Introduction:Marketing is one of themost misunderstood disciplines in management today. It is commonly used as asynonym for activities related to shopping, but it goes far beyond selling a product.In addition, many people believe they are experts in marketing, having shoppedfor various items all their lives and having been exposed to manyadvertisements.In this introductorymarketing course, you will learn the theories of marketing through practice(examples and illustrations). This course will explain what marketingmanagement is all about in the simplest of terms and lay the foundation to yourpathway to excellence in the wonderful world of marketing.
Lo1: Explain the role of marketing and how itinterrelates with other functional units of an organization.Task 1.1Marketingis defined by the American Marketing Association as “the activity, set ofinstitutions and processes to create, communicate, deliver and exchange offersthat have value for clients, customers, partners and society in general1”.If you read the definition closely, you will see that there are fouractivities, or components, of marketing:1. Creating. The process of collaboration with suppliers and customers tocreate offers that have value.2.
Communicating. In general, describing those offers, as well as learning fromcustomers.3. Delivery.
Obtain those offers for the consumer in a way that optimizes thevalue.4. Exchange. Commercial value for those offers.InternalenvironmentThe internalenvironment of the business includes all the forces and factors within theorganization that affect its marketing operations.
These components can begrouped under the Five Ms of the business, which are:· Men· Money · Machinery · Materials· Markets Theinternal environment is under the control of the seller and can be modifiedwith the changing external environment. However, the internal marketingenvironment is as important to the business as the external marketingenvironment. This environment includes the sales department, the marketingdepartment, the manufacturing unit, the human resources department, etc.ExternalenvironmentThe external environment constitutes factors and forces that are external tothe business and in which the marketer has little or no control. The externalenvironment is of two types:MicroEnvironmentThe micro component of the external environment is also known as the taskenvironment. It is composed of external forces and factors that are directlyrelated to the business. These include suppliers, market intermediaries,customers, partners, competitors and the public• Providers include all parties that provide the resources needed by theorganization.• Market intermediaries include parties involved in the distribution of theorganization’s product or service.
• Partners are all separate entities, such as advertising agencies, marketresearch organizations, banking and insurance companies, transport companies,intermediaries, etc. who do business with the organization.• Clients are part of the organization’s target group.• Competitors are players in the same market that target customers similar tothose in the organization.• Public is composed of any other group that has a real or potential interestor that affects the company’s ability to serve its customers. EnvironmentmacroThe macro component of the marketing environment is also known as a broadenvironment. It constitutes the external factors and the forces that affect theindustry as a whole, but that do not have a direct effect on the business. Themacro environment can be divided into 6 parts.
DemographicenvironmentThe demographic environment is made up of the people who make up the market. Itis characterized as factual research and the segregation of the populationaccording to its size, density, location, age, sex, race and occupation. Task 1.
2Marketingplays an important role in establishing relationships between clients and theorganizations that offer to the market. It gives us the confidence of wantingto try a new product in the market instead of situations in which the productsenter the market without advertising. This makes the marketing functioncritical in all organizations, regardless of whether the organization isprofit-oriented or not-for-profit.
Marketing shapes the image of theorganization, how people associate the products or services of the organizationand, in fact, give people confidence in their products or services.When it comes to for-profit organizations, marketing is responsible forincreasing revenue and, by extension, increasing the profitability oforganizations. In addition, the function also helps the growth of the customer/ client base for the organization. This is especially true when theorganization deals with more corporate clients, and where the decisions involvemore than one party.The marketing function is also responsible for the brand of the organization,participation in advertising activities, advertising and interaction with theclient through the collection of comments. The launch of each product beginswith the commercialization and the end with the commercialization, where thedepartment establishes the needs of the consumers and after presenting theproduct, the department seeks to identify if the client’s needs were met.
Organizations are competing to be in the minds of customers and at the sametime trying to protect their market share. Marketing is the center of customerloyalty and customer retention. As a result, the function carries outpromotions, campaigns from time to time and this has been shown as a successfulinitiative that also attracts more customers.
