Marketing ManagementMarketing is an important function that brings companies and clients closer together. Marketing management and establishing a marketing orientated organisation with the emphasis on the customer is a core component in an organisations success."Marketing management is "the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value" (Kotler and Keller, 2008: 5)."The concept reviews the process used to determine what products or services may be of interest to customers and the strategy to use for marketing mix. It also explores the process of understanding, creating and delivering value to targeted business markets and customers.Marketing is the process used to determine what products or services may be of interest to customers and the strategy to use in sales, communications and business development (Kotler et al. 1996). The American Association of Marketing define marketing management as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services in order to create, exchange and satisfy individual and organisational objectives (Grnroos, 1989).Main functions of marketing management Marketing Management has the responsibility of to perform many functions in the field of marketing such as planning, organizing, directing, motivating, coordinating and controlling. All these function aim to achive the marketing goals. Following is a brief summary of functions of Marketing Objectives: marketing management determines the marketing objectives. The marketing objectives may be short term or long term and need a clear approach. They have to be in coherence with the aims and objectives of the organization. Planning: After objectively determining the marketing Objectives, the important function of the marketing Management is to plan how to achieve those objectives. This includes sales forecast, marketing programs formulation, marketing strategies. Organization: A plan once formulated needs implementation. Organizing functions of marketing management involves the collection and coordination of required means to implement a plan and to achieved pre determined objectives. The organization involves structure of marketing organization, duties, responsibilities and powers of various members of the marketing organization. Coordination: Coordination refers to harmonious adjustment of the activities of the marketing organization. It involves coordination among various activities such as sales forecasting, product planning, product development, transportation, warehousing etc. Direction: Direction in marketing management refers to development of new markets, leadership of employees, motivation, inspiration, guiding and supervision of the employees. Control: Control refers to the effectiveness with which a marketing plan is implemented. It involves the determination of standards, evaluation of actual performance, adoption of corrective measures, Staffing: Employment of right and able employees is very crucial to success of a market plan. The market manager coordinates with the Human Resource Manager of an organization to be able to hire the staff with desired capability. Analysis and Evaluation: The marketing management involves the analysis and evaluation of the productivity and performs mace of individual employees.Marketing strategy

Marketing strategyis the goal of increasing sales and achieving a sustainablecompetitive advantage.[1]Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services. A marketing strategy is composed of several interrelated components called the marketing mix.Firms Business StrategyBusiness (or Strategic) management is the art, science, and craft of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. It is the process of specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. Strategic management seeks to coordinate and integrate the activities of the various functional areas of a business in order to achieve long-term organizational objectives. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objective.Bases for Consumer Market SegmentationThere are number of variables involved inconsumer market segmentation, alone and in combination. These variables are: Geographic variables Demographic variables Psychographic variables Behavioral variablesGeographic SegmentationIngeographical segmentation, market is divided into different geographical unitslike: Regions (by country, nation, state, neighborhood) Population Density (Urban, suburban, rural) City size (Size of area, population size and growth rate) Climate (Regions having similar climate pattern)A company, either serving a few or all geographic segments, needs to put attention on variability of geographic needs and wants. After segmenting consumer market on geographic bases, companies localize their marketing efforts (product, advertising, promotion and sales efforts).Demographic SegmentationIndemographic segmentation, market is divided into small segments based on demographic variables like: Age Gender Income Occupation Education Social Class Generation Family size Family life cycle Home Ownership Religion Ethnic group/Race NationalityDemographic factors are most important factors for segmenting the customers groups. Consumer needs, wants, usage rate these all depend upon demographic variables. So, considering demographic factors, while defining marketing strategy, is crucial.Psychographic SegmentationIn Psychographic Segmentation, segments are defined on the basis of social class, lifestyle and personality characteristics.Psychographic variables include: Interests Opinions Personality Self Image Activities Values AttitudesA segment having demographically grouped consumers may have different psychographic characteristics.Behavioral SegmentationIn this segmentation market is divided into segments based on consumer knowledge, attitude, use or response to product.Behavioral variables include: Usage Rate Product benefits Brand Loyalty Price Consciousness Occasions (holidays like mothers day, New Year and Eid) User Status (First Time, Regular or Potential)Behavioral segmentationis considered most favorable segmentation tool as it uses those variables that are closely related to the product itself.Core concept of marketingNeed, Wants and Demand:Marketing begins with human needs and wants. Needs are feelings of deprivation of somesatisfaction. People need food, air, water, shelter to survive. Wants are desire for satisfies of needs. Wants which are backed by the purchasing power become demandProducts (Goods, Services and Ideas):A product is anything that can be offered to satisfy a need or want. A product may consist of three components- physical goods, services and ideas.Value, Cost and Satisfaction:Value means the customer's estimate of the product's overall capacity to satisfy his/her needs. Cost is the price which a customer pays the products. Satisfaction is inner felling.Exchange and Transaction:Exchange is the process of obtaining a desired product from someone by offering something in return. Exchange leads to transactions.Relationship and Networks:Relationship marketing refers to the process of building long-term satisfying relationship with customer, distributors and suppliers.Marketing Environment:Marketing environments are divided into two parts. Internal environment includes customer, suppliers, managements, employees, productions, etc. On the other hand external environment includes sociocultural environment, political, technological, economic environment, etc.Competition:Completion may come in many forms. A firm always competes with the existing player. Threat of potential competitor is also taken in consideration. Substitute product is also a competitor to firm.Supply Chain:Supply chain is a longer channel includes backward and forward logistic. It stretches from raw materials to delivery of finished goods to the ultimate consumer. Capturing higher value of supply chain gives firm competitive advantage over competitor firms. Services marketingServices marketingis a sub-field of marketing, which can be split into the two main areas of goods marketing (which includes the marketing of fast moving consumer goods (FMCG) and durables) and services marketing. Services marketing typically refers to both business to consumer (B2C) and business to business (B2B) services, and includes marketing of services such as telecommunications services, financial services, all types of hospitality services, car rental services, air travel, health care services and professional services.Services are (usually) intangible economic activities offered by one party to another. Often time-based, services performed bring about desired results to recipients, objects, or other assets for which purchasers have responsibility. In exchange for money, time, and effort, service customers expect value from access to goods, labor, professional skills, facilities, networks, and systems; but they do not normally take ownership of any of the physical elements involved.[1]There has been a long academic debate on what makes services different from goods. The historical perspective in the late-eighteen and early-nineteenth centuries focused on creation and possession of wealth. Classical economists contended that goods were objects of value over which ownership rights could be established and exchanged. Ownership implied tangible possession of an object that had been acquired through purchase, barter or gift from the producer or previous owner and was legally identifiable as the property of the current owner.

