Understanding Marketing and Marketing Process
Marketing is the organizational function charged with defining customer targets and the best way to satisfy needs and wants competitively and profitably. Since consumers and business buyers face an abundance of suppliers seeking to satisfy their every need, companies and nonprofit organizations cannot survive today by simply doing a good job. They must do an excellent job if they are to remain in the increasingly competitive global marketplace. Many studies have demonstrated that the key to profitable performance is to know and satisfy target customers with competitively superior offers. This process takes place today in an increasingly global, technical, and competitive environment.
The Marketing Process
The marketing process is the process of analyzing market opportunities, selecting target markets, developing the marketing mix, and managing the marketing effort. Target customers stand at the center of the marketing process. There are following steps in Marketing Process: I. Analyzing marketing opportunities
II. Selecting target markets
III. Developing the marketing Mix
IV. Managing the marketing effort
I. Analyzing marketing opportunities
First step of the marketing process is analyzing market opportunities and availing these opportunities to satisfy the customer's requirements to have competitive advantage. The marketing function of analyzing market opportunities is important in the marketing planning process. Any marketing manager must analyses the long-run opportunities in the market to improve the business unit's performance. To evaluate its opportunities firms needs to operate a reliable marketing information system.
Marketing research is an indispensable marketing tool for this purpose. Researching the market allows the company to gather information about their customers, competitors and any environmental changes to determine the market opportunities.
II. Selecting the target Market:
To succeed in today's competitive marketplace, companies must be customer centered. They must win customers from competitors and keep them by delivering greater value. · Sound marketing requires a careful, deliberate analysis of consumers. · Since companies cannot satisfy all consumers in a given market, they must divide up the total market (market segmentation), choose the best segments (market targeting), and design strategies for profitably serving chosen segments better than the competition (market positioning).
III. Developing the Marketing Mix
Once the company has decided on its overall competitive marketing strategy, it is ready to begin planning the details of the marketing mix. The marketing mix is the set of controllable marketing variables that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything that the firm can do to influence the demand for its product. These variables are often referred to as the "four Ps." 1). Product stands for the "goods-and-service" combination the company offers to the target market.
2). Price stands for the amount of money customers have to pay to obtain the product. 3). Place stands for company activities that make the product available to target consumers. 4). Promotion stands for activities that communicate the merits of the product and persuade target consumers to buy it.
An effective marketing program blends all of the marketing mix elements into a coordinated program designed to achieve the company's marketing objectives by delivering value to consumers. Some critics feel that the four Ps omit or underestimate certain important activities. 1. "Where are services?" they ask.
2). "Where is packaging?"
3). The 4 Ps seems to take the seller's view rather than the buyer's view. 4). Perhaps a better classification would be the 4 Cs: a). Product = Customer Solution.
b). Price = Customer Cost.
c). Place = Convenience.
d). Promotion = Communication...
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