Marketing

[Jessey]

discuss the implications for a business organization of adopting the marketing concept . in terms of key objectives , main activities and system of values,how marketing departments is different from other department

[Beltran]

TASKEEN,

HERE IS SOME  USEFUL MATERIAL.

REGARDS

LEO LINGHAM

=============================================

Discuss the implications for a business organization of adopting the marketing concept.In terms of key objectives,main activities and system of values, MARKETING  CONCEPT

It is  a  fundamental  idea  of  marketing  that  organizations  survive

and  prosper  through meeting  needs  and wants  of  customers.

This  important  perspective  is  commonly   known  as  the  marketing

concept.

The  marketing  concept  is  about  matching  a  company's  

capabilities  with customer  wants.

What  are  customer  wants?

A  want  is  a  desire  for  a  speciifc  product/service  to  satisfy

the  underlying  need.

Customer wants  are  usually  quite  narrow.  

MARKETING  CONCEPT

The marketing  concept  is the  philosophy  that  the  firm  should  analyze

the needs of  their  customers[ current /potential ]   and  then make the  decisions to  satisfy  those needs , better  than the  competition.

DEFINITION  OF  MARKETING.

What  is  Marketing ?

It  is  a  process  by  which  

-one  identifies  the  needs and wants  of  the  people.

-one determines  and  creates a  product/service to meet  the  needs and  wants. [PRODUCT]

-one determines  a way  of  taking the  product/service to the market place. [PLACE]

-one determines the  way of  communicating the product  to the market  place. [PROMOTIONS]

-one determines the value for the product.[PRICE].

-one determines  the  people, who have  needs/ wants. [PEOPLE]

and then  creating a  transaction for exchanging the product for  

a  value.

and  thus  creating a  satisfaction to the buyer's needs/wants.

TERMS  to  understand.

1.Product/Service  means  a  product or service or idea to satisfy   the  people's  needs /  wants.

2.Needs  mean  when  a  person feels deprived of something.

3.Wants  mean  when a  person's  need  is  formed / shaped   by  personality, culture, and  knowledge.

4.Value  means  the  benefits  that the  customer  gains from    owning  and  using the  product  and  the  cost  of  the product.

5.Satisfaction  means  the extent  to  which  a  product's   perceived  performance  matches  a  buyer's expectation.

6.Exchange means the  act of obtaining a needed/ wanted   object  by  offering  something  in  return.

7.Transactions  mean a  trade  off  between  a  buyer / a seller   that  involves  an  exchange  at  agreed  conditions.

Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably. It encompasses market research, pricing, promotion, distribution, customer care, your brand image and much more. ===========================================================================

NEW  PRODUCT  INTRODUCTION

SEARCHING FOR OPPORTUNITY

Information that can help to shape the development of the NEW  product plan.

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THE  BASIC APPROACH  TO  MARKETING

IN  AN  ORGANIZATION  IS FINDING

A PRODUCT  TO MARKET.

NEW  PRODUCT

SEARCHING FOR OPPORTUNITY

Information that can help to shape the development of the product plan.

--------------------------------------------------------------

STEP  ONE INDUSTRY MARKET  RESEARCH  &  ANALYSIS    

WHAT  IS   THE  MARKET  SIZE/ POTENTIAL  FOR  THIS PRODUCT

GROUP ?

SALES VOLUME AND TRENDS

By dollar volume and unit sales.

By specific product.

By geographic design.

By customer use pattern. By manufacturer and marketer. By buying power. By distribution channel.

By price.

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STEP   TWO

TECHNOLOGY   RESEARCH

WHAT  TECHNOLOGY  WOULD BE  REQUIRED  TO  MAKE  THIS

PRODUCT?

BASIC  TECHNOLOGY

By parts, raw materials, labor.

By process. By patent barriers. By purchasing.

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STEP   THREE

COMPETITION     RESEARCH

WHAT  WOULD BE   THE  NATURE  OF   COMPETITION FOR    THIS

PRODUCT?

COMPETITION

By product specifications.

By product volumes. By market share. By end?user. By trade channel.

------------------------------------------------------------------

STEP   FOUR

CONSUMER    RESEARCH

WHO  ARE  THE  REAL  POTENTIAL  USERS   FOR    THIS

PRODUCT?

