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What Is The Marketng?the Core Concepts

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What Is The Marketng?the Core Concepts

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What Is The Marketng?the Core Concepts Kariyer Ve Meslekler Katagorisinde ve ngilizce Forumunda Bulunan What Is The Marketng?the Core Concepts Konusunu Grntlemektesiniz.=>Chapter one WHAT IS THE MARKETNG?THE CORE CONCEPTS Marketing has been defined in various ways.The defination that serves our purpose ...
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What Is The Marketng?the Core Concepts

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Chapter one WHAT IS THE MARKETNG?THE CORE CONCEPTS Marketing has been defined in various ways.The defination that serves our purpose best is as foolows: Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating offering and exchanging products of value with others. NEEDS,WANTS AND DEMANDS Marketing starts with human needs and wants.People need food,air,water clothing to survive.Beyond this people have a strong desire for recreation education,and other service.they have strong preferences for particular versions and brands of basic goods and services. It is important to distinguish among needs,wants and demands.A human need is a state of deprivation of some basic satisfaction.People require food,clothing.These needs are not created by society or by marketers.They exist in the very texture of human biology and the human condition. PRODUCTS(GOODS,SERVCES AND DEAS) www.baktabul.net/ingilizce/27435-what-is-the-marketing-the-core-concepts.html 1/10

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What Is The Marketng?the Core Concepts PRODUCTS(GOODS,SERVCES AND DEAS) People saisfy their needs and wants with products.A products is anything that can be offered to satisfy a need or want.Occasionally we will use other terms for products,such as offering or solution. MARKETERS AND PROSPECTS The concept of marketing bring us full circle to the concept of marketing.Marketing means working with markets to actualize potential exchanges for the purpose of satisfying human needs and wants.A marketer is a some one seeking one or more prospects who might engage in an exchage of values.A prospect is someone whom the marketer identifies as potentially willing and able to engage in an exchange of values. MARKETNG MANAGEMENT Marketing management is the process of planning and executing the conception, pricing, ptomotion and distribution of ideas and services to create exchanges that satify individual and organizationgoals. Coping with exchange processes calls for a considerable amount of work and skill.Marketing management takes place when at least one party to a potential exchange things about the means of achieving desired responses from other parties.Marketing management can be practiced in any market. COMPANY ORENTATONS TOWARD THE MARKETPLACE We have defined marketing management as the conscious effort to achieve desired exchange outcomes with target markets.Clearly,marketing activities should be carried out under a well-througt-out philosophy of efficient,effective and social responsible marketing.There are five competing concepts under which organizations can cgoose to conducttheir marketing activities: 1-The Production Concept 2-The Product Concept 3-The Selling/Sales Concept 4-Marketing Concept 5-Social Concept 1-THE PRODUCTON CONCEPT: The production concept holds that consumers will favor those products that are widely available and low in cost.Managers of production-oriented organizations concentrate on achieving high production efficiency and wide distribution.The assumption that consumer are primarly interested in product availability and low price holds in least two stiations.

2-THE PRODUCT CONCEPT The product concept holds that consumers will favor those products that pffer the most quality,performance or innovate features.Managers in product oriented organizations focus their energy on making superior products and improving them over time.The product concept leads to the kind of marketing myopia we discussed earlier . 3-THE SELLNG/SALES CONCEPT The selling concept holds that consumer if left alone ,will ordinarly not buy enogh of the organizations products.The organization must therefore undertake an aggressive selling and promotion effort.The concept assumes thatconsumer typically show buying inertia or resistance and must be coaxed into buying.It also assumes that the company has available a whole battery of effecitve selling and promotion tools to stimulate more buying.The selling concept is praxcticed most aggeressively with unsought goods. 4-MARKETNG CONCEPT The marketing concept hodls that the key to achieving organizational goals consists of being more effective than competitors in integrating marketing activities toward determining and satisfying the needs and wants of target markets.The marketing concept has been expressed in many colorful ways *meeting needs profitabilit *find wants and fill them *love the customer not the product. 5-SOCAL MARKETNG

