The principles of marketing and how it operates.

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Introduction:

        In this Brief report you would be finding an outline of the principles of marketing and how it operates.

        This brief report is being handed in, in conjunction with the job interview for the post of a Category Manger at “Carter’s” a local supermarket.

Contents:

  1. Definition of Marketing and its Key components.

  1. The Core Marketing Concepts

  1. The Marketing Management Philosophies

  1. The marketing Process :

                        Target Consumers

                        4 P’s

                        Marketing Management functions

                        The Global Marketing Environment

  1. Major challenges being faced nowadays

  1. Bibliography

What is Marketing?

        Marketing is the management process by which a firm or organization identifies, anticipates, and satisfies consumer requirements profitably

        In other words when we speak about marketing we relate our ideas to studying the actual market, its sellers and buyers, analyzing costs related to a product, analyzing the import and export situation, analyzing competition and finally locating the outlet and targeting the customer before distributing the goods.

        Marketing has not always had such an important role. However its importance has been recognised and its techniques made useful. The 19th century (better known for the Industrial Revolution) brought about production oriented firms, these where due to practically no competition or choice between various products. At this point in time marketing did not exist. The first half of the 20th century saw the production era braking down and sales techniques were beginning to be emphasized. Still no marketing was being used by organizations and firms. However the 20th century was known for the amount of progress in industry, competition was rising fast and the use of marketing was becoming obvious. Soon marketing had become the most emphasized managerial system with all other management sections being strongly influenced by specific marketing techniques related to that particular area. Its role was and is to give the customer or consumer utmost importance. Identifying consumer needs before actually producing and eventually selling.

        A marketer’s job is to discover people’s needs and wants, produce goods and services to satisfy those wants, using appropriate techniques to sell what has been produced, ensuring that both the buyer and the seller will benefit from such exchange relationships

Definition of marketing

        “Marketing is a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others.”

        “Marketing is getting the right goods (or services) to the right place for the right customers at the right time and right price”

        “Marketing is the effective exchange of goods or services between suppliers and buyers, so that the needs and wants of consumers and industry are satisfied.”

        A business profits, are the business survival ‘kit’, which all depends on the satisfaction of its customers’ needs.

        Marketing is like the matching process ‘the matching of your company’s capabilities to the wants of its customers’

        With the growing of the Internet, the meaning of the word "marketing" has also grown.

Marketing is a process of:  

1) Analyzing your customers and the business environment in order to

2) Identify key opportunities to better and meet customer needs,

3) Figuring out how to act on those opportunities, and then

4) Implementing your plan.

        Marketing, is concerned with attempting to reduce risk by applying formal techniques systematically to assess the situation and develop the company’s response to it.

The Core Marketing Concepts

Needs

Needs –in order to survive, human beings must satisfy basic and essential needs – for warmth (either in the from of heating or clothing), for food and drink and for safety (in the form of a secure place of safety). Until these needs are met, mankind usually has little interest in goods or services which lie at the margin, such as jewellery, entertainment or pretty decorated items.

Wants – a form that a human need takes as shaped by culture and individual personality. i.e. I want a hamburger, French fries, and a soft drink. HUMAN BENGS ARE GOVERNED BY A DESIE TO SATISFY A SEEMINGLY ENDLESS SERIES OF WANTS. Our ‘wants’ represent how we wish a need to be fulfilled, as conditioned by our past and present. What type of product/service we choose is conditioned by our past and present circumstances. As well as current economic circumstances, our social and cultural background also plays an important role.

Demands

Demands - human wants backed by buying power. i.e. I have money to buy this meal. Wants are not always actual purchases of a product o service. A person might want more products then he can afford. A demand for goods becomes effective when it is linked to the ability to obtain them (usually by paying)

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PRODUCTS – a product that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a need or want. A product is anything that can be marketed: A good (clothes, food), A service (banking, insurance), etc.

 A product has three levels these are:

        The Core Product

        The Actual Product

        The Augmented Product

        The Core Product is what need the product satisfies e.g. perfume (romance, a gift)

        The Actual Product is the final product that is placed on the shelving e.g. computer (Hardware & Software)

        The Augmented Product is the elated services ...

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