What is marketing?
Many people think that of marketing is only selling and advertising. Perhaps the simplest definition is this one: Marketing is engaging customers and managing the profitable customer relationship. In the board sense marketing is the process by which companies create value for the customer and build strong customer relationship in order to capture value from the customer in return.
The old sense of marketing is telling and selling but now a new sense of marketing is satisfying customer needs.
According to Philip Kotler, “Marketing is a social and managerial process by which individual or organization obtain what they need or want through creating and exchanging value with others”.
According to the American Marketing Association (AMA) Board of Directors, Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Business Dictionary termed Marketing as a management process through which goods and services move from concept to the customer. It includes the coordination of four elements called the 4 P’s of marketing:
(1) identification, selection and development of a product,
(2) determination of its price,
(3) selection of a distribution channel to reach the customer’s place, and
(4) development and implementation of a promotional strategy.
What is the marketing process?
The marketing process is a process of analyzing the opportunities in the market, selection of target market and development of the marketing mix and management of the marketing efforts. The process of marketing are given in below:
The first process is to understand the marketplace and customer needs and wants.
The second process is to design a customer value-driven market strategy.
The third process constructs an integrated marketing program that delivers superior value.
The fourth process is to build a profitable relationship and create customer delight.
The fifth process is to capture value from customer to create profit and customer equity.
What is market segmentation?
Dividing a market into distinct groups with distinct needs, characteristics or behavior who might require separate products or marketing mixes.
Market segmentation reduces the risk of an unsuccessful or ineffective marketing campaign. When marketers divide a market based on key characteristics and personalize their strategies based on their information, there is a much higher chance of success then if they were to create a generic campaign and try to implement it across all segments.
The objects of market segmentation, target marketing and positioning are
● Be able to define the three steps of target marketing: market segmentation,target market and market positioning.
● Understand the major bases for segmentation of consumer and business markets.
● Know how company identify attractive market segments and how they choose a target marketing strategy.
● Comprehend how companies position their products for maximum competitive advantage.
What are the requirements for effective market segmentation?
There are many ways to segment a market, but not all segmentation are effective. To be useful or effective, the market segment must be:
Measurable: The size, purchasing power and profile of the segments can be measured.
Accessible: The market segmentation can be effectively reached and served.
Substantial: The market segmentation is large or profitable enough to serve. A segment should be the largest possible homogeneous group worth pursuing with a tailored marketing program.
Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. If men and women respond similarly to marketing efforts for soft drinks, they do not constitute separate segments.
Actionable: Effective programs can be designed for attracting and serving the segments. For example, although a small airline identified seven market segments, its staff was too small to develop a separate marketing program for each segment.
Contributor: Md. Tanjil; Studying in Mawlana Bhashani Science and Technology University.
What is business buyer behavior and it’s complexity?
Business buyer behavior is the buying behavior of organizations. It included are retailing and wholesaling firms that acquire goods for the purpose of reselling or renting them or others at a profit.
The complexity of buyer behavior is reflected in the numerous factors that influence the result of the buying decisions, all the factors can be classified into four types:
1. Environmental factors
2. Organizational factors
3. Mutual factors
4. Individual factors
❏ Environmental factors: This factor actually lies beyond the impact of the business entity. It necessary to separate the effects of the environment of the institutions that are the source of the impact of the environment. Country core business units influence over the five allocated roles:
● Regulator’s legal environment that restricts and regulates the actions of the industrial undertaking.
● Funding basic research.
● It is an important buyer of products and services.
● As a political entity, influence the priority objects, trade relations with other countries fund and military.
❏ Organizational factors: Organization has four complex compositions.
● The people -the main factors of the overall composition.
● Task- a job that should be complete to achieve the goals of the organization.
● The structure presented ensemles communication, authority, states.
❏ Mutual factors: It contains five sub-levels.
● The level and direction of communication.
● The level of authority.
● Statute level.
● The level of remuneration.
❏ Individual factors: Individual factors are very important element of organizational buying behavior. Individual motives and goals of the individual affected are:
● The roles of the individual are not constant it exchanges depending on the situation and the purchasing members who are buying it.
● Task of organizing.
● Collective goal and motives.
● The motives of the individual do not have to be directly linked to the objectives of the improving ego.
Contributor: Manowara Pervin; Studying in Mawlana Bhashani Science and Technology University.