This is an essay on the topic of marketing. Marketing is defined as the process of encouraging and influencing the market through different methods. This document will explain the nature of marketing and how a business or individual can exploit a variety of marketing techniques to their benefit. This essay is ideal for individuals or businesses that want to learn more about the topic and how to take advantage of different marketing techniques.
This is an essay on the topic of marketing. Marketing is defined as the process of encouraging and influencing the market through different methods. This document will explain the nature of marketing and how a business or individual can exploit a variety of marketing techniques to their benefit. This essay is ideal for individuals or businesses that want to learn more about the topic and how to take advantage of different marketing techniques. Nature of Marketing Marketing is defined by many literatures as the process of encouraging and influencing the market through different methods. It can be evaluated from various viewpoints which evolve overtime. Money makes the world go round, so does marketing as it involves money and profit. Marketing consists of the process of understanding the consumers and developing products and/or services that satisfies the needs and wants. People who are willing and able to buy the products are considered to be one of the most important factors in marketing termed as market. It is how the marketers persuade and inform people about a certain product and creates an image to be patronized (Kotler, 2003). In some cases, marketing is always linked to advertising but the latter is just a tool to promote a product and/or service to gain profits. It is just part of marketing and people should put on a note that marketing is possible without advertising. The true nature of marketing relies on the product development, sales management, pricing and the strategy on how to reach the target market. Also, marketing stands with the marketing mix which is composed of the product, place, price and promotion or the so-called communication mix. These tools define the process of marketing. They make a place for marketing and considered to be the main factors how marketing develops in an organization. All the same, marketing starts with the creation of a product and the way you sell it and make profit is the real nature of marketing. Role of marketing All businesses are involved in marketing as it serves as the center of the business. It is necessary for the firms to build goodwill with the customers and gain loyalty for their products. Marketing is responsible for understanding the needs of the customers because it stands to satisfy the needs and wants by making available the products that suits the preferences of the market. Accordingly, marketing is defined as the management process responsible for knowing who your customers are, predicting and satisfying consumer requirements profitably. It primarily focuses on the target market of the business. For example, it caters to the patients in a hospital, the shoppers in a mall, and guests in a hotel. In some small businesses, they develop customer relations well and they establish a good rapport in order to build trust and a positive image for the brand. It is important because it helps the owners to communicate with the potential customers through the testimonials and word-of- mouth of their loyal customers. Giving importance to the customers makes them feel valuable so they will patronize the products and services of the business (Kotler and Armstrong, 2007). They even do the promotions at times. Marketing is typically about identifying the needs of the customers such as finding solutions to the problems of the customers by creating or providing the right products and services. Its role also includes the anticipation of the preferences of the customers such as what gifts might be suitable for Valentine’s Day, what promos are they looking for, what clothing will be in for the summer, etc. It has to bear with the future ideas the customers have and most importantly the present. In addition to, Marketing satisfies the market. It is the majority of marketing because it gives variety to the food you eat in a restaurant; it gives you choices for the © Copyright 2013 Docstoc Inc. 2 colors of your shoes, the products in shopping malls, the services on a salon, etc. It stands for the creation of what the potential customers need and want. Satisfaction must be the end product for the customers aside from the physical thing or the service. Customers look for the actual and core benefits in product like convenience and practicability. For the company, profit is the end-result of their hard work in marketing as well as satisfaction. An organization that falls short in generating a profit will have nothing to put back into the future or next projects. If they lack resources, marketing activities will not be pursued and thus will not step up to the next stage of the marketing process (Barnir et al., 2003). Apparently, analyzing, anticipating and satisfying will not be able to continue because there will be no more budget. Marketing should not stop in a certain point as the world continues to innovate. Modern marketing trends are more innovative and so does the organizations. The role of marketing