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Posted: May 28th, 2023
Needs, wants and demands, marketing offer, Exchanges, Transactions and Relationships Exchange. Needs, wants and demands are the most basic concept underlying marketing. Human needs are stats of felt deprivation. They include basic physical needs for food clothing, warmth, and safety they also includes social needs for belonging and affection, and individual needs for knowledge and self expression. These are very basic factors of human life and not invented by marketers, basic part of human make up
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Need is something you have to have but want is something you would like to have. Wants are the form taken by human needs as they are shaped by culture and individual personality. Food is a need but what you want to have may differ by your country or culture people have almost unlimited wants but limited resources. Thus they want to choose products that provide most value and satisfaction for their money. Given their wants and resources, people demand products with the benefits that add up to the satisfaction. So these needs, wants, and demands are the more important than any of others because it makes up and generates the other four market place concepts.
I don’t agree with this statement because to fulfill the customer needs and to satisfy those, the marketers need to know the desires and intentions of the customer. Today mostly the marketing companies go to great lengths to learn about their customer’s needs, wants, and demands. They are using various ways to connect with the customers. Hey conduct consumer research about consumer likes and dislikes. They analyze customer inquiry, warranty, and service data. They observe customers using their own and competing products and train sales people to be on the lookout unfulfilled customer needs.
Porsche, because as a car company they must need to know the customers likes and dislikes.
Mostly Porsche’s products are luxurious and expensive cars. So the buyers of it spend more money and they expect high satisfaction. They connect and listen to their customers to about features and designs then they create, design and build a car to satisfy the customer requirements
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Each business function has a different view of which publics activities are most important. Operations focus on suppliers and production. Finance is concerned with stock holders and sound investment, marketing emphasizes consumers and products, pricing, promotion, and distribution. Ideally, the different functions should work harmony to produce value for customers.
The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing company’s approach to employee benefits and compensation, employee records and personnel policies. If HRM is efficient these functions of human resources department functions produce best employees for every department they directly or indirectly connect with the customers. This will give to customer’s great value and satisfaction
BCG growth-share matrix on the vertical axis, market growth rate provides a measure of market attractiveness. On the horizontal axis, relative market share serves as a measure of company strength in the market. This contains four types of SBUs. The stars are high growth, high share business products. They often need high investment to finance their rapid growth. If their growth slows they will become cash cows. Cash caws are low growth, high share business or products. This need low investment for its successful SBU, thus they produce a lot of cash that the organization uses. Dogs are low growth, low share business and products. They may generate enough cash to maintain themselves only.
Question marks are low share business units in high growth markets. They require a lot of cash to hold their share and it’s also very difficult to the management to think about which question marks it should try to build into stars and which should be phased out.
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Yes, four Ps of marketing mix does an adequate job of describing marketer responsibilities in preparing managing marketing programs. Because to manage the marketing effectively a marketer must blend all of the four marketing mix elements. Marketing program is a combination of an organization’s marketing plans. Marketing research, analysis, interpretation and reporting of information required for marketing decision making. But marketing decisions generally fall into the following four controllable Ps they are product, price, place, promotion.
Price is the amount of money customers have to pay to obtain a product or service. The pricing decisions to be made by the marketer includes pricing strategy, suggested retail price, volume discount and wholesale pricing, cash and early payment discounts, seasonal pricing, bundling, price flexibility, price discrimination
Product refers the good and service combination the company offers to the target market. A marketer have to make some product decisions in order to prepare a managing marketing programs such as brand name, functionality, styling, quality, packing, repairs and support, warranty, accessories and services.
Place includes company activities that make the product available to target consumers. Distribution channels, marketing coverage, specific channel members, inventory management, warehousing, distribution centers, order processing, transportation, reversal logistics
Promotions decisions means activities that make the product available to target consumers to buy it. This includes promotional strategy, advertising, personal selling and sales force, sales promotions, public relations and publicity, marketing communication budget
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Ansoff matrix or product/market growth matrix
Product/ market expansion grid is a portfolio-planning tool for identifying company growth opportunities through the Marketing penetration, product development, market development, diversiation these are the four options that comprise the grid.
Market penetration – selling the same products or services more in current markets. Normally the marketers use these strategies to change the identical clients’ to regular clients, and also change the regular client into heavy purchasing clients. Typical systems are bonus cards, volume discounts and customer relationship management
Market development – a strategy for company growth by identifying and developing new market segments for current company products. Usually this concept used by the marketers to attract the customers from their competitors or introduce existing products in a new markets for an examples introduce a product in foreign markets or to introduce a new brand names in market.
Product development – offering modified or new products to current markets. These strategies often used to sell other products to regular customers. This can be accessories, adds ones, or completely new products.
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Diversification – it could start up or buy business outside of its current products and markets. These strategies are most risky type strategies
Market development is the best method for the small companies they are going to combat with well known larger firms.
