This action might not be possible to undo. Are you sure you want to continue?
From Wikipedia, the free encyclopedia Jump to: navigation, search For the magazine, see Marketing (magazine).
Pricing Distribution Service Retail
Brand management Brand licensing
Account-based marketing Ethics Research Segmentation Strategy Activation Management Dominance Social marketing
Marketing operations Identity
Underwriting spot Direct marketing Personal sales Product placement Publicity Sales promotion Sex in advertising
Marketing satisfies these needs and wants through exchange processes and building long term relationships. There are five competing concepts under which organizations can choose to operate their business. as well as understanding consumer buying behavior and providing superior customer value. the production concept. and managing customer relationships in ways that also benefit the organization and its shareholders. delivering and communicating value to customers. the . for the purpose of selling that product or service. marketing is the link between a society’s material requirements and its economic patterns of response. From a societal point of view. the product concept. Loyalty marketing Mobile marketing Premiums Prizes Corporate anniversary On Hold Messaging Promotional media Printing Publication Broadcasting Internet Point of sale Merchandise Out-of-home advertising Digital marketing In-game advertising Product demonstration Word-of-mouth Brand ambassador Drip marketing Visual merchandising v t e Marketing is the process of communicating the value of a product or service to customers. Marketing can be looked at as an organizational function and a set of processes for creating. Marketing is the science of choosing target markets through market analysis and market segmentation. the selling concept.
and socially responsive marketing. Profit driver Western European timeframe Orientation Description A firm focusing on a production orientation specializes in producing as much as possible of a Production until the given product or service.1 Works cited Marketing concepts Earlier approaches The marketing orientation evolved from earlier orientations. connecting with customers.1 B2C buying behavior o 5. and developing marketing strategies and plans. Thus.1 Herd behavior 2. building strong brands.1 Marketing strategy 5 Buying behavior o 5.2 Contemporary approaches 2 Customer orientation o 2. capturing marketing insights. and the holistic marketing concept. Contents 1 Marketing concepts o 1.1. integrated marketing. internal marketing.1 Marketing environment o 3.1 Organizational orientation 2.marketing concept. namely.2 Further orientations 3 Marketing research o 3. the product orientation and the selling orientation.3 Types of market research 4 Marketing planning o 4. shaping the market offerings. The four components of holistic marketing are relationship marketing. this signifies a Production methods 1950s firm exploiting economies of scale until the minimum efficient scale is reached.2 Market segmentation o 3.1 Earlier approaches o 1.1. delivering and communicating value. the production orientation. creating long-term growth. A production orientation may be deployed when a high demand . The set of engagements necessary for successful marketing management includes.2 B2B buying behavior 6 Use of technologies 7 Services marketing 8 See also 9 References 10 Bibliography o 10.
or otherwise sells a product that is in high demand. The 'marketing orientation' is perhaps the most common orientation used in contemporary marketing. As an example. with little likelihood of changes in consumer tastes that would diminish demand. and socially responsive marketing. It involves a firm essentially basing its marketing plans around the marketing concept. and not determining new consumer desires as such. use R&D (research and development) to develop a product attuned to the revealed information. "digital marketing". Consequently. The four marketing components that characterize holistic marketing are relationship marketing. and then utilize promotion techniques to ensure persons know the product exists. .and that a broad and integrated perspective is necessary in Everything 21st developing. and using promotion Selling 1950s and techniques to attain the highest sales possible. a firm would employ customers day market research to gauge consumer desires. Contemporary approaches Recent approaches in marketing include relationship marketing with focus on the customer. The holistic marketing concept looks at marketing as a complex activity and acknowledges that everything matters in marketing . A firm using a sales orientation focuses primarily on the selling/promotion of a particular product.Product Selling Marketing Holistic Marketing for a product or service exists. integrated marketing. this entails simply selling an already existing product. internal marketing. New forms of marketing also use the internet and are therefore called internet marketing or more generally e-marketing. designing and implementing matters in century marketing programs and activities. Needs and 1970s to and thus supplying products to suit new consumer wants of the present tastes. A until the the firm would also assume that as long as its product 1960s product was of a high standard. A firm employing a product orientation is chiefly Quality of concerned with the quality of its own product. methods 1960s Such an orientation may suit scenarios in which a firm holds dead stock. coupled with a good certainty that consumer tastes will not rapidly alter (similar to the sales orientation). search engine marketing. business marketing or industrial marketing with focus on an organization or institution and social marketing with focus on benefits to society. people would buy and consume the product. online marketing.
