buyer of a drill are really buying a hole. Church should market itself as a place of worship or a community center.

A broadened view of Marketing Tasks:

Production and logistics manage supply and marketers manage demand

Eight different states of demand:

1)Negative demand: if a major part of market dislikes the product and may even pay a price to avoid it – vaccinations, gall bladder operations etc. Marketing task is to analyse why the market dislikes the product and whether a marketing program can change beliefs and attitudes. 2)No Demand: Target consumers may be unaware of or uninterested in the product. Ex. College students may not be interested in foreign language courses. Marketing should look for ways to benefit others with their product and of course thus sell their product 3)Latent demand: Market feels a strong needs for some products like harmless cigarettes. Marketer needs to measure size of this market and develop such goods 4)Declining demand: market for products etc declines. Then marketer need to know the causes and rectify 5)Irregular demand: Demand of many products and services are seasonal. Marketer needs to devise ways called synchromarketing like flexible pricing, promotions and other incentives 6)Full demand: sometimes full demand is there. Marketing task is to maintain current level of demand in face of changing consumer preferences and increasing competition. 7)Overfull demand: sometimes demand is higher than what organization can handle. Then marketing task, called demarketing is required. Like thru raising prices and reducing promotion and service. Selective marketing is reducing demand from some parts, say not so profitable, of the market 8)Unwholesome demand: Unwholesome products will attract organized efforts to discourage consumption. Like unselling campaigns against cigarettes, alcohol, and handguns. Marketing can use fear messages like raising prices, reduced availability.

The decisions marketers make

Marketing managers face a host of decisions, from major ones such as what product to make, what features, how many salesperson to hire etc. These questions vary according to marketplaces.

Consider following four markets

1)Consumer market: mass consumer goods and services such as soft drinks, toothpaste, air travel...
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