Describe the concept and principles of marketing. In this task I have been asked to write about what is marketing principles and concepts, and also go though what are the 6 elements of Marketing Mix. The list of marketing principle and concept that I will be talk about are; * Overall concept * Marketing definitions * Marketing principles * Marketing activities * Marketing objectives (SMART) * Marketing functions Links between organisational objectives and marketing objectives * Use of marketing principles, e. g. public, private and voluntary organisations, retail consumers, government departments and agencies. * Planning, control and evaluation processes * Development of e-marketing Marketing principles and concepts: Overall concept: The overall concept of marketing means the business focused their intention on want their consumers want and need.
They put their consumers at the center of the business decision and planning of their further directions. This can also be known as marketing-orientated; there are four main types of concept in marketing concept; * The production concept – this concept concentrate on how their consumers would like the product to be which would be lower price and wildly available which means they have to manage their production management and consider the economies. Selling concept – this concept says that if a consumer is walking pass an ordinary product, they would not have the attention of buying the product therefore in order to encourage the consumers to buy their product, aggressive in setting the prices as in putting up a sales. * Product concept – this concept means that a business should create their own product which has its own selling point and its own market. The product should be the most modern and top quality that will stand out from the else of the product within the same industry. Marketing concept – this concepts state that businesses are best meeting their objectives and goals by identify the satisfaction of their consumers and concentrate at what the consumers want and need. Those four concepts are extremely important for any companies bring out their new products or services, because if they have followed those four concepts before they create their product than they should be end up with a product/services which is what the consumers want and need, selling at a attractive price and it has its own market.
But you would find that in order to create should product would be tremendously difficult as many different film has been drive out of business because they wouldn’t come up with another attentive product/services. Marketing definitions: It is the marketing management parts to gather as much data from their consumers than to analysis those data, they would be able to find what are they consumers thinking and want kind of requirements do they have for the further product.
Therefore after they have evaluated and analysis the data which they have collect, they should be able to identify the next product they need to produce. A lot of research can tell what are the consumers are think at that point of time, but what a business need to keep in mind is that in order to do an efficient research it would a company consider amount of time and than they would have to discuss will all the designers and directors that what product can they come up with in order to meet those need of the consumers.
After a design has been approved, production will than be in process, the whole process from gathering the data to actually producing a product which can meet the consumer’s need would take extensive amount of time. Therefore by the time they have manage to analysis all the data, come up with a design which can meets all those requirements the trend of the market and the thoughts of the consumers would have been changed.
That is why it would be a good idea to use the data they have collect instead of consecrate on the current market use those figures and values to predict the further market, to create a market which didn’t excised (as in create a new type of product that has its own value and its market. Once the new product has been decided production and advertisement would be issued and a further research on the new product would be necessary, so the company can see how successful their predictions have become. Market principles: In marketing principles there are four main goals; Understanding consumer needs – companies need to understand the market change extremely fast, if your company cannot keep up with the new tend it would be easy to get eliminate by the market. Its essential for a business to keep an eye out for what new product did the competitors bring in the recent time, because it would be a waste of time and effort if they cannot produce a better price or quality than their competitor’s product. For instants CDs players and walkman are getting replace by mp3 player and iPods, therefore there would be no point producing another CD player when there wouldn’t be anyone buying it. Keeping ahead of competition – its important for a company to keep on top of their competitors because as i have mention in the ‘Understanding consumer needs’ it would be pointless to product a product which can not beat your competitors excising products. * Communicating effectively with consumers – just because a company can come up with a product that can satisfy all the needs of the consumers, it still wouldn’t guarantee its going to be a successful product. If a product is not selling at a price that their consumers can afford no matter how good your products are, if they can afford it, than they simply wouldn’t buy it. Utilising new technology – the market change quick, therefore lots of new technology and machinery would also developed from the high demand market. It’s important that a business can keep up-to-date with all the equipments and technologies which can help the business in any way such as product better quality product or increase the worker speed. Marketing activities: Marketing activates are the day-to-day jobs which a few people would be in charge of in the marketing department in order to keep up-to-data which the market trend. * Research for any new product concepts and new promotional ideas. Taking care of all the advertisement activities such as coming up ideas for TV commercials, booking airtime with the radio in order to advertise their product though radio. * Looking at the pricing trend of the market so they can estimate the price they need to sell their new product at. All the action with in this tasks would be noted down and a marketing plan would be written which determines what marketing activates would be needed and it also help to control and evaluate who is doing what job with in the marketing department.
Marketing objectives (SMART): SMART should be the most effective way to put your marketing objective though to another person or company, because in SMART it includes; * Specific – This requires you to state what exactly you are trying to achieve. * Measurable – This is asking you to state the change in figures which affect the business. * Achievable – This state the solution which are needed in order to achieve the goal. * Realistic – This is asking you to show realistic objectives, which can actually be achieve. Timbale – Is the amount of time given on the objective appropriate. Marketing functions: Marketing function basically are the area where the marketing department tryint to improve in order to achieve the marketing principle, there are number of marketing function but as for some of the most important functions includes; * Establish distinctive identity for a product or organization; In order to survive in today’s industry not only quality product can guarantee a company to a save place in the market.