Profit driver Western European timeframe Orientation Relationship marketing / Relationship management Description Emphasis is placed on the whole relationship between suppliers and customers. It attempts to perfect the segmentation strategy used in traditional marketing. such as promotion. because it not only refers to marketing on the Internet. Internet marketing is sometimes considered to be broad in scope. advertising and communication to the customer are used. marketing takes place between Building and businesses or organizations. and is sometimes called personalized marketing or one-to-one marketing. Similar characteristics to marketing 1990s to orientation but with the added proviso that Benefit to Societal present there will be a curtailment of any harmful  marketing society day activities to society. In this context. "branding" refers to the main 1980s to company philosophy and marketing is Brand value present Branding considered to be an instrument of branding day philosophy. but also includes marketing done via e-mail. production. Building and keeping 1960s to good present customer day relations In this context. Different forms of marketing marketing organizations activities. . in either product. The aim is to provide the best possible customer service and build customer loyalty.or desktop advertising. The product Business keeping 1980s to focus lies on industrial goods or capital goods marketing / relationships present rather than consumer products or end Industrial between day products. or selling methods. Customer orientation Constructive criticism helps marketers adapt offerings to meet changing customer needs. It targets its audience more precisely. wireless media as well as driving audience from traditional marketing methods like radio and billboard to internet properties or landing page.
They do not invalidate or contradict the principle of customer focus. they simply add extra dimensions of awareness and caution to it. Information. No strategy is pursued until it passes the test of consumer research. → Solution → Information → Value Product Promotion Price Place (Distribution) → Access If any of the 4Ps were problematic or were not in the marketing factor of the business. price. is driven by the needs of potential consumers. rather. Consequently. there are three ways of doing this: the customer-driven approach. The SIVA Model provides a demand/customer-centric alternative to the well-known 4Ps supply side model (product. See Positioning (marketing). A formal approach to this customer-focused marketing is known as SIVA (Solution. Access). Some consider there to be a fifth "P": positioning. contributing to the 7P's of marketing in total. This system is basically the four Ps renamed and reworded to provide a customer focus. The other 3P's of service marketing are: process. Value. . Every aspect of a market offering. promotion) of marketing management. so the consumer demand on its products will decrease. the business could be in trouble and so other companies may appear in the surroundings of the company. ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern. The rationale for this approach is that there is no reason to spend R&D (research and development) funds developing products that people will not buy. The starting point is always the consumer. Many companies today have a customer focus (or market orientation). Generally. physical environment and people. in recent years service marketing has widened the domains to be considered. placement. History attests to many products that were commercial failures in spite of being technological breakthroughs. consumer wants are the drivers of all strategic marketing decisions. the market change identification approach and the product innovation approach. Some qualifications or caveats for customer focus exist. This implies that the company focuses its activities and products on consumer demands. In the consumer-driven approach.A firm in the market economy survives by producing goods that persons are willing and able to buy. including the nature of the product itself. However.
This might be acceptable except for the extent to which those items are money-losing propositions for the business. This means looking beyond current-state customer focus to predict what customers will be demanding some years in the future. Customers who in 1997 said that they would not place any value on internet browsing capability on a mobile phone. A lesson from this type of situation is to be smarter about the true test validity of instruments like surveys. IT hardware and software capabilities and automobile features are examples." Thus one could argue that the principle of customer focus. treating it as only a subset of one's corporate strategy rather than the sole driving factor. Other caveats of customer focus are: The extent to which what customers say they want does not match their purchasing decisions. or incubating small. Information from an organization's marketing department would be used to guide the actions of other departments within the firm. or be convinced. even if they themselves discount the prediction. is not violated here—just expanded upon. acquiring them outright. might say something different today.The work of Christensen and colleagues on disruptive technology has produced a theoretical framework that explains the failure of firms not because they were technologically inept (often quite the opposite). Thus surveys of customers might claim that 70% of a restaurant's customers want healthier choices on the menu. but because the value networks in which they profitably operated included customers who could not value a disruptive innovation at the time and capability state of its emergence and thus actively dissuaded the firms from developing it. otherwise. The lessons drawn from this work include: Taking customer focus with a grain of salt. bleeding red ink. or being close to the customers. This may involve buying stakes in the stock of smaller firms. financially distinct units within one's organization to compete against them. because the value proposition of those opportunities has changed. a firm's marketing department is often seen as of prime importance within the functional level of an organization. A corollary argument is that "truly understanding customers sometimes means understanding them better than they understand themselves. simply because their potential to grow and intersect with established markets and value networks looks like a likely bet. the marketing department would inform the R&D (research and development) department to create a prototype of a product or service based on the consumers' new desires. a marketing department could ascertain (via marketing research) that consumers desired a new type of product. or a new usage for an existing product. or 6% better fuel efficiency in their vehicle. but only 10% of them actually buy the new items once they are offered. With this in mind. Pursuing new markets (thus new value networks) when they are still in a commercially inferior or unattractive state. As an example. . The extent to which customers are currently ignorant of what one might argue they should want—which is dicey because whether it can be acted upon affordably depends on whether or how soon the customers will learn. Organizational orientation In this sense.
