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The marketer develops marketing program for satisfying customer needs with a firm's products and services. One of the myths of marketing rests with the fact that people wants and needs vary greatly, and it is unlikely that any particular product or service can adequately satisfy everyone. The marketing process consists of four steps:
(i) analysing the marketing opportunities,
(2) selecting target markets,
(3) developing the marketing mix, and
(4) implementing and controlling.
Marketer has to identify the new needs or the existing needs not satisfied by any product offer or the needs which can be satisfied through better product offerings. For this purpose, you have to analyse tlie opportunities by scanning the marketing environment.
Marketing analysis talks about finding out the current position of the company in the form of current market share, market power, the relevant strengths and weaknesses of the company in relation to competitors and market opportunity and threats it is likely to face in the marketing environment.
The marketer uses various techniques like SWOT analysis, scenario building, cross impact analysis and other environmental scanning techniques.
At the second stage, the marketer has to decide about the target, the company's business mission, the category of customer markets it wants to serve, the type of strategy to arrive at the set goals. Once a particular customer group is identified and analyzed, the marketing manager can direct company resources and activities to profitably satisfy the selected segment. Thus, at this stage marketer divides the market into various segments, called market segmentation. Each segment consists of consumers who respond in a similar way to a given set of marketing efforts. Then the marketer evaluates each segment and selects one or more segments in which lie can generate the greatest customer value and sustain it over a long period. This is called market targeting. After identifying the target market, you must decide market positioning, that is the place product occupies relative to the competitors product in consumers' mind.
The third step in the marketing process is deciding the marketing mix. It is easier to divided the marketing activities into four basic elements which are together referred to as the marketing mix. These four basic elements are:
3) promotion and
4) physical distribution.
As all these four start with the letter 'P', they are referred to as the four Ps of the marketing mix or the four Ps in marketing. Thus, marketing mix may be defined as the set of controllable marketing variables/activities that the firm blends to produce the response it wants in the target markets.
The word product stands for the goods or services offered by the organisation. Once the needs are identified, it is necessary to plan the product and after that keep on analysing whether the product still satisfies the needs which were originally planned for, and if not, to determine the necessary changes.
Price is the money that the consumer has to pay. Price must be considered as worth the value of the product to become an effective marketing tool. The product has to be reasonably priced. The manufacturer has to take into account cost factors, profit margin, the possibility of sales at different price levels and the concept of the right price.
Promotion is the aspect of selling and advertising or communicating the benefits of the product or service to the target customers or the market segment in order to persuade them to purchase such products or services. It includes selling through advertising as well as the sales force. Besides, a certain amount of promotion is also done through special seasonal discounts, competitions, special price reductions, etc.
Physical Distribution refers to the aspect of the channels of distribution through which the product has to move before it reaches the consumer. It also includes the logistic aspects of distribution such as warehousing, transportation, etc., needed for geographical distribution of products. It is also concerned with the selection of distribution channels.
At the fourth stage marketing plan is to be implemented. Without a proper implementation program, marketing planning exercise is just a paper work. The marketing implementation revolves around executing the strategy and resources for achieving the marketing goals or targets. The marketing managers execute the strategy by converting it to operational plans which are achievable within a specified period of time frame. The fourth stage also includes marketing control, which is a process of benchmarking the expended effort and resources with the set goals.
The concept of organization structure revolves around two issues. The first is the relative importance of marketing department inside the organization and second, its relationships with other jirnctional departmental and external players in the value chain.
It requires the firm to look for consumer needs and the necessity to search for new opportunity to satisfy the consumers in a better way than the competitor Profits result from meeting customers' needs effectively and efficient
The 7 elements of the marketing mix include the following:
Your customer only cares about one thing: what your product or service can do for them. Because of this, prioritize making your product the best it can be and optimize your product lines accordingly. This approach is called “product-led marketing.” In a marketing mix, product considerations involve every aspect of what you're trying to sell. This includes:
Many factors go into a pricing model. Brands may:
Promotion is the part of the marketing mix that the public notices most. It includes television and print advertising, content marketing, coupons or scheduled discounts, social media strategies, email marketing, display ads, digital strategies, marketing communication, search engine marketing, public relations and more.
Where will you sell your product? The same market research that informed your product and price decisions will inform your placement as well, which goes beyond physical locations
People refers to anyone who comes in contact with your customer, even indirectly, so make sure you're recruiting the best talent at all levels—not just in customer service and sales force.
A company's packaging catches the attention of new buyers in a crowded marketplace and reinforces value to returning customers.
Prioritize processes that overlap with the customer experience. The more specific and seamless your processes are, the more smoothly your staff can carry them out. If your staff isn't focused on navigating procedures, they have more attention available for customers—translating directly to personal and exceptional customer experiences.
