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| Marketing concepts: Chapter 2 |
Business management is not just a business plan, but it includes many of the many concepts that must be planned through a successful strategic management, including project management through a business plan that includes marketing management, which is one of the most important factors for the success of business management, so you will find in the study of marketing management many concepts such as Marketing plan, marketing strategy, product management, study of market types, management of competitors, management of after-sales service, and how to implement this through several steps within the business plan, especially in the field of advertising management, where you find digital marketing one of the most important factors for the success of business management, where advertising and spread through it are widely The most important means is the Internet through digital marketing ads, where you can use Google ads, Twitter ads, and Facebook ads, and here lies the importance of marketing management to achieve successful advertising for your business, so in this article we will review the concepts of marketing management and marketing strategy.
Products and Services
People
satisfy their needs and want with products. A product is anything that can be
offered to a market to satisfy a need or want. Usually, the word product suggests
a physical object, such as a car, a television set, or a bar of soap. However,
the concept of the product is not limited to physical objects - anything capable of
satisfying a need can be called a product.
In
addition to tangible goods, products include services, which are activities or
benefits offered for sale that are essentially intangible and do not result in
the ownership of anything. Examples are banking, airline, hotel, and household
appliance repair services. Broadly defined, products also include other
entities such as persons, places, organizations, activities, and ideas.
Consumers decide which entertainers to watch on television, which political
party to vote for, which places to visit on holiday, which organizations to
support through contributions, and which ideas to adopt. Thus the term product
covers physical goods, services, and a variety of other vehicles that can
satisfy consumers' needs and wants.
If at times the term product does not seem to fit, we could substitute other terms such as satisfier, resource, or offer. Many sellers make the mistake of paying more attention to the physical products they offer than to the benefits produced by these products. They see themselves as selling a product rather than providing a solution to a need. The importance of physical goods lies not so much in owning them as in the benefits they provide. We don't buy food to look at, but because it satisfies our hunger. We don't buy a microwave to admire, but because it cooks our food. A manufacturer of drill bits may think that the customer needs a drill bit, but what the customer really needs is a hole. These sellers may suffer from 'marketing myopia'.4 They are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs. They forget that a physical product is only a tool to solve a consumer problem. These sellers have trouble if a new product comes along that serves the need better or less expensively. The customer with the same need will -want the new product.
Product
Anything that can be
offered to a market for attention, use, or consumption that might satisfy a want
or need. It includes physical objects, services, persons, places, organizations, and ideas.
Service
Any activity or benefit that
one party can offer to another which is essentially intangible and does not
result in ownership of anything
Value, Satisfaction, and Quality
Consumers usually face a broad array of
products and services that might satisfy a given need. How do they choose among
these many products? Consumers make buying choices based on their perceptions
of the value that various products and senders deliver. The guiding concept is
customer value. Customer value is the difference between the values the
customer gains from owning and using a product and the costs of obtaining the
product.
For example, Federal Express customers
gain a number of benefits. The most obvious is fast and reliable package
delivery;'. However, when using Federal Express, customers may also receive some
status and image values. Using Federal Express usually makes both the package
sender and the receiver feel more important. When deciding whether to send a
package via Federal Express, customers will weigh these and other values
against the money, effort, and psychic costs of using the service. Moreover,
they will compare the value of using Federal Express against the value of using
other shippers-UPS, DHL, the postal service - and select the one that gives
them the greatest delivered value. Customers often do not judge product values
and costs accurately or objectively. They act on perceived value. Customers
perceive the firm to provide faster, more reliable delivery and are hence
prepared to pay the higher prices that
Federal Express charges. Customer
satisfaction depends on -A product's perceived performance in delivering value
relative to a buyer's expectations. If the product's performance falls short of
the customer's expectations, the buyer is dissatisfied. If performance matches
expectations, the buyer is satisfied. If performance exceeds expectations, the
buyer is delighted. Outstanding marketing companies go out of their way to keep
their customers satisfied. Satisfied customers make repeat purchases, and they
tell others about their good experiences with the product. The key is to match
customer expectations with company performance. Smart companies aim to delight
customers by promising only what they can deliver, then delivering more than
they promise.5 Customer satisfaction is closely linked to quality. In recent
years, many companies have adopted total quality management (TQM) programmers,
designed constantly to improve the quality of their products, services, and
marketing processes.
Quality has a direct impact on product
performance, and hence on customer satisfaction. In the narrowest sense,
quality can be defined as 'freedom from defects. But most customer-centered
companies go beyond this narrow definition of quality. Instead, they define
quality in terms of customer satisfaction.
Customer value
The consumer's assessment
of the product's overall capacity to satisfy his or her needs.
Customer satisfaction
The extent to -which a
product's perceived performance matches a buyer's expectations. If the product's
performance falls short, of expectations, the buyer is dissatisfied. If
performance matches or exceeds expectations the buyer is satisfied or
delighted.