distribution. Herd behavior Herd behavior in marketing is used to explain the dependencies of customers' mutual behavior." a Massachusetts company exploiting knowledge of social networking to improve sales." The basic idea is that people will buy more of products that are seen to be popular. of the product.000 people downloaded previously unknown songs" (Columbia University. Production may oppose the installation. hypothesis tests. custom media and reality marketing. and ideas. A "swarm-moves" model was introduced by a Florida Institute of Technology researcher. should a firm adhere to the marketing orientation. It shared mechanisms to increase impulse buying and get people "to buy more by playing on the herd instinct. New York). and several feedback mechanisms to get product popularity information to consumers are mentioned. Marketing research Main article: Marketing research Marketing research involves conducting research to support marketing activities.The production department would then start to manufacture the product. Finance may oppose the required capital expenditure. gauge the nature of a firm's marketing environment and attain information from suppliers. a firm's finance department would be consulted. support and servicing of new capital stock. see also employer branding. Inter-departmental conflicts may occur. with respect to securing appropriate funding for the development. since it could undermine a healthy cash flow for the organization. etc. production and promotion of the product. and online retailers such as Amazon. services. Additionally. Further orientations An emerging area of study and practice concerns internal marketing. This information is then used by managers to plan marketing activities.com who are increasingly informing customers about which products are popular with like-minded customers. Marketing researchers use statistical methods such as quantitative research. and the statistical interpretation of data into information. pricing. while the marketing department would focus on the promotion. a Japanese chain of convenience stores which orders its products based on "sales data from department stores and research companies. Diffusion of innovations research explores how and why people adopt new products. With consumers' eroding attention span and willingness to give time to advertising messages. Chi- . which is appealing to supermarkets because it can "increase sales without the need to give people discounts. The Economist reported a recent conference in Rome on the subject of the simulation of adaptive human behavior. qualitative research. which may be needed to manufacture a new product. including smart card technology and the use of Radio Frequency Identification Tag technology. marketers are turning to forms of permission marketing such as branded content. or how employees are trained and managed to deliver the brand in a way that positively impacts the acquisition and retention of customers." Other recent studies on the "power of social influence" include an "artificial music market in which some 19.
the . Market segmentation Main article: Market segmentation Market segmentation pertains to the division of a market of consumers into persons with similar needs and wants. Frosties are marketed to children. Macro (national) environment . a firm may conduct research in a target market. after selecting a suitable market segment. As an example. Marketers use the process of marketing environmental scans. competitive forces. development of a research plan. Market segmentation allows for a better allocation of a firm's finite resources. which continually acquires information on events occurring out side the organization to identify trends.larger societal forces that affect the microenvironment. Meso environment – the industry in which a company operates and the industry’s market(s). both with similar needs. reliable. Crunchy Nut Cornflakes are marketed to adults. and technological forces. and wants. Kellogg's cereals. etc. In contrast. It is important to understand the "marketing environment" in order to comprehend the consumers concerns.forces within the company that affect its ability to serve its customers. Accordingly. A firm only possesses a certain amount of resources. Marketers must look at where the threats and opportunities stem from in the world around the consumer to maintain a productive and profitable business. valid.Three levels of the environment are: Micro (internal) environment . it must make choices (and incur the related costs) in servicing specific groups of consumers. to interpret their findings and convert data into information. For instance. Sun Microsystems can use market segmentation to classify its clients according to their promptness to adopt new products. binomial distributions. Both goods denote two products which are marketed to two distinct groups of persons. socio-cultural forces. poisson distributions. linear regression. including the definition of a problem. The marketing research process spans a number of stages. regulatory forces. opportunities and threats to a business. frequency distributions. Thus. and current information. In another example. market research is a subset of marketing research. The task of marketing research is to provide management with relevant. correlations. The six key elements of a marketing scan are the demographic forces. In this way. accurate. traits. economic forces. motivations and to adjust the product according to the consumers needs. marketing research relates to all research conducted within marketing. The market environment is a marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful relationships with customers. collection and interpretation of data and disseminating information formally in the form of a report. Marketing environment Main article: Marketing environment Staying ahead of the consumer is an important part of a marketer's job.squared tests. A distinction should be made between marketing research and market research. Market research pertains to research in a given market.