Differentiated Marketing StrategyA differentiated marketing strategy is when a company creates campaigns that appeal to at least two market segments or target groups. For example, a store can promote a sale that appeals to people in at least two cities or locations, or a company can market a product that appeals to women in at least two age groups. Differentiated marketing strategies can target many more than two segments; shoe companies often create campaigns that appeal to both men and women in a variety of age groups. Differentiated marketing strategies can also use different messages in the same campaign for different segments. For example, a retailer might market low cost to a budget-conscious segment and product quality to an affluent market segment.Factors Affecting Consumer BehaviorConsumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behavior. Initially the consumer tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility. After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities he should consume. Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, personal and psychological. The explanation of these factors is given below.1. Cultural FactorsConsumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class.CultureBasically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries.SubcultureEach culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into various small portions. For example marketers can design products according to the needs of a particular geographic group.Social ClassEvery society possesses some form of social class which is important to the marketers because the buying behavior of people in a given social class is similar. In this way marketing activities could be tailored according to different social classes. Here we should note that social class is not only determined by income but there are various other factors as well such as: wealth, education, occupation etc.2. Social FactorsSocial factors also impact the buying behavior of consumers. The important social factors are: reference groups, family, role and status.Reference GroupsReference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc then the influence of reference groups will be high. Reference groups also include opinion leader (a person who influences other because of his special skill, knowledge or other characteristics).FamilyBuyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles.Roles and StatusEach person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status.3. Personal FactorsPersonal factors can also affect the consumer behavior. Some of the important personal factors that influence the buying behavior are: lifestyle, economic situation, occupation, age, personality and self concept.AgeAge and life-cycle have potential impact on the consumer buying behavior. It is obvious that the consumers change the purchase of goods and services with the passage of time. Family life-cycle consists of different stages such young singles, married couples, unmarried couples etc which help marketers to develop appropriate products for each stage.OccupationThe occupation of a person has significant impact on his buying behavior. For example a marketing manager of an organization will try to purchase business suits, whereas a low level worker in the same organization will purchase rugged work clothes.Economic SituationConsumer economic situation has great influence on his buying behavior. If the income and savings of a customer is high then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products.LifestyleLifestyle of customers is another import factor affecting the consumer buying behavior. Lifestyle refers to the way a person lives in a society and is expressed by the things in his/her surroundings. It is determined by customer interests, opinions, activities etc and shapes his whole pattern of acting and interacting in the world.PersonalityPersonality changes from person to person, time to time and place to place. Therefore it can greatly influence the buying behavior of customers. Actually, Personality is not what one wears; rather it is the totality of behavior of a man in different circumstances. It has different characteristics such as: dominance, aggressiveness, self-confidence etc which can be useful to determine the consumer behavior for particular product or service.4. Psychological FactorsThere are four important psychological factors affecting the consumer buying behavior. These are: perception, motivation, learning, beliefs and attitudes.MotivationThe level of motivation also affects the buying behavior of customers. Every person has different needs such as physiological needs, biological needs, social needs etc. The nature of the needs is that, some of them are most pressing while others are least pressing. Therefore a need becomes a motive when it is more pressing to direct the person to seek satisfaction.PerceptionSelecting, organizing and interpreting information in a way to produce a meaningful experience of the world is called perception. There are three different perceptual processes which are selective attention, selective distortion and selective retention. In case of selective attention, marketers try to attract the customer attention. Whereas, in case of selective distortion, customers try to interpret the information in a way that will support what the customers already believe. Similarly, in case of selective retention, marketers try to retain information that supports their beliefs.Beliefs and AttitudesCustomer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up brand image and affect consumer buying behavior therefore marketers are interested in them. Marketers can change the beliefs and attitudes of customers by launching special campaigns in this regard.Penetration pricing strategiesYou often see the tagline "special introductory offer" the classic sign of penetration pricing. The aim of penetration pricing is usually to increasemarket shareof a product, providing the opportunity to increase price once this objective has been achieved.Penetration pricing is the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, to attract new customers. The strategy aims to encourage customers toswitchto the new product because of the lower price.Penetration pricing is most commonly associated with amarketing objectiveof increasing market share or sales volume. In the short term, penetration pricing is likely to result in lower profits than would be the case if price were set higher. However, there are some significant benefits to long-term profitability of having a higher market share, so the pricing strategy can often be justified.Penetration pricing is often used to support the launch of a new product, and works best when a product enters a market with relatively little product differentiation and where demand is price elastic so a lower price than rival products is a competitive weapon.Amongst the advantages claimed for penetration pricing include:- Catching the competition off-guard / by surprise- Encouraging word-of-mouth recommendation for the product because of the attractive pricing (making promotion more effective)- It forces the business to focus on minimising unit costs right from the start (productivity and efficiency are important)- The low price can act as a barrier to entry to other potential competitors considering a similar strategy- Sales volumes should be high, so distribution may be easier to obtainPenetration pricing strategies do have some drawbacks, however:- The low initial price can create an expectation of permanently low prices amongst customers who switch. It is always harder to increase prices than to lower them- Penetration pricing may simply attract customers who are looking for a bargain, rather than customers who will become loyal to the business and its brand (repeat business)- The strategy is likely to result in retaliation from established competitors, who will try to maintain their market share

PriceSkimmingPrice skimming involves setting a high price before other competitors come into the market.This is often used for the launch of a new product which faces little or now competition usually due to some technological features. Such products are often bought by "early adopters" who are prepared to pay a higher price to have the latest or best product in the market.There are some other problems and challenges with this approach:Price skimming as a strategy cannot last for long, as competitors soon launch rival products that put pressure on the price.Distribution (place) can also be a challenge for an innovative new product. It may be necessary to give retailers higher margins to convince them to stock the product, reducing the improved margins that can be delivered by price skimming.A final problem is that by price skimming, a firm may slow down the volume growth of demand for the product. This can give competitors more time to develop alternative products ready for the time when market demand (measured in volume) is strongest.

Porter's Value Chain

The idea of the value chain is based on the process view of organisations, the idea of seeing a manufacturing (or service) organisation as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources - money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.Most organisations engage in hundreds, even thousands, of activities in the process of converting inputs to outputs. These activities can be classified generally as either primary or support activities that all businesses must undertake in some form.According to Porter (1985), the primary activities are:1. Inbound Logistics- involve relationships with suppliers and include all the activities required to receive, store, and disseminate inputs.2. Operations- are all the activities required to transform inputs into outputs (products and services).3. Outbound Logistics- include all the activities required to collect, store, and distribute the output.4. Marketing and Sales- activities inform buyers about products and services, induce buyers to purchase them, and facilitate their purchase.5. Service- includes all the activities required to keep the product or service working effectively for the buyer after it is sold and delivered.Secondary activities are:1. Procurement- is the acquisition of inputs, or resources, for the firm.2. Human Resource management- consists of all activities involved in recruiting, hiring, training, developing, compensating and (if necessary) dismissing or laying off personnel.3. Technological Development- pertains to the equipment, hardware, software, procedures and technical knowledge brought to bear in the firm's transformation of inputs into outputs.4. Infrastructure- serves the company's needs and ties its various parts together, it consists of functions or departments such as accounting, legal, finance, planning, public affairs, government relations, quality assurance and general management.

Marketing planProductspecific,marketspecific, or company-wideplanthat describesactivitiesinvolved in achieving specificmarketing objectiveswithin a set timeframe. A market plan begins with the identification (throughmarket research) of specificcustomer needsand how the firm intends to fulfill them while generating an acceptable level ofreturn. It generally includesanalysisof thecurrentmarket situation (opportunitiesandtrends) anddetailedactionprograms,budgets,sales forecasts,strategies, and projected (proforma)financial statements. See alsomarketing strategy.Characteristics of Good Marketing ResearchThe duty of marketing research is to solve the problems of the organization relating to its sales and related marketing issues. As such it is considered to be a primary tool by several managements and as a secondary tool by much management. In spite of its drawback of arriving at exact results with complete accuracy, corporate world has accepted its relevance. One such drawback posed against marketing research is its cost-effectiveness. If the tools used are crisp and less costlier its service could be welcomed by all. For such recognition marketing research must possess certain characteristics, which are mentioned by Philip Kotler as follows:1.Scientific method:Competent marketing research is characterized by an attempt to follow the scientific method, careful observation, formulation of hypotheses, prediction and testing.2.Research creativity:At its best, marketing research develops innovative ways to solve a problem.3.Multiple methods:Competent marketing researchers keep away from over reliance on any one method, preferring to adopt the method to the problem rather than the other way round. They also recognize the desirability of the simultaneous gathering of information in different ways to give greater confidence than any one method would provide.4.Interdependence of models and data:Competent marketing researchers recognize that the facts do not speak for themselves but rather derive their meaning from models of the problem. They attempt to guide their search for information on the basis of causal decision model to help the executive.

