Marketing in Business

Significance of Marketing in Business

• Successful marketing is the primary goal for most businesses.
• Marketing is understanding customers, building relationships, and promoting products/services.
• Marketing influences customers to buy products or services.
• Finances become stable and successful through effective product/service marketing.
• Human resources are essential for a business to function.
• Marketing helps sell products, even with a full warehouse, increasing the likelihood of profit.
• Marketing makes a company noticeable, increasing customer choice compared to competitors.
• Manufacturers use marketing for production and trade advantages, controlling their output.
• Marketing is dynamic and has changed significantly, impacting production and distribution.
• Marketing helps understand consumer preferences, allowing companies to adjust production and distribution.
• Marketing is crucial for a flourishing economy, facilitating sales and economic stability.

Marketing Scope

• Has an extremely broad reach
• Covers activities from idea formation to profit generation
• Consumer wants and needs are the foundation for creating suitable goods
• Studying consumer behavior is crucial for segmenting, targeting, and positioning products
• Product planning and development involve research, segmentation, and attribute/quality determination.
• Many firms use branding for reputation, investment opportunities, and customer trust.
• Packaging serves as a container and a marketing tool to attract customers
• Well-designed packaging improves product usability and transport
• Distribution channel decisions are important for marketing and sales managers, determining the best channels like wholesaling and retailing
• Pricing policies are determined by the marketing manager, considering competition, product lifecycle, and marketing goals.
• Sales management is a key component, including customer identification, need assessment, and customer service.
• Promotion involves personal selling, sales promotion, and advertising to achieve marketing goals.
• Finance is necessary for all marketing activities, including packaging and distribution.
• After-sales services help maintain customer relationships through maintenance, repairs, and query resolution.

Marketed Entities

• Seen as the duty of creating, promoting, and delivering goods and services
• According to Ferell and Hartline (2013), marketing people are involved with ten types of entities

Goods

• Physical goods comprise much of a country's production and marketing effort.
• Companies market various products, and internet companies also market them.

Services

• Focus is on services as well as goods.
• Includes airlines, hotels, and car rentals, plus professionals like accountants and lawyers.

Events

• Events, like trade shows and concerts, are promoted by marketers.

Experiences

• Marketers create experiences by mixing goods and services.
• Enchanted Kingdom represents experiential marketing.

Persons

• Film stars and athletes have agents for marketing themselves.
• Each Person can develop themselves as a brand

Places

• Cities and countries compete to attract tourists.
• Marketing for factories, new residents, and businesses occurs

Properties

• Includes real (estates) and financial (stocks/bonds) properties.
• Marketing increases necessity of ownership.

Organizations

• Dynamically attempt to build an image.
• The orgainzation's good will supports trust and reliability.

Information

• Created and promotes a product.
• The production packaging, and distribution of information is key to any industry.
• Includes educational institutions, encyclopedias, non-fiction books, specialized magazines, and newspapers

The Idea

• Each market offering consists of a basic idea.
• Products and services are used as instruments for conveying some idea or benefit
• Social marketers promote ideas, such as safe driving and anti-smoking campaigns.

Marketing Core Concepts

• Human needs are states of felt deprivation.
• Unmet needs are a prerequisite to marking activities
• The satisfaction of consumers' needs is what marketing attempts to do
• Needs are physical, social, and personal.
• Unsatisfied needs are psychological tension.

Types of Needs

Existing Need

• Short term, readily obtainable needs
• Many businesses gratify the existing needs of customers
• Since it is a common market, there is a fair amount of competition.

Latent Need

• Customer needs which are there but have not yet manifested because such a product has not been launched
• Companies tap the latent needs of customers need a lot of innovation and could possibly go wrong
• Creates fantastic profitability because they cater to customers needs
• Ex: Sony Walkman and Apple iPod

Incipient Need

• A type of need that people want, but there is no product to satisfy that need
• The incipient need could turn into a window of opportunity
• The newspaper industry was in a difficult position of having to rethink itself

Wants

• A form of human needs influenced by culture and individual personality
• Wants are the choices to gratify a particular need.

