Marketing
The management process responsible for identifying,
anticipating and satisfying customer requirements profitably.
anticipating and satisfying customer requirements profitably.
According to American Marketing Association Board of Directors:
“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”.
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large”.
Concepts
in Marketing:
Production concept:
A firm
focusing on a production orientation specializes in producing as much as
possible of a given product or service. Thus, this signifies a firm exploiting
economies of scale until the minimum efficient scale is reached. A production
orientation may be deployed when a high demand for a product or service exists,
coupled with a good certainty that consumer tastes will not rapidly alter
(similar to the sales orientation).
Product
concept:
A firm employing a product orientation is chiefly
concerned with the quality of its own product. A firm would also assume that as
long as its product was of a high standard, people would buy and consume the
product.
concerned with the quality of its own product. A firm would also assume that as
long as its product was of a high standard, people would buy and consume the
product.
Selling
concept:
A
firm using a sales orientation focuses primarily on the selling/promotion of a
particular product, and not determining new consumer desires as such. Consequently,
this entails simply selling an already existing product, and using promotion
techniques to attain the highest sales possible. Such an orientation may suit
scenarios in which a firm holds dead stock, or otherwise sells a product that
is in high demand, with little likelihood of changes in consumer tastes that
would diminish demand.
firm using a sales orientation focuses primarily on the selling/promotion of a
particular product, and not determining new consumer desires as such. Consequently,
this entails simply selling an already existing product, and using promotion
techniques to attain the highest sales possible. Such an orientation may suit
scenarios in which a firm holds dead stock, or otherwise sells a product that
is in high demand, with little likelihood of changes in consumer tastes that
would diminish demand.
Marketing concepts:
The
‘marketing orientation’ is
perhaps the most common orientation used in contemporary marketing. It involves
a firm essentially basing its marketing plans around the marketing concept, and
thus supplying products to suit new consumer tastes. As an example, a firm
would employ market research to gauge consumer desires, use R&D to develop
a product attuned to the revealed information, and then utilize promotion
techniques to ensure persons know the product exists.
‘marketing orientation’ is
perhaps the most common orientation used in contemporary marketing. It involves
a firm essentially basing its marketing plans around the marketing concept, and
thus supplying products to suit new consumer tastes. As an example, a firm
would employ market research to gauge consumer desires, use R&D to develop
a product attuned to the revealed information, and then utilize promotion
techniques to ensure persons know the product exists.
Relationship
Marketing:
Emphasis is placed on the whole relationship between
suppliers and customers. The aim is to provide the best possible customer
service and build customer loyalty.
suppliers and customers. The aim is to provide the best possible customer
service and build customer loyalty.
Business
Marketing:
In this context, marketing takes place
between businesses or organizations. The product focus lies on industrial goods
or capital goods rather than consumer products or end products. Different forms
of marketing activities, such as promotion, advertising and communication to
the customer are used.
between businesses or organizations. The product focus lies on industrial goods
or capital goods rather than consumer products or end products. Different forms
of marketing activities, such as promotion, advertising and communication to
the customer are used.
Social
Marketing:
Similar characteristics as marketing orientation
but with the added proviso that there will be a curtailment of any harmful
activities to society, in either product, production, or selling methods.
but with the added proviso that there will be a curtailment of any harmful
activities to society, in either product, production, or selling methods.
Branding:
In this context, “branding” is the main company philosophy and
marketing is considered an instrument of branding philosophy.
marketing is considered an instrument of branding philosophy.
