Marketing Theory and Concepts - Essay Example

Examine the view that marketing theory and concepts portrayed in the traditional marketing literature have only limited application in guiding small business management. Introduction Marketing refers to the process of management that is responsible for the continued provision of benefits to the consumers through the identification, anticipation as well as the satisfaction of consumers needs through a process of exchange in a way that is profitable to the organization. It is a procedure that does not only involve the members of staff in an organization but also heavily relies on the management to plan, coordinate and implement marketing campaigns as well as the rest of the activities, (Blankson and Stokes, 2002) The marketing theory and concepts The theory of marketing and its practice is based on the premise that the customers of a given service or product use it either because the commodity provides a benefit that is perceived by the consumer or because the consumer needs it. An organization that focuses on the consumer or on the market must determine the desires of the potential consumers and then develop the service or product based on the results. At this point, the two important marketing factors are the acquiring or recruiting of fresh customers and the expansion and retention of the buying relationship with the customers that are already in existence. The following are important under marketing theory and concepts. Marketing environment Competitor Strategies The business objectives The marketing concept Marketing environment The variables that normally operate within and without the business operating environment influence the marketing strategy indirectly or directly. For an organization to be successful, it must be in a position to understand and also anticipate the changes that are taking place within the business environment. The organization must thereafter take advantage of these changes. This is what gives the business a competitive advantage. The marketing environment consists of the internal and external factors. Internal factors; These are the variables that the business has control over directly. They are the factors within the organization. These include; 1. Employees An organization has to employ the sufficient and competitive staff to carry out the business activities. The employees must also be well motivated as part of the organizational strategic plan. When and if necessary, they must be taken through the process of training as well as development especially in the organizations that are service oriented so that the employees are able to offer the right services to the customers. This is likely to give the organization a competitive edge, (Blankson and Stokes, 2002). 2. Customers The organization's customers are the driving force and the basis of survival for the organization. If they do not consume the services as well as the goods f the organization, then the organization would just have to close down. The organization must meet consumer wants, needs satisfactorily. Anything short of that will lead to the failure of the organizational strategy. (Blankson and Stokes, 2002) 3. The shareholders These are the actual owners of the business and they pressure the management to give them the highest dividends possible. To satisfy the business shareholders, the organization has to be productive and profitable. 4. The suppliers A change in the cost of the raw materials directly affects the strategy that is used by the organization's marketing mix. This may result to the shooting up of the prices of the end product. The organization must ensure that it has a close and workable relationship with the suppliers to ensure that the organization's products and services are of high quality. 5. The media The attention that the media accords to the organization and its products as well as services creates a positive or negative publicity; this can either break or makes an organization. 6. Competitors The organization should at all cost aim at offering better services and products than the competitors. This is most possible through differentiating the commodities offered and also sustaining this differentiation over a long duration of time. This is the only sure way of being able to maintain the market position. External factors; These are the factors that are beyond the control of the business. The organization never has control over the external environment. These factors are popularly known by the name P.E.S.T analysis. This is an analysis of the Political environment, the, the economical environment, social environment, and the technological environment. 1. The political Factors The organization is often influenced by the politics of the day. The operations of the organization are directly affected by political factors in terms of the decisions that are made by the government either inform of legislation or policy. If the government makes decision on minimum wage, safety laws or even on health issues, the customers and the business as well is likely to be directly affected. (Blankson and Stokes, 2002) 2. Economical Factors The local and global economics affect the business operations. Issues pertaining monetary policy and the interest rate affects the organization. The state of the economy for instance recession, recovery, boom affects the behavior and confidence of the customer. 3. Social Factors Forces emanating from the society like the family, media, and friends may affect the opinions, interests and the attitudes of the consumer. These forces are responsible in shaping the individual and definitely the buying behavior. The changes in population across the world and locally will affect the quantity of services and goods that are supplied and demanded. 