In order to ensure your company have a save place in the industry a company must have there own distinctive identity compare to their competitors. A distinctive identity is an image where it’s a reputation of the firm, that image can be an picture, logo, symbol or a design; for instance, Nike, they have a very distinctive identity within the sport equipment industry, each time when people mention the name Nike an instant image of the “tick” would come up on the consumer’s head and regionalized as the symbol for Nike, and that is an distinctive identity.
Corporate images are closely linked to distinctive identity because corporate image is a image that represents the company or even industry, take an example of computers (PC) every time when consumers are talking about PCs the name of Microsoft window would always get mentioned and the Image of the Microsoft window flag would always pop in to people’s mind. “Corporate image definition – Mental picture that springs up at the mention of a firm’s name. ” Refenaaces
The meaning of corporate image is the a mental image that spring into their consumer’s mind when the name of the product is mentioned and which Microsoft and Nike have succeed in. The benefit of creating a corporate image in their consumer’s mind is that it gives the firm a better advantage compare to their competitors because if the image is first thing a customer can think of after the product has been mentioned than it would be most likely that customer will check out the product of that company. Plan, coordinate and monitor the marketing mix; It’s important for a company to understand where they have spent their resources on, it’s the same with the marketing mix and it’s the marketing department which is in charge of doing so. Marketing mix can be known as the 4Ps; Place, Price, Promotion and Product for products and the 7Ps; Place, Price, Promotion, Product, People, Processes and Physical evidences for services.
Planning and coordination is needed between the marketing mix is because for instance; there is a batch of old stock which needed to get ride of before they can buy in the new stock therefore they would have to coordinate the Product with the Price because in order to get ride of the old stock in short amount of time one of the best method is to put those old stock on sales which that would get ride of the stock quickly but the amount of income would be affected. * Coordinate marketing activities effectively;
In order for the marketing department to work effectively there must been a good coordination between the functional departments for instances marketing department think its is good time to launch a new product but in order to do so the marketing teams must corporate with other departments such as the design and promotion department. Regular updates from all the department are needed because they need to know the process on each others department and in order to meet the deadline which they set to each other.
That is why good coordination is need between the marketing activities and other departments because if they are not coordinated than they would have waste a lot of time in the process of gathering information of each other. The link between organisational objectives and marketing objectives: The plan for marketing objective must be in common and support the overall business objective. When they are setting up their objectives they must put the overall business objective in consideration, because it would be pointless to carry out any marketing activities if they are not related or help the overall objective.
Planning Level| Content| Corporate mission statement| Overall vision, e. g. to be the market leader. | Corporate objectives (over all business objective)| What has to be achieve to deliver the vision, e. g. to achieve a market share of 35%. | Marketing objectives| Marketing contribution to the corporate objective, e. g. launch six new products into our main market. | Marketing plan| Marketing tactics to be used, e. g. promote on national TV throughout year. | This piece of information is taken from: Btec national business book 1.
Use of marketing principles: As a marketing manager, it’s important for him/her to apply marketing principle to many different situations and many different types of businesses. It’s offend that the environment of the business would have an effect on the aspect of the four marketing principles, so it’s important for an marketing manager to understand what aspect is needed to apply in different types of business. In the table below it will illustrate the different types of business require different marketing principle; Refernecs
Planning, control and evaluation processes; Before the recent years marketing planning used to be very unstructured, lots of resources are wasted due to the inefficient planning, monitoring and evaluation marketing. Different function departments was not cooradiant with the same direction, they would carry out different activives which do not have the same purpose for instants: the sales department would carry out investigation on cutting prices and putting up a sales meanwhile when the marketing department are working out how to rise the profit margin.
But now businesses carry out a lot more effective marketing by planning monitoring and evaluation the process. By using more advance planning tools and sophisticated techniques they are now able perform much more efficient marketing and able to connect all the function to work at the same direction. There are lots or different reasons why well structured planning culture is required in order to prove a higher chance for the company to become successful; * To provide a higher competitive marketing environment To obtain better trained marketing labor focus using the latest planning tools and more sophisticated marketing techniques. * To improve the coordination between the functional departments within the firm. There are many benefits from developing a professional marketing planning culture; the main benefit of having a marketing planning culture is it provides opportunity for the entire organisation to understand what are the main objective and allowing them all work together at the same direction.
By doing so the firm would also cut down on their expenses because the function can share the information that they have with other department and know which information is needed. In the table below it should point out more range of benefits of having a marketing planning culture. Refernacs Monitoring is also an important point in marketing, if the process of marketing is not been monitored how would the company know how much resources are spend on where. All the activities they carried out are a cost and expense to the company, so it’s important to set a guideline on there results (standard of quality).
After they have finished with their research and activities they company will compare the information or result to the standard they have set, and it’s the standard is not been achieve the company will than question the capabilities of the marketing department and question if it’s worth providing the recourse to the marketing department. That is why the process of marketing is needed to be monitored, so that the company can see watch resources is used at where.
