Marketing Fundamentals
Marketers seek customers who have needs that no one product can meet. Therefore several offerings are made to meet their needs. Three approaches are taken to answer these marketing needs; these are market segmentation, target marketing and product positioning (STP)
Market segmentation - this is where the customers are grouped by needs, characteristics or behaviour. For example the market for Timex watches will be different from that for Rolex watches, as is the market for Roll Royce cars different to that for Toyota cars. The marketer may enter the market on a continuum; that is to say that the segmentation of customers range from working class to the rich and famous, and the group can be further defined into smaller groups based on where they live, or by their gender etc.
Market targeting looks at making the product or service known and attractive to buyers. It also involves breaking up a market into segments and then concentrating marketing efforts on one or a few key segments.
Marketing positioning is to leave a lasting effect (mental processes) in the mind of the customer (establishes a product's identity within the eyes of the purchaser) e.g. A Red Stripe beer featured in a James Bond film. Another example is on entering the supermarket there is an eye catching display of a product and its offerings. The display catches your interest. You stop. Pick up the product. Shortly thereafter, you are approached by a marketer who introduces her/himself and proceeds to inform you about the product and an associated gift, or a raffle, if the product is brought. Markets, like people, are dynamic and require constant change to remain effective.
Mass Marketing is to produce an item/service that everyone wants. Marketeer produces the item in large quantities, e.g. your local news paper. Here an attempt is made to appeal to an entire market with one basic marketing strategy utilizing mass distribution and mass media.
Niche marketing speaks for itself. An example of this is Ferrari or Humber. This market is costly to embark on and has very little competition. Few products will be manufactured yearly. Advertisement will be almost nil as the marketer will seek out top of the line income earners that price is not be a problem.
Market segmentation can be further divided. See text for details.
Segmentation Issues is merely a brain storming approach - e.g. What is the customer's need? What are you thinking of marketing? Why? Who are you thinking of targeting? Why? Cost? Position? Desired results? What is special about your product? Who are the competitors? etc.
Social Responsibility
In all aspects of work, the company and employees are required to be socially responsible. This involves being aware of the impact of the companies actions on others, demonstrating concern and sensitivity.
Buyers Decision Process - this refers to the stages that a consumer goes through before deciding to purchase a product. The 5 steps in this process are need recognition, information search, evaluation of alternative, purchase decision and post purchase decision. For example, if I want to purchase a vehicle, I first determine the need for a the vehicle. I research to ascertain what type I want and where to purchase same. I compare the types of vehicles: a car to a jeep or SUV. , I purchase the car, as it is cheaper and consumes less gas. Or I might just decide to do this exercise all over again.
What if the customer decided not to make the purchase? At this stage the customer is evaluating alternative brands. For example, let's say the customer is contemplating the purchase of a cellular phone. S/He might at the third stage consider:
- is there more memory space?
- is the after sales service excellent?
- does the alternative brand have the same exact features at a lower price?
- is brand name more important to the customer than price?
Business Markets - this refers to all organizations that purchase goods and services not for their personal consumption. For example, the sale of gasoline by a Gas Company.
New buy - this is when a company purchases a product for the first time.
Modified rebuy - when the purchaser is not satisfied with the product purchased because they want a better quality or service.
Straight Rebuy - is purchasing a product or service the firm has bought many times before for example the servicing of the Photocopier in the Office.
please provide summary in 100 words or less