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WHAT IS MARKETING? BASIC MARKETING CONCEPTS BASIC MARKETING MANAGEMENT GUIDELINES CONNECTION BETWEEN MARKETING AND SALES MANAGEMENT STEPS IN THE MARKETING MANAGEMENT PROCESS BUYING BEHAVIOR MARKETING INFORMATION AND RESEARCH STRATEGIC MARKETING FACTORS
9. EXISTING POSITION IN THE MARKETPLACE 10. MARKETING OBJECTIVES 11. TARGET MARKETING 12. MARKET MEASUREMENT AND FORECASTING 13. MARKETING STRATEGIES 14. MARKETING MIX STRATEGIES 15. PRODUCT STRATEGIES 16. PRICING STRATEGIES 17. PROMOTIONAL STRATEGIES 18. 19. 20. 21. 22. 23. 24. 25. 26.
DISTRIBUTION STRATEGIES DIRECT MARKETING MARKETING PLANNING THE MARKETING BUDGET IMPLEMENTATION AND CONTROL OF MARKETING ACTIVITIES THE AMERICAN MARKETING ASSOCIATION CODE OF ETHICS U.S. LEGISLATION WHICH MAY AFFECT MARKETING PRACTICES FOR SERIOUS BUSINESS OWNERS ONLY THE LATEST INFORMATION ONLINE
1. WHAT IS MARKETING?
Business owners and marketing managers must understand various principles of marketing management which represents one of the most critical functions in many organizations. According to the American Marketing Association: "Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges
DEFINITION OF MARKETING
Marketing Management entails analysis, planning, implementation, and control of activities designed to develop and maintain a beneficial exchange of ideas, products, and services in the marketplace to meet personal and corporate goals. One of the most notable experts on marketing management, Philip Kotler, defines Marketingas: “Marketing is the delivery of customer satisfaction at a profit” and "A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others". (2) In simplified terms, illustrated below, the Marketing Process may be presented as a flow of products and services from product and service providers through market intermediaries to the end-users, in exchange for money.
THE FLOW OF PRODUCTS AND SERVICES IN THE MARKETPLACE Product And Service Providers Market Intermediaries End-Users 2. BASIC MARKETING CONCEPTS
Some of the Basic Marketing Concepts are summarized below. (3)
BASIC MARKETING CONCEPTS • A Market.
A market is represented by individuals and organizations, who are or may become buyers for specific products and services.
• A Marketplace.
A marketplace is a specified geographic location which contains a number of existing and potential buyers of products and services.
These include basic physical needs for water, food, shelter, closing, safety; social needs for recognition, belonging to a group, affection; individual needs for self-expression and achievement; organizational needs expressed by groups of people or businesses.
Wants may be expressed by products or services which may be desirable by individuals or organizations to meet their specific individual or organizational needs.
• The Internet. a group of a individuals or organizations. and warranty. and suppliers. and all organizations with whom the company is developing the relationship marketing. distributors. and demands of broad range of individuals and organizations in the marketplace. terms of payment. Products and services are designed to satisfy the needs. which are available at affordable prices. is to ensure continuous improvement of operational efficiency and reduction of costs. based on mutually agreed terms and conditions. distributors. dealers. • Exchange. maintenance and improvement of profitable and mutually beneficial relationships with customers. A marketing network consists of the company. Customer satisfaction is expressed by the buyer of a product or service based on the degree to which such product or service meets the customer's expectations. its employees. A customer value is the difference between the value the customer receives by owning and using a particular product or service and the actual cost of purchasing such product or service. BASIC MARKETING MANAGEMENT GUIDELINES It is important to adhere to the Basic Marketing Management Guidelines designed to ensure mutual satisfaction and positive results for both IMPORTANCE OF THE BASIC MARKETING MANAGEMENT GUIDELINES . and end-users for mutual benefit. customers. method of delivery. which allows marketers and sellers to offer their products and services directly to potential buyers. • Products And Services. The Internet represents a unique electronic media and the largest marketplace in the world. • The Operational Concept. wants.Demand for products or services may be expressed by an individual. • Relationship Marketing. The operational concept suggests that customers will favor high quality products and services. A transaction is an exchange or trade of a product or a service between a buyer and a seller. 3. including price. • Customer Satisfaction. backed by their respective buying power in the marketplace. re-sellers. Relationship marketing is a process of continuous development. suppliers. • Transaction. Management’s task. therefore. • Customer Value. dealers. Exchange is the act of obtaining a required product or service from someone and offering something of value in return. • Marketing Network.
