Marketing Is Easy to Define - Outline Example

Introduction In a broad perspective, the concept of marketing encompasses all aspects that concerns product or service placements towards potential consumers. Marketing comprises of a wide span of disciplines that include public relations, pricing, sales, distribution and packaging. In essence, marketing connotes targeting or finding the right market for a specific product or service. It can be considered as a strategy that would allow allocation of resources such as time and money, as a means to attain the business goals (Cooil, Keiningham, Aksoy, & Hsu, 2007). In that regard, one can note that marketing entails not only theoretical principles, but rigorous application as well. Marketing does not necessarily pertain to promoting an idea, a service or a product- it evolves around the consumers who can possibly need the product, and those who are inclined towards purchasing it. Entrepreneurs are those responsible for marketing such products (Egan, 2004). The present paper discusses the nature of marketing and on the nature and identity of ‘the marketer’. Moreover, key organisational issues are explored, along with the conribution of the Marketing Department. Overview of Marketing On a technical perspective, marketing is considered as a process that would help identify products or services that would entice consumers through employing strategies that utilize business development, sales and communications (Verhoef, 2003). In essence, it is a process that entails businesses to establish strong consumer relationships and build value towards the business consumers. Marketing is a process utilized to determine consumer markets, satisfy them and retain them. In that regard, it is important to identify the concept of customer satisfaction. In retrospect, as a means to achieve organizational goals, a business must be able to identify the needs and wants of the target market and in accordance with this, provide customer satisfaction. Apart from establishing good relationships, creating value towards the customer, this would be beneficial towards the business as well (Cooil et al., 2007). Marketing is an effective means to promote products. It is believed that even the greatest product and the most exceptional innovation would not flourish without it being marketed within the perspective of the people who would consume it. Perspective is based on context, which can be attributed to numerous aspects. The concept of marketing must be associated with the markets needs, situation, wants and even their problems. These factors can be assessed through analyzing the economic trends in the market, inclusive of other macroenvironment factors such as government regulations and social issues, to name a few (Breur, 2005). In that light, one can note that marketing isnt simply a means to sell a product, but the whole concept of the product as to the features it offers and the end results it presents to the one who consumes it. In essence, marketing isnt simply about promotion, but it involves the market and the strategies. A marketing plan would not suffice, as it is simply a guide towards the business objectives, as well as proper management and allocation of the entrepreneurs energy and resources. In spite of plan execution being important, this would not be carried out without market research (Verhoef, 2003). Marketing does not solely rely on strategies and tactics. Without substance, such strategies are useless. This is why research is important. The application of tactics is not sufficient without a sound basis of substantial knowledge. In that light, marketing entails thorough analysis, which is the basis of the strategies the business is ought to apply. The aforementioned method of analysis is about aspects that concern a product, an idea or a service. In most cases, it is directed towards customers. It is not enough to know who the customers are, it is also important to know how they behave, what they do, what they require, what motivates them and how they perceive (Armesh, Rasoulzadah, Kord, Salarzehi and Saljoghi, 2010). Through proper analysis, one can segment and choose a market appropriately. The lack of profound knowledge in regards to the consumers attitudes, knowledge and emotion would not produce a sound strategy. Marketing deals with the concept of competitive analysis, as it affects competition. It does not solely pertain to eliminating competing firms, but rather, analyzing patterns, trends and reactions of competitors in line with their goals and capacities (Werner, Krafft & Hoyer, 2004). Contemporary Marketing Strategies Contemporary approaches in marketing are as follows: (1) relationship marketing is also referred to as relationship management, which is directed towards building and retaining strong consumer relations. The focus of this approach is concentrated towards the relationship between the consumers and its suppliers. In that light, the objective is to provision the most ideal customer service and to establish customer loyalty; (2) business marketing is also referred to as industrial marketing, which is focused towards establishing relationships between organizations. The difference between the first is that business marketing involves businesses (Egan, 2004). In that regard, the product concentrates on capital goods, instead of end products. Various forms of marketing processes utilized include promotion, communication, and advertising techniques; (3) social marketing is directed towards society as the benefactor, which is highly concerned with the elimination of harmful activities that wuold adversely affect society; and lastly, theres (4) branding, that is focused on brand value. Branding is based on the concept of branding philosophy (Werner, Krafft & Hoyer, 2004). The Premise of Customer Satisfaction Consumer satisfaction had been always a famous topic among studies in the field of marketing. Satisfaction is referred to as an outline of affective response of differing degrees with an explicit duration of fortitude and restricted period presented towards they key facets of service consumption. It is considered as one the most important constructs in the field of marketing, and had always been one of the objectives that marketers and organizations aim to achieve (Giese & Cote, 2000). It is also a variable in the concept of marketing that plays a critical role as it is used to measure consumption or purchase behavior of customers or clients. Because of its significance among businesses, several theories and model have been formulated in order to identify and explain the construct of satisfaction among various services and products, depending on the phases of consumption (McQuitty, Finn, & Wiley, 2000). Measuring satisfaction is complex as it can either be focused on the construct or response of the consumer or the process employed or model (Yi & La 2004). Another complexity concerning satisfaction is the manner in which the