Steps in marketing research

Strategic planningA key function of the Management Committee is to determine the direction and scope of the organisation over the longer term. This is usually reviewed on a 3 or 5 year basis through a process called strategic planning.Strategic planning is the process of: clarifying what the organisation is about; deciding what is and is not a priority for the use of resources; analysing the internal and external environment; considering how best to deal with upcoming changes and transitions; setting out a clear direction; and setting concrete goals for the future.Strategic planning involves looking at the organisation as a complete entity and is concerned with its long term development. This involves looking at where the organisation is now, determining where you want to get to, and mapping how to get there.The strategic plan should be summarised in a written document to ensure that all concerned are clear regarding the aims and objectives the organisation is working towards.Buying decision process

Marketing information system (MIS)A marketing information system (MIS)is a set of procedures and methods designed to generate, analyze, disseminate, and store anticipated marketing decision information on a regular, continuous basis. An information system can be used operationally, managerially, and strategically for several aspects of marketing.A marketing information system can be used operationally, managerially, and strategically for several aspects of marketing.We all know that no marketing activity can be carried out in isolation, know when we say it doesnt work in isolation that means there are various forces could be external or internal, controllable or uncontrollable which are working on it. Thus to know which forces are acting on it and its impact the marketer needs to gathering the data through its own resources which in terms of marketing we can say he is trying to gather the market information or form amarketing information system.This collection of information is a continuous process that gathers data from a variety of sources synthesizes it and sends it to those responsible for meeting the market places needs. The effectiveness of marketing decision is proved if it has a strong information system offering the firm aCompetitive advantage. Marketing Information should not be approached in an infrequent manner. If research is done this way, a firm could face these risks:1. Opportunities may be missed.2. There may be a lack of awareness of environmental changes and competitors actions.3. Data collection may be difficult to analyze over several time periods.4. Marketing plans and decisions may not be properly reviewed.5. Data collection may be disjointed.6. Previous studies may not be stored in an easy to use format.7. Time lags may result if a new study is required.8. Actions may be reactionary rather than anticipatory.

Factors Affecting the Choice of Channels of Distribution (A) Considerations Related to ProductWhen a manufacturer selects some channel of distribution he/she should take care of such factors which are related to the quality and nature of the product. They are as follows:1. Unit Value of the Product:When the product is very costly it is best to use small distribution channel. For example, Industrial Machinery or Gold Ornaments are very costly products that are why for their distribution small distribution channel is used. On the other hand, for less costly products long distribution channel is used.2. Standardised or Customised Product:Standardised products are those for which are pre-determined and there has no scope for alteration. For example: utensils of MILTON. To sell this long distribution channel is used.On the other hand, customised products are those which are made according to the discretion of the consumer and also there is a scope for alteration, for example; furniture. For such products face-to-face interaction between the manufacturer and the consumer is essential. So for these Direct Sales is a good option.3. Perishability:A manufacturer should choose minimum or no middlemen as channel of distribution for such an item or product which is of highly perishable nature. On the contrary, a long distribution channel can be selected for durable goods.4. Technical Nature:If a product is of a technical nature, then it is better to supply it directly to the consumer. This will help the user to know the necessary technicalities of the product.(B) Considerations Related to MarketMarket considerations are given below:1. Number of Buyers:If the number of buyer is large then it is better to take the services of middlemen for the distribution of the goods. On the contrary, the distribution should be done by the manufacturer directly if the number of buyers is less.2. Types of Buyers:Buyers can be of two types: General Buyers and Industrial Buyers. If the more buyers of the product belong to general category then there can be more middlemen. But in case of industrial buyers there can be less middlemen.3. Buying Habits:A manufacturer should take the services of middlemen if his financial position does not permit him to sell goods on credit to those consumers who are in the habit of purchasing goods on credit.4. Buying Quantity:It is useful for the manufacturer to rely on the services of middlemen if the goods are bought in smaller quantity.5. Size of Market:If the market area of the product is scattered fairly, then the producer must take the help of middlemen.(C) Considerations Related to Manufacturer/CompanyConsiderations related to manufacturer are given below:1. Goodwill:Manufacturers goodwill also affects the selection of channel of distribution. A manufacturer enjoying good reputation need not depend on the middlemen as he can open his own branches easily.2. Desire to control the channel of Distribution:A manufacturers ambition to control the channel of distribution affects its selection. Consumers should be approached directly by such type of manufacturer. For example, electronic goods sector with a motive to control the service levels provided to the customers at the point of sale are resorting to company owned retail counters.3. Financial Strength:A company which has a strong financial base can evolve its own channels. On the other hand, financially weak companies would have to depend upon middlemen.(D) Considerations Related to GovernmentConsiderations related to the government also affect the selection of channel of distribution. For example, only a license holder can sell medicines in the market according to the law of the government.In this situation, the manufacturer of medicines should take care that the distribution of his product takes place only through such middlemen who have the relevant license.(E) Others1.Cost:A manufacturer should select such a channel of distribution which is less costly and also useful from other angles.2.Availability:Sometimes some other channel of distribution can be selected if the desired one is not available.3.Possibilities of Sales:Such a channel which has a possibility of large sale should be given weight age.Personal selling and its pros and consPersonal selling is the process of communicating with a potential buyer (or buyers) face-to-face with the purpose of selling a product or service. The main thing that sets personal selling apart from other methods of selling is that the salesperson conducts business with the customer in person. Though personal selling is more likely to be effective with certain types of products or services, it has important applications for nearly all kinds of small businesses. In fact, most of history's successful entrepreneurs have been skilled salespeople, able to represent and promote their companies and products in the marketplace.Personal selling is one part of a company's promotion mix, along with advertising,sales promotion, and public relations. Advertising is any form of paid sales presentation that is not done face-to-face. Television and radio commercials, newspaper and magazine advertisements, and direct mail inserts are well-known forms of advertising. Sales promotion is the use of incentivessuch as coupons, discounts, rebates, contests, or special displaysto entice a customer to buy a product or service. Public relations is the act of building up a company's image in the eyes of the community in the hopes of translating the feelings of goodwill into sales. An example of public relations might include a company sponsoring a charity event.Personal selling offers entrepreneurs both advantages and disadvantages in comparison with the other elements of the promotion mix. On the positive side, personal selling allows the salesperson to target the message specifically to the audience and receive immediate feedback. In this way, it is more precise than other forms of promotion and often has a greater persuasive impact. Conversely, personal selling cannot reach as many potential customers as advertising, plus the cost of each contact is much higher. Another advantage is that personal selling can be an important source of marketing information. Salespeople may learn about competitors' products, for example, or about emerging customer needs that may lead to the development of a new product. If the sales force is well trainedacting as problem solvers and advisors for customers rather than using hard-sell tacticspersonal selling may help a small business build loyal, long-term relationships with customers.A small business may choose to use any or all of the promotion mix elements in selling its products. Deciding how to allocate resources for each component involves a number of factors. Some of the things entrepreneurs should consider when deciding on the ideal promotion mix include the type of product or service, the value of the product or service, and the budget allotted for marketing.Marketing research systemMarketing researchis "the process or set of processes that links the consumers, customers, and end users to the marketer through information information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications."[1]It is the systematic gathering, recording, and analysis ofqualitativeandquantitativedata about issues relating tomarketingproducts and services. The goal of marketing research is to identify and assess how changing elements of themarketing miximpactscustomer behavior. The term is commonly interchanged withmarket research; however, expert practitioners may wish to draw a distinction, in thatmarketresearch is concerned specifically withmarkets, whilemarketingresearch is concerned specifically about marketing processes.[2]Marketing research is often partitioned into two sets of categorical pairs, either by target market: Consumer marketing research, and Business-to-business(B2B) marketing researchOr, alternatively, by methodological approach: Qualitative marketing research, and Quantitative marketing researchConsumer marketing research is a form of appliedsociologythat concentrates on understanding the preferences, attitudes, and behaviors ofconsumersin a market-based economy, and it aims to understand the effects and comparative success of marketing campaigns. The field of consumer marketing research as a statistical science was pioneered byArthur Nielsenwith the founding of theACNielsenCompany in 1923.[3]Thus, marketing research may also be described as the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision making related to the identification and solution of problems and opportunities inmarketingDirect DistributionDirect distribution leads to lower prices for the consumer. Since the product is only marked up once, the selling price is much cheaper. As a result, consumers that purchase a product directly from the wholesaler or manufacturer will pay much less for a product.Unfortunately, this is a very narrow view of the selling process. It would be very detrimental for the economy to use only direct distribution. First and foremost, wholesalers and manufactures are experts in creating the product. They do not have expertise in customer relations and individual consumer distribution. This is why the middle man exists. The benefits of a middle man will be discussed further in the blog.While direct distribution is very appealing due to low prices, it can be far from efficient. There is a legitimate reason why many manufacturers and wholesalers do not distribute directly in order to gain competitive advantage. They are not adept in business to consumer type selling. Instead, they rather sell in bulk to another business. It will be that business who will have expertise in selling to consumers. These businesses will have proper logistics and consumer relations in order to support high individual demand whereas manufactures and wholesales do not have similar capacities.Indirect DistributionIndirect distribution has many advantages. That is why a large portion of the economy uses indirect distribution to sell products. Different firms specialize in different categories; it is very difficult to specialize in all the aspects of the product cycle. Thus, firms decide to focus on what they specialize in and use outside companies for the other tasks.Manufacturers generally are experts in business to business relations. They know how to adjust prices due to bulk purchases and they know how to use raw materials to create products. This is where their expertise ends. Thus, they choose to sell their products at a profit to middle men. They are happy with the profit they are making. Furthermore, their whole operation remains efficient instead of only a portion.The middle men understand consumer demand. They understand how to sell the product to the consumer. Moreover, they understand how to deal with consumer criticism and disapproval. The manufactures do not specialize in this area and prefer that the middle man handle individual consumer issues.Marketing orientationBusinesses can develop new products based on either amarketing orientatedapproach or aproduct orientatedapproach.Amarketing orientatedapproach means a business reacts to what customers want. The decisions taken are based around information about customers needs and wants, rather than what the business thinks is right for the customer. Most successful businesses take a market-orientated approach.Aproduct orientatedapproach means the business develops products based on what it is good at making or doing, rather than what a customer wants. This approach is usually criticised because it often leads to unsuccessful products - particularly in well-established markets.Most markets are moving towards a more market-orientated approachbecause customers have become more knowledgeable and require more variety and better quality. To compete, businesses need to be more sensitive to their customers needs otherwise they will lose sales to their rivals.On the other hand some products are argued to create a need or want in the customer, especially products with a very high technological content. Mobile phones have moved from being a business accessory to being a big consumer brand item, with many additional gadgets, such as pictures, video and Internet access. Innovations create the need rather than the customer being able to second-guess how new technology is going to develop.Selling OrientationIt is an organization operating model in which the organization focuses on the needs required for selling in the market that is, an organization whose operating structure is based on the selling efficiency rather than customer needs and product orientation.Sales oriented companies primarily use two types of promotion to communicate their message. They use advertising to make customer aware of their product and along with it they use personal selling to make customer take action and buy their product.A sales orientation strategy focuses on selling and promotions of the product with the viewpoint of selling as much as possible of existing. This type of orientation works when customers are not expecting anything different in the product from the company, when demand of a particular product is very high or when company has large stock of inventory that they want to sell immediately.Companies that use sales orientation approach put a higher premium on short term selling than on long term relations with their consumer base. They are so involved in selling that they miss the opportunity to improve their product or serve their customer in a better manner.There are two kinds of external marketing environments; micro and macro. These environments factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy.

