In Ancient Time Peoples Needs And Wants Marketing Essay

As years rolled on, people found it difficult to meet each other freely at all the time to exchange their goods for money and therefore they met in a pre-planned place and a pre -planned time to exchanged goods, thus the market was born.

At this time the producers also acted as sellers. As time passed the producer realized the important of their time, therefore they used an intermediary to sell and buy their products, and then the concept of middlemen was born.

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After long time theorists introduced their marketing theories to the world. Marketing is based on thinking about customer needs and wants. Needs and wants must be complete to satisfy a customer. Process of interesting potential customers or clients in a product or service is the key for marketing. Marketing involves researching, promoting, selling and distributing product or service. Marketing is dressing the entire world and entire business.

Marketing is also a concept which companies use to raise awareness of their particular product or service. Companies want to keep lifetime relationships with their customers because it would increase the profit of the company. The benefits involved in retaining existing customers are greater than attracting new ones for any business.

P. Kotler is called as the marketing Guru. In his words “Marketing is satisfying needs and wants through an exchange process”. Within this exchange process customers will exchange what they value (money) only after they feel their needs and wants are fully satisfied. And clearly, the greater the benefit provided the higher transactional value on organization can charge.

American marketing association’s definition is “Marketing is the activity, set of institution, and processes for creating, communicating, delivering, and exchanging offering that have value for customers, clients, partners and society at large”.

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The chartered institute of marketing defines marketing as “The management process responsible for identifying, anticipating and satisfying customer requirements profitably”. It is a responsibility of the management to handle Marketing and it should not be left to junior members of the workforce. To see success in marketing; co-ordination, planning, implementation of campaigns and most of all skilled managers with the appropriate skills can be recognized as key requirements.

The concept of marketing is achieving organizational goals of the company by being more effective than its competitors by archiving what the target market is doing in creating, delivering and communicating. The marketing concept rest on four pillars; Targeting market(s), customer needs, integrated marketing and profitability. The marketing concept takes an outside perspective. It includes well defined market focuses on the customer needs, coordinates activities that affect customers and produces profits by satisfying customers.

Target Market

Any company can do best only if they choose their target markets carefully and prepare suitable

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Marketing programs. Target market is that specific group of customer that a company aims to capture. People that can be identified with needs or wants that can be met with the products or services from a company. The elements of target market are demography (income, place, age), psychological factors (movie lovers,) geography or any other factor that specifically identifies socials.

Customer Needs

Understanding customer needs is not always simple. A company can correctly define its target market but still fail to understand the customers’ needs. Some customers cannot use words that require some interpretation. Some of them have needs of which even they are not fully conscious. So we can recognize five types of needs –

Real needs

Stated needs

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Unstated needs

Secret needs

Delight needs

If only stated needs are responded it may not satisfy the customer. For example, if a customer enters a paint store and asks for paint for the bathroom, he is not stating a need, but a solution. If the seller suggests that waterproof paint would be better, the customer may appreciate that the seller met his need and not his stated solution.

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It’s important to recognize the difference between -Anticipative marketing – looks forward to the needs that customer might have in the future. Creative marketing – tries to discover and produce solutions that customers did not ask for, but to which they happily respond. Apple Inc. is a good example for a creative marketer because it introduced many successful products that customers never even thought were possible like I pod, I pad, and so on. Apple Inc. is a market-driving firm, not just a market-driven firm. It goes beyond customer-led marketing. Steve Jobs, founder of Apple Inc., Stated that he does not serve markets, he creates markets.

A company’s sales come from two groups of customers -New customers, Repeat customers

It is very important to satisfy the needs of customers because attracting a new customer can cost five times as much as satisfying an on hand customer. And it may cost 16 times as much to bring a new customer to the same level of profitability as that of a lost customer. So customer retention is more important than customer attraction.

Integrated marketing

Integrated marketing is all the departments of a company working together for customer satisfaction .There are two levels of integrated marketing. The First one is the various marketing functions including sales force, customer service, advertising, marketing research. These functions must work together and must coordinate from customer’s point of view. Marketing is too important to be left only to the marketing department and so it must work together with other departments. It is more of a companywide orientation than a department.

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A company must carry out internal marketing as well as external marketing in order to encourage teamwork among all departments. External marketing is marketing aimed at people outside the company. And the duty of hiring, training, and inspiring employees who want to serve customers well is called internal marketing. And the latter should precede external marketing since there is no point of promising excellent service for the customers before the company’s staff is ready to provide it.

Managers who see the customer as a company’s only true “profit center” consider the usual organization chart (A pyramid with the CEO at the top, then the management in the middle, then front-line people and then customers at the bottom) outdated. What Master marketing companies do is inverting the chart, putting customers at the top. And then in the next level are the front-line people who meet, serve, and please the customers. Then there are middle managers, who are supposed to support the front-line people so that they could serve the customers. And at the base is top management along with the CEO, whose job is to employ and support excellent middle managers.