Marketers should remember. assembly. gender. A free economy relies on active competition and informed buyers who stimulate the market efficiency. The western-type market economy is driven by a dynamic market demand and is regulated by the principle of supply and demand in the marketplace. Marketers. (4) BASIC MARKETING MANAGEMENT GUIDELINES 1. 6. 5. manufacturing. such as costs of raw materials. Marketers. religion. 4. or any other unrelated characteristic. To Offer Product And Service Innovation To Consumers. this process also stimulates a continuous reduction of various related costs. To Avoid Any Discrimination In The Marketing Process. The cornerstone of this principle is thefreedom of choice which may be exercised by marketers and consumers alike. therefore. based on high quality and competitive price. Some of the basic marketing management guidelines for marketing organizations are outlined below. therefore. therefore. evaluated. 3. should be prepared to improve the features and quality of their products and services and at the same time to reduce costs to ensure long-term commercial success. therefore.the marketing organizations and the customers alike. To Provide Cost-Effective Products And Services To Consumers.. or distribution. Marketers should offer their products and services on an equal basis to all consumers. should remember that both parties are free to act in their best interests to achieve their organizational or individual objectives. packaging. At the same time. since a long-term business relationship cannot succeed without a short-term mutual satisfaction. Marketing organizations and consumers have a broad range of specific needs that must be identified. race. The competitive market environment stimulates the producers to develop new products and services which are better and more efficient in their performance. and fulfilled in the free-market economy. that only a discrimination-free market environment will secure a steady and profitable business performance in the long run. To Educate And Inform The Consumers. To Satisfy The Basic Needs Of Marketing Organizations And Consumers. therefore. buying power. should be aware of the importance of satisfying their respective basic needs. offer their products and services to consumers on a cost-effective basis to ensure long-term commercial success in a customer-driven environment. To Provide The Producers And Consumers With A Freedom Of Choice. The marketing organizations should not discriminate against consumers for any reason. irrespective of their status. Marketers should. Marketers. Marketers. The competitive marketing environment also stimulates a continuous educational process of consumers in the marketplace with an objective to secure long-term effective use of products and services and overall customer satisfaction. The marketing system aims at supplying products and services to customers in the marketplace. 2. should be prepared to educate and inform .
therefore. 4. one can assume. Drucker. marketing on the needs of the buyer. but the aim of marketing is to make selling superfluous. should be prepared to spend additional funds to maximize the consumer protection in the marketplace and to minimize the potential harm to consumers. Selling is preoccupied with the seller's need to convert his product into cash. 7. CONNECTION BETWEEN MARKETING AND SALES MANAGEMENT Many business practitioners often confuse Marketing Management with Sales Management.” (7) THE MARKETING MANAGEMENT PROCESS ." (6) 5. There is a trend in the modern marketing environment toward maximizing consumer protection in terms of possible harm which may be caused by various products and services supplied by marketers. build. they do differ in purpose and description. imposed by the government to maximize product safety and to prevent deceptive marketing and sales practices. and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. and control of programs designed to create. The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.the consumers on a continuous basis to secure long-term viability of their products and services. Philp Kotler defines this process as follows: “Marketing management is the analysis. there are various laws and regulations. Although these two functions are strongly interrelated. STEPS IN THE MARKETING MANAGEMENT PROCESS CONNECTION BETWEEN MARKETING AND SALES MANAGEMENT One of the prime responsibilities of every business owner and marketing manager is to initiate the Marketing Management Process in a customerdriven environment and to develop aMarketing Department within the organization. (5) A well-known management expert. There will always. Harvard professor Theodore Levitt defines the difference between these two functions as follows: "Selling focuses on the need of the seller. Marketers. delivering and finally consuming it". Peter F. be a need for some selling. In addition. To Offer Continuous Product And Service Protection To Consumers. suggests that: "Selling and marketing are antithetical rather than synonymous or even complementary. implementation. planning. marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with the creating.
* EVOLUTION OF THE MARKETING AND SALES MANAGEMENT FUNCTION IN A COMPANY No. business owners often decide to employ aMarketing And Sales Manager to manage all marketing and sales management functions within the company. business owners may decide to separate the marketing and sales management functions and employ a Marketing Manager and aSales Manager to manage their respective departments * Note: Service Operations Management is discussed in detail in Tutorial 4. merchandising. Step 4: Evaluate The Company’s Existing Position In The Marketplace. they usually “wear all management hats”. some steps of this process may differ. STEPS IN THE MARKETING MANAGEMENT PROCESS Step 1: Understand The Fundamentals Of Buying Behavior. When entrepreneurs start a small business.The ultimate objective of an effective marketing management process is to develop. When the small business starts to grow.including the “Marketing And Sales Management Hat”. 2. Step 2: Gather Marketing Information And Conduct Market Research. depending whether this is a manufacturing. Obviously. Upon further growth of the company. Project And Contract Management is discussed in detail in Tutorial 4. The planning and control of the marketing management process in various types of organizations entails a number of steps. as outlined below. Step 5: Formulate The Company’s Marketing Objectives. Step 6: Complete Market Targeting For Your Company’s Products and Services. service. maintain and grow profitable and long-lasting relationships with customers. Details 1. 3. Step 3: Examine Strategic Marketing Factors. Step 7: Measure And Forecast The Market Potential. project. or contract management company. .
