Marketing Notes Marketing definition- According to American Marketing Association (1948) - Marketing is the performance of business activities directed toward, and incident to, the flow of goods and services from producer to consumer or user. AMA (1960) - Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user. According to Kotler (2000) - A societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. Meaning of Marketing Process The Marketing Process of a company typically involves identifying the viable and potential marketing opportunities in the environment, developing strategies to effective utilise the opportunities, evolving suitable marketing strategies, and supervising the implementation of these marketing efforts. Marketing process involves ways that value can be created for the customers to satisfy their needs Definition of Marketing Mix According to Philip Kotler - Marketing Mix is the combination of four elements, called the 4Ps (product, Price, Promotion, and Place), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy In case of services, the producer-oriented model of marketing mix is consists of 7Ps. Including the above 4Ps there are additional 3Ps - Physical Evidence, People, and Process. Physical evidence refers to elements like uniform of employees, signboards, and etc. People refers to the employees of the organisation comes in contact with the customers in the process of marketing. Process refers to the systems and processes followed within organisation. 4Cs - Consumer-oriented model of marketing Mix Consumer - In this model the Product is replaced by Consumer. Marketers focuses more on consumer satisfaction. The product is designed and produced keeping in consideration the requirements of consumer. Cost - Price is replaced by Cost. Here the cost refers to the total cost of owning a product. It includes cost to use the product, cost to change the product, and cost of not choosing the competitors product. Communication - Promotion is replaced by Communication. Communication includes advertising, public relation, personal selling, and any method that can be used for proper,timely, and accurate communication between marketer and consumer. Convenience - Place is replaced by Convenience. it focuses on ease of buying, convenience in reaching to the store/product, and convenience in getting product information. Meaning of Product Development Product means a good, service, idea or object created as a result of a process and offered to serve a need or satisfy a want. Development means the act or process of growing, progressing, or developing. Product Life Cycle Concept The time period of product life cycle and the length of each stage varies from product to product. Life cycle of one product can be over in few months, and of another product may last for many years. Stages of the Product Life Cycle The four major stages of the product life cycle are as follows :- 1. Introduction, 2. Growth, 3. Maturity, and 4. Decline. Introduction Stage At this stage the product is new to the market and few potential customers are aware with the existence of product. At the introductory stage :- The product is unknown, The price is generally high, The placement is selective, and The promotion is informative and personalised. Growth Stage At this stage the product is becoming more widely known and acceptable in the market. At the growth stage :- The product is more widely known and consumed, The sales volume increases, The price begin to decline with the entry of new players, The placement becomes more widely spread, and The promotion is focused on brand development and product image formation. Maturity Stage At this stage the product is competing with alternatives. At maturity stage :- The product is competing with alternatives, The sales are at their peak, The prices reaches to its lowest point, The placement is intense, and The promotion is focused on repeat purchasing. Decline Stage At decline stage :- The product faces reduced competition, The sales volume reduces, The price is likely to fall, The placement is selective, and The promotion is focused on reminding. Definition of Branding According to American Marketing Association - Brand is “A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name.” According to Philip Kotler - “Brand is a name, term, sign, symbol, design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors” Branding is a process of creating a unique name and image for a product in the mind of consumer, mainly through advertising campaigns. A brand is a name, term, symbol, design or combination of these elements, used to identify a product, a family of products, or all products of an organisation. Branding is an important component of product planning process and an important and powerful tool for marketing and selling products. Elements of Branding Brand includes various elements like - brand names, trade names, brand marks, trade marks, and trade characters. The combination of these elements form a firms corporate symbol or name. Brand Name - It is also called Product Brand. It can be a word, a group of words, letters, or numbers to represent a product or service. For example - Pepsi, iPhone 5, and etc. Trade Name - It is also called Corporate Brand. It identifies and promotes a company or a division of a particular corporation. For example - Dell, Nike, Google, and etc. Brand Mark - It is a unique symbol, colouring, lettering, or other design element. It is visually recognisable, not necessary to be pronounced. For example - Apples apple, or Coca-colas cursive typeface. Trade Mark - It is a word, name, symbol, or combination of these elements. Trade mark is legally protected by government. No other organisation can use these symbols. Consumer and its types Consumer is a person who buys and use products. General classification of consumers Personal Consumers Organisational Consumers Impulse Consumers Need-based Consumers Discount Driven Consumers Habitual Consumers Personal Consumers This type of consumer is an individual consumer who buy products or services for own use, or for family, or for household use. Organisational Consumers This type of consumer can be a business, government, profit or non-profit organisation, or agency who purchases goods or services for organisation to function or for resale purpose. Impulse Consumers This type of consumer do unplanned purchases. Purchasing a particular product was not a priority, but when the consumer encounter that product, he makes swift buying decision. Impulse consumer purchase what seems good at the time. Need Based Consumer This type of consumer has a specific intention to purchase a particular type of product. Need-based Consumer is driven by a specific need. He makes buying decision when he actually need that product and not any other time. Discount Driven Consumers This type of consumers do purchases when they get some lucrative offer or discount. Habitual Consumers Person who is habitual to the usage or consumption of a kind of product is called habitual consumer. For example - person who smoke. Types of buyers for new products Innovators