Saturday, January 26, 2013

The marketing Realities

Major societal forces:

Today the market place is directly different as a result of major and sometimes interlinking, societal forces that have created new behaviors, new opportunities and new challenges:
Network information technology
 
the digital revolution has created an information age. The industrial age was characterized by mass product and mass consumption, stores stuffed with inventory, ads everywhere, and rampant discounting. The information Age promises to lead to more accurate levels of production, more targeted communication and more relevant pricing.
 
Globalization 
Technological advances in transportation shipping and communication have made it easier for companies to market in other countries. And easier for consumer to buy product and services from marketer in other countries.
Deregulation
Many countries have deregulated industries to create a greater competition and growth opportunities. In United States, low restricting financial services, telecommunication, and electric and utilities have all been loosened in the sprit of greater competition.

Revitalization
Many companies have converted public companies to private ownership and management to increase their efficiency, such as British Airways and British Telecom in the UK.

And also heightened competition, industry convergence, customer resistance, retail transformation, and Disinter mediation.

The societal forces that spawned this Information Age have resulted in  many new consumer and company capabilities.



Marketing environment


The market environment consist of the task environment and the board environment. The Task Environment includes the actors of engage in producing, distributing, and promoting, the offerings. These are the company, distributor, suppliers, dealer and the target customers. In the supplier  group are materials suppliers and service suppliers, such as marketing research agencies, advertising agencies, banking and insurance companies, transportation companies, and telecommunication companies. Distributor and dealer include agents, brokers, manufactures, representatives, and others facilitate finding and selling customers.
The broad environment consist of six components: demographic environment, economic environment, physical environment, technological environment, political legal environment and social cultural environment. Marketers must pay close attention to the trend and developments in this environments and make timely adjustments to their strategies.

Competition


Competition include all the actual and potential rival offering and substitute a buyer might consider. 
 Suppose an automobiles companies is planning to buy steel for its cars. There are several possible level of competitors. The manufactures can buy steel from U.S steel in the united states, it can buy from a foreign firm in Japan or Korea, it can buy from by minimill such as Nucor at a cost savings, or it can buy aluminum from Alcoa for curtains parts to reduce the car’s weight or engineers plastics from Saudi basic Industries Corporation (SABIC) purchasers of GE Plastic, for Bumpers instead of steel. Clearly U.S Steel companies. In fact, in the long run U.S steel is more likely to be heart by substitute product than by other steel companies.

Supply chain



The supply chain is a longer channel stretching from raw materials to components to final product that are carried to final buyers. The supply chain for woman’s purses start with hides and moves through tanning, cutting, manufacturing, and the marketing channels to bring product to customer. Each company captures only a certain percentages of the total value generated by the supply chain’s value delivery system. When a company  acquires competitors or expands upstream or downstream its aim is to capture a higher percentages of supply chain value.

Marketing channels



To reach a target market, the marketer uses three kinds of marketing channels. Communication channels deliver and receive market from target buyer and include news paper, magazines, radio, and television, mail, telephone, billboard, posters, fliers, CDs, audiotapes and the internet. Beyond these, just as we convey massages buy our facial expressions and clothing, firms communicate through the look of retail stores, the appearance with their websites and many other media. Marketers are increasingly adding dialogue channels such as email, blogs and toll free numbers to familiar monologue channels such as ads.

The marketer uses distributions channel to display ,sell, or deliver, the physical product or services to the buyer or user. They include distributors, wholesalers, retailer and agents.

Value and Satisfaction


The offerings will be successful if it delivers value and satisfaction to the target buyer. The buyer chooses between different offerings based on value it is a central marketing concept. We can think of marketing as the identification, creation, communication, delivery and monitoring of customer value. Satisfaction reflects a person’s judgments of a product perceived performance(or outcomes) in relationship to expectation. If the performance falls of expectations, the customer is dissatisfied and disappointed. If it matches expectations, the customer is satisfied. If it exceeds them, the customer is delighted.

Offerings and Brands



Companies address needs by putting forth a value proposition, a set of benefits that they offer to customers to satisfy their needs. The intangible value proposition is made physic-cal by an offering, which can be a combination of products, service information and experiences.

