Best Practice Approach in Marketing - Essay Example

Best Practice Approach in Marketing [Type Here] [Assignment [Module Here] Executive Summery Marketing is a very comprehensive and ever changing term. Its latest definition by the American Marketing Association is "Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." The marketing process involves targeting a market, evaluating its needs by the help of a product mix, organizing a process for it which results is mutually beneficial. Macro and Micro environmental factors affect the decisions of organizations a lot. If some changes are made in theses factors the course of action of the organization has to be changed. Buying behavior is also very important as if the customer has some conflict with and attribute of the product he may not buy it and this will result in loss to the organization. Table of Contents Table of Contents 3 References 13 Introduction Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. (Kotler, 1997). Marketing is a process in which an organization identifies the need of a customer and brings to the market a product which satisfied that need, the customer buys the product for satisfaction of the need which results in profit for the organization. It is mutually beneficial process. Marketing is very dynamic function and its definition has been evolving through time. In 1985, The American Marketing Association defined marketing as "Marketing is the process of planning and executing conception, pricing, promotion and distribution of goods, ideas and services to create exchanges that satisfy individual and organizational goals."1 In 2004 the definition was changed to "Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders." And again as marketing grew into a broader term in 2007 the AMA defined marketing as "Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." This definition defines marketing as a process that creates something of value for anybody who has a need of that value. Elements of the Marketing Concept (200) Target market is a very key marketing element. An organizational cannot produce enough to satisfy all the needs of all the people. It has to target the customers whom it feels it can satisfy through its organizational processes in a mutually beneficial way. It has to evaluate itself and the market to find who it can cater too The second key element of the marketing concept is trying to satisfy the needs and wants of the customers of the selected target market. For this purpose 4 elements are identified and called the marketing mix. (Frederick Crane, 2003) These are controllable variables which are used to increase the level of satisfaction for the customer. These elements are: 1- Product- It is what the organization wants to sell to the customer considering the value and benefits it will produce for the customer. 2- Price- It is the price that the customer will have to pay to attain the product to satisfy his needs. 3- Place- It is where the product is going to be sold, in retail stores, in exclusive stores, what distribution channel will be used to make the product accessible. Place should always be selected as per the convenience of the customer. 4- Promotion- It is the type of promotional tools used to promote the product, like advertising, package design, sales techniques and personal relations tactics. Promotion should be able to communicate things that needed to be told to the customer, very well. Coordinated marketing is also a very important element. Proper processes should be developed so that proper departments can take responsibilities if marketing functions. Meeting organizational goals is also an important element, marketing has to be mutually beneficial so realistic goals should be met. There are some elements in the marketing concept that are not controllable by the organization. (Isobel Doole, 2007) These are the micro and macro environments affecting its markets, technological changes and improvements, the level of consumer loyalty the brand may build financial position of the target market, competition, government interference and the ever evolving and changing needs of people. A company has to adapt itself to these changes in a timely manner to ensure its survival. Main Characteristics of a Marketing Oriented Organization A market oriented organization has to know its customers well, inside out. (Charles W. Lamb, 2003)It should know the demands and the needs of the customers and the dynamics of the market. The main characteristics that are essential for a market oriented organization are: 1- Customer Focus: The company always tries to find out the needs of the customer, it identifies value and tries to satisfy it, wants the customer to be satisfied and tried to make its product better in future and more compatible with the customer. 2- Competitor Orientation: An organization should always know its competitors, it should bench mark according to the performances of the competitors, evaluate their behavior, examine what strategies they use, compare these and find room for improvement for it self. 3- Coordination: The whole organization should work together in a coordinated way to achieve goals. Departments and functions have proper flow of information. 4- Focus: The organization should be very focused on where it wants to see itself in a certain period of time and should identify a path to getting there, and then it should focus on following that path. Competitive advantage is a key thing that should be focused and sustained. The Cost and Benefits of Using a Marketing Approach to Doing Business in Singapore The advantage of using the marketing approach in Singapore is that the demographics of the people are not very complex and it is easy to study the attributes of the population. When it is easier to know the customer it becomes easier to get to know what the customer wants and it is easier to define a target market. (Rangaswamy, 2006) People in Singapore keep pace with the world and they may find a new age bike very exciting and it may result in a mutually beneficial transaction. It is easy to use ways of communication as Singapore has established form of media. There are also proper channels of distribution in Singapore. Many organizations are doing Foreign Direct Investments in Singapore as it has potential for earning them profit. The main basic cost of using the Marketing Approach in Singapore is that it will require huge investments without 100% surety that the investment will turn into profit. A production plant and some special infrastructure may be needed. Investment on promotional activities has to be made as people are not aware of the availability of the product. There is no product or brand awareness yet this has to be created and it would incur a lot of cost. To sustain its expected demand the company may also have to invest in hydrogen fueling stations. Micro Environmental Factors of Singapore Which Influence Marketing Decisions These are internal factors directly affecting the company. (Birks, 2008) Customers are included in this. Singapore is a country with the bulk of its population between 15 - 55 years of age. It has a