A Comprehensive Guide to Marketing Strategies and Administrative Functions
Merchandise
Types of Merchandise
- Of Consumption: Directly satisfy a need and do not require further processing.
- Middle: Used for the manufacture of other goods. Do not directly meet needs. Are transformed and become part of another good.
- Of Capital: Used for producing other goods, without losing their original status.
Services
Actions or activities that generate intangible products or are not appreciated at a glance.
Marketing Strategy
Tools the company uses to:
- Reach consumers
- Grasp as a client
- Secure long-term relationships
Phases of a Marketing Strategy
A. Definition of the Target Market
- Market Determination
- Objective or Segment
B. Development of the Marketing Mix
- Implementation of the Marketing Mix: 4 Ps
- Product, Promotion, Price, Place
Market Segmentation
Objective: To address the market in the best manner possible, meeting the needs of consumers (clients).
Split or establish the market according to some characteristic, selecting from the entire universe, parties who meet the consumption requirements and satisfying them.
Many potential customers are usually scattered, with buying habits and very different needs.
Businesses cannot attend to all consumer products in the same way.
Companies must identify the parties in the market that they can best serve, instead of competing with everyone in the market and with all business competition.
Marketing Approaches
Companies can utilize different marketing approaches:
- Mass Marketing: Promotion and distribution throughout the market.
- Product Differentiation Marketing: Products with different characteristics, to offer variety to the same group of consumers.
- Target Market Marketing: Identify market segments and offer alternative products for each segment.
Segmentation
Based on consumer characteristics and product attributes.
By the very nature of needs, each consumer is a market segment, leading to total segmentation.
Is it possible to design individual marketing programs?
Is it possible to tailor products and marketing programs to the needs of each particular client?
In most cases, companies identify general classes of consumers and design different marketing strategies for each group.
Bases for Segmenting Markets
A market segment should characterize, in the best possible way, the consumer group that will be targeted for a specific product by applying one or more break variables.
Segmentation Variables
- Geographical Variables
- Demographic Variables
- Psychographic Variables
- Behavioral Variables
Geographic Segmentation
- Divide the market into geographical areas such as countries, regions, cities, neighborhoods, etc.
- Businesses choose to operate in the whole market or just certain areas.
- They have to consider the differences that exist between the needs of consumers in one area and another.
- Companies adapt their production, promotion, and sales to the specificities of each geographical area.
Demographic Segmentation
- It is the most common form of segmentation since these variables are easily measured.
- It involves dividing the market into groups based on characteristics such as:
- Age
- Sex
- Family Size
- Family Life Cycle
- Income Level
- Education Level
- Religion
- Race
- Etc.
Psychographic Segmentation
- Divide consumers based on their social characteristics, lifestyle, and personality.
- Social Background: It affects consumer preferences in products such as cars, clothing, furniture, recreation, reading habits, retail shopping, etc. Companies design products or services that appeal to people, depending on their social background.
- Lifestyle: The interest of some people for certain products is influenced by their lifestyle. People with an informal lifestyle that enjoy the outdoors are more easily able to acquire sportswear or dietary products.
- Personality: Products are attributed to the personality of consumers. Cigarettes, cosmetics, liquor, cars, etc.
Administrative Functions
Definition
The process of designing and maintaining an environment in which individuals work in groups to efficiently achieve their objectives.
To understand this, we must consider that:
Administrators perform administrative functions such as planning, organization, integration of personnel, management, and control.
Planning
- Define goals, set strategy, and develop sub-plans to coordinate activities.
- Seeks to adapt to changes, minimize risk, seize opportunities presented, predict the future as much as possible, and thus make the organization grow and prosper.
If there were no planning, events would be left to chance.
Planning provides a coordinated effort. It guides the work of subordinates and managers.
Organization
Determines what needs to be done, how it is done, and who will do it.
Management
- Directs and motivates everyone involved and solves conflicts.
- Involves directing and coordinating people.
Managers hire people, motivate their subordinates, direct the activities of others, select the most effective channel of communication, resolve conflicts between members, use a leadership style, etc.
Control
Monitors activities to ensure that everything is done according to what was planned.
Administrative Skills
Harold Koontz argues that administrators must meet three basic conditions or skills:
- Conceptual
- Human
- Technical
Conceptual Ability
It relates to the ability to encompass the entire company, encompassing all the intellectual and rational analysis-synthesis, which can recognize how the business functions interact and are projected to the external environment.
Human Skills
The ability to work with people to form teams, to motivate and gain the cooperation of staff, and also the creation of an environment where people feel free and safe to express their views.
Technical Skills
- Refers to knowledge and mastery of a specific branch of tasks that are characteristic of the company.
- Implies knowledge of methods of operation and production processes.
- Because of this, including working with specialized tools and machinery, supervisors should be able to instruct their subordinates.