Profitability

Helping organizations to achieve their objectives is the ultimate purpose of the marketing concept. If it is a private firm, making profit is the most important objective. But if it is a nonprofit and public organization, the objective is to survive and attract sufficient funds to carry out useful work. For a Private firm the aim should be to achieve profits by satisfying customer requirements better than the competitors.

Unfortunately there are only few companies which actually practice the marketing concept. Only a handful of companies like (ABB, Club Med, Marks & Spencer, Nokia, IKEA) and Japanese companies (Toyota, Sony, Canon) stand out as masters in marketers. All of the above companies have well-staffed marketing departments, and all of their other departments recognize the customer as king. And all of them are organized to respond efficiently to changing customer needs.

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Marketing oriented organization

Marketing Oriented Organization is focusing on customer’s needs and wants. Decision making based on Gathering information about customers’ needs and wants. Decision making better than what business thinking that right for customers. Closing to customer is easy to understand that what is the customer’s needs and wants

Customer orientation

Customer orientation is where a company would give priority to customers’ needs and wants and also maintaining a good customer in leadership throughout. As an example when a customer goes to a restaurant or shopping mall.

One thing that customer remembers is how the manager or the store crew treats to them. The customer feel that he is important to that company and that’s what makes customer come back more often for their product.

Competitor orientation

Competitor orientation is where the company would pay attention to the competitors in the market and also pay attention to how to maintain the status and stability in the market. Competitor orientation is one of the elements of marketing orientation. A seller can look in to the strengths and weaknesses of short term and long-standing capabilities and strategies of the possible competitors. But most of the small organizations are short-term oriented and do not seem to be much interested in long-term strategies. Managers in small businesses are not much concerned about long term business planning since they have to be more worried about running daily operations. And to them seeing short-term results are vital than waiting for probable long-term benefits. Still improving small business marketing and planning skills may benefit the managers in the long run.

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Profit orientation

Profit orientation is where the company would pay more attention in having profits. They would seek for ways to gain profits and improve company objects as an example a company coca-cola company, they advertising their products in new advertisement to get more attraction from customers and get more profits

Inter-functional coordination

No matter how good the marketing plans made by marketing managers are, it is useless unless if they are executed by people who are truly capable of delivering promises made to the clients. Not only the marketing staff but every single personality in the organization has a responsibility in creating value. So a marketing orientation requires that an organization integrates its physical and human resources in an effective way and adjust them to meet customer requirements.

Marketing approach

Marketing approach is also called as market based approach or market comparison approach. Marketing approach is the method of assessing the value of a product, service or an interest, based on the prices at which similar items were sold within the last three to six months or are available now, and making appropriate adjustments for differences in  quantity, quality or size.

Cost of Marketing Approach:

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Regular marketing research

Setting marketing focus structure

Initial product development

Building excellent services 

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Attracting attentions of customers 

Building long-time relationships with: 

Customers 

Suppliers 

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Distributors 

Customer retention 

Benefits of Marketing Approach: 

Profit 

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Customer loyalty and trust

Identifying Long term goal 

Reputation

Customer Segmentation is the way of dividing a customer to groups of individuals that are the same. In specific ways and relevant to marketing, such as age, gender, interests, spending habits etc, usingdifferentiate allows companies to target groups effectively and allocate marketing resources get its best effect

Old segmentation focused on demography, attitude and physiological contact .customer segmentation procedure include that how deciding data will be collected, how it will be gathered ,collecting and integrating data from various sources ,establishing effective communication among the relevant business units ,the segment is in marketing mix

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The marketing mix refers to primary elements that must be attend to how to market a product, there’re four elements of the marketing mix (product, price, place, promotion)

These four elements are adjusted until the right combination is found that serves the needs of the product’s customers, while generating optimumincome. Sometimes the first P (Product) is substituted by presentation

Product is something that satisfies wants that customers have. product must have good features, as a example: product must have good look and it must work properly .the goods must be in right place in right time producers should make sure that product must be arrived when they need it an important operation .product can be differentiate in consumer market, as in example we can explain product in income and age

In Sri-lanka there’re high incomers and low incomers, both of them using sunlight washing powder to wash clothes, they spending money to buy washing powder according to their income, so low incomers buying 100g pack or 250g pack, the high incomers buying 1kg pack or 2kg pack, because they have different incomes, in that case company produce different types of pack, this is call income segmentation in consumer market

We can recommend age also in product strategy, as in ex: nespray milk powder is using for drinking, they introduced their products to different age limits; Normal nespray milk powder produce for elders and nespray +1, +2 for kids, company producing this type of products targeting by age limits, same products for various age limits, this is call age segmentation

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Place also a one element in the marketing mix, it can explain like this the place is where you can except to find you customers, where the sales is realized, knowing this place. You have to look for a distribution channel in Oder to reach to customer.

