The centrality of marketing What is marketing?

• A process by which companies create value for customer and build strong customer relationships in order to capture value from customers in return. ( by Philip Kotler) • 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. (by the American Marketing Association Board of Directors) Important role: developing satisfying relationships between the customer and the organization. • Customer: given more options to fulfilled their needs, provided the best value delivery at the best price. • Organization: Brought profits, created credibility from customer. In economics, a WANTS is something that is desired. It is said that people have unlimited wants, but limited resources. For example: You might need food but you want a hamburger of KFC A need is something that is necessary for survival including basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. They are a basic part of the human makeup Marketing research: the process of collecting and analyzing information about markets, competitors, customers’ opinions and problem connected with advertising and selling. Marketing research include: 1. Market research: identification of a specific market and the measurement of its size and other characteristics. 2. Product research: identification of a need and want and the characteristics of the good or service that will satisfy it. 3. Consumer research: identification of the preferences, motivations and buying behavior of the targeted customers. Source of information for marketing research is collected from direct observation of the consumers, mail surveys, telephone or face-to-face interviews and from public sources. Market segmentation dividing a market into distinct groups of buyers with different needs, characteristics or behavior, who might require separate products or marketing raises. Differential advantage: unique benefits or characteristics of a firm, product or program that set it apart and above its competitors in the customers’ viewpoint. Distinctive competencies: Firm-specific strengths that allow a company to gain differential advantage by differentiating its products and/or achieving lower costs than its rivals. Target market: the group of people sharing common needs or characteristics that you want to sell your products to. Market opportunities are profitable possibilities of filling unsatisfied needs or creating new ones or creating new ones in areas in which the company is likely to enjoy a differential advantage, due to its distinctive competencies.

rented. tools and labor to make things for use or sale. • Price is the amount of money customers have to pay to obtain the product. from handicraft to high tech. Fabric manufacturers are also members of the industrial market because they purchase other raw materials for use in the production of the fabric Raw material: a natural or basic substance that is used to make sth in an industrial process. The marketing mix tools are classified into four broad groups. . • Place includes company activities that make the product available to target consumers • Promotion means activities that communicate the merits of the product and persuade the target customers to buy it. in which raw materials are transformed into manufactured parts. The Marketing Mix: the set of marketing tools the firm uses to carry out its marketing strategy. Consumer market: The consumer market is composed of individuals who buy a specific good or service. or supplied to others. Manufacturing is the use of machines. called the 4Ps: • Product means the goods and services the company offers to the target market. The term may refer to a range of human activity.The marketing concept holds that achieving the goals of the company depends on knowing the needs and wants of targets markets and delivering the desired satisfaction better than competitors do. Industrial market: is composed of companies or organizations that purchase goods and services for use in the production of other goods and services that are sold. The selling concept which assumes that resisting consumers have to be persuaded by vigorous hard selling techniques to buy non-essential goods or services. Ex: the clothing manufacturing industry purchases fabric that is used in the production of dresses and other apparel. but is most commonly applied to industrial production.

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