CONSUMER  DEFINITION

-By CONSUMER  use. -By geographic characteristics. -By industry. -By pricing effects. -By alternative and substitute products. -By seasonal purchase.

----------------------------------------------

STEP   FIVE

OTHER  AREAS  OF    RESEARCH

WHAT  OTHER    AREAS    WOULD BE  REQUIRED  TO  RESEARCHED?

OTHER FACTORS

-Import regulations. -Government regulations. -Economic situations.

============================================================

NOW  IT  IS  THE  TURN  TO

OPPORTUNITY  IDENTIFICATION  RESEARCH

PHASE 1

The process includes:

*Define targets.

*Forecast rough volume and share.

*Perform a risk ratio analysis.

*Conduct a preliminary feasibility study using secondary data and professional expert opinion ? no prototypes or no trial runs.

*Assess competitive reactions, exclusivity, regulations, protections and constraints.

*Look at exceptional technical hurdles.

*Consider legal and policy issues.

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CONCEPTION RESEARCH – PHASE  2 This phase translates market facts into product concepts and customer positioning communication, prior to extensive research and development. The objective is to create and to refine a variety of appropriate product concepts in the form of customer communications, which may then be screened down to a workable number of the most appealing ones that may be carried forward into the prototype modelling phase.

1 . INPUT RESEARCH

This is a backgrounding step, often required where "hands?on" experience, technical education, patent and literature review, as well as special consultant professionals, are needed for complete understanding of the opportunity area.

2. IDEATION

Ideation is the generation of large quantities of unconstrained possibilities, utilising a variety of stimulus techniques ?brainstorming, group discussion, etc.

3. IDEA FORMS

This is the shaping of concepts into single?minded, clear communications. The goal is a clear communication that neither goes beyond nor falls short of a real world summary statement of each concept.

4.PRE?SCREENING CONCEPTS

Broad?brush selection methods are applied to eliminate or improve concepts that are difficult to target.

5.SCREENING RESEARCH

This process rates many concepts rapidly ? individually and in relationship to each other.

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PROTOTYPE     MODELLING ---PHASE 3

At this phase, preliminary concepts have survived several selection steps. Now it is necessary to bring the narrowed number of proposed new products closer to reality in the form of prototype products and prototype communications. The target customer prospect should see the concept "in the round" as closely as is timely and economically feasible. Prototype modelling accomplishes the development of such stimulus materials.

1 . DESCRIPTORS

This step involves the product category and preliminary brand name development.

2. PROTOTYPES

This covers all aspects of the product and its communications. Included are:

Product.

Package. Brand name and description. Communications theme development. Prototype of communications. Prototype testing.

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DEVELOPMENT   - PHASE   4

This phase of product development encompasses a number of different activities.

1 . VITRO TRIALS

In?house double check of the prototype in the research and development.

2. PILOT PRODUCTION

This involves a small?scale replication of mass production. It helps to debug the system and devise productions controls, systems and equipment design. it is basic to determining on?stream cost estimates.

3. SCALING UP(COMMERCIALISATI ON)

Manufacturing resources. Marketing factors. Distribution. Service. Financial. Legal.

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MARKETING   -  PHASE  5

The marketing plan should include the following elements:

Prototype introduction. Test simulation. Sales and distribution. Creative strategy. Media programme. Trade promotion. PR plans. Start?up plan. Test marketing. Assessment plan. Expansion plan. Finance and production requirements.

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TEST MARKETING ?PHASE 6

Evaluation of:

Awareness, attitude, usage. Distribution. Sales.

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MAJOR INTRODUCTION ----PHASE 7

Finally comes the moment of truth ? the major introduction.

Expanding the sales territory.

Close monitoring of performance vs. plan.

Evaluating opportunities.

=========================================================

===================================================

WHAT  A  MODERN  MARKETING ORIENTED ORGANIZATION  DOES

FOR  ACHIEVING   SUCCESS  IN  ITS  FIELD.

