Consumer requirements. Contemplating consumer requirements and Satisfying consumers, which leads to profitability. Task 1. 1 Explain the various Elements of the marketing Process The Marketing Process Cite marketing process consists of four steps. These four steps are all completed with the goal of creating value for your target customers. Some elements of the steps are performed continuously, such as monitoring the marketing environment.
Some are done annually, such as the annual Lastly, some of the steps, if done correctly, should last for decades, such as segmentation, targeting, and positioning. Situation Analysis Marketing Strategy Marketing Mix Decisions Implementation & Control Scanning the Marketing Environment Marketing Strategy: Targeting This is where you do your homework prior to developing marketing plans. Marketing textbooks speak of the “uncontrollable elements” facing the marketer, and these are the items that you need to study.
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The number of groups of these uncontrollable elements varies from one marketing textbook to another, but here’s a convenient list of the areas with which you need to be familiar: Economic factors Demographic elements Technological trends Political/legal events Social/cultural environment Competition Marketing Strategy: Segmentation Marketing Strategy: Segmentation Customers are different; they have different wants/needs. “One size fits all” is not a good approach to marketing because when you try to be everything to everyone, you end up being nothing. There was a time when Coca-Cola only produced one product offering, the classic 6. Ounce bottle. Perhaps customers’ wants/needs were less diverse. 0 Today, Coca-Cola offers multiple sizes of its classic cola, sizes, caffeine-free extensions, and a host of other flavors as alternative brands. Marketing Strategy: Segmentations Henry Ford is perhaps the classic example of the mass marketer. “People can have a Model T in any color they want, as long as it’s black. ” While Ford’s approach sold 1 5,456,868 Model It’s, it also nearly bankrupted the company as Henry waited until the company was on its knees to introduce the successor Model A. Today marketers can’t afford to ignore the market segments in their product category. Your competitors are going to figure out what the market segments are. 0 If you enter the market with a product or service that’s for everybody, your competitors are going to develop a market offering for each market segment. Because their offering is tailored to the customers in a given market segment, those customers will prefer your competitor’s offering and purchase it. Your competitors will take your customers away from you, segment by segment. Because consumers are motivated by internal wants/needs, which are difficult to understand, segmentation in consumer goods categories can only be accomplished through marketing research. Olin business to business categories, the motivation of end-users is straight forward economics. Thus, their wants/needs vary by more easily understood factors, such as the size of the firm, application of the product or service, type of business, etc. Targeting is nothing more than selecting those customers that you are going to serve; and, by Targeting is a concept that is difficult for some sales- oriented businesses to grasp.
For the salesperson, making their quota and getting their bonus is the goal. Thus, any sale is good regardless if it’s to the wrong customers. Abut selling the wrong product to the wrong customers can get your brand in trouble as the product may not perform up to their expectations. Marketing Strategy:segmentation 0 Professor Kettle tells us that selection of a target market segment would be based upon the attractiveness of the segment and your firm’s strengths and weaknesses. 0 Attractiveness is conceptually easy to grasp. A segment being served by a few competitors is better than one served by many competitors; a growing segment is more attractive than a shrinking segment; a segment that holds the potential of your making a profit is more attractive than one that promises a loss, etc. 0 Recall that you were encouraged to construct a SOOT analysis in the Scanning the Marketing Environment section. 0 In that SOOT analysis, you’ll list your firm’s strengths and weakness. Our strengths and weaknesses should help you determine which market segments you should target.
For example, if a firm has a strength in product quality and a weakness in being the high cost producer in the category, that firm probably isn’t suited to serve segment customers who are overly price sensitive and Marketing Strategy: Position 1 Marketing Strategy: Positioning the concept of brand positioning was popularized by two practitioners, AY Rises and Jack Trout, rather than academicians. They outlined the rules of brand positioning in a series of sass’s articles published in the marketing trade magazine, Advertising Age, ND a now classic book, Positioning: The Battle for Your Mind.