construct is measured. There are two widely utilized methods, which are overall satisfaction and transaction-specific. The concept of overall satisfaction defines satisfaction as an accumulated evaluative response of an individual, whereas the latter refers to satisfaction as an emotional reaction of the consumer based on the experience during the most recent transaction that has taken place (Anand & Khanna, 2000). Customer Loyalty The potency of the association between a persons comparative attitude and repeat business is referred to as customer loyalty. This relationship is based on the balance between customs and situational elements. Comparative attitudes that are perceived to be in relation with an individuals loyalty are affective, cognitive and conative qualifications. These factors are associated with ones behavioral, perceptual and motivational implications (Werner, et. al, 2004). In a business that thrives on the continuous patronage of customers, a businesss survival rate is tantamount to how that particular business is able to meet or exceed consumers satisfaction. Other studies indicate that the key factor that drives consumer retention is a customers intent to repurchase. On the other hand, there are also studies that stated that other aspects that affect retention among customers can be influenced by other benefits like ones volition to recommend an item or a service and the tolerance of the item or services price (Robert & Daunt, 2006). In order to be able to retain customers, the management of a certain business must take into account the pros and cons of consumer loyalty (Mittal and Wagner, 2001). A persons loyalty or commitment to a person, an item, a service or an organization can produce a pyramid effect among others, which implies a level of hierarchy in terms of loyalty among both parties. Variations in the degree of loyalty would be present in the manifestation of certain behavior. The most essential aspects of the process of consumer retention are an individuals satisfaction and loyalty. In essence, an individuals loyalty to a product, a service, an individual or an organization is the determinant for retention. There is a constructive interdependence between variations in ones degree of satisfaction and capability of spending. Ones degree of satisfaction at the initial phase and the conditional fraction of variation in degrees of satisfaction are associated with the amount of money an individual would be allocating for a certain service or product (Coyles and Gokey, 2005). Such relationships are mediated by its duration and the salary of the consumer. It is imperative to investigate the amount a company must spend in order to maintain a certain consumer, in spite of the concept of share of wallet is constructively mediated by both an individuals loyalty and retention. A company must also take note that the process of consumer retention does not guarantee profitability or additional contribution to the business in terms of monetary acquisition. Thus, the premise of Customer Lifetime Value serves a significant part in any business. Acquiring a customers loyalty is the first step that leads to determining a customers lifetime value (Egan, 2004). Relationship Marketing The process of strengthening relationships among customers, like treating them as clients, would enable the company to encourage customers to be loyal and to commit to their business. This type of strategy must also be employed by the marketing team, as it enjoins customers to build their relationship with the company in a constructive manner The concept of relationship marketing emphasizes a companys increase in profitability by means of applying appropriate measures in line with the premise of relationship management. Organizations develop relationships among customers in order to build an association that is profitable to the company, and would be secured on a long term basis (Anderson and Mittal, 2000). Relationship management also discourages a company to maintain an association with a certain consumer or individual in cases where profitability is not evident. The process of marketing through building relationships has been considered as one of the most effective variables employed in consumer retention strategies in businesses. Relationship management through marketing measures implies a direct influence on the companys goal performance, especially when such relationships do not benefit the company alone, but it is crucial to the consumer too. Moreover, the probability of efficiency is higher when such relationships are developed among individuals, instead of an individual to an organization (Coyles and Gokey, 2005). The value of a customer can be determined through the integration of relationship marketing and value process. The process of generating value is dynamic, as related to the available concept value at present. It must be constantly monitored on the basis of various transactions. The generation of mutual value will lay emphasis on both the customer and the organization, as value is mutually shared by both parties in the relationship (Romano, 2000). In accordance to the concept of value, marketing measures must be incorporated with strategies that employ relationship marketing models that focus on buyers, in terms of interaction and the development of associations with them, instead of constantly highlighting the products or services. In order to employ efficient marketing strategies, the whole company must work together to implement the measures well. Various attributes that can be utilized in relationship marketing are loyalty, trust and collaboration, which can be helpful once implemented internally (Mittal and Wagner, 2001). The Identity of a Marketer A marketers role is to provision marketing services. On a broad perspective, these duties comprise of determining specific products or services in which are needed or wanted by a segmented group of customers. In accordance with the aforementioned duty, it is also the role of the marketer to market these goods in behalf of the company in which they are employed under. The role of a marketer is diverse, and is required in any line of business. In that light, one can note that the nature of a marketers role deals with strategy formulation, provision of customer service, as well as lead generation and conversion. In the strategic aspect, a marketer is required to identify, analyze and evaluate the target market for a particular product or service (McQuitty et. al, 2000). The goal is to identify the ideal customer, and to assess the current demographics of the market to segment it into groups. Selling or promoting an item or a service to a certain segmented group of people is the usual course of result of segmenting customers. Upon identifying various diverse customer groups, BI instruments would then be utilized to examine the products or services that would have the highest probability to be purchased by a particular group. In most