Micro Environment Factors The suppliers:Suppliers can control the success of the business when they hold the power. The supplier holds the power when they are the only or the largest supplier of their goods; the buyer is not vital to the suppliers business; the suppliers product is a core part of the buyers finished product and/or business. The resellers:If the product the organisation produces is taken to market by 3rdparty resellers or market intermediaries such as retailers, wholesalers, etc. then the marketing success is impacted by those 3rdparty resellers. For example, if a retail seller is a reputable name then this reputation can be leveraged in the marketing of the product. The customers: Who the customers are (B2B or B2C, local or international, etc.) and their reasons for buying the product will play a large role in how you approach the marketing of your products and services to them. The competition:Those who sell same or similar products and services as your organisation are your market competition, and they way they sell needs to be taken into account. How does their price and product differentiation impact you? How can you leverage this to reap better results and get ahead of them? The general public:Your organisation has a duty to satisfy the public. Any actions of your company must be considered from the angle of the general public and how they are affected. The public have the power to help you reach your goals; just as they can also prevent you from achieving them.Macro Environment Factors Demographic forces:Different market segments are typically impacted by common demographic forces, including country/region; age; ethnicity; education level; household lifestyle; cultural characteristics and movements. Economic factors:The economic environment can impact both the organisations production and the consumers decision making process. Natural/physical forces:The Earths renewal of its natural resources such as forests, agricultural products, marine products, etc must be taken into account. There are also the natural non-renewable resources such as oil, coal, minerals, etc that may also impact the organisations production. Technological factors:The skills and knowledge applied to the production, and the technology and materials needed for production of products and services can also impact the smooth running of the business and must be considered. Political and legal forces:Sound marketing decisions should always take into account political and/or legal developments relating to the organisation and its markets. Social and cultural forces: The impact the products and services your organisations brings to market have on society must be considered. Any elements of the production process or any products/services that are harmful to society should be eliminated to show your organisation is taking social responsibility. A recent example of this is the environment and how many sectors are being forced to review their products and services in order to become more environmentally friendly.Micro and macro environments have a significant impact on the success of marketing campaigns, and therefore the factors of these environments should be considered in-depth during the decision making process of a strategic marketer. Considering these factors will improve the success of your organisations marketing campaign and the reputation of the brand in the long term.Perfect competitionPerfect competition is a market structure where many firms offer a homogeneous product. Because there is freedom of entry and exit and perfect information, firms will make normal profits and prices will be kept low by competitive pressures.Features of perfect competition1. Many firms.2. Freedom of entry and exit; this will require lowsunk costs.3. All firms produce an identical or homogeneous product.4. All firms are price takers, therefore the firms demand curve is perfectly elastic.5. There is perfect information and knowledge..Perfect competitionexists when there are many consumers buying a standardized product from numerous small businesses. Because no seller is big enough or influential enough to affect price, sellers and buyers accept the going price. For example, when a commercial fisher brings his fish to the local market, he has little control over the price he gets and must accept the going rate.The Basics of Supply and DemandTo appreciate how perfect competition works, we need to understand how buyers and sellers interact in a market to set prices. In a market characterized by perfect competition, price is determined through the mechanisms ofsupplyanddemand. Prices are influenced both by the supply of products from sellers and by the demand for products by buyers.To illustrate this concept, lets create asupply and demand schedulefor one particular good sold at one point in time. Then well definedemandand create ademand curve, and definesupplyand create asupply curve. Finally, well see how supply and demand interact to create anequilibrium pricethe price at which buyers are willing to purchase the amount that sellers are willing to sell.Demand and the Demand CurveDemandis the quantity of a product that buyers are willing to purchase at various prices. The quantity of a product that people are willing to buy depends on its price. Youre typically willing to buylessof a product when pricesriseandmoreof a product when pricesfall. Generally speaking, we find products more attractive at lower prices, and we buy more at lower prices because our income goes further.Figure 1.7The Demand Curve