Demand

• The want for particular products that are supported by the ability and willingness or readiness to buy them.
• It is at all times conveyed in relation to time
• Often, a marketer endeavours to control demand by creating an eye-catching, reasonably priced, and easily obtainable product
• The quantum and timing of demand is called demand management

Positive Demand

• The desire of getting the product or service;
• Ability to pay for the product or service
• Intention to pay for the product or service

Negative demand

• Market dislikes the product, hence seeks to stay away from it
• Ex: Dental Work and Insurance

No demand

• Customers are unaware and uninterested in the product
• Ex: Farmers w/ latest farming methods and college students w/ a foreign language course

Latent demand

• A demand which the customer realizes later
• Ex: Smartphones with new features

Declining demand

• Demand decreases over a period of time
• Ex: Walkmans when CD Players were introduced

Irregular demand

• Demand is not steady.
• Ex: Umbrellas and air conditioners

Full demand

• Company must constantly have filled demand.
• That the demand is satisfying the supply potential of the company.

Overfull demand

• The companies manufacturing capacity is inadequate but the demand is above the supply.
• Numerous companies use de-marketing techniques

Unwholesome demand

• in unwholesome demand, the customer should not be using the product, yet the customer desires the product badly
• Ex: Cigarettes, narcotic drugs, alcohol, pirated movies, guns, and others.

Marketing Offers

• A mixture of products, services, information, or experiences presented to a market to gratify a need or want

Product

• Anything that can be offered to a market for attention, acquisition, use or consumption
• Consists of core product (basic contents or utility), product related features (color, branding, packaging, labeling, varieties, others) and product-related services (after-sales services, guarantee and warranty, free home delivery, free repairing, etc.)

Service

• Any activity or benefit that one party can present to another that is basically intangible and does not result in the ownership of anything

Experiences

• Knowledge or skill which is gained from doing, seeing or feeling things.

Marketing Definitions

• Utility means an overall ability of a product to gratify need and want.
• Costs the price of a product
• The definition suggests that there will be desired and perceived value
• Is a person's feeling of delight or displeasure as a result of comparing a product's perceived performance in relation to his or her expectations.

Exchange, Transaction, Relationships, and Network

• Exchange is at the heart of marketing.
• When an agreement is achieved, it becomes a transaction.
• Requires trust, commitment, cooperation, and a high degree of understanding

Definition of Terms

Market

• All possible customers sharing a particular need or want who might be eager and able to engage in exchange to gratify this need or want.

Marketing

• Social and managerial process by which individuals and groups get what they need and want by creating and exchanging product and value with others.

Marketer

• One who seeks one or more buyers to engage in an exchange.

Prospect

• Someone to whom the marketer spots as possibly agreeable and able to engage in the exchange.

Lesson 2

• Management information systems designed to support marketing decision making.

Types of Environment

Internal Environment

• Objectives.
• Goals, missions, and visions
• Strengths and weaknesses
• Quality and uniqueness

External Environment

• Threats and opportunities

Macro Environment

• Uncontrollable/ laws and policies, consumers, competitors

Micro Environment

• can control

Major Force in the Macro Environment

• Political
• Economic
• Socio-cultural
• Demographic
• Ecological
• Technological

Components of Marketing Information System

Internal Records

• Records comprising of sales data, customer database, product database, financial data, operations data

Marketing Intelligence System

• Provides data about what is happening in the market.

Marketing Research

• Systematic collection, organization, analysis and interpretation of the primary data or secondary data

Marketing Decision Support System

• Includes several software programs to use to collect data

Analyzing Competititve Environment

Direct Competitors

• Same business w offers same products

Indirect Competitors

• Offer a type of product or service or same nature but difference product

Five Porter Forces

Threat of New Entrants

• The amount of companies that can enter an industry

Threat of Substitution

• Opportunities where customers can substitute one product of service for another

Bargaining Power of Buyers

• How much impact customers have on pricing structures

Bargaining Power of Suppliers

• The amount of control due to their prices and terms of supply.

Rivalry of Existing Competitors

• The amount of competition that your business faces