Essentials of Marketing - Importance on the Foundation of a Marketing Plan Structure - Assignment Example

Essentials of Marketing Chapter 1 The essence of marketing activities is associated with the identification of the consumers’ needs and wants, and then satisfaction of what the consumer demands better than what competitors can offer. This includes several steps for a business owner to do market research on the consumers, analyze their needs, then strategize on their production design, prices, promotion or advertising, and distribution of the products and or services. ("Market Research") The purpose of a marketing research firm is to help a producer in systematically gathering of information, recording and analyzing of data about customers and competitors, and the market in which it is included. Whether a producer is small-scaled or large-scaled, a producer should consider a marketing research firm to do research to be effective in launching for example a new product or service, improving the quality of products already promoted by the producer or even expansion of the producer’s business opportunities. ("Market Research") The marketing research firm can greatly focus on what the producer needs to analyze, which are its consumers. The firm can effectively help a company make better decisions regarding their products. If a consumer is thinking of buying a (a) wristwatch, he or she might consider the quality of an expensive wristwatch over a cheaper low-priced wristwatch.(b) For a diet supplement, one person will consider its effectiveness and will be willing to buy it even if it is expensive. (c) A person who is considering taking on a cruise on a luxury liner, he or she will consider the packages offered by the liner for the price the customer wishes to pay for. (d) In checking one’s account, a person will consider the technology needed to check his account whenever and wherever he wants. Therefore paying for an added service in his computer or paying someone to do it for him with the benefit of being updated with his account. Chapter 2 This is an example of a marketing strategy illustration by Tim Berry (Berry) The illustration gives importance on the foundation of a marketing plan structure. At the top of the pyramid is the strategy, it is focusing on the markets, its needs and its offers. The tactics level explains how it should be carried out. The program level, being the base of the pyramid serves as the specific ways of implementing the marketing strategy plans. (Berry) A firm must be effective in carrying out its marketing plans. And part of producers’ expansion plans must include a market penetration opportunity research. In the goal of effectively carrying out the producers’ plans of expansion, the market penetration opportunity research will ensure the background of the plan for expansion. This will allow the producer to determine his consumers well and how effective his products can be successfully sold to his consumers. Chapter 3 “A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action.” ("Marketing Segmentation") Investopedia Says: For example, an athletic footwear company might have market segments for basketball players and long-distance runners. As distinct groups, basketball players and long-distance runners will respond to very different advertisements. ("Marketing Segmentation") This process allows the producer to classify the similarities of the consumers among the different classes or subgroups in the market. Market segmentation is a result of the realization that not all consumers have same needs and wants. Demographic variables such as age, gender, sexual orientation, income, religion, and nationality or race will greatly influence the clustering of target consumers in accordance with their differences. ("Marketing Segmentation") Chapter 4 A firm’s resource is very important in reaching his target consumers. This affects how the firm will plan and implements its plans in the production and selling of goods and services. A firms’ location is one specific example. For example, a producer selling vegetables from a country side may wish to venture in selling his products in the city market. The producer will consider transportation and packaging costs just to name the few. A marketing manager must be equipped with the knowledge and skills to carry out his duties effectively. With a competitor analysis, he has a background on what to expect and what not to expect from his competitor. It will give him the advantage to plan and strategize ahead guided by his analysis on the competitor. This will also enable him to effectively carry out his plans on gaining advantage in the production and selling of his goods. Chapter 5 Knowing the intended consumers is a priority of a marketing firm, consumer uses his cognitive skills in determining which products or services he should use or buy. The aim of a marketing strategy plan is to effectively bring the product to the consumers. One problem that might affect the firms’ marketing strategy plan is the consumers learning processes. For example, the connectionist approach explains how consumers classify or give an order based on their needs, wants of preferences. The producer however has its own of definite products to sell, thus, taking consideration on the consumers’ line-up of preferences with the firms’ preferred products to sell. (Mistri) Understanding the psychographics and lifestyle of college students which are the intended consumer in the given situation, strengthens the marketing strategy plan of a firm. This will discern the most effect way to reach out to the intended consumers. This will enable the producer to determine which products or services are most viable, feasible and profitable to sell to the college students. Consumers vary, and understanding a specific group will enable the firm to produce and sell effectively.(Mistri) Chapter 6 CONSUMER BUYING vs. ORGANIZATIONAL BUYING The final consumer buys for several reasons. They purchase for personal use of products, for their family or for household use. The organizational consumers however purchase for continuous production of their products, for organizational operations, and to resale their products to their target consumers. ("Consumer and Organizational Buying Behavior") The final consumers get influenced by internal and external factors in considering what they should buy. External factors include considerations on what group they belong to, their culture, their social class and their family. Environmental and situational factors are also included in the external factors final consumers consider. Internal factors include the motivation, the lifestyle, the personality of the consumers in choosing a product he or she wants and needs. ("Consumer and Organizational Buying Behavior") For the organizational buyers, they buy things they need for further production of their goods like raw materials, equipments and semi finished goods. They spend on operation expenses and resale of their products. Their demand for a particular good relies on the demands of the consumers as well. ("Consumer and Organizational Buying Behavior") Competitive Bidding Competitive biddings aims to negotiate what both parties are willing to offer in exchange for tasks, products or services they need on the other party. The tasks can either be services that include manufacturing and transporting goods or materials. An organizational buyer wants to have many choices suited to its needs. Competitive biddings allows the organizational buyer to have the best choice of services they need at the price they can afford and willing to pay. Competitive bidding however is not suited in situations wherein there are many parties involved for the organizational buyer to choose from. Although it presents many choices for the organizational buyer, bidding will not result to the best price and offer for both parties. The best situation for competitive bidding is when a party offers a product or a service that is needed in which both parties need to acquire, the other needs to sell. The result is a fair bid on the product or services an organizational buyer needs and wants. Chapter 7 Primary research is first-hand information regarding the consumers. A firm will greatly benefit from primary research as it is credible and reliable because the research is done specifically for the firms’ marketing needs. This effectively determines the best way to reach out to the consumers given the circumstances of the firm and the specific consumers. Given a situation that a firm does not include a search engine on its intranet and marketing decision support system, it defeats the purpose of effective and fast research and decision making processes. The marketing manager needs to be effective and fast with whatever he does, it the search engine greatly helps in those processes. Chapter 8 Two examples of business products that requires substantial amount of service in order to be useful is a automobile business and sports gear. The amount of service need in the automobile industry is large due to the fact that the consumers are mostly unaware of what car or car accessories and equipments they need. The service of a person, a salesman or mechanic that has the expertise and knowledge with these kinds of things is greatly needed. In the sports gear business venture, the equipments are needed to be explained and sold to the consumers. The consumers may also be unaware of what they really need. STRENGTHS and WEAKNESSES of DIFFERENT BRAND NAMES BRAND NAME PRODUCT STRENGTH WEAKNESS 1. Colgate Colgate Toothpaste Familiarity of the product Too many variants for consumers to choose from 2. Tide Tide Detergent Effective promotional schemes Affiliated with a company boycotted in the US due to religious reasons 3. Pringles Pringles Potato Chips Household name Contains ingredients that has been proven to be carcinogenic 4. Palmolive Palmolive Soap Well known brand Considered to be a luxury brand hence, less appeal to the masses 5. St. Ives St. Ives Lotion Good product quality Considered to be a luxury brand hence, less appeal to the masses Reference Read More