Introduction to Marketing - Essay Example

Submitted to March 09, Introduction to Marketing Understanding the marketing environment The marketing environments are constantly shifting due to advanced modifications in information, technology, and globalization. These changes in the marketing environment have empowered customers in their purchasing decisions. Shift in marketing environment due to globalization has given consumers wide choices of commodities; while advanced technology and information have brought consumers closer to monitor preferences in personal buying decisions. These changes also introduced new challenges for marketers in meeting the new behavioral patterns of consumers. The transformation in the environment presents a driving importance for growth in all industries, that is, if marketers take the challenge of acknowledging the behavioral changes of consumers. Dynamics of environment Consumers today are well informed of choices because of social media. For instance, a job seeker can learn about job opportunities in companies abroad; book flights, go to internet banking, receive messages in a very short while thru e-mails and learn about products thru internet advertisements, an interested buyer can shop for any commodities they want through on line shopping; or go through customized order system. Consumer preferences and attitudes are likewise affected by transformation of marketing environment. Consumers are free to criticize, comment or endorse a product through social media. A consumer today has more freedom of choices and is more independent. A global chain of restaurant is an example of a company who adapt to the dynamics of its environment. McDonalds, for example, by taking cultural factors in consideration allows them to operate in diverse environment. (Boundless.com. 2014). The changing nature of the marketing environment The changing nature of the marketing environment development affects the design of company marketing strategies. It has to be aligned with the needed transformation in marketing environment that encompasses both the micro and macro factors. The micro environment The micro-environment factors affecting the company, according to Boundless.com., (2014) are the influence on company itself, suppliers, the supply chain (intermediaries), competitors, collaborators, and the customer markets. For instance, the micro-environment of the company itself is a concerted effort of research and development people through designs, budget and finance, marketing people, and policies of top management. It is also a concern of its suppliers, as a delay in supply might end up to dissatisfaction of customers. For instance, a delay in the delivery of supply will result to the impediment of the manufacturing of a customized product, say a car. Intermediaries may at times cause dissatisfaction of customers that eventually rebound to the manufacturers. Intermediaries are those who take charge of physical distribution like Wal-Mart, Best Buy, Tesco, etc. They have their own pricing policies in marketing such as discounts, low price, etc. that at times do not go along with company’s strategies. Competitors are also considered as part of the micro-environment because company must also study its prices, offerings and services to become competitive, and prepare a strategy to overcome competition. The micro environment of the company is also linked to customer market. Company has to study behavior of customer market as this is a big segment. Customer market includes government markets, consumer market, business markets, international markets and reseller markets. (Boundless.com.2014, par. 4) Each market has different buying behavior and intention. Government markets buy for federal state and local governments, behavior of which is designed to gather the best price for the best outcome.(“Buying for Government 2001) ; Consumer market buys goods for personal use; while business markets buy for goods and services to be used for producing another product for resale; and resellers and international market buy goods for resale. Resellers’ goods are sold in its original form The macro-environment The macro-environment is the outside influences of which company has no control. Examples are demography, economy, technology, culture, politics and natural calamities. Demography is important in the study of marketing as it helps in segmenting the target market of the company and designing the proper strategy for each target. Demography sets the characteristics of the target population as to sex, age, income, education, etc. Use of demography as a basis for segmentation benefits the company by getting to the specifics on its design strategy. Offering of sports car are specifically targeted to the high wage earners. Economic environment is an important aspect of study as it provides the purchasing power of potential customer. Economic environment are classified as industrialized and subsistence economies. Study of behavior in the economic environment is important as it provides behavior of consumption. Subsistence economy that is based on agriculture, consumes its own produce while industrialized economies carry different goods and have diverse markets. Third world countries is an example of a subsistence economy, while US is an industrialized one .(Amadeo, K, 2014). Knowing the regions characteristics help company identify the right marketing approach. An example is sophisticated goods could be exported to them like mobile phones and computers that is, if purchasing power permits. An information on customer market allows company to prepare a customer strategy that separates target groups into segments to help company better address the needs of each target market. Company must be familiar with the various market segments to be able to design specific marketing approach for each. The central role of consumers in the formulation of a marketing strategy Customer is the center of any business. It is of general knowledge that no business can exist without customer. In this sense, understanding consumers is significant since marketing decisions affects their buying behavior. Marketers must understand customer, their buying behaviors, and needs so that they can better prepare a strategy that will result in brand loyalty and increased sales. Understanding behavior according to Hausler, D. (2015), is to recognize purchasing patterns and to be aware of what compels them to buy a product. A case in point, is when consumers respond on how they feel. I think advertisements of how people are enjoying and satisfied with the food they are eating is more effective than just showing a picture of a big pizza. Marketing strategy is more focused when marketers know what customers need and want. Hausler (2015), citing a study conducted by Susan Mantel, found out that from among the product attributes (price, nutritional value, etc), the product attribute “the best” elicited more consideration. The relative importance of consumers and the marketing environment to the implementation of a marketing plan The relative importance of consumers and the marketing environment to the implementation of a marketing plan are the improvement of marketing strategies that will ultimately redound to the company’s benefit. (Lars, P.2010). This importance cannot be disregarded as having an analysis will direct marketers on the direction of its marketing plan;. analysis will allow marketers to understand how customers think, feel and react about their products and service. It will also keep marketers informed on how customers are influenced by others, behavior of consumers while shopping; It will give company the opportunity to assess the limitations of consumer knowledge on company’s product and services, their motivations and decision strategies. For example, in making advertising campaign strategy, by making a study on consumer behavior, marketers learn the time when consumers are hungry, so marketers can have exact timing when to air the commercial. Budgets are appropriated for a specific target thereby reducing costs. Taking the sports fans as a specific market segment example, advertising of sports shoes, sports equipments can be timed during Olympic events or sports season. This strategy would be less costly than advertising the whole year round without a specific market focus. Knowing customer behavior will help company understand its motivations in buying products because motivations of consumers and buying decisions vary according to products. By acknowledging the attitude and behavior of women on healthy lifestyles, proper branding strategy could be done. By then company can design a consumer marketing strategy that focuses on their level of motivation and interests. Conclusion Based on the above explanations, the relevance of knowledge on consumers and its environment in relation to the marketing strategy, is trying to match the company’s products with people who are most likely to use them. These consumers have the needs and motivations in buying. Finding customers satisfaction would be a great marketing strategy that would lead to lead to company benefits. REFERENCES Boundless.com 2014. The Dynamic Environment. [ on line] Available from -[09 March 2015 Buying for Government.2001. Department of Treasury and Finance. [on line] Available from Read More