Customer or Consumer is the king in the competitive world. In the competitive environment, the product will not create its own demand if it isn’t wanted by the consumer.
First, you must need to study the consumer needs and demands and then develop the product as it satisfies the needs, wants and demands of desired customer or consumer demand.
Price is only a subset of the total cost incurred to satisfy the want or need of customer or consumer. Cost is the most important element of marketing mix which affects the decision of the customers.
The marketers must need to give special attention to the cost of a product or services.
Convenience is the most important tools for more sales. The convenience of purchase products helps most of customers or consumers to choose that product.
A marketer should consider the communication instead of promotion.Promotion is manipulative, it starts from the seller while Communication requires a give and take between the buyer and seller.
From the view point of management function, number of activities are involved, which have been described as below:
One of the important functions of a marketer is to gather and analyse market information. This is necessary to identify the needs of the customers and take various decisions for the successful marketing of the products and services.
Another important activity or area of work of a marketer is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
Another important marketing activity or decision area relates to product designing and development. The design of the product contributes to making the product attractive to the target customers.
Standardisation refers to producing goods of predetermined specifications, which helps in achieving uniformity and consistency in the output.
Standardisation ensures the buyers that goods conform to the predetermined standards of quality, price and packaging and reduces the need for inspection, testing and evaluation of the products.
Grading is the process of classification of products into different groups, on the basis of some of its important characteristics such as quality, size, etc.
Grading is particularly necessary for products which are not produced according to predetermined specifications, such as in the case of agricultural products, say wheat, oranges, etc.
Packaging refers to designing and developing the package for the products. Labelling refers to designing and developing the label to be put on the package. The label may vary from a simple tag to complex graphics. Packaging and labelling have become so important in modern day marketing that these are considered as the pillars of marketing. Packaging is important not only for protection of the products but also serves as a promotional tool.
A very important decision area for marketing of most consumer products is whether to sell the product in its generic name (name of the category of the product, say Fan, Pen, etc.) or to sell them in a brand name (such as Pollar Fan or Rottomac Pen).
A very important function of the marketing management relates to developing customer support services such as after sales services, handling customer complaints and adjustments, procuring credit services, maintenance services, technical services and consumer information.
Price of product refers to the amount of money customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. The demand for a product or service is related to its price.
Promotion of products and services involves informing the customers about the firm’s product, its features, etc. and persuading them to purchase these products. The four important methods of promotion include advertising, Personal Selling, Publicity and Sales Promotion. A marketer has to take several crucial, decisions in respect of promotion of the products and services such as deciding the promotion budget, the promotion mix, i.e., the combination of the promotional tools that will be use, the promotion budget, etc.
Managing physical distribution is another very important function in the marketing of goods and services. The two major decision areas under this function include
(a) decision regarding channels of distribution or the marketing intermediaries (like whole salers, retailers) to be used and
(b) physical movement of the product from where it is produced to a place where it is required by the customers for their consumption or use.
Transportation involves physical movement of goods from one place to the other. As generally the users of products, particularly consumer products are wide spread and geographically separated from the place these are produced, it is necessary to move them to the place where it is needed for consumption or use, For example, tea produced in Assam has to be transported not only within the state but to other far off places like Tamil Nadu, Punjab, Jammu and Kashmir and Haryana, Rajasthan, where it is consumed.
In the process of marketing, the function of storage is performed by different agencies such as manufacturers, wholesalers and retailers. It may be because of irregular demand for the products such as in the case of woollen garments or Raincoats or there may be irregular supply because of seasonal production such as in the case of agricultural products (sugarcane, rice, wheat, cotton, etc.).
According to Philip Kotler, a company's marketing environment consists of the actors and forces outside marketing that affect marketing management's ability to develop and maintain successful transactions with its target consumers.
For example, the relevant environment to a car tyre manufacturer may be the car manufacturers and buyers, the tyre manufacturing technology, the tax structure, imports and export regulations, the distributors, dealers, competitors, etc.
In addition to these, the company may have to consider its own capabilities in terms of its production technology, finance, sales force, etc. The environment becomes important due to the Marketing Environment fact that it is changing and there is uncertainty. Some of these environmental factors are uncontrollable. There is both a threat and opportunity in these changes.
Micro environment refers to the company's immediate environment, that is, those environmental factors that are in its proximity. They include the company's own capabilities to produce and serve the consumer needs, the dealers and distributors, the competitors, and the customers. These are also the groups of people who affect the company's prospects directly.
The macro environment consists of larger societal forces, which may be placed in an outer circle. These includes demographic, economic, natural, technological, political and cultural forces. The influence of these factors are indirect and often take time to reach the company.
By: NIHARIKA WALIA ProfileResourcesReport error
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