Using this logic, we can construct ademand curvethat shows the quantity of a product that will be demanded at different prices. Lets assume that the diagram inFigure 1.7 "The Demand Curve"represents the daily price and quantity of apples sold by farmers at a local market. Note that as the price of apples goes down, buyers demand goes up. Thus, if a pound of apples sells for $0.80, buyers will be willing to purchase only fifteen hundred pounds per day. But if apples cost only $0.60 a pound, buyers will be willing to purchase two thousand pounds. At $0.40 a pound, buyers will be willing to purchase twenty-five hundred pounds.Supply and the Supply CurveSupplyis the quantity of a product that sellers are willing to sell at various prices. The quantity of a product that a business is willing to sell depends on its price. Businesses aremorewilling to sell a product when the pricerisesandlesswilling to sell it when pricesfall. Again, this fact makes sense: businesses are set up to make profits, and there are larger profits to be made when prices are high.Figure 1.8The Supply Curve

Now we can construct asupply curvethat shows the quantity of apples that farmers would be willing to sell at different prices, regardless of demand. As you can see inFigure 1.8 "The Supply Curve", the supply curve goes in the opposite direction from the demand curve: as prices rise, the quantity of apples that farmers are willing to sell also goes up. The supply curve shows that farmers are willing to sell only a thousand pounds of apples when the price is $0.40 a pound, two thousand pounds when the price is $0.60, and three thousand pounds when the price is $0.80.Equilibrium PriceWe can now see how the market mechanism works under perfect competition. We do this by plotting both the supply curve and the demand curve on one graph, as weve done inFigure 1.9 "The Equilibrium Price". The point at which the two curves intersect is theequilibrium price. At this point, buyers demand for apples and sellers supply of apples is in equilibrium.Figure 1.9The Equilibrium Price

You can see inFigure 1.9 "The Equilibrium Price"that the supply and demand curves intersect at the price of $0.60 and quantity of two thousand pounds. Thus, $0.60 is the equilibrium price: at this price, the quantity of apples demanded by buyers equals the quantity of apples that farmers are willing to supply. If a farmer tries to charge more than $0.60 for a pound of apples, he wont sell very many and his profits will go down. If, on the other hand, a farmer tries to charge less than the equilibrium price of $0.60 a pound, he will sell more apples but his profit per pound will be less than at the equilibrium price.

The Difference between the Private and Public Sector

It is important to understand the difference between theprivate sectorandpublic sectorbecause your privacy rights will differ depending on the legislation that an organization is governed under.The Private SectorThe private sector is usually composed of organizations that are privately owned and not part of the government. These usually includes corporations (both profit and non-profit), partnerships, and charities.An easier way to think of the private sector is by thinking of organizations that arenotowned or operated by the government. For example, retail stores, credit unions, and local businesses will operate in the private sector.The Public SectorThe public sector is usually composed of organizations that are owned and operated by the government. This includes federal, provincial, state, or municipal governments, depending on where you live. Privacy legislation usually calls organizations in the public sector apublic bodyor apublic authority.Some examples of public bodies in Canada and the United Kingdom are educational bodies, health care bodies, police and prison services, and local and central government bodies and their departments.

