Principle of Marketing

What is a target marketing and its types?

A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. Market targeting can be carried out at several different levels. There is ​four ​​market targeting strategy. These are given below:

Undifferentiated Marketing:​​ ​​A strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer is called undifferentiated marketing. Such a strategy focuses on what is common in the needs of the consumer rather than on what is different. The company designs a product and a marketing program that will appeal to the largest number of the buyer.

Differentiated Marketing:​​ It is a Market coverage strategy in which a firm decides to target a several market segments and designs separate offers for each. By this strategy, marketers divide the market and select some market categories and make separate marketing mix for each category. It is believed that if the product are made according to the needs, preferences and purchasing power of each market will increase.

Concentrated Marketing​​: ​​Concentrated marketing is a strategy in which a firm goes after a large share of one or a few segments or niches with one marketing mix. It is very effective strategy for the small firm. In essence, it is better for a large part of one or more market division than to take over the small market of large market.

Micromarketing:​​ Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

What is Marketing Environment?

The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain a successful relationship with the customer. In another way, marketing environment is the combination of external and internal factors and forces which affect the company’s ability to establish a relationship and serve its customer. The marketing environment of a business consist of an internal and and external environment.

Micro-environment includes all those micro factors that affect business strategy, decision making and it’s ability to serve its customers, the company, customers market, and supplies.

Macro-environment is the broader context within which a company conducts its commercial operations.

Micro-environment vs Macro-environment

The microenvironment is the environment which is in immediate contact with the firm. This environment is defined as the nearby environment, under which the firm operates. The microenvironmental factors include the suppliers of service/product, the company itself, the marketing intercessors, customers, the competitors in the same business. The environment which is not specific to a particular firm but has the ability to influence the working of all the business are known as micro environment. The study of micro environment is described as ​COSMIC​​ analysis. The elements of the micro environment affect directly and regularly to the firm which is just opposite in the case of the micro environment. The factor of the micro environment affect the particular business only.

Every business organization is a part of the business environment, within which it operates. No entity can function in isolation because there are many factors that closely or distantly surrounds the business, which is known as a business environment.

Macro-environment refers to the environment that can affect the working of all business enterprise, service/product. It is dynamic on microenvironment therefore it keeps on changing.
The general environment within the economy that influences the working performance, affects strategy of all business groups at the same time is known as macro environment. Macro environment is the external environment factors greatly influence the business success, the strategies and decision making. the factors are uncountable by the business organizations.
The study of macro environment is known as ​PESTLE ​​analysis. PESTLE stands for microenvironment that exist in the microenvironment, I.e.microenvironment Population and Demographic, Economic, Socio-Cultural, Technological,microenvironmentLegal and Political and Environmental.

Micro and Macro environments have a significant impact on the success of marketing campaigns. The factors of these environments should be considered in- depth during the decision making the process of a strategic marketer.

Discuss micro environment and its components.

Microenvironment refers to the internal controllable forces within the company that affects its ability to serve its customers.
Its components are given below:

I. The Company: In company marketer must discuss all the plans and policies with top level management, purchasing manufacturing and other department to give satisfaction to consumers.

II. Suppliers: Suppliers includes all the parties which provide resources needed by the organization.

III. Market intermediaries: It includes parties involved in distributing the product or service of the organization.

IV. Competitors: Competitors are the players in the same markets who target same customers as that the organization.

V. Public: Public is made up of any other group that has an actual or potential interest or affects the company’s ability to serve its customers. Publics can be classified in following sections: ❖ Financial Public ❖ Media Public ❖ Government Public ❖ Citizen- action Public ❖ Local Public ❖ General Public ❖ Internal Public

VI. Customers: Customers are the king of the markets. A company must have good public relation department to maintain good relationship with customers.

Discuss macro environment and its components.

The macro component of the marketing environment is also known as broad environment. It constitutes the external factors and forces which affect the industry as a whole but don’t have a direct effect on the business.
The macro environment can be divided into six parts. Those are given below:

I. Demographic environment: the demographic environment is made up of people who constitute the market. It is characterized as the factual investigation of the people according to their size, density, location, age, gender and occupation.

II. Economic environment: It refers the purchasing power of the customer, inflation, real time etc.

III. Natural environment: It involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.

IV. Technological environment: Technology is one of the biggest sources of threats and opportunities for the organization and it is very dynamic.

V. Political environment: The political environment includes laws and government’s policies prevailing in the country. It also includes other pressure groups which influence marketing operation.

VI. Cultural environment: The cultural aspect of the macro environment is made up of the lifestyle, values, culture and beliefs of the people.

Reactive Marketing and Pro-Active Marketing

There are two approaches organizations can follow while responding to the environmental forces of marketing forces. These are popularly known as reactive marketing and proactive marketing.

♦ Reactive marketing ​: Reactive marketing is a marketing strategy that takes place because of unforeseen competition. It is contrasted with proactive marketing, which strives to plan for fluctuations in the market. The reactive marketing views marketing environmental forces as totally uncontrollable and difficult to predict. This is a passive approach, under which, the organization tries to adjust it’s marketing mix and program according to the changes in the environment. The adjustment takes place only after changes occur in the environment. The organization analysis the environmental change and finds a suitable way to avoid the threat and utilize the new opportunities in the market.

♦​ Proactive marketing: Proactive actions are intended to cause changes, rather than just reacting to change. In order to survive the competition a company should be proactive, not reactive. Industry must adopt a much more proactive approach to formulating environmental policy. Proactive marketing believes that although many of the environmental forces such as demographic, economy, culture and natural factors are not controllable, the environmental forces such as politics, law, and technology can be influenced by correct and calculated moves. Proactive marketing uses political, psychological, economic and public relations skill influence the environmental forces to the organization’s benefits.

Contributor: Manowara Pervin; Studying in Mawlana Bhashani Science and Technology University.