Marketing

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Marketing
Key concepts

Product marketing
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Pricing Distribution Service Retail

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Brand management Account-based marketing
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Ethics Research

Effectiveness Segmentation Strategy Activation Management Dominance

Marketing operations

Promotional contents
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Advertising Branding

Underwriting spot Direct marketing Personal sales Product placement Publicity Sales promotion

This replaces the previous definition. and society at large. and processes for creating.[3] It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. partners. communicating. which still appears in the AMA's dictionary: "an organizational function and a set of processes for creating. clients. delivering. and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. business communication.   Sex in advertising Loyalty marketing Mobile marketing   Premiums Prizes 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 defined by the AMA as "the activity. in order to capture value from customers in return"."[2] It generates the strategy that underlies sales techniques. communicating.[3] ." [1] It can also be defined as "the process by which companies create value for customers and build strong customer relationships. and exchanging offerings that have value for customers. set of institutions. and business developments.

Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.1 Organizational orientation  3.[4] The term developed from an original meaning which referred literally to going to a market to buy or sell goods or services. Seen from a systems point of view. satisfy the customer.[citation needed] The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions.[4] It proposes that in order to satisfy its organizational objectives. and keep the customer." Contents [hide]             1 Further definitions 2 Evolution of marketing o 2.1 Earlier approaches o 2.[citation needed] The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable.2 Contemporary approaches 3 Customer orientation o 3.2 B2B buying behaviour 8 Use of technologies 9 Services marketing 10 See also 11 References 12 Bibliography o 12.2 Further reading .2 Further orientations 4 Marketing research o 4.3 Types of Market Research 5 Marketing planning o 5.2 Market segmentation o 4.1.Marketing is used to identify the customer.1.1 B2C buying behaviour o 7. sales process engineering marketing is "a set of processes that are interconnected and interdependent with other functions.[5] whose methods can be improved using a variety of relatively new approaches. With the customer as the focus of its activities.1 Herd behavior  3. marketing management is one of the major components of business management.1 Marketing environment o 4.1 Marketing strategy 6 Marketing specializations 7 Buying behaviour o 7.1 Works cited o 12.

the profession is now widely recognized as a science.[9][10] .Merchandise support. mathematics. essentially concerning consumers and end-users.and post-sales promotional activities. The overall process starts with marketing research and goes through market segmentation.[edit] Further definitions The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying. Harrison also contends that people who are shopping in a counter clockwise direction are likely to spend more money than people shopping in a clockwise direction. business planning and execution."[7] Marketing practice tended to be seen as a creative industry in the past. ‘Choice’ examined the theory of trolleyology finding that many shoppers instinctively look to the right when they’re in the supermarket.[9] [edit] Earlier approaches The marketing orientation evolved from earlier orientations. distribution and selling. 2010) states that supermarkets are constantly using different methodologies of selling. namely. anthropology and neuroscience. thus it is a biological trait that people have the tendency of veering to the right when shopping. Throughout history. the production orientation. 2010) reported that most people write with their right hand. However. marketing is defined as "the management process that seeks to maximize returns to shareholders by developing relationships with valued customers and creating a competitive advantage. because the academic study of marketing makes extensive use of social sciences. One method is performing regular overhauls changing the locations of products all around to break habitual shopping. Consumer psychologists (cited in Browne. anticipating and satisfying customer requirements profitably. Browne (2010) reveals that supermarkets spend millions of dollars intensively researching and studying consumer behaviour. sociology. Supermarkets move products around to confuse shoppers. It is also related to many of the creative arts. ending with pre. and break your budget. the entry point is another marketing tactic. the product orientation and the selling orientation. an umbrella when the weather is dull.[7] In this context. related to a perception or attitude a firm holds towards its product or service.[8] [edit] Evolution of marketing Main article: History of marketing An orientation. Found on the capturing right-hand side are usually appealing products that a shopper might impulsively buy e. Consumer psychologist Dr. The marketing literature is also adept at re-inventing itself and its vocabulary according to the times and the culture. economics. which included advertising. psychology. allowing numerous universities to offer Master-of-Science (MSc) programmes. Their aim is to make sure that shoppers leave their stores spending much more than they originally planned."[6] A different concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value. in the marketing context. Paul Harrison (cited in Browne. it is understood that supermarkets capitalize on this fact.g. marketing has changed considerably in conjunction with consumer tastes.