David peries motor company introduces their products to rural village, such as three-wheelers, bikes and tractors, which cannot spend lots of money to buy luxury vehicle. And they promote that; they can pay money to those products in monthly installments .so this company is using place strategy to promote their products

The third element is price; price can be explained as the amount of money charged for product or service. Those products have generally more ability in the markert.Its mean that price will not affect to units of sales the price changing of product or service can be happen because of various marketing techniques, before setting the price, the company must decide on its strategy for the products we can recommend income in price strategy,

Example for price strategy: Malaysian airline purchasing tickets for flying country to another country. They have different types of tickets, business class ticket for higher income earners, economic class ticket for middle incomers, after that they come up with Air-Asia.it is a budget airline;it was introduced for low incomers. So income can be segment in price strategy, because Malaysian line introduced their service in different type of price limits, this is call income segmentation

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The airtel company that mobile net work company is produce recharge cards, but who cannot buying 100 or 4oo rs cards, they are trying to buy low costs cards, in that case airtel company produce for low incomers 20,50 rs and now days 60rs cards ,air tell company targeting different type of incomers to promote their products ,airtel company use income segment in price strategy

The last point is promotion; Promotion is concerned for people knowing more about your product or service. Advertising, public relations, displays, and word-of-mouth promotion are all traditional ways for promoting a product, alternative promotional is TV advertisement, internet, electronic displays, etc. Promotion can close the information gap between sellers and buyers. Promotional strategy will be depend on the budget, there are range of techniques used to attract purchaser, its include discount, guaranty, vouchers and bonus, etc, this is call sales promotion, we can segment age is in promotion strategy.

As in example Astra is company which introduced margarine to kids. Their targeting kids for their products, they promote their products for kids that they giving some gifts, they sponsored for school cricket match. They put their displays in grounds, giving Donets to schoolteams.So that is how Astra Company promotes their products in age segmentation. Astra Company is using age strategy to promote their products

Singer mega company using promotion strategy to increase their profits, they are giving to their customers a chance to attend a game ,the price is a ticket ,the ticket is to travel adventure park in Kenya ,so customers are willing to go and buy their products, that is how singer company using promotion strategy to increase their products selling’s

Consumer products are, that customer buying products for their final purpose of use, companies producing those products are targeting only customers, and these types of products can find and buy easily in markets. Market usually classifies these products on how customers going to buying them.There are four types’ consumer products (convenience products, shopping products, specialty products, unsought products)

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Convenience products are in expensive and consumer put little amount to buying them. Example for this products soaps, toothpastes, milk powder, etc.

The second product is shopping products, these products are choosing by customer very care full, they looking for quality, price and style. As in example cameras, airline, furniture, clothes, etc.

Specialty products are the third one in consumer products. These types of products choosing by customer after looking price and brand unique. Cars, watches are example for this type of products

The last one is unsought products. Consumer doesn’t know about or they are not usually think to buy unsought products .life insurance, blood donations are various type of unsought products

Industrial products are that to process for business or to conducting a business, the consumer products and industrial products are different from that what purpose of purchasing, there are four types of industrial products (capital equipment, accessory, equipment, raw materials, semi-furnished .components and parts)

Capital equipments are include plant and machineries, large fixed computers, generators, etc.these products that customer made to perform specific function.

The second products are accessory equipments. These type of products are not become a part of the final physical products, but these type of products are use in production or in office activates such as fax machines, copiers, computers ,fax machines ,etc.this type of products have short life time

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Raw materials are the third products, these type of materials are use to produce a new product, the fourth one in semi-furnished, these are not like raw materials, they like semi-furnished products, they have significant level of processing before arriving at purchasing factory

The last one of industrial products components and parts, these goods are finished goods that has own right, simply include in to the assemble of the last product.

Ex: p’cs components, tiers, vehicle parts

Consumer service marketing is advertising and selling servicers, such as insurance, banking, travels, etc .using strategies for the consumer service different from that use in industrial service, advertising and promotion must be directed to the target audience The expense of researching and disseminating information to promote the services to the target audience is usually passed along to the end user in the price of the services.

Industrial services are always acting main role in a manufacturing companies. Service to origination such as insurance, traveling, transport, cleaning, advertising and other institution many of services are offered to industry are offered to consumer also. Companies are always rigorously examining their industrial services strategy

Domestic marketing is the companies lunch their product or service in their own country ,this is first area where the companies introduced their goods or service to market ,because the market ,customer needs, customer taste, and other segments are very familiar to the company. it’s often the easiest place for companies to launch a product .the four p’s marketing product ,price, place, promotion are support to companies determine within domestic marketing. The international marketing is different than domestic marketing

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International marketing is a result of global approach to international market, it is rather than focusing on own country market, there are more differences in international marketing than domestic marketing EX: physical location, customer needs, customer tastes, buying habits, etc these are large more than domestic marketing, international marketing involving the firm in marketing on more than one marketing mix decision across the boundaries.

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