May 13, 2009

Marketing Concepts and Tools

Marketing Concepts and Tools

Marketing boasts a rich array of concepts and tools to help marketers address the decisions they must make. We will start by defining marketing and then describing its major concepts and tools.

Defining Marketing

We can distinguish between a social and a managerial definition for marketing. According to a social definition, marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value freely with others.

As a managerial definition, marketing has often been described as “the art of selling products.” But Peter Drucker, a leading management theorist, says that “the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy.”

The American Marketing Association offers this managerial definition:

Marketing (management) is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. Coping with exchange processes—part of this definition—calls for a considerable amount of work and skill.

Philip kotller see marketing management as the art and science of applying core marketing concepts to choose target markets and get, keep, and grow customers through creating, delivering, and communicating superior customer value.

Marketing Mix -Tools

Marketers use numerous tools to elicit the desired responses from their target markets. These tools constitute a marketing mix: Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. As shown, McCarthy classified these tools into four broad groups that he called the four

Ps of marketing: product, price, place, and promotion.

The Marketing Concept

The marketing concept, based on central tenets crystallized in the mid-1950s, challenges the three business orientations (globalization, technological advances, and deregulation). The marketing concept holds that the key to achieving organizational goals consists of the company being more effective than its competitors in creating, delivering, and communicating customer value to its chosen target markets.

Theodore Levitt of Harvard drew a perceptive contrast between the selling and marketing concepts: “Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it.”

The marketing concept rests on four pillars: target market, customer needs, integrated marketing, and prfitability. The selling concept takes an inside-out perspective. It starts with the factory, focuses on existing products, and calls for heavy selling and promoting to produce profitable sales. The marketing concept takes an outside-in perspective. It starts with a well-defined market, focuses on customer needs, coordinates activities that affect customers, and produces profits by satisfying customers.

1 comment:

mebeautiful said...

Am kind of confused, i have a task to solve and the questions says:a company makes extensive use of the marketing process.identify the marketing tools, and for each tool explain the marketing planning tool.
what are the marketing tools and marketing planing tools.thank you.