Marketing and Production Management

Posted on Oct 7, 2024 in Economy

The Marketing Concept

A) Concept, Functions, and Responsibilities

We can distinguish two components of marketing:

  • It is a mental attitude towards the problems of the company.
  • It is a set of techniques focused on consumers.

Marketing is a responsible process aimed at identifying, anticipating, and satisfying consumer needs profitably for the company.

B) Basic Marketing Tools

  1. Product
  2. Price
  3. Communication
  4. Distribution

C) Types of Marketing

Marketing is classified as:

  • Industrial Marketing: Developed by manufacturing firms.
  • Service Marketing: Requires its own marketing strategy.
  • Social Enterprise Marketing: Focused on organizations with a social mission.

Marketing Plan

A) Business Planning

The marketing plan ensures that all subsequent actions are coordinated and necessary to meet the objectives.

B) Supporting Tools

The marketing plan also guides decisions about product, price, communication, and distribution.

C) Phases of a Marketing Plan

It consists of three parts, which address:

  • Where is the company?
  • Where should it go?
  • How to get there?

D) Phases of a Marketing Plan in Detail

1st Phase: Analysis of the Situation

The company is studied, understanding the potential of the enterprise and its environment.

  • External Situation: Economic, legal, social, technological factors.
  • Internal Situation: Knowledge of production, marketing, and financing.

2nd Phase: Diagnosis of the Situation

Identify the main strengths and weaknesses.

3rd Phase: Marketing Objectives

Objectives are formulated considering that they must be consistent and set within a time period. The main objectives are to increase sales volume and promote a product.

4th Phase: Strategies

The strategy is a set of decisions used to achieve the objectives.

5th Phase: Marketing Plans and Actions

These are the actions undertaken to implement the strategy.

6th Phase: Marketing Budget

The set of objectives, strategies, and actions require a budget for growth.

7th Phase: Control and Monitoring

The entire planning process requires monitoring to ensure the plan is on track and meeting its objectives.

Definition of Products and Services

The product is a set of attributes that can meet the needs of consumers. We can differentiate 3 levels:

  • Commodity: Pure product that fulfills basic physical needs.
  • Formal Product: In addition to the basic benefits, it offers quality, brand, and style.
  • Augmented Product: Includes added aspects such as installation and guarantee.

Definition of Production

The process by which certain elements are transformed into consumer products.

A) Objectives of Production

  • Get products delivered in the agreed quantities and dates.
  • Ensure that these products are manufactured within the cost schedule.

B) Description of Production

Determine the procedure to be followed and the means used.

Stages of Production Description

  • Define the parameters of the production process.
  • Identify materials or production needs (e.g., raw materials, finished products).
  • Establish human resource requirements (personnel needs, training, remuneration).

Design of Production Systems

  • Select types of processes:
    1. Continuous production methods
    2. Intermittent or batch production processes

Definition of Supply

Involves a set of operations that the company performs to offer the best conditions: quantity, quality, and price.

A) Supply Operations

We can distinguish the following:

  • Pre-purchase Operations: Forecasting needs, researching suppliers.
  • Purchasing Operations: Comparing bids, selecting suppliers, placing orders.
  • Post-purchase Operations: Receiving goods from suppliers, managing inventory.

A) Classes of Products

Products can be classified by:

  • The nature of the product
  • Their intended use
  • The type of customer
  • The need they fulfill
  • Complementary Products: Products used together.
  • Substitute Products: Products that can replace each other.

B) Decisions on Products or Services

  • Brand: The name that identifies the product.
  • Quality: Must be linked to the price.
  • Guarantee: Security that the client gets the expected results from their purchase.
  • Container: Protects the product and differentiates it from other brands.
  • Design: The shape and size perceived by the customer.
  • Service: Additional services offered with the product.
  • Range: Determined by the number of models of a product.
  • Product Image: The perception that customers have about the product.

C) The Product Life Cycle

There are 4 phases:

  1. Introduction or Launch: Sales grow very slowly.
  2. Growth: Customers become aware of the product, sales and profits rise quickly.
  3. Maturity: The product is consumed by the majority of potential consumers, sales stabilize.
  4. Decline: Sales decline, profits tend to disappear.

D) Decisions on the Role of Products in the Future

Products can be grouped into 4 categories:

  1. Star Product: The ideal position, generating profits.
  2. Question Mark Product: Generates doubt about whether to invest further.
  3. Cash Cow Product: Stable with little growth, generates consistent profits.
  4. Dog Product: Products with little future potential.