4. Technological Factors Technological changes directly affect business operations. It also affects the organizations strategy for marketing mix. For instance, with the inception of internet shopping, the market has become 24hours from the convenience of the consumer's house. The organization hence has to evolve with the technological changes in order to survive in the market. (Blankson and Stokes, 2002) Competitor Strategies These are the ploys or the plans that are put in place by the competitors to ensure that they out do the other business organizations by gaining competitive advantage. In order for an organization to survive and continue existing profitably, it must be keen enough to analyze the strategies that are used by the business competitors. This is very important in the planning process of marketing. The analysis assists the organization in coming up with the marketing plan for the entire organization. More over the organization is able to establish the actions the competitors are likely to take for market penetration as well as identify the weaknesses of the competing firm. With all this kind of information, the firm is put in a better position to gain competitive advantage. Business objectives The organization must have objectives that are specific to exactly what the business intends to achieve, measurable implying that it should be possible to tell if the set objectives are being observed or not, the objectives have to be attainable, realistic and also time bound. The marketing concept The marketing concept has been evolving and changing over the years. The concept now focuses on the customer as the being the most important in the business and at the front. This concept can best be expounded in the following format; Market orientation; The concept considers the customer to be at the center of the business. To meet the needs of the customers, the organization uses all the mechanisms possible to understand the consumer needs for instance through conducting marketing research. In addition, appropriate procedures are developed to ensure that the information gathered is given to the organization accurately. Market orientation as part of the marketing concept ensures that the customer is treated like a king. Product orientation; This is the concept that makes the company believe that in the entire market, it has the best and superior services and products compared to their competitors. This is based on the product quality as well as the features. Consequently, the organization believes that the consumers will like and appreciate the product and even consume it. (Blankson and Stokes, 2002) Product oriented; The organization's main focus is not the customer needs but cost reduction during the production process by making use of mass or large scale production. In doing so, the business attempts and makes every effort to maximize its profits and minimize the total cost. Sales orientation; The organization aims at developing the product and attempting to sell it to the market that is targeted. The only problem likely to be encountered here is dislike of the product by consumers. The sales would be a big flop. The small business management This refers to the companies that have a turnover which goes below certain levels. Different countries use different measures to define what comprises a small business. Most of the enterprises are owned by one person or are even at most operated by 2-3 people who normally are business partners, friends of relatives. The people make most of the decisions in the daily running of the enterprise. (Blankson and Stokes, 2002) The trading styles, structure of internal management and the risk factors are different from other large organizations. There is actually no difference between assets that belong to the business and those owned by the individuals. The enterprises are quite small compared to the large corporations though they both have a common market for their goods and services. Never the less despite the sizes of these enterprises, it is interesting to note that they all serve the same market. Marketing theory and concepts portrayed in the traditional marketing literature have only limited application in guiding small business management. The small businesses practice high-quality customer service as a marketing strategy. They do this according to the type of small businesses well as the owner's ability and motivation to cultivate this kind of customer service, the businesses form relationships with customers. In this way, they continually concentrate on understanding the expectations of their customers. Instead of focusing on the potential customers, they focus mainly on competitors. Though the businesses do not conduct market research formally, they ask firms that conduct marketing research inform them on their potential in the market. However, the owners of these businesses are experts in their businesses and are very well informed on the internal and external business environment. The small businesses utilize technology in their operations to gain competitive advantage. They are able to have technology that corresponds with their small businesses for communicating with suppliers and customers. For instance the internet, fax machines among others. In addition they are aware of the competition in the business environment. The business owners use the power of intuition in understanding their market position and marketplace. They follow up on the implications of the market practices that they use on market share and profits. (Blankson and Stokes, 2002) Conclusion From this analysis, I can not hesitate to say that the small businesses use the marketing theory and concepts to a large extent even though their business endeavors are not large. Consequently, I do not agree with the view that the theory and concepts of marketing have a very limited application when it comes to guiding the marketing management of the small businesses. References Blankson, C., Stokes, D. (2002): Marketing practices in the UK small business sector Marketing Intelligence & Planning. Read More