is becoming more highlighted and significant because new products are being developed and the demands of the people are becoming more standardized. Thus, it helps people to become more knowledgeable about the current trends that involve marketing. Marketing Mix Businesses are putting much effort into product development such as branding, choosing the best packaging and putting the right features in order to catch the attention of the market. After establishing the product, it is now important to consider pricing because this will determine the profit for the company and the worth for the customers. The products should also be in the right place to be able to be reached by the consumers and be made available through the use of promotional tools such as advertising, publicity, direct selling, public relations and sales promotion. Marketing ensures the growth of the company through the Product, Price, Place and Promotion or the 4 P’s, also called the Marketing mix. These tools are used in order to satisfy the customers’ needs and wants as well as the goals of the business. Product- Generally, it refers to the items that a company could sell or offer to the consumers. According to Kotler et al (2006), a product is anything that can be offered that satisfies the needs and wants of the market. It may appear in various ways and could either be intangible and/or tangible. Tangible products are those that can be touched such as appliances, cosmetics, house, car, clothes, etc., while intangible products fall into the category of services, events, insurance, etc. It is important to take note that product serves as the most important factor in marketing because a person cannot market without a product as it satisfies the needs and the wants of the market. Marketing managers primarily have to check on the product development phase of marketing in order to make sure that it will be in best quality. Place- also a marketing tool to reach the market. It can be a physical store, a website, a directory or any form of distribution where the customers get hold of the product. Talking about the place in the marketing mix involves the distribution or a channel where the products are shifted. Although a place can be referred to the physical store where the consumers could acquire the products, it could also mean chain on how the product reaches the © Copyright 2013 Docstoc Inc. 3 ultimate consumers. It is also called the Channels of distribution which comprises of the retailer, wholesaler or the distributor, and other middleman. This shortens the supply chain though, but it somehow complicates when products are began to be priced highly before it ends with the ultimate consumer (Kotler and Armstrong, 2007). Furthermore, place is concerned with how the products are transported and shifted to get to the end user. Getting the product to the right place, at the time involves a system of distribution. Distribution system actually depends on how the situations go. In some cases, it is more suitable for manufacturers to sell to wholesalers and then sell to retailers, while others will prefer to directly reach the customers (Eyuboglu and Kabadayi, 2005). Price- is basically the worth or cost of the product. It is the part of marketing mix that determines sales and profits. Price is the determinant of the value of a product. Relatively, the higher the price of a product, the higher its value is. Getting the perception or feedback of consumers about pricing is vital to fully understand their taste and preferences (Kotler and Armstrong, 2007). The strategies in pricing should be known for each product. Businesses must have a price schedule and agree with the legal terms. Promotion- it is the tool used to promote the product. It is also called the communication mix composed of advertising, sales promotion, personal selling, public relations and direct marketing. This tool is the way to communicate with the customers. It gives information about the product and helps customers to be aware of the product they are buying. There are different ways to promote a product; one is advertising. Advertising is a paid non-personal way of informing and persuading the market about a certain product through the use of print ads, television, radio and World Wide Web (Drucker, 2002). Sales promotion is the short- term incentives given by the companies in order to boost the sales of a product such as giving discount coupons, etc. Personal Selling is the way the company sells through a personal interaction between the sales representatives and the potential customers. Public relations is more on building goodwill and creating a positive image for the company to get a positive feedback about the product lines while direct marketing is more on a face-to-face selling where specific customers are directly encouraged to buy a certain product (Kotler and Armstrong, 2007). Marketing mix has to integrate with each other to come up with an effective strategy to market the product and get to various customers. Marketing managers should create a successful marketing mix through extensive market research in order to understand consumer behavior and thus satisfy the needs and wants. They should put on a highlight that only one marketing mix will not survive a company or a product, it must be made up of the four P’s because marketing cannot