Without commercialization, our brands will not be enlightened and ourorganizations will not have life. The success of the organization is determinednot only by the prudent application of the funds to the various investmentportfolios, but also by the relationship established with the clients, which isa function of marketing.Marketing to B2B Whenyou’re promoting a B2B, you want to focus on the logic of the product. You dothis by focusing on the characteristics of the product.
There is little or nopersonal emotion involved in the purchase decision. You want to focus onunderstanding the buyers of the organization and how they operate within thelimits of your organization’s procedures. What is your role? What is importantto them?If you take away something from this article about B2B marketing, remember thatwhen it comes to marketing of commercial products / services, it is not aboutthe product, but about the people who use the product and / or service. If you are struggling with your messages, try to focus more on what yourproduct or service does with what it means for your business. The B2B market is thirsty for knowledge and seeks information. Be more thoroughwith your marketing materials. Your most effective marketing message will focuson how your product or service saves you time, money and resources.What is the return on investment you can expect with your purchase? That ROIcan save time, save resources or save money, but it has to be clear so thateveryone is on board.
Your business-to-business market is required to corroborate your purchasethrough a logical argument, financial scrutiny and data. This does not meanthat there are no emotions behind the purchase, while you are dealing with abusiness, behind that business there are people, then emotion still plays arole in the decision, but you deal with “more” emotions because moretimes otherwise, it is about more people who must reach a consensus on thedecision. Keep your needs, desires and motivations on the table, but supportthem with logic, financial benefits and solid data. The business buying processalso tends to be longer than a consumer; this can be correlated with the needto have multiple points of contact to ensure the sale.Marketing to B2CWhen you do marketing for a consumer, you want to focus on the benefits of theproduct. Your decision is more emotional.
Consumers are different in that they demanda variety of distribution channels for their convenience, but not in the B2Bmarket. Consumers are less likely to be interested in a long marketing message.They’ll want you to go straight to the point. Consumers do not want to work tounderstand their benefits.
Instead, they’ll want you to clearly point out thebenefits.With consumers, your message should be simple, easy to understand. It will alsotend to discover that consumers have a much shorter purchasing process thancompanies. They can buy in a few minutes or within a few days. Your most effective marketing strategies will focus on the results and benefitsthat your product or service will provide. Your business-to-consumer marketbuys more in excitement.
They are more interested in the benefit of theproduct. They will want to know more about how their product or service helpsthem and what benefits they provide personally. Focus on the problem or pointof pain that you solveTask 1.3Increasingly,marketing is seen less as a distinct functional unit and more as a set oforganizational processes in which the entire company participates in themarket-oriented behavior of the entire organization. The question in thisregard is whether marketing and sales are necessary as management functions forthe successful implementation of market orientation. Consequently, thefollowing questions arise: What is the current role of marketing and salesdepartments in companies? What factors drive your role? How does its powerinteract with the orientation of the market with respect to the performance ofthe business?Here, authors Götz, Hansen, Jo and Krafft conduct an intersectoral study toexplore whether powerful marketing and sales departments strengthen theperformance of market orientation. The authors focused on CEOs, marketingmanagers and sales managers in the automotive, cosmetics, electronics,financial services and food industries with an email questionnaire, obtaining153 responses.
Their results show that the marketing department has a significant positiveeffect on the relationship between market-oriented behavior and performance,while the sales department reveals a negative interaction effect. Thesefindings indicate that the responsibility for marketing activities should be inthe hands of the marketing function and not the sales unit.The findings of the study suggest that the marketing function plays a crucialrole in the successful implementation and management of market orientation incompanies. The results imply that the orientation of the market and a strongmarketing function are mutually dependent and indicate that senior managersshould strengthen the marketing function if they intend to align the entireorganization with the market and, therefore, improve the performance of thebusiness.
. The findings also indicate that companies should reallocate powerbetween marketing and sales functions.