Understanding Marketing: Concepts, Strategies, and Approaches
Understanding Marketing
1. The Philosophy and Activity of Marketing
Marketing aims to understand and fulfill consumer desires for mutual benefit. It involves analyzing situations, designing business strategies, implementing plans, and controlling key instruments like the marketing mix (4 Ps: product, price, place, promotion).
1.1 Marketing Disciplines
- Non-profit Marketing: Focuses on social causes and public interest.
- Social Marketing: Balances consumer satisfaction with societal well-being.
1.2 Marketing Approaches
1.2.1 Strategic Marketing
Focuses on long-term competitive advantage through market analysis, target market definition, and strategic planning.
1.2.2 Operational Marketing
Deals with short- and medium-term implementation of marketing plans using the marketing mix.
2. Basic Marketing Concepts
2.1 Products, Goods, Services, and Ideas
- Product: Anything that holds value and satisfies a need (goods, services, or ideas).
- Goods: Tangible objects for consumption (e.g., durables, consumables).
- Services: Intangible actions that benefit people or objects.
2.2 Needs, Desires, and Demands
- Need: A feeling of lacking something essential.
- Desire: The expression of a need influenced by personal and environmental factors.
- Demand: Desire backed by purchasing power and willingness to buy.
2.3 Marketing’s Role
Marketing identifies, anticipates, and creatively fulfills needs through various approaches like responsive, creative, and advance marketing.
3. Evolution of Marketing Approaches
- Production Approach: Focuses on efficiency and cost reduction.
- Product Approach: Emphasizes product quality and features.
- Sales Approach: Relies on aggressive sales techniques.
- Market Approach: Prioritizes understanding and meeting customer needs.
4. Market Orientation
A customer-centric approach considering five dimensions: consumer, competitor, supplier, distributor, and environment orientation.
5. Scope of Marketing
Marketing encompasses various schools of thought, including economic/non-economic and interactive/non-interactive perspectives.
6. Definition of Marketing
Marketing is the process of creating, communicating, and delivering value to customers and managing relationships for mutual benefit.
7. Marketing as an Exchange System
Marketing involves a two-way exchange of value between parties.
7.1 The Concept of Exchange
Exchange occurs when parties offer something of value to each other.
7.2 Building Utility
Marketing creates value through various utilities like form, place, time, possession, and information.
8. Interactive/Relationship Marketing
Focuses on building long-term relationships with customers through various levels of engagement.
8.1 Perceived Value Management
Understanding how customers perceive value in terms of purchase, use, and final value.
8.2 Integrated Marketing
Coordinating all company departments to achieve customer satisfaction.
8.3 Internal Marketing
Motivating and aligning employees with the company’s marketing goals.
Internal marketing involves various phases, including training, management support, communication, and employee engagement.