depend on just one. As such, a person puts up a laundry business in a village with an average price. However, it does not seem to stand on its profits, it uses a good promotional tool though. A laundry shop might be a recession- proof business because all people have dirty clothes every day. But the main problem with a laundry business inside a village is the location itself. People might be busy © Copyright 2013 Docstoc Inc. 4 doing their own laundries but they could still afford to buy their own cleaner. Relocation might not be a practical answer because it will just add up to the expenses. So, what the business needs is good strategy to promote and secure profits. One way is to market direct to potential customers such as a hotel or a dormitory. It more like a partnership with other businesses you think needs a laundry shop. This example just gives a picture of how to incorporate the marketing tools to find out the inconsistencies in a business. As a marketing manager, you have to make sure that the product is reached by the users whose needs and wants will be satisfied. Marketing as a Process The process of understanding and influencing people is the center of marketing. It is done by the marketing managers and for some cases, a marketing manager does not really manage people, but they are the ones responsible for the process of marketing from creating a product up to its promotions. For example, a product manager is responsible for the development of products in a business. The results are seen on their respective stores and displays. But before it reaches the market, the process involves the analysis, planning, execution and monitoring. Consumer behavior is important in marketing to be able to understand the market through analysis and market research. Marketing managers are conducting profound analysis in this phase because it serves as the foundation of starting the process of marketing. Planning is next on the list once the preference of the market is analyzed and strategies are drafted for the benefit of the market. After planning the product and making sure that important details are made, the process of execution is then followed. This is where the prices are set to the products, advertisements are made for the product through print, tri-media (depending on the budget allotted for advertisement), and other tools to inform the market about the new product. Monitoring and evaluation comes after the execution to make sure that the plans go out well. In a marketing concept, marketing managers should think of the best strategy to bring the products to the market and satisfy their needs. As mentioned earlier, analysis, planning, execution and monitoring are important processes involved in marketing (Kotler and Armstrong, 2007). To fully understand the following terms, it must be detailed through different steps; the circumstances are evaluated in order to determine the opportunities, the strategy is created for a value plan, strategic assessment are made, the plan is put into action and the outcome is examined. Analysis It is the thorough analysis of the circumstances that the organization thinks are the basis for discovering the opportunities in order to satisfy the needs of the customers. Also, the organization should be able to understand what they could do and what kind of environment they are operating in (Storey, 2003). Situational analysis can be seen as a way to understand the external and internal environment of a business. External environment is considered to be the macro environment that includes the legal-political, socio-cultural, natural- technological and economic-demographic factors. It is important to know the external environment of the business to spot the potential opportunities and threats as a whole that are outside and difficult to control (Keegan, 2002). © Copyright 2013 Docstoc Inc. 5 The situation analysis should consist of the past, present, and future aspects. It should comprise of the history detailing how the circumstances progressed to its present condition and an analysis of styles in order to anticipate where it is going. An excellent forecasting can trim down the likelihood of putting too much effort in selling the product to the market but in fact, they no longer recognize it. Situational analysis may identify the gap with what the customers prefer from what is being offered in the market, thus it is the right time to launch a new product that suits their tastes. Consequently, there are various approaches on how to structure situational analysis such as the PEST analysis, SWOT and the 5 C. PEST analysis or the political, economic, societal and technological factors, sometimes becomes SLEPT with L as Legal, PESTLE with E as environmental and STEEPLED adding education and demographic. SWOT analysis is simply the study of strength, weakness, opportunities and the threats on the business. 