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The purpose of this report is to explain what is marketing associated with fast-moving consumer goods companies, why it is important and the role it plays in the profitability of the company.

Extracts from this document...

Introduction

Table of contents 1 Introduction 2 1.1 Purpose 2 1.2 Scope 2 1.3 Methodology 2 1.4 Limitations 2 1.5 Assumptions 2 1.6 Background 2 2 Definition of FMCG 4 3 Definition of marketing 4 4 Evolution of marketing 4 5 Marketing involves planning 6 6 Marketing as a set of business activities 7 7 Importance of marketing 11 8 The role of marketing 12 9 Conclusion 14 References 15 1 Introduction 1.1 Purpose The purpose of this report is to explain what is marketing associated with fast-moving consumer goods companies, why it is important and the role it plays in the profitability of the company. 1.2 Scope The report generally describes the whole process of marketing and also discuss the importance and the role of marketing within the organisations. 1.3 Methodology In order to complete this report, journal articles, secondary data contained in books are used to research the topic. Besides these, internet resources are selected to supplement the report. 1.4 Limitations The limitations of the report were limited resources relating the topic and the report may not cover completely the whole information in this area due to the words limitations. 1.5 Assumptions In this report, it was assumed that all information gathered is relevant and unbiased. It is also assumed that Unilever conducted marketing research to get information about their customers and the consumers' perception may determine which brand they choose. 1.6 Background Marketing is a widely used philosophy in operating business. As a fast-moving consumer goods company, business activities are inevitable involved in dynamic environment, which requires respond to the environment effectively and efficiently. Therefore, it is important to understand what marketing is, why it is important and what role it plays in the organisations. 2 Definition of FMCG Fast moving consumer goods are goods (FMCG) that the consumer usually buys frequently, immediately and with a minimum of comparison and buying effort. ...read more.

Middle

Organisations establish marketing information systems in order to provide managers with good information to assist their decision-making (Kotler, et al., 2004, p.207). Marketing research is an efficient, cost-effective management tool that gets marketers close to the consumer, customer and public through the relevant, accurate, reliable, valid and current information. The most common researches are measurement of market potential, market share, long-range forecasting (Malhotra, Hall, Shaw and Oppenheim, 2002, p.11). Marketing research consists of four steps including defining the problem and research objectives, designing the research, implementing the research plan and interpreting and reporting the findings (Kotler, et al., 2004, p.216). The most difficult step in marketing research is claimed to be the first step, defining the problem and research objectives, as the problems may be defined to be too narrow or too broad (Malhotra, 2002, p. 13). Take an example, Unilever conducted a research in food and health area. It focused on four areas which are Cardio-vascular diseases, vitality & performance, food & health in developing countries and weight control. Its budget amounts to � 15 million (Unilever, 2004). In this research Unilever may collect secondary data and primary data by looking up the existing information about the health situation of people or by conduct observational, survey and experimental research. Markets have to be understood before marketing strategies can be developed. Consumer behaviour is influenced by the buyer's characteristics and by the buyer's decision process. Marketers must understand how consumers transform marketing and other inputs into buying responses (Kotler, et al., 2004, p. 272). Consumer buying behaviour is influenced by several factors including psychological factor, such as motivation, perception; personal factors, such as age, gender; culture factors, such as subculture and social class and social factors, such as household types (Clark, 2003, p.199). People purchase goods through a buying decision process, which consists of need recognition, information search, evaluation of alternatives, purchase decision and post-purchase behaviour (Kotler, et al., 2004, p. ...read more.

Conclusion

For example, as hospital costs and room rates increase, many hospital faces under-utilisation. One hospital may adopt the marketing concept to compete with the other hospital. They may use innovative billboards to promote its emergency care service (Kotler, et al., 2004, p.23). Marketing can also be applied in service organisations, such as banks. Marketing management in the banks uses the extended marketing mix, which includes process, people and physical evidence, to assist the organisation to provide better service than its competitors. Therefore, marketing helps both profit making organisation and non-profit organisation in meeting its financial objectives in fierce competition (Koslowsky, 2001, p.168). 9 Conclusion Marketing, as a process of integrated activities to deliver the satisfactions to the customers based on what they need and want, is adopted by a large number of companies including fast-moving consumer goods companies. The fast-moving consumer goods are the goods that require low involvement in consumer buying behaviour. Marketing allow the company to plan ahead in order to satisfy consumers and generate long-term profit. Marketing as a set of business activities involves planning, implementing, and controlling. Organisations set plans on three levels, which are corporate level, strategic business unit level and functional level. The organisations need to analyse and assess the opportunities and threats to determine how to achieve the objectives and goals more effectively and efficiently. This can be done through analysing the organisation's macro and micro environment. Marketing research is a useful tool to get better information. By understanding the opportunities and threats, companies can then segment, target and position itself in the target market. Consumer behaviour must be understood before the marketing strategies are developed. Marketing mix includes product, price, place and promotion is the essential part of marketing strategy. Marketers must then carry out the actions based on these strategies. Controlling is necessary for correcting, monitoring the process. Marketing is important in several ways. It provides a philosophy, acts as a culture and designs a strategy for the organisation to achieve its profitability objectives. ...read more.

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