Selling vs Marketing

SELLING 1 Emphasis is on the product 2 Company Manufactures the product first 3 Management is sales volume oriented 4 Planning is short-run-oriented in terms of todays products and markets 5 Stresses needs of seller 6 Views business as a good producing process 7 Emphasis on staying with existing technology and reducing costs 8 Different departments work as in a highly separate water tight compartments 9 Cost determines Price 10 Selling views customer as a last link in business MARKETING 1 Emphasis on consumer needs wants 2 Company first determines customers needs and wants and then decides out how to deliver a product to satisfy these wants 3 Management is profit oriented 4 Planning is long-run-oriented in todays products and terms of new products, tomorrows markets and future growth 5 Stresses needs and wants of buyers 6 Views business as consumer producing process satisfying process 7 Emphasis on innovation on every existing technology and reducing every sphere, on providing better costs value to the customer by adopting a superior technology 8 All departments of the business integrated manner, the sole purpose being generation of consumer satisfaction 9. Consumer determine price, price determines cost 10. Marketing views the customer last link in business as the very purpose of the business

Marketing Plan: ( This is the Implementation) A clear marketing plan is a blueprint that lays out the steps a company must take in order to achieve its marketing goals . A marketing plan details what you will do to make the strategy happen. It usually goes further than the strategy, including detail such as budgets and a timetable for implementation. Your marketing strategy may serve you well for a number of years but the details, such as budgets for marketing activities, of the marketing plan may need to be updated every year. Your Marketing Strategy must : Define your customer needs Define the services you offer Establish the size of your market Establish your position in the market in relation to your competitors Set objectives and realistic time scales Identify how these objectives will be achieved

Niche marketing can be defined as: Where a business targets a smaller segment of a larger market, where customers have specific needs and wants Targeting a product or service at a niche segment has several advantages for a business (particularly a small business): Less competition the firm is a big fish in a small pond Clear focus - target particular customers (often easier to find and reach too) Builds up specialist skill and knowledge = market expertise Can often charge a higher price customers are prepared to pay for expertise Profit margins often higher Customers tend to be more loyal The main disadvantages of marketing to a niche include: Lack of economies of scale (these are lower unit costs that arise from operating at high production volumes) Risk of over dependence on a single product or market Likely to attract competition if successful Vulnerable to market changes all eggs in one basket By contrast, mass marketing can be defined as: Where a business sells into the largest part of the market, where there are many similar products on offer The key features of a mass market are as follows: Customers form the majority in the market Customer needs and wants are more general & less specific Associated with higher production output and capacity (economies of scale) Success usually associated with low-cost operation, heavy promotion, widespread distribution or market leading brands

MARKETING SERVICES AND PRODUCT

5 differences between products and services 1. Products go to the customers through distribution channels. Customers come to the service locations to avail them. 2. Customers like their products to be standardized. Customers like services to be customized to their needs. 3. The quality that expect from a product is mostly embedded in the product itself at the time of its manufacture and depends in turn on the quality of the materials used and the setting of the machines. Both materials and machines, being inanimate, can be standardized. On the other hand the quality that people expect from a service is quite different : customization and variation is appreciated in service and this depends a lot on the experience, skill and motivation of the service-giver on the spot. 4. The products are tangible and can be inspected / sampled before buying. Service on the other hand is experiential and sometimes based on a belief. 5. The product business is expanded by expanding the market reach and access to more customers. In services the constraint in increasing the business is also in creating good service providers through recruitment, induction, training and motivation.