What is Marketing :
The word Marketing in narrow sense is used as the sum up of selling process. Now a days marketing is considered as managing profitable customer relationships. Hence, we define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Here the figure 1.1 presents a simple five step model of the marketing process. In the first four steps companies work to understand consumers, create customer value and build strong customer relationships. In the final step companies reach the reward of creating superior customer value. By creating value for customers , they in turn capture value from customers in the form of sales, profits, and long term customer equity.
In the face of today’s changing business , to success , this expand model of marketing is very much helpful. All steps of this marketing process is important. As a first step, marketers need to understand customers needs and wants and the market place within which they operate.
Once its fully understood , consumers and marketplace, Marketing management design a customer driven marketing strategy. In the next steps, marketers construct a marketing program that actually deliver superior value through building profitable customer relationships by capturing value from customers. Here we will focus on customer driven marketing strategy of launching a product or service.
Customer – driven marketing strategy and marketing management orientations that guide marketing strategy:
To design a winning marketing strategy , the company must first decide who it will serve. It does this by dividing the market into segments of customers(market segmentation) and selecting which segments it will cultivate(target marketing). Next , the company must decide how it will serve targeted customers(how it will differentiate and position itself in the marketplace).
Marketing management wants to design strategies that will build profitable relationships with target consumers. There are five alternative concepts under which organizations design and carry out their marketing strategies. These are :-
*Social marketing concept
The philosophy that consumers will favor products that are available and highly affordable, and that management should therefore focus on improving production and distribution efficiency product concept:
The idea that C'l will favor products that offer the most quality, performance and features, and that the organisation should therefore, devote its energy to making continuous produce improve merits selling concept:
The idea that consumers• will not buy enough of the organisation's products unless the organisation undertakes large-scale selling and promotion effort
The marketing management philosophy• which holds that achieving organizational goals depends on determining the needs and wants qf target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. societal marketing concept:
The idea that the organization should determine the need, want and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a ay that maintains or improves the consumer's and society's well-being.
There is no hard and fast rule to strictly follow any particular concept. These concept are followed by different companies as their convenience as their business mission. This may vary for different companies beside some companies may follow the combination of these orientation.
The set of...
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