FACTORS CONTRIBUTING TO NEW PRODUCT DEVELOPMENTSeveral factors contribute to new product development. While most are related to external environmental variables, the most important internal factor in new product development is the surplus capacity that a firm may have at any given time. Although firms should not pick up product to fill their surplus capacities, the fact is that too many do. Consider the example of Godrej soaps that launched a series of new brands of toilet soap, mainly to fill its existing surplus capacity, once Ponds walked out of Godrejs manufacturing program. However, there are several environmental factors contributing development of new products.Changing customer preferences:The driving force in new product- development is the changing customer life-style, leading towards a change in the customers preferences and expectations. The changing role of women, growth in the nuclear and stand alone families, increase in education and income levels, and a manifold increase in the electronic media also contributes towards changing customers expectations and preferences. Most of todays new products , be they garments, footwear, leather wears, perfumes, designer wears, appliances and other durables and even credit cards, are the result of this change in consumer life style and preferences.Technological Changes:Another factor is the technological changes in the industry and the market. For example ,if Mrs. Indira Gandhis government had not decided to expand the television network to cover 70% of the Indian population, launched its own Satellite INSAT 1B and started color telecast in 1982, it is extremely doubtful if many of todays product would have seen the light of the day in the Indian market. As an example , Maggi noodles wouldnt have been so successful.Application of chips technology to the watch- making industry gave us a quartz watch- some thing which Titan watches have successfully used to shake up the Indian market.To take advantage of the technological changes and remain competitive, the firm has to have a closer relationship with technological institutes, universities and other R&D labs.Government Policy:The government policy also can encourage or foster new product development process. for example, a government policy encouraging competition and entrepreneurship can motivate firms to launch new products. a case in point is , after the government of India allowed board bending in its industrial licensing policy and Maruti became a rage with Indian consumers, Hindustan Motors and Premier Automoblies started analyzing means to improve their own market position. they launched two new products, each of which was targeted at the higher end of the market (Hindustan Motors Contessa and Premiers 118 NE are result of the government policy encouraging competition in one automobile sector). Similarly,Government policy insisting on chemical firms for an environmental audit, has led to a growth in the demand for pollution control equipment.Characteristics of marketing managerTo make it as asuccessful marketing manager, there are many traits thatyou need to have. It no longer is just about understanding and delivering in a marketing capacity, but more importantly being able to understand the fundamentals of business and have an ability to execute the companys business plan from a sales and marketing perspective.Marketing Managerstoday are very different to a marketing manager 10 years ago. While having an overarching capability to ensure that your team delivers the marketing plan as it was meant to be delivered, it is also equally as imperative to be kept up to date with the latest in marketing techniques, changes in economic and political environments and an ability to work closely in partnership with sales professionals.Here are some characteristics that a successful marketing manager should possess:VisionA strong vision for what they want to accomplish for the brand in the short-term and long term and an ability to articulate this vision across multiple platforms and communications channels.Strategic ThinkingBeing able to develop a marketing strategy that is in line with the overall business strategy and think strategically in all aspects of marketing is not only something that a Marketing Manager needs to possess it is also a deal breaker. If a Marketing Manager is not a strategic thinker, then they are simply not a Marketing Manager and another role would be best suited to their capabilities. A Marketing Manager needs to have a firm understanding of market trends, be able to develop a targeted marketing strategy and meet company goals.Business AcumenThe marketing department must understand and deliver on the overall company business plan. That means understanding the fundamentals and influencers of business. Knowing the market, what makes it tick, how it is going to develop, change and evolve is paramount. A successful Marketing Manager can drive business and improve growth through innovative business solutions.Customer CentricA successful Marketing Manager needs to be in bed with the customer. They need to understand every aspect of the customers traits, likes, dislikes and drivers. Being in bed with the customers means sharing the covers, adapting to habits that are not always appealing like snoring, and understanding each others sleeping patterns. It means knowing if the first thing the customers does in the morning is pick up their Blackberry or iphone or whether they wake in the middle of the night to have a drink or go to the toilet. All high level Marketing Managers walk in their customers shoes regularly to understand how it feels like to be the customer. They take on board feedback and adapt product and service delivery accordingly. A Marketing Manager also knows who to target and when with capabilities of finding the customer no matter where they may be hiding.Brand ChampionPassion for your brand is a deal breaker. If you dont love your brand, you cant market it. Inspiring your team, customers and the market to love your brand is about inspiring them and seeing the passion alive in every single brand touch point.PersonalityA bit of personality goes a long way in marketing. When you speak with an entrepreneur or business leader and ask them about the personality of their favourite marketing manager, the answer will always be along the lines of 'having a great personality, straight-forward, strategic and a bit of fun'. Remember, as a marketing manager, you are not an accountant or lawyer. People expect you to be well presented, on top of your game, innovative and confident.Product PlanningIn order to maximize his sales revenue and profits, a business firm must continuously adjust and adapt its products and services to the changing requirements of customers. From time-to- time, it may have to design and develop new products.Product planning is the process of searching ideas for new products, screening them systematically, converting them into tangible products and introducing the new product in the market. It also involves the formation of product policies and strategies.Product planning includes improvements in existing products as well as deletion of unprofitable or marginal products. It also encompasses product design and engineering which is also called product development. Product planning comprises all activities starting with the conception of product idea and ending up with full scale introduction of the product in the market.It is a complex process requiring effective coordination between different departments of the firm. It is intimately related with technical operations of the organisation, particularly with engineering, research and development departmentsTHE MARKETING MIX FROM 4 PS TO 7 PSMarketing is a continually evolving discipline and as such can be one that companies find themselves left very much behind the competition if they stand still for too long. One example of this evolution has been the fundamental changes to the basic Marketing mix. Where once there were 4 Ps to explain the mix, nowadays it is more commonly accepted that a more developed 7 Ps adds a much needed additional layer of depth to the Marketing Mix with some theorists going even going further.Before we get carried away though what is the Marketing Mix and what is the original 4 Ps principle?THE MARKETING MIXSimply put the Marketing Mix is a tool used by businesses and Marketers to help determine a product or brands offering. The marketing mix is one of the most famous marketing terms. The marketing mix is the tactical or operational part of a marketing plan. The marketing mix is also called the 4Ps and the 7Ps. The 4Ps are price, place, product and promotion. The services marketing mix is also called the 7Ps and includes the addition of process, people and physical evidence. THE MARKETING MIX 4 PS: Product- The Product should fit the task consumers want it for, it should work and it should be what the consumers are expecting to get. Place The product should be available from where your target consumer finds it easiest to shop. This may be High Street, Mail Order or the more current option via e-commerce or an online shop. Price The Product should always be seen as representing good value for money. This does not necessarily mean it should be the cheapest available; one of the main tenets of the marketing concept is that customers are usually happy to pay a little more for something that works really well for them. Promotion Advertising, PR, Sales Promotion, Personal Selling and, in more recent times, Social Media are all key communication tools for an organisation. These tools should be used to put across the organisations message to the correct audiences in the manner they would most like to hear, whether it be informative or appealing to their emotions.In the late 70s it was widely acknowledged by Marketers that the Marketing Mix should be updated. This led to the creation of the Extended Marketing Mix in 1981 by Booms & Bitner which added 3 new elements to the 4 Ps Principle. This now allowed the extended Marketing Mix to include products that are services and not just physical things.THE EXTENDED 7 PS: People All companies are reliant on the people who run them from front line Sales staff to the Managing Director. Having the right people is essential because they are as much a part of your business offering as the products/services you are offering. ProcessesThe delivery of your service is usually done with the customer present so how the service is delivered is once again part of what the consumer is paying for. Physical Evidence Almost all services include some physical elements even if the bulk of what the consumer is paying for is intangible. For example a hair salon would provide their client with a completed hairdo and an insurance company would give their customers some form of printed material. Even if the material is not physically printed (in the case of PDFs) they are still receiving a physical product by this definition.Though in place since the 1980s the 7 Ps are still widely taught due to their fundamental logic being sound in the marketing environment and marketers abilities to adapt the Marketing Mix to include changes in communications such as social media, updates in the places which you can sell a product/service or customers expectations in a constantly changing commercial environment.Concept and Component of Marketing Information SystemA marketing information system (MKIS) is defined a set of procedures and methods designed to generate, analyze, disseminate, and store anticipated marketing decision information on a regular, continuous basis. An information system can be used operationally, managerially, and strategically for several aspects of marketing.

A Marketing Information System can also be defined as 'a system in which marketing data is formally gathered, stored, analysed and distributed to managers in accordance with their informational needs on a regular basis'A marketing information system can be used operationally, managerially, and strategically for several aspects of marketing.

As we all know that no marketing activity can be carried out in isolation, know when we say it doesnt work in isolation that means there are various forces could be external or internal, controllable or uncontrollable which are working on it. Thus to know which forces are acting on it and its impact the marketer needs to gathering the data through its own resources which in terms of marketing we can say he is trying to gather the market information or form a marketing information system. This collection of information is a continuous process that gathers data from a variety of sources synthesizes it and sends it to those responsible for meeting the market places needs. The effectiveness of marketing decision is proved if it has a strong information system offering the firm a Competitive advantage.

Locating data and developing informationThe information needed by marketing managers comes from various sources which includes: - internal company records, marketing intelligence and marketing research. The information analysis system then processes this information to make it more useful for managers.

Internal RecordsThese are information gathered from sources within the company to evaluate marketing performances and to detect marketing problems and opportunities. Most marketing managers use internal records and reports regularly, especially for making day-to-day planning, implementation and control decisions. Internal records information consists of information gathered from sources within the company to evaluate marketing performance and to detect marketing problems and opportunities.Information from internal records is usually quicker and cheaper to get than information from other sources, but it also presents some problems. Because internal information was for other purposes, it may be incomplete or in the wrong form for making marketing decisions. For example, accounting department sales and cost data used for preparing financial statements need adapting for use in evaluating product, sales force or channel performance.

Marketing IntelligenceThe total information needs of the marketing department can be specified and satisfied via a marketing intelligence network. The marketing intelligence system determines the intelligence needed, collects it by searching the environment and delivers it to marketing managers who need it. Marketing intelligence comes from many sources. Much intelligence is from the company's personnel - executives, engineers and scientists, purchasing agents and the sales force. But company people are often busy and fail to pass on important information. The company must 'sell' its people on their importance as intelligence gatherers, train them to spot new developments and urge them to report intelligence hack to the company.

The company must also persuade suppliers, resellers and customers to pass along important intelligence. Some information on competitors conies from what they say about themselves in annual reports, speeches, press releases and advertisements. The company can also learn about competitors from what others say about them in business publications and at trade shows. Or the company can watch what competitors do - buying and analyzing competitors' products, monitoring their sales and checking for new patents. Companies also buy intelligence information from outside suppliers.