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Chapter three MARKETNG-ORENTED STRATEGC PLANNNG Marketing oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organizations objectives,skills and resources and its changing market opportunities.The aim of strategic planning is to shape and reshape the companys business and products so that they yield target profits and growth.The plays a critical role in the companys strategic-planning process.The marketing plan operates at two levels. *The strategic marketing plan develops the broad marketing objectives and strategy based on an analysis of the current market situation and opportunuties. *The tactical marketing plan outlines spesific marketing tactics,including advertising,merchandising,piricing,channels service and so on. The marketing plan is the central instrument for directing and coordinating the marketing effort. CORPORATE AND DVSON STRATEGC PLANNNG Corporate headquarters has the responsibility for setting into motion the strategic planning process.By preparing statements of mission,policy,strategy and goals.Headquarters establishes the framework within whic the divisions and business units prepare their plans.Some corporations give a lot of freedom and businessunits to set their own sales and profit goals and strategies.All corporate headquarters must undertake four planning activities; 1-Defining the corporate 2-Establishing strategic business units 3-assing resources to each SBU 4-Plnanning new business.

1-DEFNNG THE CORPORATE MSSON An organization exists to accomplish something to make cars,lend money, provide a nights lodging and so on.Its spesific mission or purpose is usually clear when the business starts. 2-ESTABLSHNG STRATEGC BUSNESS UNTS (SBU) Most companies operate several business.However,companies too often define their businesses in terms of products.They are in the auto business .But Levitt argued that market defination of a business are superior to product definations.A businessmust be viewed as a customer-satisfying process,not a goodsproducing process.Products are transiet,but basic needs and customer groups endure forever. 3-ASSNG RESOURCES TO EACH SBU 4-PLANNNG NEW BUSNESS The comopany s plans for its existing businesses allow project total sales and profits.Often projected sales and profit are less than what corporate management wants them to be.If there is a strategic planning gap between future desired sales and projected sales,corporate management will have to develop or acquire new business to fill it.Three options are available; *To identify opportunuties to achieve furthere growth within the companys current businesses *To identify opportunuties to build or acquire businesses that are related to the companys current businesses. *To identify opportunuties to add atractive businesses that are unrelated to the companys current businesses. INTENSIVE GROWTH Corporate managements first course of action should be a review of whether any opportunuties exists for improving its existing businesses performance.

MARKET PENETRATON STRAGEY There are three major approaches to increasing current products market share in their current market.Musicale could try to encourage is current customer to buy more cassettes per period. MARKET DEVELOPMENT STRATEGY How can managament look for new markets whose needs might be met by its current product? First,Musicale might try to identify potential user groups in the current sales areas whose interest in cassettes the company might stimulate. BUSNESS STRATEGC PLANNNG Having examined corporate managements strategic planning tasks,we can now examine the strategicplanning tasks facing individual business unit managers. BUSNESS MSSON www.baktabul.net/ingilizce/27435-what-is-the-marketing-the-core-concepts.html 3/10