Company departments, suppliers, marketing intermediaries, customers, competitors, and various publics.
Customers – customer market is a very important actor in a company’s microenvironment .a company must study its customer market closely. There are five types of customer markets. They are consumer markets, business markets, reseller markets, government markets, international markets. Consumer markets consists both individuals and households that buys goods and services for personal use. Business markets buy goods and services for further process or for their production process. Reseller markets buy goods to resell at profit. Government market buys goods and services to produce public services. But the international markets have all this above customers in other countries including consumers, producers, resellers, and governments.
Company departments – to design a good and effective market plan marketing management takes other company departments into account such as top management, finance, HRM, research and development, purchasing, manufacturing and accounting for an example top management sets the company’s objectives and also marketing plans approved by top management before they can be implemented. And marketing management. Every microenvironment factors have to keep good relationship with other actors to provide customer value and satisfaction. Interconnections between finance departments to get enough funds to carry out processes, with R&D to produce safe and attractive products, with accounting to measure revenues and costs.
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Publics – the company’s environment includes various publics. A public is any group that has an actual or potential impact on an organization’s ability to achieve its objectives
Financial publics, media publics, government publics, citizen action publics, local publics, general publics, internal publics.
Media public would have the greatest impact in this case establishing the new “fuel efficient” positioning because the model have some new features and also super efficient and non polluting hybrid engine. So it contains some innovations so media public is the best way of conveying these features to the customers. Media public including newspapers, magazines, radio, television, internet and posters so it can reach large range and amount of customers. And give broad information about the product. Another point is the particular product was a fuel guzzler that means that vehicle consumed fuel inefficiently. So this company has to change the total public’s view on this product. In this case only the media public can do an adequate job. Media public’s actions like editorial opinions and surveys would make an actual and potential impact on establishing the new fuel efficient model
Yes, the company will lose out on new opportunities if it does not keep up with new technology. The explosive growth in computer, telecommunications, and information technology has had a major impact on the way companies bring value to their customers. This has had a major impact on the ways to learn about and track customers, create products and services tailored to need customer needs, distribute products and services more effectively and efficiently. So if the company fails to keep up the updates in technology surely it will fail in the competitive market.
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There is no industry where technology may not play an important role. Because in current world every industry they are using latest technologies to get the new opportunities and satisfy their customers.
The accounting system -it can give much more interesting information – for example, the break-even point for the cellular company as a whole or for each company -product individually. It also enables us (the marketing manager) to measure how profitable corporate marketing efforts have been. An analysis of the data supplied we can adjust our costs and revenues to give great value and satisfaction to customers
Staff members – the marketing manager need look no further than the staff members who actually come into contact with the customers. Employees in communications or sales can collect data that may prove highly relevant to us in making the final decisions.
Company websites – it’s very useful and easy way of internal method to get sufficient information. We can make a survey or voting system for the products we sell in our company website though the responses of the users or customers we improve the cellular services and provide customer value and satisfaction.
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No, because secondary data is the information that already exists somewhere, having been collected for another purpose. But primary data is something that consists of information collected for specific purpose. In this case the customer usage is a kind of secondary data that collected and analyzed with the purpose of making pricing decision. So it became a primary data after gathering and analyzing for the particular reason. The process of gathering and analyzing and purpose of usage changes secondary data into primary data.
Strengths
Large numbers of respondents can be researched at one time
International boundaries no longer need to be an obstacle to research – worldwide research can be conducted at the click of a button
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It can be an inexpensive way to conduct large research projects – it is possible to get thousands of responses for just a few thousand pounds
Pre-screened panels. Most large research suppliers have access panels which provide an easily accessible, reliable respondent base which can respond promptly to online questionnaires
It allows for a very rapid turnaround – research can be undertaken and results received within a few days. Many research suppliers now offer same-day delivery of results
Weaknesses
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Invitation-only. A consumer must receive an e-mail invitation to participate in a survey. This gives the company a chance to verify the address and assure that the same name and contact information isn’t already assigned to another e-mail address in the system.
Require mailing address. Ask for a mailing address to send reward points and coupons. Once again, if the same mailing address comes up for multiple e-mail accounts, you might have a cheater.
Minimum time frame. Set a minimum time for completing an online survey. This cuts down on cheaters who fly through the survey just randomly answering questions.
Block “straight line” answers. Have the software automatically purge any surveys that come back with the same letter or number chosen for every question.
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Demographic consistency. Start the survey with straight, demographic questions. The next couple of questions should be demographic-profiling questions that verify a person’s sex, age, income level, etc. If the answers to the demographic profiling questions don’t jibe with the earlier answers, the user should be blocked.
Open-ended questions. Include at least one short-answer, essay type question that can be analyzed for thoughtfulness. Cheaters won’t take the time to answer an open-ended question multiple times with significantly different responses.