This market includes three main categories: • The Baby Boomers. • The Echo Boomers.1 Product Strategies 9. and how often people and organizations buy products and services. THE ORGANIZATIONAL MARKET The organizational market consists of all individuals and organizations that purchase products and services for organizational and commercial use. Step 9: Develop Detailed Marketing Mix Strategies.Step 8: Select Suitable Marketing Strategies. 9. when. • The Reseller Market. therefore.3 Promotion Strategies 9. BUYERS' MARKETS THE CONSUMER MARKET The consumer market consists of all individuals and households that purchase products and services for personal use. to have solid knowledge about the following types ofBuyers’ Markets described below. . The Business Market is sub-divided into: • The Producer Market. • The Generation X. Step 13: Implement. • The Business Market. Business owners and marketing and sales managers must knowhow. This market is sub-divided into: • The Government Market. or GenXers.2 Price Strategies 9. Step 12: Summarize The Marketing Budget. why.4 Distribution Strategies Step 10: Develop Direct Marketing Strategies. It is essential. Step 11: Prepare A Marketing Plan. Evaluate And Control Marketing Activities. BUYING BEHAVIOR STEP 1: UNDERSTAND THE FUNDAMENTALS OF BUYING BEHAVIOR The first step in the marketing management process entails the understanding of Buying Behavior in the marketplace. in what quantities. 6.
THE BUYERS' DECISION-MAKING PROCESS Understanding of buying behavior will help in finding answers regarding different types of people and organizations. Buying Behavior is discussed in detail in Tutorial 5. Internet. Some of these sources are outlined below. it is essential to understand the basic steps in the Organizational Decision-Making Process to ensure the company’s successful performance in the organizational market. Business owners and marketing managers must also be familiar with the basic steps in theConsumer Decision-Making Process to ensure a successful performance of their company in the consumer market. 6. including the internal organizational factors. therefore. It is essential. to develop a strong market intelligence team and to utilize appropriate Sources Of Marketing Information. 3. their reasons for making Buying Decisions. No. and the timing of making purchasing decisions. Market research bureau. consumers’ individual factors. SOURCES OF MARKETING INFORMATION Details STEP 2: GATHER MARKETING INFORMATION AND CONDUCT MARKET RESEARCH 1. MARKETING INFORMATION AND RESEARCH The next step in the marketing management process entails gathering and collating Marketing Information and conducting Market Research. 2. Good market intelligence provides a sound foundation for an effective marketing plan and helps the company’s management to achieve overall business objectives. external organizational factors and environmental factors. who buy various products and services. 7. This process is strongly influenced by a broad range of Consumer Buying Behavior Factors. Statistical data. Moreover. the volume and frequency of purchases. Information provided by the existing customers. 4. which include strategic marketing factors. Commercial and trade publications. 5. individual buyers’ factors. social and economic factors. Reports from sales people. This process is influenced by various Organizational Buying Behavior Factors. .
and improving the understanding and effectiveness of the marketing process. development of sales quotas per sales person. 2. corporate plans and objectives. including preparation of the company’s sales analysis and sales forecasting reports. weaknesses. evaluate. A thorough examination of internal and external marketing factors plays a vital role in the development of an effective marketing plan. 8. 3. Marketing Information And Research are discussed in detail in Tutorial 5. Company's Company's Company's Company's size. and distribute this information to marketing decision-makers in a timely manner to ensure the most effective performance of the marketing department. INTERNAL MARKETING FACTORS Details STEP 3: EXAMINE STRATEGIC MARKETING FACTORS 1. sort. EXTERNAL MARKETING FACTORS Details 1. maintaining customer profiles and many more. monitoring marketing performance. No. This system has a wide range of applications within the organization. and store relevant information from various sources. organizational and management structure. designed to collect. .Business owners and marketing managers must develop an effective Marketing Information System (MIS). or Marketing Variables. Several important internal and external marketing factors are outlined below. generating and evaluating marketing action. STRATEGIC MARKETING FACTORS MARKETING INFORMATION SYSTEMS (MIS) After gathering and collating marketing information and conducting appropriate market research. development of sales budgets and sales performance ratios by sales person. related to the company's overall business activities in the marketplace. strengths. Current market demand for company's products or services. No. This function is essential in identifying and defining marketing opportunities and problems. 4. determination of sales potential by territory. Market research represents another essential function within the marketing department. the marketing manager must proceed with the examination of Strategic Marketing Factors. products or services. This includes evaluation of Internal and External Marketing Factors.