A brand is an offering from a known source. A brand name such as McDonald carries many associations in peoples minds that make up the brands image” hamburgers, fun, children, fast food, convenience and golden arches. All companies strive to builds strong, favorable and unique brands images

Target markets, positioning, and Segmentation


A marketer can rarely satisfy everyone in a market. Not everyone likes the same cereal, hotel room, restaurant, automobiles, college, or movie. Therefore, marketers starts by dividing the market into segments. They identify and profile distinct groups of buyers who might prefer or require varying product and services mixes by examining demographic, psychographic and behavioral differences among buyers.



Wal-Mart
Wal-Mart uses segmentation to reach customer in different geographic market, with its new store of the community concept. Now over two dozen Wal-Mart stores have  been designed  to reflect the communities in which they are located. For instance, there’s a Wal-Mart with a western flair in ft. Collins, Colorado, and a two level arts-deco-inspired unit to draw in wealthy Africans Americans in Baldwin hills, California. In an effort to cater to the country’s fourth-largest Amish community, the middle field, Ohio, Wal-Mart offers hitching posts outside for hose and buggies block ice for refrigerators, and a huge assortment of denim fabric for making work pants.

After identifying market segments, the market then decides which presents the greatest opportunity—which are its target markets. For each, the firm develops a market offerings that its positions in the minds of the targets buyers as delivering some central benefits. For example, Volvo develops its cars for buyers to whom safest a customer can buy. Companies do best when choose their targets market(s) carefully and prepare tailored marketing programs.

Needs, wants and demand


Needs are basic human requirements. People need air, food, water, clothing, and shelter to survive. People also have strong needs for recreation, education, and entertainment. These needs become wants when they are directed to specific objects that might satisfy the needs. A consumer in the United States needs food but may want a hamburger. French fries and soft drinks. A person in Mauritius needs food but may want a mango, rice, lentils, and beans. Wants are shaped by our society.
Demand is wants for specific product backed by an ability to pay. Many people wants a Mercedes; only a few are willing and able to buy one. Companies must measure not only how many people want their product, but also how many would actually be willing and able to buy it.
These distinctions shed light on the frequent criticism that “market create needs” or marketers get people to buy things they do not want. Marketers do not create needs: needs preexist marketers. Marketers, along with other societal factors, social factors, influence wants. Marketer might promote the idea that a Mercedes would satisfy a person’s need for social status. They do not, however, create the need for social status.

Understanding customer needs and wants is not always simple. Some customer have needs of which they are not fully conscious, or they cannot articulate these needs or they use words that require some interpretation. What does it means when the customer asks for a ‘powerful’ lawnmower, a fast lathe an “attractive” bathing suit, or a ‘restful’ hotels?

The market must probe further. We can distinguish among five types of needs:
  1. Stated needs (the customer wants an inexpensive car.)
  2. Real needs (the customer wants a car whose operating cost, not its initial price, is low).
  3. Unstated needs (the customer expects goods service from the dealer).
  4. Delight needs (The customer would like the dealer to include an on board navigation system).
  5. Secrets needs (the customer wants friends to see him as a savvy consumer)

Responding only to the stated need may the shortchange the customer. Many consumer do not know what they wants in a product. Consumer did not know much about cellular phones when they were first introduced and Nokia and Ericsson  fought to shape consumer perception of them. Simply giving customer what they wants isn’t enough any more – to gain an edge companies must help to customer learn what they want.

Core marketing concepts:


To understand the marketing function, we need to understand the following core sets of concepts. These are given bellow in here:
  1. Needs, Wants and Demand.
  2. Target markets, positioning, and Segmentation
  3. Offerings and brands.
  4. Value and satisfaction
  5. Marketing channels
  6. Supply chain
  7. Competition
  8. Marketing environment

markets


Markets traditionally a market was a place where buyer and sellers gathered to buy and sell goods. Economics describe a market as a collections of buyer and seller who transect over a particular a product or product class (such as the housing market or the grain market). Modern economics abound in such markets.

