This article has multiple issues. Please strategic marketing management by philip kotler pdf improve the article by merging similar sections and removing unneeded subheaders.
Wikipedia editor’s personal feelings about a topic. Unsourced material may be challenged and removed. Marketing is used to create, keep and satisfy the customer. With the customer as the focus of its activities, it can be concluded that Marketing is one of the premier components of Business Management – the other being Innovation. The term developed from the original meaning which referred literally to going to market with goods for sale. The process of marketing is that of bringing a product to market. The ‘marketing concept’ proposes that in order to satisfy the organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.
Marketing and marketing concepts are directly related. Something necessary for people to live a healthy, stable and safe life. When needs remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Something that is desired, wished for or aspired to.
Wants are not essential for basic survival and are often shaped by culture or peer-groups. When needs and wants are backed by the ability to pay, they have the potential to become economic demands. Customer needs are central to market segmentation which is concerned with dividing markets into distinct groups of buyers on the basis of “distinct needs, characteristics, or behaviors who might require separate products or marketing mixes. Although needs-based segmentation is difficult to do in practice, has been proved to be one of the most effective ways to segment a market. In addition, a great deal of advertising and promotion is designed to show how a given product’s benefits meet the customer’s needs, wants or expectations in a unique way. A marketing orientation has been defined as a “philosophy of business management.
A firm employing a product orientation is mainly concerned with the quality of its own product. A product orientation is based on the assumption that, all things being equal, consumers will purchase products of a superior quality. The approach is most effective when the firm has deep insights into customers and their needs and desires derived from research or intuition and understands consumers’ quality expectations and reservation prices. Although the product orientation has largely been supplanted by the marketing orientation, firms practising a product orientation can still be found in haute couture and in arts marketing. Consequently, this entails simply selling existing products, using promotion and direct sales techniques to attain the highest sales possible. The sales orientation “is typically practised with unsought goods.
One study found that industrial companies are more likely to hold a sales orientation than consumer goods companies. The approach may also 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 diminishing demand. The so-called production era is thought to have dominated marketing practice from the 1860s to the 1930s, but other theorists argue that evidence of the production orientation can still be found in some companies or industries. The marketing orientation is perhaps the most common orientation used in contemporary marketing. It is a customer-centric approach that involves a firm basing its marketing program around products that suit new consumer tastes. D to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure consumers are aware of the product’s existence and the benefits it can deliver.
Scales designed to measure a firm’s overall market orientation have been developed and found to be relatively robust in a variety of contexts. In this sense, a firm’s marketing department is often seen as of prime importance within the functional level of an organization. Information from an organization’s marketing department would be used to guide the actions of other department’s within the firm. The production department would then start to manufacture the product, while the marketing department would focus on the promotion, distribution, pricing, etc. Additionally, a firm’s finance department would be consulted, with respect to securing appropriate funding for the development, production and promotion of the product. Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation. Production may oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new product.
Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the organization. As no-one has to buy goods from any one supplier in the market economy, firms must entice consumers to buy goods with contemporary marketing ideals. Instead, marketing activities should strive to benefit society’s overall well-being. Marketing organisations that have embraced the societal marketing concept typically identify key stakeholder groups such as employees, customers, and local communities. They should consider the impact of their activities on all stakeholders.
During the 1940s, the discipline of marketing was in transition. Interest in the functional school of thought, which was primarily concerned with mapping the functions of marketing was waning while the managerial school of thought, which focussed on the problems and challenges confronting marketers was gaining ground. Many scholars and practitioners relied on lengthy classifications of factors that needed to be considered to understand consumer responses. Neil Borden developed a complicated model in the late 1940s, based upon at least twelve different factors. According to Borden’s own account, he used the term, ‘marketing mix’ consistently from the late 1940s. In the mid-1960s, Borden published a retrospective article detailing the early history of the marketing mix in which he claims that he was inspired by Culliton’s idea of ‘mixers’, and credits himself with coining the term, ‘marketing mix’. Borden’s continued and consistent use of the phrase, “marketing mix,” contributed to the process of popularising the concept throughout the 1940s and 50s.