5 C consists of the company, customers, competitors, collaborators and climate. These frameworks can be used to analyze the market thoroughly to be able to know what their tastes and preferences are (Malhotra, 2002). Marketing Strategy and Deciding on Marketing Mix After the analysis, it is now time to think of the best strategy on how to fulfill the unsatisfied needs of the market. In marketing strategy, marketing managers develops a plan on how to create the products or services that will permit the customers to take advantage and benefit from. A market research is needed to get the detailed information to know the specific segment that has the potential to be the target market. Market segmentation, selecting the target market, product positioning and the value offer to the market are the factors needed to have a successful marketing strategy. Market segmentation aims at focusing on a specific market in providing the right product to make sure that the products are offered to the right customers. For example, luxury cars are offered to the people that belongs to the class A-B market; those who are in high-paying jobs and the like. If you offer these kinds of products to class D market, the business will surely flop certainly because the market cannot afford the product (Neumeier, 2006). Thus, in segmenting the market, it is important that the business considers its objectives, operating policies, nature of business, location and its missions. Furthermore, in line with marketing strategy is the decision on marketing mix. As discussed earlier, marketing mix serves as the main composition of marketing. It largely makes up the process of marketing. The development of the product-designs, label, brand mark/name, product line/mix, the right pricing, distribution channel and the ways on promoting the product are the major considerations that sells to the customers. Implementation and Control After creating the right strategy for the business, the marketing plan has to be implemented and has to launch the product to the market. The market changes though but the marketing mix can comprehend to these changes as it controls the marketing process. However, it is vital to innovate on product development to give the customers the best products and adhere © Copyright 2013 Docstoc Inc. 6 to the changing needs of the market as well. Marketing process continuously develops and sets standard as the world engages with a globalized market. Thus, it does not end in implementation and control. As long there is demand from people, there will always be marketing. International Marketing Globalization makes the world flat (Friedman, 2005). Globalization in marketing is largely important for business expansion and also in order to get the products to the next level; thus, it means a larger market and higher profits. International marketing primary means marketing in other countries or carrying out the business across the world. It is more like branching out business and sometimes referred to as exporting (Muhlbacher et al., 2006). However, international marketing is not as simple as marketing to a foreign place. International marketing is linked to global marketing because it focuses on influencing the market globally through the products and services that your business has. According to (Cateora and Ghauri, 1999), International Marketing is the way the business conducts its activities to sell their products and get in touch with the customers in more than one country to gain profit. It basically suggests the idea of marketing globally. (Doole and Lowe, 2001) suggest that marketing is simply how the organization practices marketing mix across national boundaries and establish business worldwide. It is important to consider the culture, language and the ideals of the country you are targeting to market your product (Johansson, 2000). As such, if your business is an Italian restaurant, you cannot just put up and serve Italian dishes in China although they do eat pizza. In this case, your market will be limited. Hence, you could customize the menu that suits the taste of the potential customers in China not only to attract Italian people or tourists but also the natives. It is highly essential that you conduct a thorough marketing research to understand and get the feedback of the potential customers about the business plan. Current Trends in Marketing Marketing emerges with the modern world most especially the use of high technology. Many businesses have innovated through their ways of marketing a product and thought of creative and less costly ways of selling their products and services. Remarkably, organizations are now engaging to internet marketing. Almost all businesses now use internet marketing as their major way of advertising or promoting a product. Internet marketing is also known as online marketing, Internet advertising, web marketing or eMarketing. It gives opportunities to business transactions and various marketing of products through the use of internet. Marketing over the internet works together with the creative and technical sense of the World Wide Web (Barnir et al., 2003). These consist of the web design, development, advertising and sales. Internet marketing does not just mean creating a website or placing advertisements on it. Its good organization needs an extensive strategy that will synergize the business organization of a company and reach its objectives. Organizations have to consider significant keys such as website function, its look and the approach it attracts website visitors for evaluating the success of the marketing strategy (Fisk et al., 2004). © Copyright 2013 Docstoc Inc. 7 The wide us of internet is seen to be one of the most important innovations when it comes to marketing and it has brought a lot of advantages