The importance of marketing:
The increase in appointing a Chief Marketing Officer (CMO) shows the importance of marketing for many companies. They are on the same management level as Executive Officers and Chief Financial Officers. Jack Welch, General Electrics former CEO, stated ‘Change or die’ when it comes to surviving in business.
What is Marketing?
This chapter will take a look back on the fundamental elements of marketing and also what is happening in the 21st century.
Definition: ‘marketing is an organisational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the ...view middle of the document...
Ideas: Charles Revson of Revlon said ‘in the factory, we make cosmetics, in the store we sell hope’. This emphasizes the fact of how products and services are just mediums for delivering an idea or benefit.
A marketer is seeks a response from another party who is called the prospect. These responses could be attention, votes, a purchase or donation.
Marketers are responsible for demand management. One of the duties of a marketing manager is to seek to influence the level, timing and composition of demand to meet the objectives of the company. The eight demand states that are possible are:
- Negative demand: consumers dislike a product and may even pay a price to avoid it.
- Nonexistent demand: consumers maybe unaware or uninterested in the product.
- Latent demand: consumers share a strong need that cannot be satisfied by an existing product.
- Declining demand: product is bought less frequent or not at all.
- Irregular demand: purchases are seasonal/monthly/weekly etc
- Full demand: products that are being brought onto the marketplace are being bought.
- Overfull demand: the demand for the product is more than the supply.
- Unwholesome demand: attraction of products that have undesirable social consequence.
Key Customer Markets:
Consumer markets- when a company sells mass consumer goods and services. This can be enhanced by a product’s brand strength as a superior product.
Business markets-business buyers buy goods in order to make or resell a product at a profit.
Global markets- this is when a company decides to sell in the global marketplace. This needs to be carefully decided as each country will have different customers.
Non-profit and government markets- these organisations have limited purchasing power for example a church or university.
As the internet and digital world evolves, the business world must move with it. Within the marketing world the use of market places, which are the physical shops, have become less widespread with the introduction of marketspace which is the digital world.
Marketing in practice
This chapter has, so far, shown the background to marketing but now it is time to show how it is done in an organisation.
These are the 5 key functions for managers to follow when leading marketing in a company:
1) strengthening the brand
2) measuring marketing effectiveness
3) driving new product development based on customer needs
4) gathering meaningful customer insights
5) utilizing new marketing technology
The functions set out previously are a selection of the basic job a Chief Marketing Officer (CMO).
Core Marketing Concepts
Needs, wants and demands
Needs are the basic human requirements. There are five types of needs: stated needs, real needs, unstated needs, delight needs and secret needs.
Wants are for specific objects that may satisfy the need. Demands are wants for specific products backed by an ability to pay.