the marketing manager must proceed with identifying the Company's Existing Position In The Marketplace. 10. How strong is the competition in the marketplace? 5. STEP 5: FORMULATE THE COMPAN’S MARKETING OBJECTIVES . Influence of competition in the marketplace. How popular are our products or services in the marketplace? 4. Such an evaluation plays a highly important role in the overall marketing plan development process.2. THE COMPANY'S POSITION IN THE MARKETPLACE Details STEP 4: EVALUATE THE COMPANY’S EXISTING POSITION IN THE MARKETPLACE 1. Legal requirements. MARKETING OBJECTIVES The next step in the marketing management process entails formulation of the company’sMarketing Objectives for the forthcoming fiscal period. 5. Technological developments. EXISTING POSITION IN THE MARKETPLACE After completing the evaluation of internal and external marketing factors. The evaluation of the company's existing position in the marketplace entails providing answers to a number of important questions outlined below. 4. Economic conditions in the marketplace. How do we differ from our main competitors? 6. How do customers rate our company in terms of the product or service quality? 3. How successful is our company in the marketplace in terms of market penetration with our products or services at present? 2. 9. No. A comprehensive examination of relevant strategic marketing factors will enable the marketing manager to complete this evaluation in a timely manner and prepare the Company’s Existing Position Status Report. 6. 3. What is the short-term market trend in the area of product or service acceptance? The Company’s Position In The Marketplace is discussed in detail in Tutorial 5. Political conditions in the marketplace. Strategic Marketing Factors are discussed in detail in Tutorial 5.
Market targeting entails evaluating each market segment in terms of its attractiveness. the marketing manager must proceed with the process of Target Marketing of the company’s products or services. This process entails three elements described below. characteristics. 3. TARGET MARKETING After formulating marketing objectives. THE TARGET MARKETING PROCESS 1. Market segmentation entails dividing a market into distinctive groups of buyers. How much additional capital do we need to support our short-term marketing plan? 5. i. 11. or Market Segments. where a company may have a unique Marketing Opportunity to offer its products or services. THE COMPANY'S MARKETING OBJECTIVES Details 1. or behavior patterns. on the basis of their needs. 2. who might require specific products or services. What specifically do we want to accomplish in the marketplace during the next fiscal period? 2.Upon evaluating the company's position in the marketplace. distinctive and desirable place in relation to competing products and services in the minds of the target customers. Market Targeting. What new products or services do we need to introduce to maintain our competitive advantage in the marketplace? 3. Market Segmentation. the marketing manager will be in a better position to complete the formulation of the company's marketing objectives and prepare the Company’s Marketing Objectives Report for the next twelve months. Market Positioning. How should we develop our sales team to meet our marketing plan objectives Marketing Objectives are discussed in detail in Tutorial 5. The formulation of the company's marketing objectives entails finding answers on a number of important questions outlined below. Market positioning entails arranging for the company’s products or services to occupy a clear. MARKETING OPPORTUNITY STEP 6: COMPLETE TARGET MARKETING OF YOUR PRODUCTS AND SERVICES . What products or service do we need to phase out during the next fiscal period? 4. No.e.
MARKET MEASUREMENT AND FORECASTING STEP 7: MEASURE AND FORECAST THE MARKET POTENTIAL After identifying suitable marketing segments. the marketing manager must proceed with the process of measuring the market potential of each segment and preparing realistic forecasts regarding the company’s marketing opportunities to sell products or services. There are many different Market Segments where a company may identify sound business opportunities. Identification of suitable marketing segments entails finding answers to a number of important questions. This will enable the marketing manager to summarize the most suitable target markets. known as Target Markets. This process will also help the marketing manager in the overall process of marketing plan implementation and development of an appropriate sales team. as outlined below. Target Marketing is discussed in detail in Tutorial 5. 12. What is the market potential for our products or services in a specified market segment in the consumer market in terms of units sold? 2. must be classified according to their industrial activity and grouped into separate target market areas. Each feasible marketing opportunity should be examined more closely to establish a suitable method of entering into a specific market. 13. Subsequently.Marketing Opportunity represents a suitable field of marketing action where a company may have a potential trading advantage. MARKETING STRATEGIES . and to provide answers to a number of important questions outlined below. No. What is the market potential for our products or services in a specified market segment in the commercial market in terms of dollar value? Market Measurement And Forecasting is discussed in detail in Tutorial 5. to complete theMeasurement And Forecasting Of Market Potential. the Sales Potential of each area should be evaluated and the most suitable market opportunities selected in accordance with the company's capabilities to gain and maintain a marketing advantage. These segments. THE MARKET POTENTIAL Details 1.
“THE FOUR P" MARKETING MIX Product Or Service Price Promotion Place (Distribution) The development of a marketing mix strategy will require the marketing manager to formulate four comprehensive strategies as shown below. • The Market Retention Strategy. formulated appropriate objectives. This strategy directs the company toward continuous improvement of the existing product or service lines. • The Balancing Strategy. FIVE BASIC MARKETING STRATEGIES • The New Venture Strategy. it is necessary to proceed with the selection of a suitable Marketing Strategy. is a very important marketing concept and it represents a combination of four essential marketing elements illustrated below.Once the marketing manager has evaluated the company's existing position. This strategy directs the company toward balancing its current marketing activities to achieve the desired level of profitability and market share. also known as “The Four P”. FOUR MARKETING MIX STRATEGIES . and identified and measured target markets. This strategy directs the company toward introduction of brand new products or services in the marketplace. the marketing manager must proceed with the development of Detailed Marketing Mix Strategies. STEP 8: SELECT A SUITABLE MARKETING STRATEGY Marketing Strategies are discussed in detail in Tutorial 5. 14. MARKETING MIX STRATEGIES STEP 9: DEVELOP DETAILED MARKETING MIX STRATEGIES Upon selection of a suitable marketing strategy. • The Growth Strategy. This strategy directs the company toward maintaining its existing position in the marketplace. The Marketing Mix. This strategy directs the company toward expanding its current marketing efforts with existing products or services. • The Market Development Strategy. There are five basic marketing strategies that can be selected by a company in terms of its overall marketing objectives as illustrated below.