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What Is The Marketng?the Core Concepts Each business units needs to define its spesific mission within the broader company mission.Thus the television-lighting-equipment company described earlier must define its business purpose more specifically.for example; The company aims to target major television studios and become their vendor of choice for lighting technologies that represent the most advanced and reilable lighting arrangements. THE MARKETNG PROCESS Planning at the corporate division and business levels is an integral part of the marketing process.To fully understand the marketing process we must first look at how a company defines its business.The tasks of any business is to deliver value to the market at a profit.Companies that subscribe to this traditional view have the best chance of succeeding in economies marked by goolds shortage. PRODUCT PLANNNG:THE NATURE AND CONTENTS OF A MARKETNG PLAN As weve seen,each product level within a business unit must develop a marketing plan for achieving its goals.The marketing plan is one of the most important outputs of the marketing process.But what does a marketing plan look like. CUREENT MARKETNG STUATON This section present revelent background data on the market product competition, distribution and macroenvironment.The data are drawn from a product fact book maintanined by the product manager. MARKET STUATON Here data are presented on the target market.The size and growth of the market are shown for several past years and by market geograpgical segments. PRODUCT STUATON Here data sales,prices,contribution margins ,and net profits are shown for each major product in the line for several past years. Chapter five SCANNNG THE MARKETNG ENVRONMENT Successful companies recognie and respond profitably to unment needs and trends in the macroenvironment.Unmet needs always exist.Companies could make a fortune if they could solve any of these problems.A Trend is a direction or sequence of events that have some momentum and durability.Trends are more predictable and durable than fads.Atrend reveals the shape of the future.Succesful companies realize that the marketing environment presents a never-ending series of opportunuties and treaths.The major responsibility for identfing significant changes in the macroenvironment falls to a companys marketers.More than any other group in the conmpany marketing managers must be the trend trackers and opportunity seekers. DEMOGRAPHC ENVRONMENT The first macroenvironmental force that marketers monitor is population because people make up markets.Marketers are keenly interested in the size and growth rate of population in different cities,region and nations; *age distribution and ethnic mix, *educational levels, *household patterns,and *regional characteristic and movements. ECONOMC ENVRONMENT Markets requre purchaisng power as well as people.The available purchasing power in an economy depends on current income,prices,saving,dept and credit availability.Marketers must pay close attention to major trends in income and consumer-spending patterns. Income distribution; Nations vary greatly in their level and distribution of income.A mojar determinant is the nation2s industrila structure.There are four types of industrla structures; *subsistence economies:the vast majority of people engange in simple agriculture. *raw-material-exponding economies:these economies are rich in one or more natural resources but poor in other repects. *ndustrializing economies:manufacturing begins to account for %10 to %20 of the countrys gross domestic products. *ndustrial economies:are major exporters of manufaxctured goods and investment funds.They buy manufaxctured goods from other and also export them to other types of economies in excahnge for raw materials and semifinishinedgoods. NATURAL ENVRONMENT In many world cities,air and wayer pollution have reached dangerous levels.There is great concern about

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What Is The Marketng?the Core Concepts certain chemicals causing air,soil and water pollution.New legislation passed as a result of environmentalim has hit certain ndustries very hard.Steel companies and public utulities have had to invest billions of dollars in population-control equipment and more environmentally friendly fuels.The auto undustry has had to introduce expensive emiision controls in cars.Marketers need to be aware of the thereats and opportunities associated withfour trends in the natural environment *storage of raw materials *increased cos of energy *increased levels of pollution *changing role of governments. STORAGE OF RWA MATERALS The earths raw materials consist of the infinite.The finite renewable,and the finite nonrenewable.Infinite resources such as air and water pose no immidate problem,although some groups see a long run danger. INCREASED ENERGY COST One finite nonrenewable resources,oil has created serious problems for the world economy. INCREASED POLLUTON LEVELS Some ndustral activity will inevitablly damege the natural environment.Consider the dangerous mercury levels in the ocean,the quantityof DDT and other chemical pollutants in the soil and food supply and the littering of the environment with nonbiodegradeble bottles, plastic and other packaging materials. TECNOLOGCAL ENVRONMENT One of the most dramatic forces shaing peoples lives is tecnology. Tecnology has released such wonders as penicilin,opern heart surgery,and the birth control pill.It has released such horrors as the hydrogen bomb,nerve gas and the submechine gun.Ir also released such mized blessings as the automobile and video games.Every new technology is a force for creative destruction.New technology creates major long-run consequences that are not always forseeable.The marketers should watch the following trends in technology. POLTCAL/LEGAL ENVRONMENT Marketing decisions are strongly affected by developments in the political and legal environment.This environment is composed of laws,government agencies and pressure groups that influence and limit various organizations and individuals.Sometimes these laws also create new opportunuties for business. SOCAL/CULTURAL ENVRONMENT The society in which people grow up shapes their beliefs,values and norms.People absorb,almost unconscioulsy a world view that defines their relationship to themseleves to others to nature and to the universe. *people s views of themeselves *peoples views of others *peoples views organizations *peoples views of nature * peoples views society * peoples viewsof the universe chapter 10 DIFFERENTIATING AND POSITIONING THE MARKET OFFERING TOOLS FOR COMPETITIVE DIFFERENTIATION A company must try to identfy the specisic ways t can dfferentate its products to obtain a competitive advantage.Differiantation is a act of designing a set of mainingful differences to distinguish the companys offering from competitors offerings. The number of differentation opportunuties vary with the type of dustry.The Boston Consulting Group has distinguished four types of industries based on the number of available competitive advantages and their size. *volume ndustry *stalemated ndustry *fragmented ndustry *specialized ndustry. PRODUCT DFFERENTATON Differentation of physical takes place along a continuum.At one extreme we find highly standerdized products that allow little variation:chicken,steel,asprin.Yet even here,genuine variation is possible.At the other extreme are products capable of high differentation,such as autyomobiles,commercial bulildings and furnuture.Most products can be offered with varying features. Features are characteristic that supplement the products basic function. The starting point of feature differentation is a stripped-down,or base-bones version of the products.The company can create additional versions by adding extra features.Some companies are extremely innovate in adding new features to their products.Companies must also think in terms of