Primary research is often expensive to prepare. which are: Exploratory research. can be divided into the following parts: Primary research (also known as field research). Targeting and Positioning. Secondary research (also referred to as desk research). The appropriateness of each mode of research depends on whether data can be quantified (quantitative research). as the terms suggest. pertain to numerical and non-numerical research methods and techniques. which. pertaining to research that investigates an assumption. firms are taking note of the benefit of servicing a multiplicity of new markets. Types of market research Market research.Segmenting. while secondary research is relatively inexpensive. Marketing planning This section may require cleanup to meet Wikipedia's quality standards. but used by a firm wishing to develop an unrelated product. There also exist additional modes of marketing research.diversified tastes of contemporary Western consumers can be served better. By these definitions. it often can become outdated and outmoded. given that it is used for a purpose other than the one for which it was intended. No cleanup reason has been specified. Secondary research in this case would be research pertaining to health foods. which. (October 2009) Main article: Marketing plan . With growing diversity in the tastes of modern consumers. Conclusive research. initially conducted for one purpose. Market segmentation can be viewed as a key dynamic in interpreting and executing a logical perspective of Strategic Marketing Planning. Primary research can also be broken down into quantitative research and qualitative research. meaning research conducted to predict a future occurrence. collect and interpret from data to information. Please help improve this section if you can. which is used solely to ascertain the needs/wants of the target market for health foods. an example of primary research would be market research conducted into health foods. for the purpose of deriving a conclusion via a research process. respectively. Nevertheless. as the term suggests. but often used to support another purpose or end goal. as a sub-set aspect of marketing activities. describes "what is". which involves the conduction and compilation of research for a specific purpose. Descriptive research. non-numeric or abstract concepts are required to be studied (qualitative research). The manifestation of this process is considered by many traditional thinkers to include the following. or whether subjective. Predictive research.
the desire for a pair of sneakers would be followed by an information search on available types/brands. Buying behavior is usually split into two prime strands. the mailing of a postcard or sales letter would be a tactic. known as business-to-business (B2B). B2C buying behavior This mode of behavior concerns consumers and their purchase of a given product. an organization's marketing planning process is derived from its overall business strategy. may be made. There are several levels of marketing objectives within an organization. particularly the competitors and customers. Buying behavior A marketing firm must ascertain the nature of customers' buying behavior if it is to market its product properly. or services being marketed. or to another business. This may include perusing media outlets. goods. a start-up car manufacturing firm would face little success should it attempt to rival Toyota. A marketing strategy differs from a marketing tactic in that a strategy looks at the longer term view of the products." A given firm may offer numerous products or services to a marketplace. spanning numerous and sometimes wholly unrelated industries. If the information search is insufficient. Thus. marketers try to determine the behavioral process of how a given product is purchased. A marketing plan can also pertain to a specific product. The senior management of a firm would formulate a general business strategy for a firm. Generally speaking. a product may be reaching the end of its life-cycle. a plan is required in order to effectively manage such products.The marketing planning process involves forging a plan for a firm's marketing activities. Chevrolet. For example. the issue of divest. the intended marketing activities are incorporated into this plan. Ford. whether selling to the consumer. known as business-to-consumer (B2C). For example. or promotional elements used would be considered a strategic change. or any other large global car maker. as well as to an organization's overall marketing strategy. However. this general business strategy would be interpreted and implemented in different contexts throughout the firm. Listed below are some prominent marketing strategy models. when top management are devising the firm's strategic direction or mission. Thus. In order to entice and persuade a consumer to buy a product. Moreover. Accordingly. Each scenario requires a unique marketing strategy. if one imagines a pair of sneakers. Therefore. the consumer may search for alternative . but most commonly consists of information gathered from family and friends. Nissan. Marketing strategy The field of marketing strategy considers the total marketing environment and its impacts on a company or product or service. A tactic refers to a shorter term view. The emphasis is on "an in depth understanding of the market environment. or a ceasing of production. a company needs to weigh up and ascertain how to utilize its finite resources. Evidently. changing the pricing. but changing marketing channels of distribution.
