Marketing Principles - Essay Example

Marketing Principles Name: Unit: Course: Supervisor: Date of submission: Introduction Marketing is an important process for an organisation. According to Armstrong and Kotler (2005, p. 353) marketing is an ongoing process that has different stages. The main processes that are involved in the marketing process include the analyzing, planning, implementation and control. These process stages are fundamental for a business organisation to achieve the competitive edge. Armstrong and Kotler (2005, p.353) define the marketing process as the management process that is responsible for the identification, anticipation and whose main aim is to satisfy the needs of the customers and propel an organization to profitability (Larsen 2010, p 7). The success of the marketing process is depended on four marketing processes which include the analysis of the market and the environment, identification of the marketing target, setting the marketing objectives, dealing with the elements of marketing mix, and reflection , control and revision. The market analysis This is a very important concept of the marketing process, it entails collecting the both the qualitative and quantitative data about the products and the potential markets. By employing survey techniques, observation and audits, marketer are in a position to determine the various factors that affect the market. The information that is obtained is contrasted with the business objectives to establish the viability of the business and its competitive advantage (Kotler & Keller 2009, p. 93). Planning stage Planning stage is normally aligned to business objectives. It entails creation of strategies that can be put in place to achieve tangible results in the target market. The planning stage puts into consideration both the short term and long term goals of the business (Kotler & Keller 2009, p. 97). Implementation stage This element is concerned with putting into practice the strategies that have already been identified. The implementation stage employs the marketing mix concept in line with the organisation objectives ((Kotler & Keller 2009, p. 98). Monitoring and control As noted by Armstrong and Kotler (2005, p.353), marketing is a process. Markets keep on changing; as a result, the implementation of the strategies should be reviewed and monitored to gauge the performance of the various strategies. The monitoring process determines changing market conditions, customer preferences and the competitors. The monitoring process forms the basis of the adjusting the marketing strategies. Macro and micro factors affecting marketing decisions The environment for marketing represents a mix that affects the external and internal factors that surround the business. These factors can have direct or indirect effect on the business especially in matters that relate to customer. The marketing environment is normally composed of the micro and macro environment (Kotler & Keller 2009, p. 105).. Micro environment The micro environment is the immediate environment in which the business operates in. the micro factors influences the operation of organisation directly. A key feature of micro-environment is that it can be controlled by the organsation. Examples of the micro environment include the employees of the organisation, the general public and the customers. Macro environment The macro environment consists of the market forces that the business does not have control over. The factors include the political, economic, social, technological and legal factors. The political factors relate to government influence on tax, policies and the involvement of the government trading agreements. In most cases, the political factors are closely related to legal factors. The legal factors entail the various legislations that may affect the operations of the business. Examples of legal factors include consumer protection, merger laws and restrictions. Economic factors consist of the general outlay of the economy of a given country. Examples of the economic factors are the economic growth, the cost of the raw materials for business, the exchange rates and monetary policies that have indirect impacts on the customers. Economic factors can affect the purchasing power of the customers. Technological factors refer to emerging trends in market such as innovations. The technological factors can affect the logistics and manufacturing practices. The socio-cultural factors are linked to customer traits. They include education, age, population growth and attitudes of customers in relation and inherent beliefs. The environmental factors include issues that affect the natural environment and related to business operations (Armstrong and Kotler, 2005, p. 364). Market Segmentation Market segmentation is a strategy used in marketing in which the targeted market is divided into subsets of customers who share common traits. The market bases mainly used for segmentation include the geographical segmentation, demographic segmentation, psychographic segmentation and behavioral segmentation (Larsen 2010, p 4). The main purpose for segmenting the market is to ensure that the marketer concentrates on the segment that will help in ensuring competitive advantage within the segment. Geographic segmentation In this type of segmentation, company’s target market is based on the region, which mainly forms the marketing mix of place. This implies that a brand can be sold in one region based on the regional differences that affect the preferences in the regional segment of the market. The geographic segmentation can be based on the urban versus the rural preferences. Demographic The demand for a given product is influenced by many customer factors that determine the preferences. The main demographic factors that are key to demographic segmentation include education level, the gender, income and age. Some products will perform better in a given demographic subset than the other (Larsen 2010, p. 7). Psychographic segmentation This is also referred to as the lifestyle segmentation. It is based on multivariate consumer analysis based on attitudes, emotions, perceptions and interests. The customer personality, the lifestyle social class and values influence the psychographic segmentation. The psychographic segmentation should be combined with behavioural segmentation in order to ensure that there is conclusive understanding of the customer (Larsen 2010, p. 6). Behavioural segmentation This is a broad base segmentation