Organizations:


Organizations actively work to build a strong, favorable and unique image in the minds of their targets publics. In the United Kingdom, Tosco’s “Every little helps”. Marketing program reflects the food marketer’s attentions to details in everything it does, within as well as outside the store in the community and the environments. The campaign has vaulted Tesco to the of UK supermarket chain industry. Universities, museum , performing arts organization and nonprofits all use marketing to boost their public image and to compete for audiences and funds. Corporate identity campaign are the result of intensive market research programs. This is certainly the case with Philips “Sense and Simplicity” campaign.

MARKETPLACES, MARKETSPACES, AND METAMARKETS


The marketplace is physical such as a store you shop in; marketplace is digital, as when you shop on the internet.
Northwestern University’s Mohan Sawhney has proposed the concept of a metamarket to describe a clusters of complementary products and services that are closely related in the mind of consumers,but spread across a set of industries. The automobile metamarket consist of automobiles manufactures, new car and use car dealers, financing companies, insurance companies, machines, spare parts dealer, service shops, auto magazines, classified auto ads in Newspaper, and auto site in the internet.
In purchasing a car, a buyer will get involved in many parts of this metamarket, and these create and opportunities for metamediaries to assist buyer in moving seamlessly through these groups, although they are disconnected in physical space. One example is Edmond’s(www.edmunds.com) a website where a car buyer can find the stated features and and prices of different automobiles   and easily click to other sites to search for the lowest price dealer for financing, for car accessories,  and for used car at bargain price. Metamediatories also serve other metamarket, such as the home ownership market, the parenting and baby care markets, and wedding markets.

Nonprofits and Governmental markets

Companies selling their goods to nonprofits organization such as churches, universities, charitable organization, and government agencies need to price carefully, because these buyers have limited purchasing power. Lower selling price affect the features and quality the seller can build into the offerings. Much government purchasing calls for bids and buyers often favor the lowest bid in the absence of extenuating factors

Global markets


Companies selling goods and services in the global market place additional decision and challenges . they must decide which countries to enter;how to enter each(as an exporter, licenser, joint venture partner, contract manufacture, or solo manufacture) ; how to adapt their product and services features to each countries; how to price in product different with other countries and how to adapt their communication to fits different cultures. They make these decision in the face of different requirements for buying, negotiating, owning, and disposing of property; different culture and legal and political system and currencies that might be fluctuate in value. Yet, the payoff for doing all this additional legwork can be huge.





ALASKA DEPARTMENT OF COMMERCE, WALMART
In 2005 alone, china accounted for $337 millions of Alaska’s export---from seafood and fishmeal to minerals, fertilizers, and wood---and surpassed Canada to became Alaska’s third-largest export partner. Nothing the huge market the potential of china, specially with the 2008 Olympic in Beijing and 2010 world expo slated for shanghai, Wall-Mart purchased about $140000 of Alaska seafood for its china store. In order to compete with white fish and farmed salmon from Norway, five Wall-Mart stores hired Alaska official to host cooking demonstration of wild Alaska sockeye salmon and black cod during a 14-days span. Although they were labor intensive, the demonstration give an immediate taste test to china’s young, sophisticated urban residents, who can pay the high prices these fish commanded.

Business market:


Companies selling business goods and services often face well-trained and well-informed professional buyers who are skilled at evaluating competitive offerings. Business buyer buy goods in order to make or resell a product to other at a profits. Business marketers must demonstrate how their product will help these buyer achieve







 
higher revenue or lower cost. Advertising can play role, but the sales force, price and the company’s reputation for reliability and quality may play a stronger one.

Friday, January 25, 2013

Keys cutomer markets:


Consider the following key customer markets : customer, global, business and nonprofits.

Consumer markets:
Companies selling mass consumer goods and services such as  soft drinks, cosmetics, air  travel, and athletic shoes, and equipments spends, a great deal of time trying to establish a superiors brand image. Much of a brand’s strength depends on developing a superior’s product and packaging, ensuring its availability and backing it with engaging communication and reliable service.