• Product Licensing. represents the first step in formulating the Marketing Mix Strategies for the organization. • Product Life Cycle. the marketing manager must be familiar with various issues related to products as outlined below. and use applicable elements of the product strategies. when this is appropriate. 15. The development of detailed Product Strategies. This includes ensuring customer satisfaction. This entails understanding the six steps in the product development process and how it affects the company’s performance. generating profit. This entails understanding the product branding process. In order to develop effective product strategies. and meeting company objectives. • Product Branding. providing employment. . Service Operations Management is discussed in detail in Tutorial 4.1 : DEVELOP DETAILED PRODUCT STRATEGIES Product Strategies are discussed in detail in Tutorial 5. • Product Life Cycle Characteristics.Product Or Service Strategy Pricing Strategy Promotional Strategy Distribution Strategy Marketing Mix Strategies are discussed in detail in Tutorial 5. PRODUCT-RELATED ISSUES • Key Factors In Product Creation And Development. This entails understanding various variables related to the product life cycle and how it affects the company’s performance. therefore. • Product Development Process. This entails understanding the product licensing process. This entails understanding the four stages of the product life cycle and how it affects the company’s performance. STEP 9. PRODUCT STRATEGIES “Product” represents the first “P” in the Marketing Mix concept. A marketing manager in a Service Organization should follow similar procedures in developingService Strategies. Objectives And Strategies. This entails understanding of the franchising process. • Franchising.
This entails an understanding of trade discounts. PRICE-RELATED ISSUES • Price-Setting Factors. when this is appropriate. • Discounts. as outlined below. This entails an understanding of direct and indirect costs for various types of companies. This entails an understanding of product or service costs. represents the second step in formulating the Marketing Mix Strategies for the organization. In order to develop effective promotional strategies the marketing manager must be familiar with the Promotional Strategy Development Process outlined below. No. The development of detailed Promotional Strategies. This entails an understanding of various methods used in determining the selling price for the company’s products and services. therefore. represents the third step in formulating theMarketing Mix Strategies for the organization. In order to develop effective pricing strategies. cash discounts. Service Operations Management is discussed in detail in Tutorial 4. . A marketing manager in a Service Organization should follow similar procedures in developingService Pricing Strategies.2: DEVELOP DETAILED PRICING STRATEGIES Pricing Strategies are discussed in detail in Tutorial 5. The development of detailed Price Strategies. STEP 9. 17.3: DEVELOP DETAILED PROMOTIONAL STRATEGIES 1. • Basic Classification Of Costs. PRICING STRATEGIES “Price” represents the second “P” in the Marketing Mix concept. and competition. Evaluate the promotional strategy factors. • Price Change Management Process. PROMOTIONAL STRATEGY DEVELOPMENT PROCESS Details STEP 9. and promotional discounts. demand. therefore. • Price-Setting Methods. meet-thecompetition pricing. the marketing manager must be familiar with various issues related to price. PROMOTIONAL STRATEGIES “Promotion” represents the third “P” in the Marketing Mix concept. quantity discounts. and price skimming.16. and use applicable elements of the product pricing strategies. • Basic Pricing Strategies. This entails an understanding of three main strategies: penetration pricing. This entails an understanding of specific steps related to the process of price change and adjustment to meet new conditions in the marketplace.
rack jobbers. industrial distributors. Analyze the existing situation in the marketplace. DISTRIBUTION STRATEGIES “Place”or “Distribution” represents the fourth “P” in the Marketing Mix concept.4: DEVELOP DETAILED DISTRIBUTION STRATEGIES . and use applicable elements of the product promotional strategies. A marketing manager in a Service Organization should follow similar procedures in developingService Promotional Strategies. 8. project. Evaluate and control the communication mix. Develop effective communication mix. represents the fourth step in formulating the Marketing Mix Strategies for the organization. and facilitating agents. when this is appropriate. The marketing manager must also have a good understanding of various elements of theCommunication Mix. 3. 4. This entails understanding the advantages and disadvantages of various options which are STEP 9. wholesalers. • Distribution Channels. manufacturers’ agents. The development of detailed Distribution Strategies. and contract management companies. • Supply Chain Management. DISTRIBUTION-RELATED ISSUES • Marketing Intermediaries. 7. In order to develop effective distribution strategies the marketing manager must be familiar with various issues related to distribution outlined below. Service Operations Management is discussed in detail in Tutorial 4 18. Prepare the promotional budget. COMMUNICATION MIX Advertising Personal Selling Packaging Public Relations Sales Promotions Promotional Strategies are discussed in detail in Tutorial 5. therefore. merchandising. This entails understanding of specific steps in the supply chain management process for manufacturing. This entails understanding the functions of retailers. Establish the overall direction for the promotional strategy. 5. Establish promotional objectives. 6. Formulate the communication message. sales agents. service.2.