business marketing or industrial marketing with focus on an organization or institution and social marketing with focus on benefits to society. As an example. a customers day firm would employ market research to gauge consumer desires. and thus supplying wants of present products to suit new consumer tastes. and then utilize promotion techniques to ensure persons know the product exists. but also includes marketing done via e-mail and wireless media.[11] New forms of marketing also use the internet and are therefore called internet marketing or more generally e-marketing.Orientation Profit driver Western European timeframe Description Production[10] Production methods Product[10] Quality of the product Selling[10] Selling methods A firm focusing on a production orientation specializes in producing as much as possible of a given product or service. and using promotion techniques to 1950s and attain the highest sales possible. search engine marketing. and is sometimes called personalized marketing or one-to-one marketing. It involves a firm essentially basing its marketing plans Needs and 1970 to around the marketing concept. online marketing. Thus. Consequently. Internet marketing is sometimes considered to be broad in scope. and not determining new consumer desires as such. with little likelihood of changes in consumer tastes that would diminish demand. or otherwise sells a product that is in high demand. people would buy and consume the product. [edit] Contemporary approaches Recent approaches in marketing include relationship marketing with focus on the customer. this signifies a firm exploiting until the economies of scale until the minimum efficient scale is 1950s reached. The 'marketing orientation' is perhaps the most common orientation used in contemporary marketing. A firm employing a product orientation is chiefly concerned with the quality of its own product. . A firm using a sales orientation focuses primarily on the selling/promotion of a particular product. A production orientation may be deployed when a high demand for a product or service exists. because it not only refers to marketing on the Internet. It attempts to perfect the segmentation strategy used in traditional marketing. A firm until the would also assume that as long as its product was of a 1960s high standard. It targets its audience more precisely. 1960s Marketing[10] Such an orientation may suit scenarios in which a firm holds dead stock. this entails simply selling an already existing product. desktop advertising or affiliate marketing. use R&D to develop a product attuned to the revealed information. coupled with a good certainty that consumer tastes will not rapidly alter (similar to the sales orientation).

Western Profit driver European Description timeframe Building and Emphasis is placed on the whole relationship Relationship keeping 1960s to marketing / between suppliers and customers. A firm in the market economy survives by producing goods that persons are willing and able to buy. Every aspect of a market offering. in day either product. is driven by the needs of potential consumers. In the consumer-driven approach. Generally. marketing takes place between Building and businesses or organizations. the market change identification approach and the product innovation approach[citation needed]. consumer wants are the drivers of all strategic marketing decisions. including the nature of the product itself. marketing organizations advertising and communication to the customer are used. Consequently. Similar characteristics as marketing orientation but 1990s to Benefit to with the added proviso that there will be a Social present [11] marketing society curtailment of any harmful activities to society. production. No strategy is pursued until it passes the test of consumer research. "branding" is the main company Brand value present philosophy and marketing is considered an Branding day instrument of branding philosophy. or selling methods. ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern. Orientation [edit] Customer orientation Constructive criticism helps marketers adapt offerings to meet changing customer needs. there are three ways of doing this: the customer-driven approach. The rationale for this approach is that . Different Industrial between day forms of marketing activities. The product focus lies Business keeping 1980s to on industrial goods or capital goods rather than marketing / relationships present consumer products or end products. relations In this context. The starting point is always the consumer. such as promotion. This implies that the company focuses its activities and products on consumer demands. Many companies today have a customer focus (or market orientation). 1980s to In this context. The aim is to good present provide the best possible customer service and Relationship customer day [11] management build customer loyalty.