Relationship between buyer and seller



Five basis markets and their connecting flows are shown in figure …(up) manufactures go to resources market( raw materials market, labor markets, money markets,) buy resources and turn them into good and services, and then sell finished product to sell intermediaries, who sell them to consumers. Consumer sell their labor and receive money with which they pay for good and services. The government collects text revenue to buy good from resource, manufactures, and intermediary market, and uses these goods and services to provide public services. Each nation economy and the Global Economy, consist of complex interacting sets of markets linked through exchange processes.
Marketers often use the term market to cover various groupings of customer. They view seller as constituting the industry and buyers as constituting the market. They talk about need market (the diet seeking market), product market(the shoe market), demographic market(the youth market), and geographic market(the French market),or they extend the concept to cover other market, such as voter markets, labor markets and donor markets.

Figure up shows the relationship between the industry and the markets. Seller and buyer are connected by four flows. The seller sends goods and services and communication such as ads and direct mail to the market, in return they receive money and information such as customer attitudes and sales data. The inner loop shows are exchange of money for goods and services, the outer loop shows are exchange of information

Markets above


Markets traditionally a market was a place where buyer and sellers gathered to buy and sell goods. Economics describe a market as a collections of buyer and seller who transect over a particular a product or product class (such as the housing market or the grain market). Modern economics abound in such markets.

Who markets?


Marketer and prospects A marketer is some one who seek a response—attention, a purchase, a vote, a donation—from another party, called the prospect. If two parties are seeking to sell something to each other, we call their both marketers.

Marketers are indeed skilled at stimulating demand for their companies product, but that’s too limited a view of task they perform. Just as production and logistic professional are responsible for supply management, Marketers are responsible for demand management. Marketing manager are seek to influence the level, timing, and composition of demand to meet the organization’s objectives. Eight demand states are possible:
1.      negative demand—Consumer dislike the product and may even pay a price to avoid it.
2.      nonexistence demand—consumer may be unaware of or uninterested in the product.
3.      latent demand—consumer may share a strong need that can not be satisfied by an existing product.
4.      Declining demand—consumer begin to buy the product less frequently or not at all.
5.      Irregular demand—consumer purchases very on a seasonal, monthly, weekly, daily, or even hourly basis.
6.      Full demand—consumer are adequately buying all products put into the marketplace.
7.      Overfull demand—more consumer would like to buy the product then can be satisfied.
8.      unwholesome demand—consumer may be attract to the product that have undesirable social consequences.

In each case, Marketers must identifying the underlying cause(s) of the demand state and the determine   a plan of action to shift the demand to a more desire state.

Ideas:


Every market offering include an basic idea. Cherles Rebson of Reblon once observed. “In the factory, we make cosmetics, in the store we sell hope”. Production and services are both platform for delivering some idea or benefits. Social marketers are busy promoting such ideas as  “Friends Don’t Let Friends Drive Drunk” and “ a mind is a Terrible thing to waste”.

Information:


Information is essentially what books, schools, and universities produce, market and distribute at a price of parents, student and communities. Magazines such as road and track , pc world, and Vogue supply information about the car. Computer , and fashion world , respectively. The production, packaging, and distributions of information are some of our society’s major industries. Even companies that sell physical products attempt to add value through the use of information. For example: the CEO of Siemens Medical Systems, Tom McCausland, says, “[our product] is not necessarily an X-ray or an MRI, but information. Our business is really health care  information technology, and our end product is really an electronics patient record information on lab test, pathology, and as well as voice dictation.”

Properties:

Properties are intangible rights of ownership of either real property(real estate) or financial property(stock and bonds). Properties are bought and sold and these exchanges require marketing. Real estate agents work for property owner or seller, or they buy and sell residential and commercial real estate. Investments companies and banks market centuries to both institutional and individual investors

Places:



Cities, stage, regions, and whole nation compete actively to attract tourists, factories, company headquarters, and new residents. Place marketer include economic developments specialist, real state agents, commercial bank, local business associations and advertising and public relation agencies. The Las Vegus Convention and Tourism Authority spent about 80$ million on a provocative ad campaign, ”What happens here, stay here.” Returning to its roots as an “ Adult playground” Las Vegus hoped the campaign would lead to an increase from 37.4 million visitors in 2004 to 43 million visitors by 2009.