Direct Marketing is an interactive system of marketing which includes various types of advertising. No. Postcard decks. 2. and use applicable . 8. Distribution Strategies are discussed in detail in Tutorial 5. promotion. 6. A marketing manager in a Service Organization should follow similar procedures in developingDirect Marketing Strategies. 5. A marketing manager in a Service Organization should follow similar procedures in developingService Distribution Strategies. Online marketing. promotion and distribution strategies. Online marketing became particularly popular in the last several years because of the recent developments in the Search Engine Optimization (SEO) Methodology. Business owners and marketing managers should pay special attention to the Online Marketing of products and services. 7. the marketing manager must proceed with the development ofDirect Marketing Strategies. 19. price. TV home-shopping. 4. Direct mail marketing. i. ELEMENTS OF DIRECT MARKETING Details STEP 10: DEVELOP DIRECT MARKETING STRATEGIES 1. Telephone marketing. Automatic vending machines. TV infomercials. and use applicable elements of the product distribution strategies. because the Internet represents the fastest growing marketing media in the 21st century. and personal selling of products and services outlined below. 3. product or service. when this is appropriate.available through two specific types of distribution channels: the consumer channel and the industrial channel.e. DIRECT MARKETING Upon the selection of suitable marketing mix strategies. Direct selling. Direct Marketing is discussed in detail in Tutorial 5. Service Operations Management is discussed in detail in Tutorial 4.
Analysis of the company’s resources. 7. . 9. Analysis of external marketing factors. 3. THE COMPANY'S MARKETING PLAN OUTLINE Details 1. 6. There are two different types of marketing plans. This type of plan is prepared for an existing range of products or services. 2.elements of direct marketing strategies. when this is appropriate. The marketing plan must be prepared in accordance with the overall objectives of the organization for at least one fiscal period. which can be prepared by the marketing manager. Problems and opportunities in the marketplace. Marketing and sales objectives. 5. 20. Marketing and sales plan summary. The Marketing Plan Outline is outlined below. Marketing and sales strategy. The existing and potential target markets. Analysis of the market demands and trends. No. 4. Service Operations Management is discussed in detail in Tutorial 4. as presented below. 10. MARKETING PLANNING Preparation of the Marketing Plan represents the culmination of the marketing management process. TWO TYPES OF MARKETING PLANS STEP 11: PREPARE A MARKETING PLAN New Product Marketing Plan Annual Marketing Plan This type of plan is prepared when the company plans to introduce new products or services in the marketplace. Analysis of the competition in the marketplace. 8. Analysis of the company’s products and services.
21. What is the anticipated unit cost of each product or service. The marketing budget preparation process entails finding answers to a number of important questions outlined below.11. 22. THE MARKETING BUDGET Formulation of a Marketing Budget represents the final stage of an effective marketing plan. The marketing budget must take into consideration a broad range of activities related to the marketing of products or services as well as activities related to the sales of products or services. 12. FORMULATION OF THE COMPANY'S MARKETING BUDGET Details STEP 12: SUMMARIZE THE MARKETING BUDGET 1. Marketing Planning is discussed in detail in Tutorial 5. What are the anticipated costs of the sales team which will be engaged in the process of selling our products or services? 4. What are the anticipated costs of manufacturing specific products or providing specific services? 5. What are the anticipated advertising costs related to our company's efforts of promoting specific products or services? 3. No. What are the anticipated revenues expected from the sale of specific products or services in each market segment selected by our company? 2. Marketing and sales budget. Marketing plan supporting materials. which our company plans to sell during the next fiscal period? Marketing Budgets are discussed in detail in Tutorial 5. IMPLEMENTATION AND CONTROL OF MARKETING ACTIVITIES .