high literacy rate. People of Singapore can afford this bike and have the demand for bikes. There are environmental issues in Singapore and people are inclined towards using the things that are environmental friendly. Labor is not very expensive and labor laws are also not problem creating. Proper supply chains are present in Singapore and the infrastructure supports supply and distribution. The only issue is that these bikes are run on hydrogen fuel and hydrogen fueling stations are not properly available in Singapore. Singapore wants to establish them but these are not established yet, this absence can make lower the potential demand of the bikes. Raw material for the production of the bikes or logistic support is easily available. The Singaporean government is very interested in environment friendly things it may become a share holder to encourage this program. The infra structure of Singapore is very good. It has proper electricity networks, Seaports, Airports, Roads, Railways and communication services. Media in Singapore is well developed and can be properly used to communicate promotional messages and publicity related material. It has a growing economy. The cost of running or establishing a business is Singapore is not very high. Labor is not very expensive in Singapore. There is healthy completion looking into the same Singaporean market. The bike also competes with other bikes using different modes of fueling. There are many competitors of Suzuki trying to make similar bikes of cheaper one like Hyundai, Harley, Yamaha and Honda. All these may influence the decision making of the organization. Macro Environmental Factors of Singapore Which Influence Marketing Decisions The Macro Environmental factors include demographic, economic, technological, natural, socio-cultural, and regulatory forces which effect the decision making of companies. (Sandhusen, 2008) Most people of Singapore are between the ages of 15-55 years. Use of motor bikes is popular in this age group. The literacy level is high and people are aware of the global environmental concerns and understand the need for environmentally friendly vehicles. The GDP of Singapore is good and people can afford vehicles of their own. Singapore is a growing economy and companies from the world over are investing in Singapore. The government is trying to make FDI and investments in Singapore easy, the laws are good and taxes and regulations encourage people to do business in Singapore. Engineering and Technology both are fields of growth and interest in Singapore. This is good for an organization which may want to launch an environmentally friendly motorbike in Singapore. The socio-cultural aspect is stable, it does not have many races and ethnic backgrounds, and mostly it has only Chinese and Malay people. Segmentation Criteria The Motorbike and the motor boat both are to be marketed in Singapore. It should be focused on people who are between 20-50 years of age as they understand the importance of environment friendliness and self esteem. It should target people from upper middle class or upper class ad the price is a little higher than the other motorbikes in the market. It is not focused on the labor class or daily wage workers, instead mostly on people with white color jobs. The personality traits that should be focuses are that these individuals should have a sense of style and should dare to experiment and welcome change. Their attitude should be modern. The core benefit should be attainment of environment friendliness and making a statement that they care for the world. Due to all these factors one market strategy cannot be applied as this product may not hold the same value for everybody in the market. (Malcolm McDonald, 2004) It has a multi segment strategy and niche marketing for the class who is educated, rich and concerned for environment can be very effective. The benefits of this will be that all the resources will be focused on one niche market and higher profit may be earned. It will be easier to study this niche and monitor the changes in demand. The limitations of this type of segmentation will be that high market penetration will not be possible and the product will not have an immensely large number of users. In the United Kingdom Micro retailing can be also tried for Ocean Free and Savior in all markets where there is no problem for the availability of hydrogen fuel. T form gain full profit from the markets prices should be high in all markets and later these should be lowered to gain more profit as this lower price will result in more people buying the product. World wide this product should be first launches for people who can spent more for their self actualization need and can afford to be environment friendly. When this market is skimmed, modification should be done to bring down the cost of the machine and target mass markets in developing countries where pollution is a very big issue and to whom being environment friendly is not a self actualization need but a necessity. Buyer Behavior and its Affect to Marketing Activities If the market has cultural, social or religious differences with the product no matter how the product may be promoted, buyers will not buy it as it is not in line with their beliefs. If the product is not compatible with him as it doesn't suit his age, he will not buy it , if the product doesn't match his personality or lifestyle of does not come in his budget it he will not buy it. If the perception of the product is negative a buyer will not buy it, So an organization has to make sure that that all his actives are focused on the target market so that they produce processes which are aligned with the beliefs of the customers, create a positive image, are affordable by the buyer, suits his life style and personality and performs up to the expectation. Otherwise in any market customers will not buy the motorbike or the motorboat. Summary and Recommendations The customer should always be focus of all marketing activities, any misjudgment of the customer may cause an organization to lose all the investment it has done on the launch of the product. An organization should closely study the market in which it wishes to operate and the people it wishes to cater to. If this is not done the marketing campaign can turn into a big loss. Controlled factors should be used to enhance the value of the product to the targeted market. No marketing activity should be neglected and proper customer survey and analysis should be done before outlining a target market and estimating demand and supply. References Birks, N. K. (2008). Marketing Research: An Applied Approach. Charles W. Lamb, J. F. (2003). Marketing. Thomson/South-Western. Frederick Crane, R. K. (2003). Marketing. McGraw Hill Professional. Isobel Doole, R. L. (2007). International Marketing Strategy. Cengage Learning EMEA. Kotler, P. (1997). Principles of Marketing. Pearson Education. Malcolm McDonald, I. D. (2004). Market Segmentation: How to do it, how to profit from it . Rangaswamy, G. L. (2006). Marketing Engineering. Sandhusen, R. L. (2008). Marketing (Barron's Business Review Series). Read More