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Marketing is both a set of activities performed by organizations and a social process. From a micro view, marketing activities are performed only by profit-oriented organizations. “Economies of scale” means that as a company produces more of a product, the total cost of production goes up. Planning, implementation, and control are basic Jobs of all managers. Strategic planning is a top management Job that includes planning only for marketing. Finding attractive opportunities and developing profitable marketing strategies are the tasks Included in the marketing manager’s marketing strategy planning Job.
A marketing strategy is composed of two interrelated parts–a target market and a marketing mix. The “four AS” of the racketing mix are People, Products, Price, and Promotion. Promotion Is composed of personal selling, advertising, publicity, and sales promotion. S. W. O. T. Analysis Is based on the idea that one of the best ways to develop a strategy is to identify and copy the marketing “strategies, weapons, outlook, and tactics” of the firm’s most effective competitor. Earning a profit probably should be one of the objectives off firm, but it should not be the only one.
A mission statement can help a manager decide which opportunities to pursue and which to screen out. Company objectives should lead too hierarchy of marketing objectives. If the cost of production per unit goes down as the quantity produced increases, small producers can be at a great cost disadvantage. In market-directed economies, unregulated monopolies are rare. The major shortcoming of competitor analysis Is that It focuses on the weaknesses of competitors-??but Ignores their strengths.
The Internet Is an Important aspect of the technological environment, but It Isn’t very useful for getting Information about competitors. The main difference between a “product-market” and a “generic market” is whether customer needs are similar or different. A generic market ascription looks at market broadly and from a customer’s viewpoint. Product type describes the goods and/or services that customers want. Market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market.
One of the difficult things about segmenting is that not every customer will neatly fit into some market segment. Saying that a market segment is “substantial” means that it contains customers from a variety of demographic variables. With the “multiple target market approach” the marketer combines two or more homogeneous supermarkets Into one larger target market as a basis for one strategy. The economic- buyer theory assumes that consumers know all the facts and logically compare choices. Economic needs are concerned only with getting the best quality at the lowest price.
In 2010, 50 percent of U. S. Families received less than $49,445 in According to the text, consumer buying decisions are influenced by economic needs, psychological variables, social influences, and the purchase situation. A drive is a strong stimulus that encourages action to reduce a need. Consumers do not usually see or hear all the stimuli that come their way. There are more final consumers than cuisines and organizational customers, so more is purchased by final consumers. Organizational buyers are often referred to as the BIB market.
Business and organizational customers are selective buyers who buy for the sole purpose of resale. Dependability of supply is usually much less important than price for most business customers. A description of what a firm wants to buy is called its purchasing specifications, whether that description is written or electronic. ISO 9000 is only relevant to international suppliers. A buying center is generally thought of as all the people who participate in or influence a purchase. Marketing research focuses on changing information needs while an MIS focuses on recurring information needs.
A data warehouse is filled with file cabinets and binders where past market research is stored. A marketing model displays up-to-the-minute marketing data in an easy to read format. Use of the scientific method in marketing research helps managers make the best decisions possible. Hypotheses are educated guesses about the relationships between things or about what will happen in the future. Qualitative research seeks clear yes or no answers. A focus group interview involves interviewing 6 to 10 people in an informal group setting.