Early Adopters Early majority Late Majority Laggards Innovators This group of buyers read journals and magazines extensively to keep themselves updated with innovative ideas, latest technologies, and new products. They like to experiment with anything new representing the latest technologies. They represent about 2 percent of any market. Early Adopters They are individuals or businesses who uses new product or technology after innovators and before others. This group of buyers represents true opinion leaders who set examples by their decisions. They are likely to pay more for new product that improve their life-style, raise their social status, or improve their business efficiency or reduce cost. They represent about 14 percent of any market. Early Majority This group of people adopt a new product after seeing it used successfully by innovators and adopters. They represent 34 percent of any market. Late Majority This group of people adopt a new product only after seeing that the majority of the population already has. They wait until prices fall and product is universally accepted. They also represent 34 percent of any market. Laggards The people of this group are excessive traditionalists. They adopt product when the price is at its bottom, competition is intense, or product become an absolute need. They are very conservative, oldest, and least educated. They represent 16 percent of any market. Marketing- Marketing is used to create the customer, to keep the customer and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. Goods- Physical goods that may be manufactured, produced in farms or mined. Services-These are intangible products that involve performing some service for the customers. This may be service performed on the customer, like a haircut, on customer’s possessions, like servicing of car, or for the customer, like screening of a movie. Services account the maximum marketing effort after products in most of the countries SWOT Analysis-SWOT analysis (alternatively SWOT Matrix) also sometimes known as TOWS, is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. Strengths: characteristicsof the business or project that give it an advantage over others Weaknesses: are characteristicsthat place the team at a disadvantage relative to others Opportunities: elements that the project could exploit to its advantage Threats: elements in the environment that could cause trouble for the business or project Marketing Research- Marketing research is “the process or set of processes that links the consumers, customers, and end users to the marketer through information — information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications.” CRM-Customer relationship management solutions provide you with the customer business data to help you provide services or products that your customers want, provide better customer service, cross-sell and up sell more effectively, close deals, retain current customers and understand who the customer is. Consumer Behaviour-Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. Market Segmentation- Market segmentation is done to target specific customers according to the products. Types Mass Marketing: In mass marketing the seller or the marketer of the product targets the mass market or the entire consumer base. Here the seller engages in mass production and uses the mass distribution system to reach all the customers in the market. The promotional and advertisements are very much generic in nature attract the entire consumer base Segment Marketing: In Segment marketing, the seller or marketer divides the market into different segments depending on the consumers’ buying behavior, requirements, purchasing power, location and age level. Segment marketing helps the marketer to connect to each type of customers in the best possible way. Niche Marketing: In Niche marketing, the seller caters to a very specific market segment which requires more attention and very high quality of services. Here the market segment size is very small which enables the seller to provide the niche area of services. Local Marketing: In Local marketing, the seller or the marketer only concentrates in the local market Individual Marketing: It is almost same as Direct Marketing where the marketers target the individual customers separately either through direct communication channels or salesmen Brand- Brand is the “name, term, design, symbol, or any other feature that identifies one seller’s product distinct from those of other sellers”. Brand awareness- refers to customers’ ability to recall and recognize the brand under different conditions and link to the brand name, logo, jingles and so on to certain associations in memory. The brand name -is quite often used interchangeablywith “brand”, although it is more correctly used to specifically denote written or spoken linguistic elements of any product. In this context a “brand name” constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services. Brand Positioning- is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Re-positioning-involves changing the identity of a product, relative to the identity of competing products. De-positioning-involves attempting to change the identity of competing products, relative to the identity of your own product. Packaging: Packaging is the science, art, and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells. Labeling: It is Display of information about a product on its container, packaging, or the product itself. 7P’s of Service Marketing The first four elements in the services marketing mix are the same as those in the traditional marketing mix. . Product: In case of services, the ‘product’ is intangible, heterogeneous and perishable. Pricing: Pricing of services is tougher than pricing of goods. Place: Since service delivery is concurrent with its production and cannot be stored or transported, the location of the service product assumes importance. Promotion: Since a service offering can be easily replicated promotion becomes crucial in differentiatinga service offering in the mind of the consumer. People: People are a defining factor in a service delivery process, since a service is inseparable from the person providing it. Process: The process of service delivery is crucial since it ensures that the same standard of service is repeatedly delivered to the customers. Physical Evidence: Since services are intangible in nature most service providers strive to incorporate certain tangible elements into their offering to enhance customer experience. Advertising- Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service Business-to-business- Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer Mergers and Acquisitions- The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity. A merger is a tool used by companies for the purpose of expanding their operations often aiming at an increase of their long term profitability. An acquisition, also known as a takeover, is the buying of one company (the ‘target’) by another.
Posted on: Sun, 21 Dec 2014 13:07:00 +0000
Trending Topics
Recently Viewed Topics
© 2015