Marketing research systemsMarketing research is a proactive search for information. That is, the enterprise which commissions these studies does so to solve a perceived marketing problem. In many cases, data is collected in a purposeful way to address a well-defined problem (or a problem which can be defined and solved within the course of the study). The other form of marketing research centers not on a specific marketing problem but is an attempt to continuously monitor the marketing environment. These monitoring or tracking exercises are continuous marketing research studies, often involving panels of farmers, consumers or distributors from which the same data is collected at regular intervals. Whilst the ad hoc study and continuous marketing research differs in the orientation, yet they are both proactive.

Marketing Information should not be approached in an infrequent manner. If research is done this way, a firm could face these risks:1.Opportunities may be missed.2.There may be a lack of awareness of environmental changes and competitors actions.3.Data collection may be difficult to analyze over several time periods.4.Marketing plans and decisions may not be properly reviewed.5.Data collection may be disjointed.6.Previous studies may not be stored in an easy to use format.7.Time lags may result if a new study is required.8.Actions may be reactionary rather than anticipatory.

Advantages of Marketing Information System1. Organized data collection.2. A broad perspective.3. The storage of important data.4. An avoidance of crises.5. Coordinated marketing plans.6. Speed in obtaining sufficient information to make decisions.7. Data amassed and kept over several time periods.8. The ability to do a cost-benefit analysis.

The disadvantages of a Marketing information system are high initial time and labor costs and the complexity of setting up an information system. Marketers often complain that they lack enough marketing information or the right kind, or have too much of the wrong kind. The solution is an effective marketing information system.

The marketing information systems and its subsystems

Marketing information systems are intended to support management decision making. Management has five distinct functions and each requires support from an MIS. These are: planning, organising, coordinating, decisions and controllingInformation systems have to be designed to meet the way in which managers tend to work. Research suggests that a manager continually addresses a large variety of tasks and is able to spend relatively brief periods on each of these. Given the nature of the work, managers tend to rely upon information that is timely and verbal even if this is likely to be less accurate then more formal and complex information systems.

Managers play at least three separate roles: interpersonal, informational and decisional. MIS, in electronic form or otherwise, can support these roles in varying degrees. MIS has less to contribute in the case of a manager's informational role than for the other two.Three levels of decision making can be distinguished from one another: strategic, control (or tactical) and operational. Again, MIS has to support each level. Strategic decisions are characteristically one-off situations. Strategic decisions have implications for changing the structure of an organisation and therefore the MIS must provide information which is precise and accurate. Control decisions deal with broad policy issues and operational decisions concern the management of the organisation's marketing mix.

A marketing information system has four components: the internal reporting system, the marketing research systems, the marketing intelligence system and marketing models. Internal reports include orders received, inventory records and sales invoices. Marketing research takes the form of purposeful studies either ad hoc or continuous. By contrast, marketing intelligence is less specific in its purposes, is chiefly carried out in an informal manner and by managers themselves rather than by professional marketing researchers.Importance of Product Packaging in MarketingWhether youre getting ready to create packaging for a product youre selling or youre considering changing the packaging of an existing product, you may be wondering if the appearance of a products package is important. Many product providers may think that the product and its performance is more important than what the packaging looks like, but the product packaging can play a role in the success or failure of the sales of the product.FunctionThe purpose of product packaging is to protect the product from damage. Product packaging not only protects the product during transit from the manufacturer to the retailer, but it also prevents damage while the product sits on retail shelves. Most products have some form of packaging. For example, soups must have a container and package while apples may have packaging for transport but not to sell the product from the produce department of the local grocery store.AttractionHow a product is packaged may be what attracts the consumer to take a look on the product as is sits on store shelves. For this reason, many companies conduct extensive research on color schemes, designs and types of product packaging that is the most appealing to its intended consumer.PromotionPackaging also plays an important role for portraying information about the product. Outside packaging may contain directions on how to use the product or make the product.Facilitates Purchase DecisionPackaging may also contain ingredients and nutritional information about the product. This information can help to sell the product because it allows potential customers to obtain the necessary information they need to make a purchase decision. Information contained on a package may propel the reader to buy the product without ever having to speak to a store clerk.DifferentiationPackaging can also differentiate one brand of product from another brand. Because the product packaging can contain company names, logos and the color scheme of the company, it helps consumers to identify the product as it sits among the competitions products on store shelves. For example, as a shopper walks through the coffee aisle of the local grocery store, the bright orange, pink and white packaging of the Dunkin Donuts coffee brand may be easily recognizable for the consumer to grab on his way by the coffee shelf. The shopper may identify with the company brand, which propels them to buy the product. If the product packaging changes, it may alter the brand perception of the company, which doesnt mean that the consumer would not still purchase the product, but it may delay the purchase until the person is able to identify the product according to its new packaging.Industrial marketconsumer group composed of companies or organizations that purchase goods and services for use in the production of other goods and services that are sold, rented, or supplied to others. For example, the clothing manufacturing industry purchases fabric that is used in the production of dresses and other apparel. Fabric manufacturers are also members of the industrial market because they purchase other raw materials for use in the production of the fabric. The industrial market is the largest and most diverseorganizational market, consisting of more than 13 million organizations that buy more than $3 trillion worth of products each year. Some of the major industries represented in the industrial market are construction, agriculture, mining, manufacturing, communication, public utilities, transportation, and finance.Five Stages of the Business Buying Decision ProcessThe business buying decision process involves five distinct stages. At each stage, different decision makers may be involved, depending on the cost and strategic importance of the purchase. To navigate the buying decision process successfully, you need to provide the right type of information and ensure that your sales representatives are contacting the right decision makers. You can also strengthen your position by offering customers advice and guidance at each stage a process known as consultative selling.AwarenessThe process begins when a company identifies a need for a purchase. It may want to replace an existing item, replenish stocks or buy a new product that is just available on the market. You can also stimulate a need that the company may not be aware of by advising them of issues and challenges that other companies in their industry face. The buying team next works with the requesting department to firm up on the requirement. Your sales team can provide advice and guidance at this stage by offering discussion papers or inviting decision makers to workshops or seminars on the topic.SpecificationWhen the buying team has agreed requirements, it prepares a detailed specification that sets out quantities, performance and technical requirements for a product. Your sales team can support this stage by advising the buying team on best practice or collaborating with the buying team to develop the specification. Buying teams then use the specification to search for potential suppliers. They may search the Internet to find products or companies that provide a match to their specification, so it is important that your website features keywords that match your customers product or service needs.ProposalsWhen the buying team has identified potential suppliers, it asks for detailed proposals from the suppliers. The team may issue a formal document known as a request for proposal, or it may outline requirements and invite potential suppliers to make a presentation or submit a quotation. If the product or service has a precise specification, the buying team may simply ask for price quotations. If the product is more complex, it may ask for proposals on how a supplier would meet the need.EvaluationThe buying team evaluates suppliers proposals against criteria such as price, performance and value for money. As well as evaluating the product, they assess the supplier on factors such as corporate reputation, financial stability, technical reputation and reliability. You can influence decisions at this stage by providing company information, case studies and independent reports that review your company and products.OrderBefore the buying team places an order with the chosen supplier, they negotiate price, discount, finance arrangements and payment terms, as well as confirming delivery dates and any other contractual matters. When the order is complete and delivered, the buying team may add a further stage by reviewing the performance of the product and the supplier. This stage may include imposition of penalty charges if the product fails to meet the agreed specification.Seven Functions of MarketingBusiness owners everywhere recognize that if they want to make money, they have to sell their products or services. But what you might not know is that there are actually seven functions of marketing that span everything from distribution to pricing.DistributionDistribution is about deciding how you'll get the goods or services you want to sell to the people who want to buy them. Having an idea for a product is great, but if you aren't able to get that product to the customers you aren't going to make money. Distribution can be as easy as setting up shop in the part of a city where your target customers are -- but in an increasingly interconnected world, distribution more often than not now means that you'll need to take your products or services to the customers.FinancingIt takes money to make money. As a business owner, an important function of marketing a product is finding the money through investments, loans, or your personal capital to finance the creation and advertising of your goods or services.Market ResearchMarket research is about gathering information concerning your target customers. Who are the people you want to sell to? Why should they buy from you as opposed to a rival business? Answering these questions requires that you do some on-the-ground observation of the market trends and competing products.PricingSetting the correct price for your product or service can be a challenge. If you price it too high, you might lose customers -- but if you price it too low you might be robbing yourself of profits. The "right" price normally comes through trial and error and doing some market research.Product and Service ManagementOnce you've determined the target market and set the price of your product or service, the goal becomes to effectively manage the product or service. This involves listening to customers, responding to their wants and needs, and keeping your products and services fresh and up to date.PromotionMost business owners are familiar with the idea of promotion. Advertising your products and services is essential to attracting new customers and keeping existing customers coming back. As the marketplace changes, you'll want to respond appropriately by tailoring your promotion messages to new media (such as Facebook or Twitter), by sticking with more conventional outlets -- or by using a mix of the old and new.SellingWhile we tend to think of selling and marketing as being closely linked, selling is last on the list of the seven functions of marketing. This is because selling can happen only after you've determined the wants and needs of your customer base and are able to respond with the right products at the right price point and time frame.