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What Is The Marketng?the Core Concepts feature bundles or packages. PERFORMANCE QUALTY Most products are established initially at one of four performance levels; *low *average *high *superior Performance quality refers to the level at which the products primary characteristic operate. SERVCE DFFERENTATON In addition to differentiating its physical product a firm can also differentiate its service.When the physical product cannot easiliy be differentiated,the key to competitive success often lies in adding more value-adding services and improving their quality. 1-ORDERNG EASE: Ordering esae refers to how easy it is for the customer to place an order with the company. 2-DELIVERY: Deliver refers to how well the product or services is delivered to the customer.It ncludes the speed,accury and the care attending the delivery process. 3-INSTALLATION: Installation refers to the work done to make product operational in its planned location.Buyers of heavy equipment expect good installation service from the vendor. 4-CUSTOMER TRAINING: customer training refers to training the customers employees to use the vendor 2 equipment propelry efficiently. 5-CUSTOMER CONSULTING: Customer consulting refers to data,information system and advising services that the seller offers free or for a price to buyers. PERSONNEL DIFFERENTIATION Companies can gain a strong competitive advantage through hiring and training better people than their competitors do.Better-trained personnel exhibit six characteristics: *Competence:the employees posses the required skill and knowledge *Courtesy:the employees are friendly *Credibility:the employees are trustworhty *Reliability:the employees perform the service consistently and accurately *Responsiveness:the employees respond quickly to customers requests and problems *communication:the employees amke an effort understand the customer and communite clearly. CHANNEL DIFFERENTIATION Companiescan achieve differentaton throuhg the way they shape their distribution channels particulary these channels coverage expertise and performence.

IMAGE DIFFERENTIATION Even when competing offers look same,buyers may respond differently to the company image or brand image.

DEVELOPING A POSITIONING STRATEGY We have seen how companyies products and brands can be differentated.Even n the case of a commodit product the company must see its task as that of converting an undifferentiated product into a diffirentiated offering.but not all brand differences are meaningfull or worthwhile.not every differences is a differentiator.Each differences has the potential to create company costs as well as customer benefits.A differences is worth establishing to the extent that it satisfies the following criteria: *important *distinctive *superior *communicable *preemptive *affordable *profitable. Many companies have ntroduced differentiation that failed on or more of these tests. COMMUNCATING THE COMPANYS POSITIONING Once the company has developed a clear positioning strategy,it must communicate that positioning effectively.Suppose a company choose the best-in-quality strategy.Quality is communicated by choosing those physical sings and cues that people normally use to judge quality.Quality is also communicated through other marketing elements.A high price usually signals a premium-quality product to buyers.The products quality image is also affected by the packing,distribution,advertising and promotion.

