What is Marketing? Marketing is the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large. It is more than just selling and advertising. A good understanding of the customer is inherent to successful marketing.
Marketing is… Understanding the customer, designing a strategy that focuses on the customer and managing customer relationships are all key aspects to marketing management.
Customers and the Market Marketing involves meeting needs, wants and demands.- A need is when an individual feels as through they are going without something important.- A want is shaped by culture, personality, understandings and personality. Consumers need to see the perceived benefits they will receive using the product, the features alone do not sway purchases. Marketers therefore need to research and identify a target market and the overall needs and wants presented from a group with some similarities. Marketers ensure their product and services offers perceived benefits that are suited to a particular market.
When a marketer understands their customers in their target market , they are better able to meet the needs and wants. Also customers are satisfied and the business can enjoy continued sales and loyalty from it’s consumers.
Marketing Process… Once a target market has been identified through a process of researching and analysing data, the marketer can then turn attention to the relationship with the customer = Exchange relationship. A positive relationship between the seller and buyer increases potential for a business to retain customers. Transaction Marketing = applied to marketing approach centred on one particular sale. Relationship Marketing = is more customer-centred leads to more satisfied customers and repeat business.
A customer driven strategy is the focal point of the marketing concept. Businesses who take consideration of marketing concept ensure customers are understood and all activities are carried out with this in mind.
A value proposition answers thequestion of “Why should I buy yourproduct service?”= Benefits of the purchase= Perceptions and feelings associated with the brand= Positioning of the product or service** Businesses that use the marketing concept and valueproposition are focussing their activities strongly on meetingthe needs and wants of consumers.= Strategy of marketing suggests maintaining a relationshipwith existing customers is easier than finding new customers;loyalty, retention and overall increased market share.
Marketing ManagementPhilosophies Marketing philosophies and perspectives have developed over the years, generally being either production or sales orientated. Production Orientation was prevalent before 1960s in Aus = focused on producing basic goods and services on a large scale in the most efficient manner. A Sales Orientation developed after 1960s it was characterised by the aggressive sales techniques utilised by organisations to push products on consumers – disregards customer needs and wants.
The Four P’s (Extended MarketingMix) Includes, product, price, promotion and Place.1. Product =- tangible & Non tangible features- they have a life cycle and increase and decrease in popularity depending on societal, political and economic factors.- Product positioning – will it be positioned as expensive, luxury, exclusive or conversely a budget option? Positioning correctly ensures no competition from a superior product
Pricing =- Takes into consideration the consumers, organisations and economy- Economic conditions will also impact pricing decisions- Product Position affects pricing- Strategic pricing will consider the financial and marketing objectives of the business as well as external factors.
Promotional =- Is communication channel for business; advertising, selling, sales promotion and publicity.- May include special offers, displays, samples and any other tool that will help sell the product
Place =- Distribution of the product- Physical movement and logistics involved in moving product from manufacturer along the distribution channel via the market to consumer.
New Marketing Landscape Marketing management has been influenced by globalisation, increased technology and strong demand for businesses to be ethically and socially responsible. Essential for consideration in marketing