cases, it is ideal to gather data in order to formulate analytical models to ascertain the purchasing tendency of a group towards different products, either existing or newly launches. Having such information would be beneficial for marketing managers to conceptualize explicit campaigns intended for particular groups (Yi & La 2004). The concept of customer segmentation is utilized to separate individuals who manifest familiar personality in various groups. Such segments or groups can then be perceived as separate bodies and the potential communication with them can be adapted based on their characteristics. The process of segmenting consumers can reduce extensive marketing endeavors. Customers are segmented based on their demographic aspects and trends in usage (Nankervis and Pearson, 2002). Another role that marketers must fulfill in line with formulating strategies is to design and construct the core message of their marketing plan, which must be substantially supported by marketing materials. These materials include a variety of instruments that range from print, electronic or television tools that allows the effective implementation and dissemination of the marketing scheme. The second aspect that concerns a marketers identity is lead generation. It involves social interaction in the form of advertising, public relations and referrals. This aspect of the marketing industry is in regards to a marketers role of creating awareness of a particular product or service, establishing a good word and promoting it among its target market and relevant publics. The next aspect is lead conversion, which concerns the following processes: (1) sales; (2) nurturing; and (3) transaction. In essence, this is the part wherein the two previous phases pays off and provides profit to the business. It reflects the positive impact of the lead generation phase through producing sales and the continuous flow of transaction. In addition, it also involves the maintenance of the product or service in the market alongside its competitors (Verhoef, 2003). A customer cannot be quantified through the variable of profitability alone, in terms of one’s value to a company. There is also a tendency for such consumers to purchase new products in the future, or refer other consumers that can increase the profitability rate of the company as well. Apart from profitability, amore significant variable in evaluating customers is the Customer Lifetime Value. In most cases, data collection instruments are utilized to identify CLV, considering all the aspects that is relevant to the customer, the business and the company (Nankervis and Pearson, 2002). Lastly, perhaps the most important aspect of marketing is customer service. It focuses on the context of loyalty, community and referrals. This role also entails social interaction, as this supplies the need of the consumers to be satisfied by the products or services presented to them. Loyalty is built through the consistent provision of exceptional customer service. The acquisition of new buyers or consumers is believed to be more expensive in comparison to maintaining customers a company has at present (Yi & La 2004). Through analyzing customer attrition, a company would be able to identify means to further improve retention policies and programs. The process would include analyzing information collected during personal interactions with subscribers at various channels. In order to examine and assess attrition rate, the contact information of a customer must be attached with other information such as billing data. The ensuing information set would then be correlated with consumers who have exchanged services or items to evaluate the probable motives of the choice (Kotler and Armstrong, 2005). The findings can also be utilized to develop the performance of interacting with customers through various channels. The intent of creating valuable relationships with consumers is a given factor when dealing with business. Due to the inevitable fact that more players are joining the business industry, the concept of customer loyalty is gradually diminishing (Knox, Maklan, Payne, Peppard & Ryals 2003). Such conditions influence the need to formulate new methods and strategies that would help an organization to succeed amongst competitors and earn the trust and loyalty of their consumers through the provision of tailored products and services (Webster 2002). The sudden development in technological advancements enabled applications that cater to information systems. One important construct of marketing is the concept of Value Creation, which is the companys ability to provide superior value to its customers. The premise of value creation is considered as one of the most successful competitive strategies (Payne & Frow 2005). In addition, a business must be mindful of its relevant publics in order to maintain its strategic position in the market. In essence, one can note that the identity of a marketer doesnt simply imply a single dimension, as it encompasses rational and rigorous planning during the course of strategic formulation, as followed by implementing these plans through generating lead. After which, the two aforementioned phases are culminated by converting lead to sale and maintained by the provision of customer service. Conclusion In conclusion, marketing can be defined as a constructive analysis of a business customers, competitors and a company, which would be integrated into an understanding of what segmented markets are, assessing the profitable groups, effectively positioning products and services, which is then subsequently followed on the delivering what is required in product positioning and promotion. In effectively positioning a product, a marketing strategy must be employed. Through implementing appropriate brand and advertising techniques by means of various communication tools and instruments, marketing measures can be delivered (Nankervis and Pearson, 2002). A business is designed to produce value to its owners. In accordance to the concept of business, the process of meeting customer satisfaction and maintaining a strong relationship with the customer must only be implemented in the level wherein consumer retention strategies would be beneficial to the value of the company and its owners, as weighed against that of the consumers. In that sense, it is only imperative to determine whether consumer satisfaction and retention is inclined towards the concept of profitability (Mittal and Wagner, 2001). References Anand, BN, & Khanna, T 2000, "Do firms learn to create value? The case of alliances", Strategic Management Journal, vol. 21, pp. 294-315. Anderson, W. E., & Mittal, V. (2000). Strengthening the satisfaction-profit chain. Journal of Service Research, 3, 107-120. Armesh, H, Rasoulzadah, H, Kord, B, Salarzehi, B, Saljoghi, ZS 2010, Customer Relationship Management, American Journal of Scientific Research, vol. 12. 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