Principles Of Marketing
28 Sep 2009
The subject of my final paper is Principles of Marketing. I will cover the following topics: Definition of Marketing; The Marketing Process; An Understanding of the Marketplace; Marketing Strategies; and Marketing Ethics and Social Responsibilities. Marketing defined is the process by which companies create value for customers and build upon that value by forging strong relationships with the customers (Clark, 2007). Marketing involves more than just selling and advertising, but also involves understanding customer needs and developing products and services to satisfy those needs (Clark, 2007). It consists of those efforts which effect transfers in the ownership of goods and care for their physical distribution (Clark, 2007). Marketing grew out of the division of labor manifested through large scale production and the localization of industry (Clark, 2007). The marketing process involves the following steps: understanding consumers; creating customer values; building strong customer relationships; creating marketing strategy; and capturing the value from customers (Kotler & Armstrong, 2008). The first step in the marketing process understands the market place and customer needs (Kotler & Armstrong, 2008). During this step the marketer needs to understand the customers’ needs, wants, and demands and then offer products, services, and experiences to satisfy those needs, wants and demands (Kotler & Armstrong, 2008). A customers wants are shaped by cultural and individual personality (Kotler & Armstrong, 2008). When backed by buying wants become demands (Kotler & Armstrong, 2008). To fulfill customers wants and needs, marketers offer a combination of products, information, services, or experiences (Kotler & Armstrong, 2008). A market is formed at each point where a specific commodity is concentrated (Clark, 2007). It occurs whenever people decide to satisfy needs and wants through exchange relationships (Kotler & Armstrong, 2008). Once a marketer gets a grasp on customers’ needs and wants they must develop a marketing strategy. They do this by choosing target markets and building profitable relationships with customers (Kotler & Armstrong, 2008). To design winning strategy managers must know what customers they will serve and how they can best serve those customers (Kotler & Armstrong, 2008). To decide what customers to serve marketers divide customers into segments and select which segments they will go after (Kotler & Armstrong, 2008).
After deciding which segments they will go after marketers must establish a set of benefits or values it promises to deliver to consumers to satisfy their needs (Kotler & Armstrong, 2008). For example the makers of Saab automobiles promise driving performance and excitement: Their slogan is “Born from Jets … you can learn what it’s like to fly without ever leaving the ground (Kotler & Armstrong, 2008).”
To carry out their marketing strategy companies develop marketing concepts (Center For Business Administration, 2007). Marketing Concepts are philosophies that firms use to analyze the needs of their customers and then make decisions to satisfy those needs (Center For Business Administration, 2007) Production – This concept which flourished during the 1920s states that consumer will favor products that are available and highly affordable. The focus of management should be on improving production and distribution efficiency (Kotler & Armstrong, 2008). The key questions a firm would ask before making a product were: can we produce it? Can we produce enough of it (Center For Business Administration, 2007)? Product – This concept holds that consumers will favor products that offer the most in quality, performance and innovative features. The marketing strategy focuses on making continuous product improvements (Blackwell, 2009). Selling – This...