which is multifaceted. The customers are categorised into groups that are based on response towards a given product. The behavioral variables that are use include the loyalty, usage of the product, occasions and attitudes. The behavioural segmentation is very useful when combined with other segments. The behavioural segmentation variables are integrated with the psychographic factors in the process of segmentation in order to better understand the customers (Larsen 2010, p.11). Targeting strategy Targeting strategy entails the process of selecting the potential customers the business anticipates to sell the product / service to. The process of targeting involves segmenting the market and identifying the segment that is most appropriate for the market. The target of the customer is normally depended on myriad of factors such as preference, income among the groups being targeted and the buyer behaviour that relate to style and class. It is worth noting that customers have different preferences a thus segmentation is based on the special needs. The targeting strategy to use for the customers will be based on customized products for each customer segment (Pickton &Broderick 2005, p. 372). Positioning Positioning involves the creation of an image of a business in order to appease the target customer. Positioning entails making the buyer to cross from knowledge to actual usage of the product (Larsen 2010, p.25). Positioning should be carried out through the application of the 4Ps of market mix which include promotion, price, place and the product. Marketing mix Successful marketing is normally depended on addressing key issues that relate to how a business is to deliver the products to customers. The major consideration is the marketing mix of the 7Ps. Product The development of the product is the critical for any business, it is through the product that a business is able to enter the market and entice customers (Kotler and Keller 2009, p.104). The product acts as the competing tool for the business. Product is the item that is supposed to satisfy the demands of the customer. A successful marketing strategy entails finding out what the customer needs ad then developing a product that aims at solving the problem of the customer. Price The price for the services is based on the services provided but dictated by the market forces of demand and supply and in comparison with that the competitors are offering. Pricing of the products is done depending on the current market situation. The prices are based on the quality the business is offering. Price is the worth of the product; it represents what the customers pay for the product. Process of setting price depends on market factors. However, the process should be competitive and ensure that customers get value for their money (Kotler and Keller 2009, p.106). Price generates revenue and should be set to ensure that the business also gets profit. Promotion Promotion entails the communication methods that a marketer uses to create awareness about the product. The promotion activities include branding strategies, the corporate identity, advertising, exhibitions and public relations activities aimed at creating awareness. The key concept of promotion is to draw attention and appeal the customers. To ensure that a product gains acceptance social media, word of mouth and networking can be used. Promotion entails telling to the target customers about the products/services that are being offered by the business (Kotler and Keller 2009, p.104). Place Place entails availing the product to a location that customers can access. The place should ensure that the product is delivered at the right time and ensures that the distribution to the place is of the acceptable level. Place represents the location or the locality where the product is to be sold (Kotler and Keller 2009, p.105). People For a product to get to be produced it passes through hands of people. Employees who work to produce a product are the people. For a product to be superior; employees should be trained, motivated and with the right attitude which is manifested in interaction with the customers. Process These are systems that are set within an organisation that influence the giving the service to the customers. Examples of the processes include customer care involvement in handling questions. Better processes keep customers happy and satisfied (Kotler and Keller 2009, p.107). For instance, a business to be successful should handle customers with courtesy and avoid any internal processes that may negatively influence customers. Physical evidence Physical evidence is a confirmation that a service was executed. Physical evidence can entail delivery of a product. Delivery of the product should uphold the quality of the product and be carried in manner that points to appropriate organisation of the business. Conclusion In targeting, the market can be segmented into segments that represent the various customer traits. Segmentation of the market can be geographical, behavioral, geographic or psychographic segmentation. The target market selection, segmentation is based on the product mix of the product, price, promotion and place. The selected target market is affected by type of the target segment. In segmentation of consumer and the business segments the strategies integrated in the marketing mix depend on the target segment should reflect the special needs. The product, price, promotion and place component should be tailor made to reflect the end customer needs. These 4ps differ for the domestic and international markets. For instance, he price for the international market is influenced by the import tax and is dictated by various trade agreements that affect the product being sold. References Armstrong, G. and Kotler, P. 2005. Marketing: An Introduction .Upper Saddle River, N.J: Prentice Hall, pp.353-372. Burnett, J. 2012. Understanding Buyer Behaviour. London: Routledge, pp. 1-6. Larsen. N. 2010. Market segmentation: A framework for determining the right target customers. London: Sage Publishers, pp. 3-29. Kotler, P. and Keller, K. (2009). Marketing Management. Pearson Education International, pp. 92-108. Nijssen, E and Frambach, R. 2001. Creating Customer Value through Strategic Marketing Planning: A Management Approach. New York: Springer Science & Business Media, pp. 39-51. Pickton, D. and Broderick, A. (2005). Identifying target audiences and profiling target markets. Integrated marketing communications, 2 (1), pp.371-398 Read More