No matter what type of research the marketing department is doing, at the end of the day those activities will be a cost or expenses to the company that is why a careful monitored marketing would need to be able to provide the firm with accurate and effective information that allows the firm to have a new idea of market and also rise their awareness to any threats or potential threats such as competitors and new products, because the marketing department needs to prove to the firm that their expenses they proved its worth the value.
Development of e-marketing: E-market basically stands for (electronic marketing; can be via mobile phone, telephone and computer) over the last twenty years they have been dramatically increased. In about twenty years ago e-market didn’t even exist but now it has become one of the most important methods to keep a company running. Such as e-Bay, Amazon, EasyJet, play. com and Dixon they are all internet based company, if the internet wasn’t exist either would those company.
The introduction of e-marketing have change the nature of the original marketing, it made marketing much easier on gathering the information and improved on the business’s service towards their customers. Here are some benefits of develop of e-marketing; * Gathering information has become so much easier by using the internet, a lot of businesses prefer using the internet to as their consumers to fill in a survey or a questionnaire and in return the company offers the consumer with a free simple or trail of their product, and by using the internet search engine secondary research can be view within a click of the mouse. The internet has also improved over the years which allows different programs or functions to operate on the website, from been only able to sent out junk mail to all of their consumers they can now automatically offer suggestions that the consumers might be interesting in, such as the Amazon and eBay. * The internet have now become of popular method for company to promote their product, such as pop-up websites and links they are offered used by the companies who would like to promote their product but haven’t got enough money to advertise on the TV, or Radio.
As for other companies who have more resources they would create they own website which allows their consumers to check on their website when ever they want. * With help of internet customers can be a lot more responsive, by going to their website they can express how they feel about the product or company, and in terms of marketing they can gather a lot of using and responsive views from the customers. Refenancs Departments and agencies: se of marketing principles, eg public, private and voluntary organisations, retail consumers, government departments and agencies;| Marketing mix: Marketing mix is referring to the controllable elements of a product’s marketing plan. In order to launch a new product or to make a product successful a marketing plan must be developed. In marketing mix they can be the 4Ps; Price, Place, Promotion and Product for products, and the 7Ps; Price, Place, Promotion, Product, People, Process and Physical evidences for services.
Both the 4Ps and 7Ps are very important in order to analysis whether if it’s a successful product or service. Price – price is the amount of money is require in order for the customers to acquire the product. The price is an important factor in a product and service, if the product or service is charged at a ridiculous high price no one would buy it no matter how good is the product, because the customers would think that the product is not good for it value.
Place – place is the location which the product will be sell and the place where consumers can obtain the product or services. A lot of consideration would be needed in the location of selling the product because they have to think whether if it appropriate place to sell their product or service, for instances a shopping center such as merry hill or bullring, they wouldn’t expect to open a car motoring shop that because it’s not an appropriate place for such business.
Promotion – promotions are all the activities which advertise the product or services and make sure the consumers would identify the benefit of the product or service. Promotion is likely to combine with sales, as a lot of companies would advertise their product when it’s on sales in order to attract more customers. Product – product can refer to a product or a service which the company had to offers to their customers.
For example; a fruit store, their product are fruits and a clothes store (Burton or River Island). Those 4Ps are usually used to describe a product, but in order to describe a service a business would have to use the 7Ps to be more detail and accurate. The extra 3Ps from the 4Ps are; People – people are referring as the labor of the organization they are the people who carry out the service to the customer and aiming to satisfy the customer’s need and desire.
Offend the reason for a consumer remain as a customer is because the person who provided service to the customer shown high level attitude, skills and appearance which satisfy the customer. For instance; when people go to salon or beauty treatment companies they offend ask for a certain staff which they are familiar with or sometimes a customer is buying the good or service based on the people such as hairdressers and fashion designers.
Processes – processes is the system of services which the entire company had to offer to their customers. These systems includes from helping the customer to pick out the product they want, process of paying, delivering the product to the doors of customers, give instructions and advise on the product and service to undertaking repairs, refunds and compensations all those services are listed in the processes.
The system of services must be customer friendly in order to remain good connections between the firm and the customers, for instances; when a product has been relieved to a customer but the customer have come to realized the product was faulty and required for an refund or repair, the company must provide the service in the easiest and the most efficient way possible, because in the process of returning companies are offend ask the customer to fill out a long complicated form which may irritate the customers and sometimes the customers have to make numerous phone calls in order to keep track of the repairing process.
If irritation occur on a customer its likely that customer will no longer be a customer because he/she will go and find a company will do offers the kind of service they require that is y its important to keep good relationship between the customer and the firm thought the Processes.
Physical evidence – physical evidence are the all the little stuff which create a comfortable atmosphere or a suitable setting for the customer for instance a hotel would provide their customers with towels, toothbrush, pan, paper and etc, but providing these supplies it would create a caring and well prepared atmosphere to their customers. A comfortable atmosphere can also be created by many other factors such as uniform, food and drinks, newspaper, layout, design and etc in different businesses different physical evidence is needed in order to create a comfortable but suitable atmosphere. Reference Referance