The Concept of Effective Mrketing - Essay Example

Mrketing Mrketing is the process of plnning nd executing the conception, pricing, promotion, nd distribution of ides, goods, nd services to crete exchnges tht stisfy individul nd orgniztionl objectives. This definition revels tht mrketing involves more thn just n individul ctivity such s sles or promotion. Effective mrketing requires tht mngers recognize the interdependence of these vrious ctivities nd how they cn be combined to develop mrketing progrm. Other perspectives view mrketing s consisting primrily of dvertising or retiling ctivities. For others, ctivities, such s mrket reserch, pricing, or product plnning my be the primry focus. There re mny definitions of mrketing, most of them stressing the need to develop long-term reltionships with customers nd sometimes other stkeholders. Few of them re listed in below. Mrketing is the socil process by which individuls nd groups obtin wht they need nd wnt through creting nd exchnging products nd vlue with others (Kotler). Mrketing is the mngement process tht identifies, nticiptes nd stisfies customer requirements profitbly (The Chrtered Institute of Mrketing (CIM)). Mrketing is - the right product, in the right plce, t the right time, t the right price (dcock). This is snppy nd relistic definition tht uses McCrthy's Four Ps. Mrketing is essentilly bout mrshlling the resources of n orgniztion so tht they meet the chnging needs of the customer on whom the orgniztion depends (Plmer). This is more recent nd very relistic definition tht looks t mtching cpbilities with needs. Mrketing is the process whereby society, to supply its consumption needs, evolves distributive systems composed of prticipnts, who, intercting under constrints - technicl (economic) nd ethicl (socil) - crete the trnsctions or flows which resolve mrket seprtions nd result in exchnge nd consumption (Brtles). This definition considers the economic nd socil spects of mrketing. My concept of mrketing is close to the definition by CIM tht looks not only t identifying customer needs, but lso stisfying them (short-term) nd nticipting them in the future (long-term retention). In its most generic form, I define mrketing s mrketing seen s reltionships, networks nd interction or mrketing bsed on interction within network of reltionships. In the brodest sense of mrketing, ll mngement, the whole society, nd even life itself, form networks of reltionships within which we interct in our roles of business executives, employees, consumers, citizens nd humn beings. In terms of my definition of mrketing, few importnt chrcteristics of mrketing exist to better explin the pproch: Collbortion. The core contribution from mrketing is its emphsis on collbortion. In nrrow sense it comprises the collbortion between customer nd supplier. This hs lwys been prcticl necessity for services nd for the development, production, mrketing nd purchsing of complex products in business mrketing. Its prctice, however, is often unprofessionl nd guided by legl-bureucrtic vlues nd lck of empthy. Its introduction in theory nd eduction is long overdue. Tody, severl sources independent of reltionship mrketing stress collbortion. Collbortion is the very reson for forming n orgniztion; you collborte inside nd compete outside. In totl reltionship mrketing you both collborte nd compete, inside s well s outside the orgniztion. Long reltionships. series of studies clim tht the longer the reltionship with customer, the higher the profit will be. This is primrily due to two effects of customer loylty: reduced mrketing costs when fewer customers defect; nd incresed 'customer shre' or 'shre of wllet' ( higher shre of the customer's purchse of product or service goes to single supplier). Long reltionships re lso needed inside the orgniztion. Win-win. Effective collbortion in long-term reltionship cn only tke plce if the prties feel like winners, or t lest tht they gin from the reltionship nd tht it is their best option under current circumstnces. It requires ech prty to think of the other prty s prtner rther thn s n dversry. Short term street-smrts nd excessive greed, which re chrcteristic of much mrketing prctice nd internl mnoeuvring, hve no plce in reltionship mrketing. Internl win-win reltionships - when employees feel they re working in compny tht gives them something bck such s resonble slry, encourgement nd development potentil - boost motivtion nd performnce. Joint vlue-cretion. Prtners in collbortion crete vlue together. The trditionl view is tht vlue is creted by the supplier; it is referred to s vlue-dded nd follows Porter's populr vlue chin. The vlue constelltion or the vlue field s well s reltionship mrketing nd network orgniztions ll sy differently; vlue is creted in network of reltionships of stkeholders. In the trditionl sense, consumption is destruction; ccording to the dictionry the word consumption even mens ' wsting disese, esp. pulmonry tuberculosis'. But, for the consumer the product or service is dding vlue only when it is consumed nd used, nd for services the production, delivery nd consumption re in prt concurrent events. It is trivil to sy tht orgniztionl tiers nd units with their specil skills nd functions should work in concert, but we know tht often they do not. Ech customer is n individul. The trditionl mrketing mngement pproch is mss mrketing. Customers re treted s sttistics, decimls, nd verges of grey msses, whether it is lrge generl mss or smller mss segment. Mss promotion nd mss distribution re sid to be cost-effective, nd it is considered too costly to tret customers, especilly ordinry consumers, s individuls. Reltionship mrketing ddresses ech customer s n individul which is distinctly epitomized in the expression one-to-one mrketing. Employees re lso individuls nd it is not commendble to tret them s nonymous members of crude segments such s blue collr or white collr workers, old or young, mle or femle, or mnufcturing, ccounting or sles deprtments. Mrketing is the most importnt business function tht mny compnies ignore nd/or under utilize. Some my cll it semntics, but try telling tht to the mny compnies tht hve been successful due to the effective use of mrketing including: Proctor nd Gmble, Coc Col, Ford Motors, Generl Motors, Microsoft, Exxon Mobil The most successful businesses in free mrket economy re those tht hve well-defined, strong mrketing orgniztion. Mrketing is the thinking prt of business. proctive compny is mrketing led! Clssiclly speking, the responsibilities for mrketing deprtment re primrily: reserch, "objective filtering", plnning, product/mrket development (including estblishing price nd controlling product gross mrgin), product trining, mrketing services, nd dvertising. mrketing deprtment's overll function is to prepre product/service for the sles deprtment's implementtion responsibility. Consumer mrketing is the most clssiclly-oriented nd requires well-funded budget nd solid commitment by senior mngement. Business to business mrketing normlly is not s fst pced nor requires the sme budgetry percentges s consumer products mrketing, but requires the sme senior mngement support nd understnding. Prcticing the "good old boy'' sles pproch or believing tht price is the only thing tht mtters will not tke compny very fr nymore. pplying strong mrketing presence within n orgniztion nd committing the funds to support its bility to provide profitble results is the only wy compny in free mrket economy will mximize its potentil. In conclusion, marketing is an important tool of organizational activity that stands for effectiveness and success of the company on the chosen market. Bibliography: 1. Adcock, D. (2000), Marketing Strategies for Competitive Advantage, John Wiley & Sons, Ltd, Chichester. http://www.cim.co.uk/cim/index.cfm 2. Palmer, S., and Rock, I. 1994. Rethinking perceptual organization--the role of uniform connectedness. Psychonomic Bulletin and Review, 1, 29-55. 3. The Chartered Institute of Marketing. Read More