Marketing research is the systematic design, collection, analysis, and reporting of data relevant to specific marketing situation facing an organization. To gather information about the primary donors in a small nonprofit organization by using limiting factors we used our previous records and notes which contain the information about them. Profit or nonprofit it doesn’t matter its essential to keep accounting records so this is a possible way to obtain. Another way is to collect it from the staffs or members of the organization they interact with the donors. Last and final method is having a chat or making inquires and interviews with them to collect information about them.
Beliefs and attitudes are the general characterizes affecting consumer behavior would most influence the purchase of a new music cd through the learning and experience, people acquire beliefs and attitudes it will influence their buying behavior. Belief is a descriptive thought that a person has about something. For an example assume a person who is going to buy Akon’s music CD. He or she may believe that Akon is a great musician and that particular album will satisfy his or her need of music for a long time. Attitude is another point. People have attitudes regarding religion, politics and culture. Attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea. Attitudes put people into a frame of mind of liking or disliking things. Of moving toward or away from them. Thus a person may hold attitudes such as Akon is the best musician in the world or Eminem. Attitudes are very difficult to change. In this case attitudes are the main impact that will influence in buying a music album. Being a fan of an artist or band also will come under the attitudes so believes and attitudes are the main factor in consumer behavior when buying a music CD
The vice president of doughnut retailer says “we believe our customers exhibit high-involvement buying behaviors. I don’t agree with his statement because the customers may be highly involved when the product is expensive, risky, purchased infrequently and highly self expressive. Typically it happens when the customers has much to learn about the product. For an example, a mobile phone buyer must learn something and analyzing about the product he is going to buy. Many product features may carry the real meaning to the customer to a first time buyer such as 3.2 megapixels and 8gbmemory chips. This is what we call high involvement buying behavior. But for the doughnut a buyer will never go through all these processes so I don’t agree with his statement.
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When we compare a buyer who purchasing a new note book computer at comp USA and another buyer who buying 16 oz of JIF creamy peanut butter at wal-mart . We can see too many differences between the two. In the first case when buying a note book pc the customer undertake high-involvement buying behavior so the decision process is more complex when we compare with the other one and here the product is expensive and risky one. So this buyer will pass through the learning process about the product and its features before make the decision. And also the buyer considers about the advantages and disadvantages, durability, customer services after the purchasing and so on. So it’s more complex than the second one.
A buyer who buys a Jif creamy peanut won’t go through these decision processes. This will come under the habitual buying behavior. It occurs under low consumer involvement and little significant brand difference. In this case consumers have little involvement in this product category . They simply go to the store and reach for the usual brand. Here the consumer will choose the most low cost and frequently purchased products. There is no need to collect and analyze the brand or its features to make a decision.
Market structure and demand of the business market for Intel microprocessors chips differ from its final consumer markets. Mostly in business market the marketer’s deals with far fewer but far larger buyers than its consumer marketer Business marketers of Intel microchips are also are more geographically concentrated. It means that the business markets have more concentrate in some particular areas or parts of the country. But in contrast its consumer market spreads their view all over where they have their customers
Business demand for Intel micro chips is derived. it completely derives from the demand for customer business markets for Intel chips have inelastic demand that is total demand for the Intel chips from its resellers is not affected by price changers, especially in short run. But its final market has elastic demand it will easily affected by the price changes.
Intel’s business markets have more fluctuating demand. Its demand in business market tends to change more and more quickly than its demand in consumer market.
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Similarities
In some ways consumer markets are similar to business markets. Both involve people who assume buying roles and make purchase decisions to satisfy needs. Both markets are trying to earn profit through the customer satisfaction and both of them trying to attract the customers and have a long relationship between them
Differences
Business buyers usually face more complex buying decisions than do consumer buyers. Purchases often involve large sums of money, complex technical and economic considerations and interactions among many people at many level of the buyer’s organization. The business buying process is more formalized than the consumer buying process. When we compare with the consumer markets in the business buying process buyer and seller are often much more dependent on each other. Consumer markets are usually at a distance from their customers
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Advantages
1. B2B E-commerce offers maximum convenience to both parties. They can visit the web sites of multiple vendors round the clock a day to compare prices and make purchases, without having to leave their homes or offices from around the globe.
2. e-commerce offers a way to cut costs and expand their markets. They do not need to build, staff, or maintain a physical store or print and distribute mail order catalogs. Automated order tracking and billing systems cut additional labor costs, and if the product or service can be downloaded then e-commerce firms have no distribution costs involved.
3.It reduces the time period involved with business process re-engineering, customization of products to meet the demand of particular customers, increasing productivity and customer care services.
Draw backs
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Consumers don’t want to buy some products online. This type of transaction has failed for the most part because buyers want to test the comfort of expensive items before they purchase it. For example online furniture businesses, motor vehicles
Electronic commerce is also characterized by some technological and inherent limitations which have restricted the number of people using this revolutionary system. One important disadvantage of e-commerce is that the Internet has still not touched the lives of a great number of people, either due to the lack of knowledge or trust.
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