Prior to the mass usage of the Internet. In this case. comprising an appraisal of the value/utility brought by the purchase of the sneakers. etc. Use of technologies Marketing management can also rely on various technologies within the scope of its marketing efforts. aiding in better processing and storage of data. telex. a post-purchase evaluation is often conducted. B2B buying behavior Relates to organizational/industrial buying behavior. Computer-based information systems can be employed. the fifth and sixth stages are precluded. leading to marketing managers being cognizant of the latest technological developments. B2B marketing involves one business marketing a product or service to another business. the launch of smartphones into the cellphone market is commonly derived from a demand among consumers for more technologically advanced products. etc. Information technology typically progresses at a fast rate. A firm can lose out to competitors should it ignore technological innovations in its industry. This could then develop into consumer loyalty to the firm producing the sneakers. sandals. The purchase decision is then made. and for the creation of enhanced data gathering methods. there has been a large emphasis on data analytics. Recently. such transfers of information would have taken longer to send. with some key differences listed below: In a straight re-buy. then a repeat purchase may be made. the fourth. especially if done via snail mail. as similarities and differences exist. Data can be mined from various sources such as online forms. fifth and sixth stages are omitted. the notebook personal computer has gained significant market share among laptops. mobile phone applications and more recently. If the value/utility is high. Technological advancements can lessen barriers between countries and regions. Business buy either wholesale from other businesses or directly from the manufacturer in contracts or agreements. in which the consumer actually buys the product. Information technology can aid in enhancing an MKIS' software and hardware components. In a new buy. firms can quickly dispatch information from one country to another without much restriction. Moreover. Following this stage. Services marketing . largely due to its more user-friendly size and portability. this may mean buying leather shoes. and improve a company's marketing decision-making process. Marketing researchers can use such systems to devise better methods of converting data into information. Using the World Wide Web. In recent years. In a modified re-buy scenario. all stages are conducted. B2C and B2B behavior are not precise terms. social media.means to satisfy the need/want.
The use of a service is inherently subjective. the use of the train is typically experienced concurrently with the purchase of the ticket. as opposed to tangible products. or smelled. ISBN 0-13-602660-5. tasted. Pearson Prentice Hall. Jump up ^ Vikram.. Philip & Keller.Services marketing relates to the marketing of services. Pearson Education Limited 2012 3. meaning that several persons experiencing a service would each experience it uniquely. 2009. If one buys a train ticket.com.). and thus cannot be touched. 2. L. a service is used and consumed simultaneously) It does not possess material form. Marketing Management 14e. A Framework for Marketing Management (4th ed. heard. a train ride can be deemed a service. A service (as opposed to a good) is typically defined as follows: The use of it is inseparable from its purchase (i. For example. but the food is tangible. Retrieved 21 May 2013. Jump up ^ "1". |coauthors= requires |author= (help). An example would be a restaurant. one is not paying for the permanent ownership of the tangible components of the train. Kevin (2012). . Saching. ^ Jump up to: a b Kotler. seen. Not all products are either pure goods or pure services. Services (compared with goods) can also be viewed as a spectrum. See also Advertising Consumer behaviour Consumer confusion Demand chain Distribution (Placement) Family in advertising List of marketing terms Market segmentation Media manipulation Megamarketing Multicultural marketing Outline of marketing Positioning Pricing Product Promotion (marketing) Real-time marketing Visual marketing References 1.e. "The Five Concepts of Marketing". Although the train is a physical object. Raja. where a waiter's service is intangible.
Marketing: principles and practice (4th ed. Caroline Ross (2001). Al Halborg. ^ Jump up to: a b c d e Adcock. Marketing: principles and practice. Jump up ^ "Marketing Management: Strategies and Programs". Don E. Guiltinan et al. "In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century". ISBN 9780273646778.. Marketing Management 14 (1). 6. Dennis. Schultz (January/February 2005). "Introduction". 15. 1996 7. p.). Caroline Ross (2001). ^ Jump up to: a b c Adcock. Dennis. ISBN 9780273646778. Jump up ^ Dev. Al Halborg. Chekitan S. McGraw Hill/Irwin. Retrieved 2009-10-23.4.. p. "Introduction". 16. . 5. Retrieved 2009-10-23.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.