- market research, [conducts  marketing  research  continuosly--pre-product/during  product  launch/

during  the maturity/ consumer research/retail research/test  marketing  etc etc

==================================================

-product planning / development ,

[they  plan/  develop  products  in  a  scientific  manner, tailoring

it  to  the  exact  taste  of  the  consumers]

=====================================

-product  pricing, [conduct  price  research and  position  the  price  point

where the  consumer can afford / the  company makes  good profit.]

==========================================

-product  marketing

[the  company  conducts  one  of  the  most  effective  product  marketing

programs in the  world.]

==============================================

-SALES [the  company  has   a  wide  network  of   sales  representatives

in  almost  over   180 countries]

======================================

-promotion, [the  company  applies  varieties of  promotions including

sales promotion/trade  promotion/consumer  promotion/ advertiisng/ public relations ]

=============================================

-distribution, [when  it comes  to  distribution, they  have  an  unmatched  distribution network.

they  go  for  extensive and  intensive  coverage  of  the  market---that covers

supermarkets/corner stores/gas  stations/ schools/colleges/convenience stores/sports complex etc

================================================

-customer care, [the  company has   a  well crafted  customer  care  program for  

the  consumers.]

============================================

-BRANDING [when  it  comes to  branding,  they  are  second to  none  in the  world

''COKE'' say  no  more]

=====================================

-merchandising

[the company  has  an extensive  program  on  merchandising  like

external displays / internal  displays ]

==========================================

-retailing

[ the  company  has  a   strong presence  in  the  retail field

supported  by  active  merchandisers]

==================================== -strategic  marketing management  

[the  company  has  a  strong  team  to  manage  the strategic   aspects  of  market--it  is highly  research based]

============================================== -market  forecast.

[the  company  uses  the  finest  software  to  develop

the  demand  planning  and  market  forecast and  sales  forecast]

==============================================  -consumer  behavior

[the  company  continuously  monitors  the  consumer  behavior

with  respect  their  products]

=====================================  -organizational  buyer  behavior.

[the  company  continuously  monitors  the  organization  buying   behavior

with  respect  their  products  ---like  schools/ colleges/ business  houses]

==========================================

-Strategic market Planning [the  company  has  a  strong  team  to  manage  the strategic   aspects  of  market--it  is highly  research based]

=============================================

-Market  Development.

[ the  company  develops   the  market   through

*geographical  coverage  increase.

*current  customers usage  increase

*new customers  increase

etc

============================================ -marketing  environments

[the  company  is  sensitive  to  the  environment

and  has   a  number  of  societal  marketing  programs.

================================================ -market  segmentation/ targeting [THE  company  uses  the  segmentation   techniques

heavily  targeting   the  ''15 --45''   age  group]

==================================== -field  sales  planning /  development

[the company   carries out  regular  field  sales

planning  and  development program to  sharpen/ tune

the  field  sales  team.

===================================

ADDITIONALLY,  

THE  COMPANY  TAILOR  ITS  MARKETING  PRACTICES

Successful businesses focus on getting the basics of marketing right.

Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably. It encompasses market research, pricing, promotion, distribution, customer care, your brand image and much more. Some of the things that the company does  in   marketing  practices is to: *Have a marketing team or individuals who have qualifications in marketing *Review  brand, its image and what it stands for *Consider the consistent use of a strap line in the  advertisements *Launch a website and think about e-marketing and interactive website pages to add value *Adopt the correct pricing strategy for the  market sector, competitors, customers & profit *Create a database of all the  retailers so that you can market to them again *Know your consumers - find out where they are spending their time and money *Employ specialists for website creation or use external experts in the field *Use external professionals for press releases *Support anyone wanting to train in marketing *Have a consistent brand message on all literature, websites, business cards & letter heads *Create a mission statement *Always plan properly, there are packages such as Microsoft Project which can help *Use market research to understand  competitors, spot opportunities and lessen risks *Use the database to market either by postal campaigns, e-mail or even mobile marketing

*Advertise in the correct places, and analyse and learn from each campaign *Enlist professional designers for  literature, business cards and logos *Stick to what you do best and let the experts help with their specialist knowledge.