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What Is The Marketng?the Core Concepts

CHAPTER11 DEVELOPNG NEW PRODUCTS CHALLENGES IN NEW PRODUCT DEVELOPMENT Given todays intense competition,cpmpanies that fail to develop new products are putting themselves at great risk.Their existing products are vulnerable to changing consumer needs and tastes,new technologies shortened product life cycles and increased domestic and foreing competition.

EFFECTIVE ORGANZATONAL ARRANGEMENTS Successful new-producty development requires the company to establish an effective organization for managing the new product development process.an effective organization begins with its top management.Top management is ultimately accountable for the success of new products.New product development requires management to define the business domains and product categories that the company wants to emphasize. MANAGING THE NEW PRODUCT DEVELOPMENT PROCESS We are ready to look the major marketing challenges at each stage of the new product development process.Eight stages are involved: 1-idea generation 2-idea screening 3-concept developing and testing 4-marketing strategy development 5-business analysis 6-product development 7-market testing 8-commercilization. IDEA GENERATON The new product development process starts with the search for ideas.Top managers should define the products and markets to emphazise and should state the new product s objective. IDEA SCREENING Any company can attract good ideas by organizing itself propertly.The company should motivate its employees to submit their ideas to an idea chairman whose name and phone number are widely circulated. CONCEPT DEVELOPMENT AND TESTING Attractive ideas must be refined into testable product concepts.We can distinguish among a product idea,a product concept and a product image.A product idea is a possible product that company might offer to the market.A product concept is an elaborated version of the idea expressed in meaningful consumer terms. MARKETING STRATEGY DEVELOPMENT After testing the new product manager must develop a preliminary market strategy plan for introducing the new product in to the market.The marketing strategy will undergo further refinement in subsequent stages. The marketing strategy plan consits of three parts. *describes target markets size *market share 3-profit goalssought in the first few years. BUSINESS ANALYSIS After management develops the product concept and marketing strategy t can evaluate the proposals business attractiveness. PRODUCT DEVELOPMENT If the product concept passes the business test,iy moves to R&D to be developed into a physical product.Up to now it has existing only word descrition a drawing or a prototype. MARKET TESTNG After management is satisfied with the products functional and physological performance the product is ready to be dressed up with a brand name,packing and a preliminary marketing program.The goals are to test the new product in more authentic consumer setting and to learn how large the market is and how consumers and dealers react to handling using and repurchasing the actual product. COMMERCIALIZATION Market testing presumably gives management enough information to deciced whether to launch the new product.If the company goes ahead with commercization it will face its largest cost to date.The company will have to contract manufacture or build or rent full-scale manufacturing facility. Chapter 13 www.baktabul.net/ingilizce/27435-what-is-the-marketing-the-core-concepts.html 7/10