The other 3P's of service marketing are: process. Some qualifications or caveats for customer focus exist. treating it as only a subset of one's corporate strategy rather than the sole driving factor. The lessons drawn from this work include:   Taking customer focus with a grain of salt. even if they themselves discount the prediction. acquiring them outright. This system is basically the four Ps renamed and reworded to provide a customer focus. they simply add extra dimensions of awareness and caution to it. rather. physical environment and people. The SIVA Model provides a demand/customer-centric alternative to the well-known 4Ps supply side model (product. They do not invalidate or contradict the principle of customer focus. History attests to many products that were commercial failures in spite of being technological breakthroughs. This means looking beyond current-state customer focus to predict what customers will be demanding some years in the future. promotion) of marketing management. simply because their potential to grow and intersect with established markets and value networks looks like a likely bet. or . However. so the consumer demand on its products will decrease. Pursuing new markets (thus new value networks) when they are still in a commercially inferior or unattractive state. Value. Information. Access). → Solution Product Promotion → Information → Value → Access Price Place If any of the 4Ps were problematic or were not in the marketing factor of the business. the business could be in trouble and so other companies may appear in the surroundings of the company. price.[12] A formal approach to this customer-focused marketing is known as SIVA[13] (Solution. The work of Christensen and colleagues[14] on disruptive technology has produced a theoretical framework that explains the failure of firms not because they were technologically inept (often quite the opposite). in recent years service marketing has widened the domains to be considered. contributing to the 7P's of marketing in total. This may involve buying stakes in the stock of smaller firms. placement. 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.there is no reason to spend R&D funds developing products that people will not buy.

should a firm adhere to the marketing orientation. while the marketing department would focus on the promotion. or 6% better fuel efficiency in their vehicle. with respect to securing appropriate funding for the development. the marketing department would inform the R&D department to create a prototype of a product/service based on consumers' new desires. which may be needed to manufacture a new product. support and servicing of new capital stock. Information from an organization's marketing department would be used to guide the actions of other departments within the firm. otherwise. Additionally. Finance may oppose the required capital expenditure." Thus one could argue that the principle of customer focus. [edit] Herd behavior Herd behavior in marketing is used to explain the dependencies of customers' mutual behavior. [edit] Organizational orientation In this sense. a marketing department could ascertain (via marketing research) that consumers desired a new type of product. IT hardware and software capabilities and automobile features are examples. but only 10% of them actually buy the new items once they are offered. etc. Customers who in 1997 said that they would not place any value on internet browsing capability on a mobile phone. since it could undermine a healthy cash flow for the organization.[15] It shared mechanisms to increase impulse buying and get people "to buy more by playing on the herd instinct. or being close to the customers. a firm's marketing department is often seen as of prime importance within the functional level of an organization. bleeding red ink. Production may oppose the installation. is not violated here—just expanded upon. As an example.incubating small." The basic idea is that people will buy more of products that are seen to be popular. of the product. pricing. Interdepartmental conflicts may occur. financially distinct units within one's organization to compete against them. or a new usage for an existing product. production and promotion of the product. This might be acceptable except for the extent to which those items are money-losing propositions for the business. distribution. Other caveats of customer focus are:   The extent to which what customers say they want does not match their purchasing decisions. The production department would then start to manufacture the product. or be convinced. A lesson from this type of situation is to be smarter about the true test validity of instruments like surveys. and several feedback mechanisms to . Thus surveys of customers might claim that 70% of a restaurant's customers want healthier choices on the menu. because the value proposition of those opportunities has changed. The Economist reported a recent conference in Rome on the subject of the simulation of adaptive human behavior. might say something different today. 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. With this in mind. A corollary argument is that "truly understanding customers sometimes means understanding them better than they understand themselves. a firm's finance department would be consulted.

000 people downloaded previously unknown songs" (Columbia University. [edit] Marketing research Main article: Marketing research Marketing research involves conducting research to support marketing activities. and current information. Diffusion of innovations research explores how and why people adopt new products. which is appealing to supermarkets because it can "increase sales without the need to give people discounts. Chi-squared tests. market research is a subset of marketing research. New York). after selecting a suitable market segment. see also employer branding. collection and interpretation of data and disseminating information formally in the form of a report. etc. linear regression. gauge the nature of a firm's marketing environment and attain information from suppliers. accurate. hypothesis tests. 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. a firm may conduct research in a target market. marketing research relates to all research conducted within marketing.get product popularity information to consumers are mentioned. [edit] Further orientations    An emerging area of study and practice concerns internal marketing. A distinction should be made between marketing research and market research." a Massachusetts company exploiting knowledge of social networking to improve sales. Amazon. This information is then used by managers to plan marketing activities. As an example. custom media and reality marketing. correlations. In contrast.." Other recent studies on the "power of social influence" include an "artificial music market in which some 19. A "swarm-moves" model was introduced by a Florida Institute of Technology researcher. and ideas. The marketing research process spans a number of stages. services. Market research pertains to research in a given market. poisson distributions. including the definition of a problem. a Japanese chain of convenience stores which orders its products based on "sales data from department stores and research companies. The task of marketing research is to provide management with relevant. and the statistical interpretation of data into information. and online retailers who are increasingly informing consumers about "which products are popular with like-minded consumers" (e. eBay). binomial distributions. frequency distributions. Thus.g. development of a research plan. With consumers' eroding attention span and willingness to give time to advertising messages. valid. or how employees are trained and managed to deliver the brand in a way that positively impacts the acquisition and retention of customers. [edit] Marketing environment Main article: Marketing environment . to interpret their findings and convert data into information. Marketing researchers use statistical methods such as quantitative research. reliable. qualitative research.