Person:


Celebrity marketing is a major business. Artists, musicians, CEOs, physicians, high profile lawyer and other professionals all get help from celebrity marketers. Some people have done a masterful of marketing themselves—think of David Beckham, Oprah Winfrey, and Rolling Stones. Managements consultants Toin Peters, himself a master at  self-branding, has advised each person to become a “brand”

Experiences:


By orchestrating several services and goods, a firm can create, stage, and market experiences. Walt Disney Magic Kingdom represents this kind of experiential marketing allowing customer to visit a fairy kingdom, a pirate ship,or a hunted house. There is also a  market for customized  experiences, such as spending a week at a baseball camp playing with retired base ball grates conducting the Chicago   Symphony Orchestra for five minutes, or climbing Mounting Everest.

Events :


Marketer promote time based events,such as major trade shows,artistic performance, and companies anniversaries. Global   sporting events such as the Olympic and the World cup are promoted aggressively to both companies and fans.

Services:


As economics advances, a growing proportion of their activities focus on the production of services. The U.S economy today consist of a 70-30 services-to-goods mix. Services include the work of airlines, hotels, cars, rental firms, barbers and beauticians, maintains and repair people, and accountants, banker’s, lawyer, engineers, doctors, software programmer, and management consultants. Many market offerings consist of a variable mix of a goods and services. At a fast-food restaurant, for example: the customer consumes a product and a service. 

Goods:


Physical goods constitute the bulk of most countries production and marketing efforts. Each year U.S companies alone market billions of fresh, canned, begged, and frozen food product and millions of cars, refrigerator, television sets, machines and various others mainstays of modern economy. Not only do companies market their goods, but thanks in part to the internet, even individuals can effectively market goods.

What is marketed?


Marketing people market 10 types of entities: goods, services, experiences, person, places, properties, organization, information, and ideas.
Let’s take a quick look at these categories:

The scope of marketing


What is marketing?
Marketing is about identifying and meeting human social needs.
One of the shortest good definitions of marketing is’’ meeting needs profitability’’  
The American Marketing Association offers the following  formal definition: Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customer and for managing customer relationship in way that benefits the  organization and it stakeholder.
Coping with thi9s exchange processes call for a considerable amount of work and skill. Marketing management take place when at least one party to a potential exchange think about he means of achieving desire response from other parties.
Thus we see marketing management as the art  and science of choosing target markets and getting keeping and growing customer through creating, delivering, and communicating superior customer value .

The importance of marketing


Financial success often depends  on marketing ability. Finance, corporation, accounting and  others business functions will not really matter if there isn’t sufficient demands for product and services so the company can make profits. There must be a top line for there to be a bottom line. Many companies have now created a chief Marketing officer, or CMO, position to put marketing on a more equal footing with other C-level executives, such as the chief executives officer(CEO) and chief financial officer(CEO). Press release from organization of all kinds—from consumer good makers to health care insure and from non profits organization to industrial product manufactures – trumpet their latest marketing achievements on their websites. In the business press, countless articles are devoted to marketing strategies and tactics.         

Making the right decisions about changes isn’t always easy. Marketing managers must decides what features to design into a new product , what prices to offer the customer, where to sell product and how much to spends on adverting ,sales, or the internet. They must also decide on details such as the exact wording or color for new packaging. The companies at greatest risk are those that fails to carefully monitor their customers and competitors and to continuously improve there value offerings. They take a sort term, sales driven view of their business and ultimately fail to satisfy there stockholder , employees, suppliers, and channel partners. Skillful marketing is never ending pursuit.

Marketing management


Defining marketing for the 20st century
Marketing is everywhere. Formally or informally, people and organization engage in a vest number of activities that we could call marketing. Good marketing has become an increasingly vital ingredient for business success. And marketing profoundly affects our day-to-days lives. It is embedded in everything we do—from the clothes we wear.


Good marketing is no accident, but  a results of careful planning and execution. It is both an Arts and a science – there’s a constant tension between its formulated side and its creative side. it is easier to learn the formulated side, which will occupy most of our attention in this site,but we will also describe how real creativity and passion operate in many companies. In this websites we lay for foundation of our study by reviewing a number of important marketing concepts, tools, frameworks, and issues.