================================================================

For the purposes of the MARKETING , culture is defined as the shared patterns of behaviors and interactions, cognitive constructs, and affective understanding that are learned through a process of socialization. These shared patterns identify the members of a culture group while also distinguishing those of another group. WHEN  WE  APPLY   THE  MARKETING  CONCEPT  TO   ORGANIZATION /BUSINESS,

STUDY  OF  CULTURE    BECOMES   NECESSARY /  ESSENTIAL  BECAUSE  IT GIVES   THE  MARKETER   A   BETTER  UNDERSTANDING   OF  

PEOPLE'S  

-VALUES

-NORMS

-HABITS

-NEEDS   

-WANTS

-SOCIAL  BEHAVIORS

-LIFE STYLE BEHAVIORS

ETC  ETC

WHICH   INFLUENCES   THE  BUYING  DECISIONS

WHICH  IN  TURNS HELPS  THE  MARKETER   A  BETTER  UNDERSTANDING  OF

WHAT  THE  BUYERS   WANT

WHEN THEY WANT

HOW  DO  THEY  WANT

WHERE  DO  THEY  WANT

WHICH  PLACE  DO THEY WANT

HOW  MUCH  DO  THEY  WANT

ETC ETC

AND  HENCE  HELPS   TO  CREATE  CONSUMER  SATISFACTION.

THIS IS  HOW  STUDY  OF  CULTURE  HELPS  MARKETING.

CULTURE   IS   THE   FULL  RANGE   OF  LEARNING  HUMAN

BEHAVIOR  PATTERNS.

===================================================================

=========================================================

MARKETING  CONCEPT, THRU MARKETING  INFORMATION  SYSTEM

MARKETING CONCEPT  IS   DRIVEN  BY  MARKETING INFORMATION

AT  ALL  STAGES.

-PROVIDE   INFORMATION   FOR  DECISION  MAKERS  TO  MAKE  SOLUTIONS

FOR   THE  MOST  CHALLENGING  BUSINESS SITUATIONS.

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-PROVIDE    INFORMATION  FOR  MAKING  STRATEGIC  DECISIONS

IN A  COMPETITIVE  BUSINESS SITUATION.

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-PROVIDE  INFORMATION  FOR   STRATEGIC  BUSINESS PLANNING

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-PROVIDE  INFORMATION  FOR  MARKETING  PLANNING

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-PROVIDE  INFORMATION  FOR  BUSINESS PROCESS  ENGINEERING

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-PROVIDE  INFORMATION  FOR  BUSINESS PRICING  MANAGEMENT

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-PROVIDE  INFORMATION  FOR   ALLOCATING  OF   RESOURCES FOR  BUSINESS

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-PROVIDE  INFORMATION  FOR  MANAGEMENT  INFORMATION SYSTEMS

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-PROVIDE  INFORMATION  TO  SEE  Changes in market conditions, technical advances, and economic issues will all affect THE  INDUSTRY /  BUSINESS  in the future. --------------------------------------------------------------------------------------------

-PROVIDE  INFORMATION  WHICH   helps organizations realize the most value from their  assets. ----------------------------------------------------------------

-PROVIDE  THE  RIGHT INFORMATION for  a clear and disciplined approach to BUSINESS financial planning is vital to ensure success.

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-PROVIDE  INFORMATION   FOR the execution of effective business planning and sound management usually defines these differences in profitability.

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-PROVIDE   INFORMATION  TO   analyze and prioritize the  BUSINESS  drivers to help to  achieve a superior competitive position. Vital to this process is an understanding of the economic advantages of scale and scope. -------------------------------------------------------------------------------------------------------

-PROVIDES   INFORMATION  FOR  Operational excellence results in the attainment of world-class quality and productivity in the delivery of services to customers

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When  running a  BUSINESS, the right MARKETING  information systems can have a critical impact operating costs, operating effectiveness, and customer satisfaction.

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=========================================================================

AN  EFFECTIVE  MARKETING CONCEPT  provides

the  business

-consumer  research  data

-market  research  data

-market  surveys

-market  analysis

-competitors  analysis

-product  analysis

-product  test  analysis

-product  plans

-test  market  results

-market strategy   analysis

-sales  analysis

-distribution  analysis

-media  analysis

-promotion analysis

-customer satisfaction   survey

-retail audit  data

-marketing  auditing  data

-market  forecast

-sales  forecast

-sales  planning  data

-distribution  planning

-customer  analysis

-market  segment  analysis

-consumer [  socio/economic /demographic/psychographic]  data

ETC  ETC.