However. planning. the marketing manager must exercise an effective control over all related marketing functions. Any AMA member found to be in violation of any provision of this Code of Ethics . 23. The Marketing And Sales Managerwill be responsible for the evaluation. while the Sales Manager will be responsible for the evaluation. THE AMERICAN MARKETING ASSOCIATION CODE OF ETHICS AMERICAN MARKETING ASSOCIATION American Marketing Association (AMA) has developed a Code Of Ethics which represents a set of specific guidelines designed for its members and covering a broad range of issues. the Marketing Manager will be responsible for the implementation of all marketing plans. implementation. implementation. It is strongly advised. that every business owner and manager becomes familiar with these guidelines and adopts them throughout the routine marketing management process. These guidelines also include a List Of The Marketer's Responsibilities outlined below. planning. The marketing manager must monitor the implementation of each marketing task on a continuous basis to ensure that the company meets its overall marketing objectives. when the organization grows. and control of allSales Management Activities. In this case. and upon approval of all relevant budgets by the company owners. RESPONSIBILITY OF THE MARKETING AND SALES MANAGER STEP 13: IMPLEMENT. the marketing and sales functions are often separated into a Marketing Department and a Sales Department. when the Marketing Manager and the marketing team complete the marketing plan. Additional detail related to implementation of marketing plans and budgets are provided inMarketing Planning in Tutorial 5. Furthermore. EVALUATE. which were discussed earlier. The AMA Code Of Ethics Guidelines are summarized next. which are discussed in detail in Tutorial 5.Finally. and control all marketing and sales activities within this department. Implementation Of The Marketing Plan entails providing the company's employees with the opportunity to complete all relevant tasks in the most efficient manner. it becomes essential to implement this plan into action. AND CONTROL MARKETING ACTIVITIES The majority of small business owners usually combine all marketing and sales functions under the umbrella of the Marketing And Sales Department.
organizations and society. Marketers should uphold and advance the integrity. honor. The active support. financial and otherwise. and satisfy all relevant publics: customers. Rights And Duties Of Parties In The Marketing Exchange Process. 4. suppliers. Reprinted with permission. and promotion of this Code of Ethics. and/or legal compensation for marketing exchanges. and dignity of the marketing profession by: • Being honest in serving consumers. training. 2. Appropriate internal methods exist for equitable adjustment and/or redress of grievances concerning purchases. The accurate representation of their education. • distributors. Identification of extra cost-added features. • Not knowingly participating in conflict of interest without prior notice to all parties involved. clients. Marketers must accept responsibility for the consequences of their activities and make every effort to ensure that their decisions. 2000. 2. Responsibilities Of The Marketer. Honesty And Fairness. In The Area Of Product Development And Management: • Disclosure of all substantial risks associated with product or service • usage. practice. Establishing equitable fee schedules including the payment of receipt of usual. in good faith.(7) THE AMERICAN MARKETING ASSOCIATION CODE OF ETHICS 1.may have his or her association membership suspended or revoked. customary. Identification of any product component substitution that might • materially change the product or impact on the buyer's purchase decision. Marketers' Professional Conduct Must Be Guided By: • • • • The basic rule of professional ethics: not knowingly to do harm. and experience. recommendations. In The Area Of Promotions: . LIST OF THE MARKETER'S RESPONSIBILITIES 1. All parties intend to discharge their obligations. Communications about offered products and services are not deceptive. and the public. The adherence to all applicable laws and regulations. 3. Participants in the marketing exchange process should be able to expect that: • • • • Products and services offered are safe and fit for their intended uses. and actions function to identify. employees. serve. © American Marketing Association.
© American Marketing Association. such as employees. Avoid manipulation to take advantage of stipulations to maximize personal welfare in a way that unfairly deprives or damages the organization of others. In The Area Of Distribution: • Not manipulating the availability of a product for purpose of • exploitation. in whole. Organizational Relationships. or misleading sales tactics. In The Area Of Marketing Research: • Prohibiting selling or fundraising under the guise of conducting • research. or in part. Not exerting undue influence over the reseller's choice to handle a product. 2000. Reprinted with permission.• • • Avoidance of false and misleading advertising. encourage. 5. U. Avoid taking the work of others. Meet their obligations and responsibilities in contracts and mutual • agreements in a timely manner. and represent this • work as their own or directly benefit from it without compensation or consent of the originator or owner. Not practicing predatory pricing. • Not using coercion in the marketing channel. They should: • Not demand. LEGISLATION WHICH MAY AFFECT MARKETING PRACTICES . Treating outside clients and suppliers fairly. 6. 3. Apply confidentiality and anonymity in professional relationships with • regard to privileged information. 24. 4. In The Area Of Pricing: • • • Not engaging in price fixing. suppliers. or apply coercion to obtain unethical behavior in their relationships with others. or • customers. Disclosing the full price associated with any purchase. Rejection of high pressure manipulations. Marketers should be aware of how their behavior may influence or impact on the behavior of others in organizational relationships. Maintaining research integrity by avoiding misrepresentation and • omission of pertinent research data.S. Avoidance of sales promotions that use deception or manipulation.