Total quality management (TQM)
Programmers designed to constantly improve the quality of products, services, and
marketing processes
Exchange, Transactions, and Relationships
Marketing occurs when people decide to
satisfy needs and wants through exchange. Exchange is the act of obtaining a
desired object from someone by offering something in return. Exchange is only
one of many ways people can obtain the desired object. For example, hungry people
can find food by hunting, fishing, or gathering fruit. They could beg for food
or take food from someone else. Finally, they could offer money, another good
or service in return for food. As a means of satisfying needs, the exchange has
much in its favor. People do not have to prey on others or depend on donations.
Nor must they possess the skills to produce every necessity for themselves.
They can concentrate on making things they are good at making and trade them
for needed items made by others. Thus exchange allows a society to produce much
more than it would with any alternative system. Exchange is the core concept of
marketing. For an exchange to take place, several conditions must be satisfied.
Of course, at least two parties must
participate and each must have something of value to offer the other. Each
party must also want to deal with the other party and each must be free to
accept or reject the other's offer. Finally, each party must be able to
communicate and deliver. These conditions simply make exchange possible.
Whether an exchange actually takes place
depends on the parties coming to an agreement. If they agree, we must conclude
that the act of exchange has left both of them better off or, at least, not
worse off. After all, each was free to reject or accept the offer. In this
sense, exchange creates value just as production creates value. It gives people
more consumption choices or possibilities. Whereas exchange is the core concept
of marketing, a transaction is marketing's unit of measurement. A transaction
consists of the trading of values between two parties. In a transaction, we must
be able to say that one party gives X to another party and gets a Fin return. For
example, you pay a retailer £300 for a television set or the hotel £90 a night
for a room. This is a classic monetary transaction, but not all transactions
involve money. In a barter transaction, you might trade your old refrigerator
in return for a neighbor's second-hand television set
A barter transaction can also involve services as well as goods: for example when a lawyer writes a will for a doctor in return for a medical examination (sec Marketing Highlight 1.1). A transaction involves at least two things of value, conditions that are agreed upon, a time of the agreement, and a place of agreement. In the broadest sense, the market tries to bring about a response to some offer. The response may tie more than simply 'buying' or 'trading' goods and services. A political candidate, for instance, wants a response called 'votes', a church wants 'membership', and a social-action group wants "idea acceptance'. Marketing consists of actions taken to obtain the desired response from a target audience towards some product, service, idea, or other objects. Transaction marketing is part of the larger idea of relationship marketing. Smart marketers work at building long-term relationships with valued customers, distributors, dealers, and suppliers. They build strong economic and social tics by promising and consistently delivering high-quality products, good service, and fair prices.
Increasingly, marketing is shifting from
trying to maximize the profit on each individual transaction to maximizing
mutually beneficial relationships with consumers and other parties. In fact,
ultimately, a company wants to build a unique company asset called ^.marketing
network, A marketing network consists of the company and all of its supporting
stakeholders: customers, employees, suppliers, distributors, retailers, ad
agencies, and others with whom it has built mutually profitable business relationships.
Exchange
The act of obtaining a desired object from someone by offering something in return.
Transaction
A erode between I parties involves at least two things of value, agreed-upon conditions, a time of the agreement, and a place of agreement.
Relationship marketing
The process of recreating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.
Markets
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| Marketing concepts |
The concept of exchange leads to the concept
of a market. A market is the set of actual and potential buyers of a product.
These buyers share a particular need or want that can be satisfied through the exchange. Thus, the size of a market depends on the number of people who
exhibit the need, have resources to engage in exchange, and are willing to
offer these resources in exchange for what they want. Originally the term
market stood for the place where buyers and sellers gathered to exchange their
goods, such as a village square. Economists use the term to refer to a
collection of buyers and sellers who transact in a particular product class, as
in the housing market or the grain market. Marketers, however, see the sellers
as constituting an industry and the buyers as constituting a market. The relationship
between the industry and the market is shown in. The sellers and the
buyers are connected by four flows. The sellers send products, services, and
communications to the market; in return, they receive money and information.
The inner loop shows an exchange of money
for goods; the outer loop shows an exchange of information. Modern economics
operates on the principle of division of labor, where each person who specializes in
producing something receives payment and buys needed things with this money.
Thus, modern economies abound in markets. Producers go to resource markets (raw
material markets, labor markets, money markets), buy resources, turn them into
goods and services, and sell them to intermediaries, who sell them to
consumers.
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| Marketing concepts |
They talk about need markets (such as
health seekers); product markets (such as teens or the baby boomers); and
geographic markets (such as Western Europe or the United States). Or they
extend the concept to cover noncustomer groupings. For example, a labor market
consists of people who offer their work in return for wages or products. Various
institutions, such as employment agencies and job-counseling firms, will grow
up around a labor market to help it function better. The money market is
another important market that emerges to meet the needs of people so that they
can borrow, lend, save, and protect money. The donor market has emerged to meet
the financial needs of non-profit organizations.
Market
The sec of all actual arid
potential buyers of a product or service.
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