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What Is The Marketng?the Core Concepts MARKET-LEADER STRATEGES Many ndustries contain one firm that is the acknowledged market leader.This firm has largest market share in the revelant product market.It usually leads the other firms in price changes.New-prodcut introductions,distribution coverage and promotional intensity.The leader may or may not be admired or respected but other firms acknowledge its dominance.The leader is an orientation point for competitors,a company to either challenge,imitate or avoid. EXPANDNG THE TOATL MARKET The dominant firm normally gains the most when the total market expands. NEW USERS Every producet class has the potential attracting buyers who are unaware of the product or who are resisting it because or its price or lack of certain features.A manufacturer can search for new users among three gorups. NEW USES Markets can be expanded thruogh discovering and promoting new uses for the product.For example,the average American east dry breakfast ceral three mornings a week. MORE USAGE A third market expansion strategy is to convince people to use more of the product per use occasion.If a cereal manufacturer convinces consumer to eat a full of cereal instead of half a bowl,total sales will increase. DEFENDNG MARKET SHARE While trying to expand total market size,the dominant firm must continuously defend its current business against rival attacks.The leader is like a large elephant being attacked by a swarm of bees.The largest and nastiest bee keeps buzzing around the leader. There are in fact six defense strategies that a dominant firm can use: 1-POSTON DEFENSE: The most basic idea of defense is to build an impregnable fortification arround ones territory.The French built the famous Maginot line in peacetime to protect their territory against possible future German invasion.But this fortification like all static defense maneuvers failed. 2-FLANK DEFENSE: The market leader should not only guard its territory but also erect outputs to protect a weak front or possibly serve as an invansion base for counterattacking. 3-PREEMPTVE DEFENSE: A more aggressive defense maneuver is to launch an attack on the enemy before the starts its offense against the leader.preemptive defense assumes that an ounce of preventation is worth more than a pound of cure. 4-COUNTEROFFENSVE DEFENSE: Most market leaders when attacked will respond with a counterattack.The leader cannot remain passive in the face of a competitors price cut,promotion blitz,product improvementor sales-territory invansion.The leader has the strategic choice of meeting the attacker frontally manuevering against the attackers flank. 5-MOBLE DEFENSE: Mobile defense involves more than the leader aggres-ending its territory.In mobile defense, the leader stretches its domain territories that can serve as future centers for defense and offense.It these new territoryies not so much thorugh normal brand proliferation as market broadering and marketing diversification. 6-CONTRACTON DEFENSE: Large companies sometimes recognize that thety longer defend all of territory.their forces are spread too thin,and territors are nibbling away on several fronts.The best course of actions then to be planned contraction.Planned contraction is not market abandonment but rather giving up the weaker territories and reassinging resources to stronger territories. MARKET-CHALLENGER STRATEGES Firms that occupy second third and lower ranks in an indusrty are often called runner-up or trailing firms.Some such as Ford,Ward and Pepsi-Cola are quite large in their own right.These runner up firms can adopt one of two postures.They can attack leader and other competitors in an aggressive bid for futher market share. CHOOSNG A GENERAL ATTCK STRATEGY Given clear opponents and objectives what options are available in attacking enemy?We can make progress by imagining an opponent who occupies a ceetain market territory. 1-FRONTAL ATTACK: an aggressor is said to launch a frontal attack when it masses its forces right up against its opponent.It attacks the opponents strengths rather than its weakness.The outcome depends on who has more strenght and endurence.n a pure frontal attack the attacker matches its opponents product. 2-FLANK ATTACK: An enemys army is strongest where it expects to be attacked.It is neccesary less secure flanks and rear.Its weak spots therefore are natural targets for attack.the major pribciple of modern offensive warfare is concentration of strenght against weakness.The aggresor may attack teh strongside to tie up to the defenders troops but will launch the real attack at the side or rear. 3-ENCIRCLEMENT ATTACK: The encirclement maneuver is an attempt to capture a wide slice of the enemys territory through a comphensensive blitz attack.Encirclement involves launching a grand offensive on several fronts,so

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that the enemy must protect its front sides and rear stimulataneously. 4-BYPASS ATTACK: The bypass is the most indirect of assult strategies.t means bypassing the enemy and attacking easier markets to broaden ones resources base.This strategy offers three lines of approach: *diversifying into unrelated products *diversifying into new geographical markets *leapfrogging into new technologies to supplant existing products. 5-GUERRLLA ATTACK: Guerrilla warefare consits of waging small intermiteent attacks on an opponents different territories.The aim is to harass and demoralize the opponent and eventually secure premanent footholds. MARKET FOLLOWER STRAGEES Many runner-up/follower companies prefer to follow rather than challange the market leader.But leaders never take nay effort to draw away their customers.If the runners ups lure is lower. Prices,impoved services or additional product features,the leader can quickly match these to diffuse the attack.

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