MarketAn actual ornominalplace whereforcesofdemand and supplyoperate, and wherebuyersandsellersinteract (directly or throughintermediaries) to tradegoods,services, orcontractsorinstruments, formoneyorbarter.Markets includemechanismsormeansfor (1) determiningpriceof thetradeditem, (2) communicating the priceinformation, (3) facilitatingdealsandtransactions, and (4) effectingdistribution. The market for a particular item is made up of existing and potentialcustomerswhoneeditand have theabilityand willingness to payfor it.Why is competition policy important for consumers?Competition policy is aboutapplying rulesto make sure businesses and companies compete fairly with each other. This encourages enterprise and efficiency, creates a wider choice for consumers and helps reduce prices and improve quality.Low prices for all:the simplest way for a company to gain a high market share is to offer a better price. In a competitive market, prices are pushed down. Not only is this good for consumers - when more people can afford to buy products, it encourages businesses to produce and boosts the economy in general.Better quality:Competition also encourages businesses to improve the quality of goods and services they sell to attract more customers and expand market share. Quality can mean various things: products that last longer or work better, better after-sales or technical support or friendlier and better service.More choice:In a competitive market, businesses will try to make their products different from the rest. This results in greater choice so consumers can select the product that offers the right balance between price and quality.Innovation:To deliver this choice, and produce better products, businesses need to be innovative in their product concepts, design, production techniques, services etc.Better competitors in global markets:Competition within the EU helps make European companies stronger outside the EU too and able to hold their own against global competitors.Profit maximizationIneconomics,profit maximizationis theshort runorlong runprocess by which a firm determines thepriceandoutputlevel that returns the greatestprofit. There are several approaches to this problem. The total revenuetotal cost perspective relies on the fact that profit equals revenue minus cost and focuses on maximizing this difference, and themarginal revenuemarginal costperspective is based on the fact that total profit reaches its maximum point where marginal revenue equals marginal cost.MARGINAL COST:The change in total cost (or total variable cost) resulting from a change in the quantity of output produced by a firm in the short run. Marginal cost (MC) indicates how much total cost changes for a given change in the quantity of output. Because changes in total cost are matched by changes in total variable cost in the short run (total fixed cost is fixed), marginal cost is the change in either total cost or total variable cost. It is found by dividing the change in total cost (or total variable cost) by the change in output. Marginal cost is one of four cost concepts used in short-run production analysis. The other three are average total cost, average fixed cost, and average variable cost.Marginal cost (MC), the change intotal costortotal variable costdue to a change in output, is the focal point in the analysis ofshort-run production cost and how this helps explain thelaw of supplyand the upward-sloping supply curve. While other cost-related terms, including total cost, total variable cost, average total cost, andaverage variable cost, are noteworthy, marginal cost is without question the most important.The reason is that increasing marginal cost reflects thelaw of diminishing marginal returns. As marginal returns decline, marginal cost increases. However, as marginal cost increases, thepriceafirmneeds to receive also increases. The result is a positive relation between price and quantity supplied, which is the law of supply and the supply curve.Marginal cost tends to be relatively high but declining for small quantities of production. It then reaches a minimum and rises for larger quantities of output. When plotted in a graph, marginal cost traces out a U-shaped pattern. The reason for this shape is directly related to increase and decreasing marginal returnsand especially the law of diminishing marginal returns.The enormous importance of marginal cost to a firm's short-run production decision cannot be overstated. Aprofit-maximizing firm compares themarginal revenuereceived from output sold with the marginal cost of producing it. If marginal revenue equals marginal cost, then the firm produces the profit-maximizing output quantity. If marginal revenue is less than marginal cost, then it can boost profit by increasing production. If marginal revenue is greater than marginal cost, then it can boost profit by decreasing production.'Marginal Revenue - MR'The increase in revenue that results from the sale of one additional unit of output.Marginal revenue is calculated by dividing the change in total revenue by the change in output quantity. While marginal revenue can remain constant over a certain level of output, it follows the law of diminishing returns and will eventually slow down, as the output level increases.Perfectly competitive firms continue producing output until marginal revenue equals marginal cost.For example, a company producing brooms has a total revenue of $0, when it doesn't produce any output. The revenue it sees from producing its first broom is $15, bringing marginal revenue to $15 ($15 in total revenue/1 unit of product). If the revenue from the second broom is $10, the marginal revenue gained by producing the second broom is $10 (change in total revenue: $25-$15/1 additional unit).Integrated Marketing CommunicationsIntegrated marketing communications (IMC) is an approach used by organizations to brand and coordinate their communication efforts. The American Association of Advertising Agencies defines IMC as "a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency and maximum communication impact. " The primary idea behind an IMC strategy is to create a seamless experience for consumers across different aspects of the marketing mix. The brand's core image and messaging are reinforced as each marketing communication channel works together as parts of a unified whole rather than in isolation.

THE MARKETING CONCEPT

What philosophy should guide a company marketing and selling efforts?What relative weights should be given to the interests of the organization, the customers, and society?These interest often clash, however, an organizations marketing and selling activities should be carried out under a well-thought-out philosophy of efficiency, effectiveness, and socially responsibility.

Five orientations (philosophical concepts to the marketplace have guided and continue to guide organizational activities:

1.The Production Concept2.The Product Concept3.The Selling Concept4.The Marketing Concept5.The Societal Marketing Concept

The Production Concept.This concept is the oldest of the concepts in business.It holds that consumers will prefer products that are widely available and inexpensive.Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution.They assume that consumers are primarily interested in product availability and low prices.This orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its features.

The Product Concept.This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features.Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance.However, these managers are sometimes caught up in a love affair with their product and do not realize what the market needs.Management might commit the better-mousetrap fallacy, believing that a better mousetrap will lead people to beat a path to its door.

The Selling Concept.This is another common business orientation. It holds that