in the field. One can be accounted for curtailing the costs for the distribution of information and media to the domestic and global marketing. Having an interactive sense of the internet marketing, it is able to provide instantaneous responses and dig out those responses as a means of a distinctive channel of distribution. Internet marketing is sometimes engaged in a broader method for the reason that it points out the digital media through internet, electronic mails and wireless form of media (Kotler, 2003). On the other hand, internet marketing also involves the systems where in electronic liaison supervision is applied as well as the management of digital customer data. Moreover, web marketing may also mean placing a media of the different customer relations through search engines (Lovelock and Wirtz, 2004). Internet marketing is not as expensive as marketing through print, TV, radio and other forms of media that is why it is now common to most businesses as a tool for promoting a product. Costs can be reduced and time can be saved as well the effort of the marketers or the employees; hence, it cuts the budget for hiring people on the business. A business to business (B2B) transaction relatively needs this kind innovation to be able to promote a wide- ranging technique of communicating and selling of goods and services through other business organization (Fillis and Wagner, 2005). The nature of the medium gives the consumers the chance to acquire information with regard to the features of the product and buy with no hassle and with convenience as well. Apparently, businesses get the benefit of attracting other firms to do business and bring immediate results. The result may give effectiveness on the business strategies, accomplish the goals of the business and manage its cost- volume- profit. In addition to, marketing online takes advantage of the social networking sites where in you could easily advertise or publicize your products and services for free. Social networking sites such as facebook, friendster, multiply, tagged, myspace, and blog sites are some of the most commonly used network sites where millions of users can be your potential customers. Also, there are lots of web sites that offer free web hosting where you can put your products and let the potential customers see for them to be informed and give the opportunity to satisfy their needs by purchasing them with convenience. Marketing is the way people do the business in any industry. It is the way the process of exchange takes place. There are different approaches on what marketing means and hence makes sense because it develops through time. The product and/or service is sold to the right place, right price and to the right people- that is what marketing means. © Copyright 2013 Docstoc Inc. 8 Word Count: 3,790 References BarNir, A., Gallaugher, J. M. and Auger, P. “Business Process Digitization, Strategy, and the Impact of Firm Age and Size: The Case of the Management Publishing Industry”, Journal of Business Venturing 18(6): 789–814(2003). Cateora, P.R., and Ghauri, P.N., International Marketing. McGraw-Hill Publishing Company; European Edition, (1999). Doole, I. and Lowe, R. International Marketing Strategy - Analysis, Development and Implementation, Thomson Learning, 3rd Ed. (2001). Drucker, P. F. Innovation and Entrepreneurship. Oxford: Butterworth Heinemann. (2002). Eyuboglu, N. and Kabadayi, S. “Dealer-Manufacturer Alienation in Multiple Channel System: The Moderating Effect of Structural Variables”, Journal of Marketing Channels. 12(3): 5–27. (2005). Fillis, I. and Wagner, B. “E-Business Development: An Exploratory Investigation of the Small Firm”, International Small Business Journal 23(6): 604–34. (2005). Fisk, R.P., Grove, S.J. and John, J. eds., Interactive Services Marketing. 2nd ed. New York: Houghton Mifflin. (2004). Friedman, T. The World is Flat: A Brief History of the Twenty-first Century. Farrar, Straus and Giroux; 1st edition. (2005). Johansson, J.K, Global Marketing - Foreign Entry, Local Marketing, and Global Management, Johansson, International Edition. (2000). Keegan, W.J.Global Marketing Management. Prentice Hall, 7th Ed. (2002). Kotler, P. Marketing Management. 11th ed. Upper Saddle River, NJ: Prentice Hall. (2003) Kotler, P. and Armstrong, G. Principles of Marketing Pearson, Prentice Hall, New Jersey. (2007). Kotler, P., Armstrong, G., Brown, L., and Adam, S. Marketing. 7th Ed. Pearson Education Australia/Prentice Hall. (2006) Lovelock, C. H. and Wirtz, J. Services Marketing: People, Technology, Strategy, 5th ed. Upper Saddle River, NJ: Prentice Hall. (2004), Malhotra, N.K. Basic Marketing Research: A Decision-Making Approach, Upper Saddle River, NJ: Prentice Hall. (2002). © Copyright 2013 Docstoc Inc. 9 Muhlbacher, H., Helmuth, L. and Dahringer, L. International Marketing - A Global Perspective, Thomson, 3rd Ed. (2006). Neumeier, M.The Brand Gap: How to Bridge the Distance Between Business Strategy and Design. Berkekley, CA: New Riders Publishing. (2006). Storey, D. J. “Entrepreneurship, Small and Medium Sized Enterprises and Public Policies”, in Z. J. Acs and D. B. Audretsch (eds) Handbook of Entrepreneurship Research, pp. 473–514. Boston, MA: Kluwer Academic. (2003). © Copyright 2013 Docstoc Inc. 10
Pages to are hidden for
"Nature of Marketing"Please download to view full document