[edit] Market segmentation Main article: Market segmentation Market segmentation pertains to the division of a market of consumers into persons with similar needs and wants. A firm only possesses a certain amount of resources. non-numeric or abstract concepts are required to be studied (qualitative research). There also exist additional modes of marketing research. For instance. Market segmentation allows for a better allocation of a firm's finite resources. Frosties are marketed to children. meaning research conducted to predict a future occurrence. and wants. both with similar needs. Crunchy Nut Cornflakes are marketed to adults. it must make choices (and incur the related costs) in servicing specific groups of consumers. . Predictive research. Secondary research (also referred to as desk research). Target and Position. firms are taking note of the benefit of servicing a multiplicity of new markets. describes "what is". which. pertain to numerical and non-numerical research methods and techniques. an example of primary research would be market research conducted into health foods. Primary research can also be broken down into quantitative research and qualitative research.[citation needed] [edit] Types of Market Research Market research. which. which involves the conduction and compilation of research for a specific purpose. meaning Segment. as a sub-set aspect of marketing activities. can be divided into the following parts:   Primary research (also known as field research). pertaining to research that investigates an assumption. collect and interpret from data to information. given that it is used for a purpose other than the one for which it was intended. The appropriateness of each mode of research depends on whether data can be quantified (quantitative research). Secondary research in this case would be research pertaining to health foods. but used by a firm wishing to develop an unrelated product. Nevertheless. it often can become outdated and outmoded. while secondary research is relatively inexpensive. Market segmentation can be defined in terms of the STP acronym. Kellogg's cereals. Conclusive research. traits. or whether subjective. for the purpose of deriving a conclusion via a research process. In this way. but often used to support another purpose or end goal. respectively. By these definitions. Primary research is often expensive to prepare. Accordingly. the diversified tastes of contemporary Western consumers can be served better. as the term suggests. which is used solely to ascertain the needs/wants of the target market for health foods. which are:     Exploratory research. initially conducted for one purpose. as the terms suggest. With growing diversity in the tastes of modern consumers. Descriptive research. Both goods denote two products which are marketed to two distinct groups of persons.

With this in mind. A given firm may hold numerous products in the marketplace. may be made. Moreover. the issue of divest. Therefore. a start-up car manufacturing firm would face little success should it attempt to rival Toyota. The senior management of a firm would formulate a general business strategy for a firm. this general business strategy would be interpreted and implemented in different contexts throughout the firm. A tactic refers to a shorter term view. an organization's marketing planning process is derived from its overall business strategy. a plan is required in order to effectively manage such products. (October 2009) Main article: Marketing plan The marketing planning process involves forging a plan for a firm's marketing activities. or a ceasing of production. Thus.) Please help improve this section if you can. Listed below are some prominent marketing strategy models. goods. A marketing plan can also pertain to a specific product. [edit] Marketing strategy The field of marketing strategy encompasses the strategy involved in the management of a given product. spanning numerous and sometimes wholly unrelated industries. Thus. or any other large global car maker. or telephone calls would be a strategy. firms need to reorient their marketing strategies to meet the challenges of the global marketplace.[16] [edit] Buying behaviour . Evidently. Each scenario requires a unique marketing strategy. or services being marketed. [edit] Marketing specializations With the rapidly emerging force of globalization. For example. the mailing of a postcard or sales letter would be a tactic. A marketing strategy differs from a marketing tactic in that a strategy looks at the longer term view of the products. Chevrolet. Accordingly. as well as to an organization's overall marketing strategy. sales letters. Generally speaking. Nissan. The talk page may contain suggestions. in addition to sustaining their competitiveness within home markets.[edit] Marketing planning ‹ Whether to make the |reason= mandatory for the {{cleanup}} template is being discussed. a company needs to weigh up and ascertain how to utilize its finite resources. However. a product may be reaching the end of its life-cycle. the intended marketing activities are incorporated into this plan. There are several levels of marketing objectives within an organization. See the request for comment to help reach a consensus. but a campaign of several postcards. the distinction between marketing within a firm's home country and marketing within external markets is disappearing very quickly. (Consider using more specific cleanup instructions. when top management are devising the firm's strategic direction or mission.› This section may require cleanup to meet Wikipedia's quality standards. Ford.