==================================================

WHY  DO  THE  BUSINESS   NEED  THIS  marketing  information system ?

THEY  NEED  THE   DATA  FOR -new  product  development

-new  product  planning

-new  product  testing

-new  product  test  marketing

-new   product  market  forecast

-new  product   sales forecast

-annual  market  forecast

-annual  sales  forecast

-annual  market  planning

-annual  sales  planning

-annual  distribution  planning

-annual  target  marketing

-market  segmentation

-annual  sales  development  programs

-annual  market  development  programs

-annual  sales  planning

-annual  distribution  planning

-annual  merchandising  planning

ETC  ETC

===========================================

ALL  THESE  MEAN  MARKETING  CONCEPT

CAN  HELP  THE  BUSINESS

-make  market  oriented   business  decisiion

-which means more  customer  satisfaction

-which  means  more  sales

-which  means  more  profit.

==================================== how marketing department is different from other departments.please explain with examples.

-the marketing department creates products  for  the market/consumers.

-the  marketing/sales  department is  the  revenue  earner.

-the  marketing/  sales  department is  also  the  profit maker.

-the marketing/sales  is   affected  by  the  following  factors, unlike  other  departments

Political -Environmental regulations and protection [what  are  the  government regualtions/ protection laws  that  must be  observed ]

-Tax policies

what tax  hinder the business and what  taxes  incentives  are available]

-International trade regulations and restrictions

[ does  the  government    encourage  exports / with  high tariffs  on  imports]

-Contract enforcement law/Consumer protection

[does  the  government  enforce  on  consumer  protection ]

-Employment laws]

[ is the  government    encouraging  skilled  immigrants  with  temp. permits]

-Government organization / attitude

[ does  the  government  have  a   very  positive  attitude  towards  this   industry]

-Competition regulation

[ are  there   regulation  for  limiting  competition]

-Political Stability

[ politically ,  does the   government    have   a  very   stable  government ]

-Safety regulations

[ has  the  government      adopted  some  of  the  modern  safety regulations]

================================================================= Economic     

-Economic growth

[  what  is  the economic growth rate  /  what  are  the  reasons ]

-Interest rates & monetary policies

[ are  the  interest  rates    under control /  is there   a  sound  monetary  policies]

-Government spending

[is  government  spending  is  significant   and  is it   under control ]

-Unemployment policy

[what  is  the  employment / unemployment  policies  of the government ]

-Taxation

[  has  the  taxation    encouraged  the  industry ]

-Exchange rates

[ is   there  well  managed   exchange  controls  and  is it  helping  the  industry]

-Inflation rates

[ is  the  inflation  well   under  control ]

-Stage of the business cycle

[ is  your    industry  is  on  the   growth  pattern]

-Consumer confidence

[ is  the  consumer  confidence   is   high/ strong and  if  not, why ]

================================================== Social  

-Income distribution

[is there   balanced   income  distribution   policy ]

-Demographics, Population growth rates, Age distribution

[ what  is   population   growth  and  why ]

-Labor / social mobility

[ what   are the  labor  policies  and  is  there  labor  mobility]

-Lifestyle changes

[ are  there  significant  lifestyle   changes     taking  place--more  modernization/ why  ]

-Work/career and leisure attitudes

[ are  the  population      career  minded  and  are  seeking  better  lifestyle]

-Education

[ what  are  the  education  policies /  is  it  successful ]

-Fashion, hypes

[are  the   people    becoming  fashion  conscious ]

-Health consciousness & welfare, feelings on safety

[ are  the  people     becoming  health  consciousness]

-Living conditions

[ is the  living  conditions   improving  fast  and  spreading  rapidly]

=========================================================

Technological Industry focus on technological effort

[are  the   industries    focused  on  using  improved  technology]

New inventions and development

[ are  new  inventions     being   encouraged  for  developments]

Rate of technology transfer

[ is  the  rate  of  technology  transfer  is  speeding  up ]

====================================================

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