Marketing Strategy: Position 2 brand positioning is the process of claiming for your brand the unique brand benefit that motivates your target customers to purchase in your product/service category. Olin consumer goods categories, the benefit should be either directly or indirectly related to the satisfaction of the target customers’ internal wants/needs. Olin business to business categories, the benefit should be economic. brand positioning was institutionalized by American package goods marketers. There is a somewhat standardized template that any package goods companies use to capture the relevant elements of brand positioning. There are two versions of this document: one for consumer product/service categories and a second for business to business product/service categories. Marketing Strategy: Position 3 It is the brand positioning document that summarizes all of the segmentation, targeting, and positioning work for a given brand. This document should guide marketers in their tactical marketing mix decisions.
Lot is an internal document that should be understood and embraced by everyone, both internal and external, who works with the brand – research and placement, product design, manufacturing, logistics, sales, consumer relations, customer service, marketing communications suppliers, dealers, etc. the completion of the brand positioning work completes the strategic elements of marketing. Tooth these strategic elements summarized in the brand positioning template, marketers have a strategic foundation for their tactical marketing mix actions. Too often, however, marketers complete the brand positioning template, file it away, and execute tactical marketing mix elements without any reference to this strategic foundation. Marketing Tactics: The Marketing Mix 1 Marketing Tactics: The Marketing Mix the concept of the marketing mix was developed by Professor Neil Borden in the sass’s. It has long been agreed that there are four sets of elements that comprise the marketing mix. Coach of these sets of elements should be executed so as to create value for your target customers.
Careful adherence to your brand’s positioning marketing mix decisions create value for your target customers. Marketing Tactics: Marketing Mix 2 By the sass’s everyone agreed that there were four elements in the marketing mix, the product and service offering, channels of striation, marketing communications, and pricing. During this time frame, a relatively young marketing professor at Michigan State University, E. Jerome McCarthy, authored an introductory marketing text entitled Basic Marketing: 0 A Managerial Approach in which he referred to the marketing mix as the “ups”, product, place, promotion, and price. P;s or marketing mix, it’s the same concept. The important concept to remember when working on the various elements of the marketing mix is that you have identified a target market segment in the marketing strategy steps of segmentation and Argentina. Olin the marketing strategy step of positioning, you identified the unique brand benefit which will motivate your target customers to consider purchasing your brand. 0 In each of the four elements of the marketing mix – product and service offering, channels of unique brand benefit to your target customers.
Monitoring and Control 1 monitoring and control begins with establishing goals for your business. Many businesses establish financial and sales goals, but they make the mistake of establishing only financial and sales goals. the thought process operating in these businesses is f they sell their products and keep their costs under control, they’ll make a profit. This line of thinking assumes that the starting point of profitability is the sale. Monitoring and Control 0 This is a short sighted assumption.
A marketer makes a sale because a customer has made a purchase. 0 The starting point is not the sale but the customer. (Always start with the customer and work backwards. ) 0 What made customers purchase the brand? Did they recently become aware of the brand? 0 Do they believe that the brand delivers a unique brand benefit that will satisfy their wants/needs? The brand must have been available where they shopped, and it must have been priced at a point which they were willing to pay. Aware of their brand and move those target customers toward purchase. Thus, the starting point of a business obtaining its financial goals is not sales, it is what marketing accomplishes with its target Sales goals are intermediate goals toward obtaining financial goals. If marketing is successful in moving its target customers toward purchase, it will make the Job of sales easier. Olin the words of Theodore Levity, “Marketing makes sales redundant. ” In addition to financial, sales, and marketing goals, a business usually has some internal goals which are totally within their control. These are things that the business has to do in order to run efficiently. 0 Examples of such internal goals are inventory levels, fill rates, etc. 0 One can think of the goals off business as being a hierarchy with the foundation being marketing activities, sales being an intermediate activity, and financial results as being the pinnacle. Examples of these objectives may be found below. The Marketing Concept That philosophy should guide a company marketing That relative weights should be given to the interests of the organization, the customers, and society? These interest often clash, however, an organization’s marketing and selling activities should be carried out under a well-thought-out philosophy of efficiency, effectiveness, and socially responsibility. The Marketing Philosophies Five orientations (philosophical concepts to the marketplace have guided and continue to guide organizational activities: 1 . The Production Concept 2. The Product Concept 3. The Selling Concept 4. 5. The Societal Marketing Concept The Production Concept 1 the Production Concept. This concept is the oldest of the concepts in business.