all stages are conducted. For example. the notebook personal computer has gained significant market share among laptops.[17] Business buy either wholesale from other businesses or directly from the manufacturer in contracts or agreements. A firm can lose out to competitors should it ignore technological innovations in its industry. known as business-to-business (B2B). in which the consumer actually buys the product. Information technology typically progresses at a fast rate. The purchase decision is then made. In recent years. if one imagines a pair of sneakers. In a modified re-buy scenario. leading to marketing managers being cognizant of the latest technological developments. and for the creation of enhanced data gathering methods. the desire for a pair of sneakers would be followed by an information search on available types/brands. then a repeat purchase may be made. B2B marketing involves one business marketing a product or service to another business. In this case. Computer-based information systems can be employed. a post-purchase evaluation is often conducted. [edit] B2B buying behaviour Relates to organizational/industrial buying behavior. or to another business. [edit] Use of technologies Marketing management can also rely on various technologies within the scope of its marketing efforts. [edit] B2C buying behaviour This mode of behaviour concerns consumers and their purchase of a given product. B2C and B2B behavior are not precise terms. as similarities and differences exist. Moreover. If the information search is insufficient. In a new buy. fifth and sixth stages are omitted. the consumer may search for alternative means to satisfy the need/want. Following this stage. If the value/utility is high. but most commonly consists of information gathered from family and friends. This may include perusing media outlets. Marketing researchers can use such systems to devise better methods of converting data into information. and improve a company's marketing decision-making process. Buying behavior is usually split into two prime strands. marketers try to determine the behavioral process of how a given product is purchased. etc.A marketing firm must ascertain the nature of customers' buying behavior if it is to market its product properly. the fifth and sixth stages are precluded. known as business-toconsumer (B2C). with some key differences listed below: In a straight re-buy. sandals. In order to entice and persuade a consumer to buy a product. whether selling to the consumer. This could then develop into consumer loyalty to the firm producing the sneakers. largely due to its more user-friendly size and portability. the fourth. comprising an appraisal of the value/utility brought by the purchase of the sneakers. the launch of smartphones into the cellphone market is commonly derived from a demand among consumers for more technologically advanced products. Information technology can aid in enhancing an MKIS' software and hardware components. . this may mean buying leather shoes. aiding in better processing and storage of data.

as opposed to tangible products. such transfers of information would have taken longer to send. Using the World Wide Web. mobile phone applications and more recently. meaning that several persons experiencing a service would each experience it uniquely. especially if done via snail mail. but the food is tangible. firms can quickly dispatch information from one country to another without much restriction. Recently. The use of a service is inherently subjective. where a waiter's service is intangible. social media. Prior to the mass usage of the Internet. Data can be mined from various sources such as online forms. tasted. An example would be a restaurant.e. etc.. one is not paying for the permanent ownership of the tangible components of the train. nor are all pure services. seen. there has been a large emphasis on data analytics. telex. [edit] Services marketing Services marketing relates to the marketing of services. and thus cannot be touched. Not all products are pure goods. the use of the train is typically experienced concurrently with the purchase of the ticket. or smelled. heard. A service (as opposed to a good) is typically defined as follows:    The use of it is inseparable from its purchase (i. Although the train is a physical object. [edit] See also                   Advertising Consumer behaviour Consumer confusion Demand chain Distribution (Placement) Family in advertising Market segmentation List of marketing terms Outline of marketing Positioning Pricing Product Promotion (marketing) Right-time marketing Targeting (advertising) Service dominant logic (marketing) Types of marketing White Space (management) . If one buys a train ticket. Services (compared with goods) can also be viewed as a spectrum.Technological advancements can lessen barriers between countries and regions. a service is used and consumed simultaneously) It does not possess material form. a train ride can be deemed a service. For example.

  Real-time marketing Multicultural marketing .

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