Amends the Clayton Act by adding the phrase "to injure.There are a number of laws and regulations which must be taken into consideration by the marketing manager and employees throughout the marketing management process." Defines price discrimination as unlawful. • • The Clayton Act Of 1914. LEGISLATION WHICH MAY AFFECT MARKETING PRACTICES • The Sherman Anti-Trust Act Of 1880. Provides for federal inspection of all companies selling meat in the interstate commerce. Amends the Sherman Act to exempt interstate fair-trade (price-fixing) agreements from anti-trust prosecution. And Cosmetic Act Of 1938. • The Robinson-Patman Act Of 1936. Kefauver-Harris Amendment In 1962. U. • The Wheeler-Lea Act Of 1938. which states that "unfair methods of competition in commerce are unlawful. • • • • • • • The Miller-Tydings Act Of 1937. FEDERAL LAWS • • • • • • Prohibits monopolies or attempts to monopolize trade. to forbid brokerage allowances except to independent brokers. Drug. sale. Prohibits contracts. • The Meat Inspection Act Of 1906. or transportation of adulterated or fraudulently labeled foods and drugs in interstate commerce. Federal Food And Drug Act Of 1906. • • • The Federal Trade And Commission Act Of 1914. . Food. Food Additives Amendment In 1958. Prohibits promotional allowances or the furnishing of services or facilities. destroy. Specifies pre-testing procedures of drugs for safety. (Clayton Act). Some of these Federal Laws and regulations are outlined below. The The The The • • Forbids the manufacture. and effectiveness and labeling of drugs by generic name. Provides the FTC with the right to establish limits on quantity discounts.S. Provides for the enforcement of sanitary regulations in the meat packaging industry. or prevent competition. Provides for establishment of a commission of specialists to investigate and to issue cease-and-desist orders to enforce Section 5. (The Kefauver-Harris Amendment)." Supplements the Sherman Act and provides that violating corporate officials can be held individually responsible. combinations and conspiracies designed to restraint trade in interstate and foreign commerce.
Provides for the creation of compulsory safety standards for automobiles and tires. Requires that cigarette packages include the following statement: “Warning: The Surgeon General Has Determined That Cigarette Smoking Is Dangerous To Your Health. Amended in 1989 to include articles that pose electrical. • • • The National Traffic And Safety Act Of 1958. .• • • Prohibits unfair and deceptive acts and practices regardless of whether competition is injured. • The Fair Credit Reporting Act Of 1970. • • The Automobile Information Disclosure Act Of 1958. who made it. Requires manufacturers to state what the package contains. • The Federal Cigarette Labeling And Advertising Act Of 1967. relevant. and how much it contains. Places advertising of foods and drugs under FTC jurisdiction. Ensures that consumer's credit report will contain only accurate. • • • • • • The Child Protection Act Of 1966. Provides for the regulation of the packaging and labeling of consumer goods. mechanical. Provides for the establishment of the Council on Environmental Quality. Prohibits car dealers from inflating the factory price of new cars. • The Fair Packaging And Labeling Act Of 1966.” Requires lenders to state the true costs of a credit transaction. • • The Truth-In-Lending Act Of 1968. Prohibits the use of actual or threatened violence in collecting loans. Established a national Commission on Consumer Finance. or thermal hazards. Amends Section 7 of the Clayton Act to prevent inter-corporate acquisitions which may have a substantially adverse effect on competition. • The Anti-Merger Act Of 1950. Establishes a national policy on the environment. • The Lanham Trademark Act Of 1946. Restricts the amount of garnishments. Requires that trademarks must be distinctive and makes it illegal to make any false representation of goods or services entering interstate commerce. Prohibits the sale of hazardous toys and articles. Permits industries' voluntary adoption of uniform packaging standards. • • • • • • • • The National Environment Policy Act Of 1969.
and Principles of Marketing. • The Telephone Consumer Protection Act Of 1991. • The Consumer Goods Pricing Act Of 1975. 7th ed. • • The Toy Safety Act Of 1984. Provides for a quick recall of dangerous toys when found. 1996. Adapted by permission of Prentice Hall. Limits the number of commercials aired during the children’s program. or receipt of public assistance. • • The Children’s Television Act Of 1990. by Philip Kotler and Gary Armstrong. Upper Saddle River.109. religion.and recent information and will be confidential unless requested for an appropriate reason by a proper party. by the government. Limits marketers’ use of automatic telephone-dialing systems and pre-recorded voices. NJ. by Philip Kotler and Gary Armstrong. marital status. • • The Magnuson-Moss Warranty/FTC Improvement Act Of 1975. • The Consumer Product Safety Act Of 1972. . • • • • The Equal Credit Opportunity Act Of 1975. Expands FTC regulatory powers over unfair or deceptive acts or practices. Requires that food products labels provide detailed nutritional information. Authorizes the FTC to determine rules concerning consumer warranties. Establishes procedures designed to limit unsolicited phone calls from telemarketers. age. • • • The Nutrition Labeling And Education Act Of 1990. p.89. pp. 9th ed.. Inc. • The Fair Debt Collection Practice Act Of 1978. Prohibits discrimination in a credit transaction because of gender. Prohibits the use of price maintenance among manufacturers and resellers in interstate commerce. race. • © Principles of Marketing. • Establishes the Consumer Product Safety Commission and authorizes it to set safety standards for consumer products as well as exact penalties for failure to uphold the standards. Prohibits to abuse any person and make false statements or use unfair methods when collecting debts. 88 . national origin.
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