Table of content

Marketing essential ...................................................................................................... 2

Introduction .................................................................................................................. 2
Marketing Concepts ..................................................................................................... 2
External Environment ................................................................................................. 5
Micro Environment Factors ........................................................................................... 5
Macro Environment Factors ........................................................................................... 6
The role of marketing .................................................................................................. 7
Overview of marketing processes ............................................................................... 8
The different roles of marketing within both a B2C and B2B context. ................ 11
Explain how roles and responsibilities of marketing relate to the wider
organizational context. ............................................................................................... 12
Conclusion ................................................................................................................... 13
References ................................................................................................................... 14

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Dinh Hai Anh

GBH0601

Assignment

Marketing essential
Introduction
According to Kotler (1980) marketing is the science and art of exploring, creating, delivering value
to satisfy the needs of a target market at profit. Marketing identifies unfulfilled needs and desires. It
defines measures and quantifies the size of identified market and the profit potential. It pinpoints
which segments the company is capable of serving best and it designs and promotes the appropriate
products and services. (heidicohen.com, March 29, 2011)

Marketing Concepts
Needs, wants and demands are a basic part of the marketing principles.

Needs is the basic human requirement like water, food, clothes and so on.

Wants is way the everyone feel these wants should be mandatory part of life. For example, the person
can eat food to feed himself, but he want fast food or u can wear everything but you prefer jeans cause
culture/fashion influence.

Demands is buying power. Human have unlimited wants but resources are limited so wants is human
wish, buying power convert those want into demand.

Market offering is combination of product and service that is offered in the market.

The marketing concept is the strategy that firms implement to satisfy customers needs, increase sales,
maximize profit and beat the competition. There are five different concepts of marketing:

1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept
5. Societal marketing concept

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Production Concept – Consumers prefer products that offer the most quality, performance, or
innovative features. The product concept believes in the consumers and it says the consumers are more
likely to be loyal if they have more options of products or they get more benefits from product of the
company. It means consumers will favor products that are available and highly affordable.

An example of the production concept is Apple and Google. Both of these companies have strived
hard on their products and deliver us feature rich, innovative and diverse application products and
people just love these brands.

One problem which has been associated with the product concept is that it might also lead to marketing
myopia. Marketing Myopia, first expressed in an article by Theodore Levitt in Harvard Business
Review, is a situation when company has a narrow-minded marketing approach and it focuses mainly
on only one aspect out of many possible marketing attributes. E.g. focusing just on quality and not on
the actual demand of the customers. (feedough.com June 8,2017).

On the other side innovating too soon becomes a big problem. Several innovative products are marked
as experimental in the market instead of being adopted because of which these products have less
shelf life and might have to be taken off the market. Those companies following the product concept
need to concentrate on their technology such that they provide with excellent feature rich and
innovative products for optimum customer satisfaction.

Selling Concept – Consumers will spend money only if the firm aggressively promotes or sells
these products. Obviously, in this era of marketing, we know that selling is not the only straregy to
sell your product. You have to focus on marketing as well.

Marketing Concept – Focuses on needs, wants of target markets & delivering value better than
competitors. The marketing concept believes in the pull strategy and says that you need to make
your brand so strong that customers themselves prefer your brand over every other competitor. This
can be achieved through marketing.

Lets take an example of 2 rivals – Apple and Samsung. Both of those companies have similar products.
But the value proposition given by both is quite different. Apple concentrate on upper class ( rich,
well born ) when Samsung focus on all classes. In addition, the value proposition by Apple has been
quite improved over the ages compared to Samsung.

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The marketing concept also demands that the strategic decisions made by the company are taken
keeping the customer in mind. Especially the needs wants and demands of the customers. A holistic
approach is taken with the whole organization striving to make the customer experience better.
Applying the marketing concept also means knowing what the market needs and expects from the
company as a result of which companies which apply the marketing concept need to carry out more
of market research.

The marketing concept is the most followed ideology by top companies. This is because, with the rise
of economy, consumers have become more knowledgeable and choosy as a result of which the
organization cannot concentrate on what it sells but rather it has to concentrate on what the customer
wants to buy.

In conclusion I want to say this concept of marketing relies on market research. Analyzing needs of
customers the firm can choose better marketing strategy to satisfy them.

Societial Marketing concept - according to the marketing concept, the firms focused on
customers needs/wants for long term profitability. The firm must also help maintain and improve the
society’s welfare. There are a lot of issues like environmental problems, resource shortage, worldwide
economic problems, rapid population growth and so on.

The strong reasons are high quality of life is reflected in the need to improve the quality of life and
consumers are willing to pay for society.

Basically, taking care of society's well-being is good for business. Many companies have achieved
notable sales and profit gains by adopting and practicing the societal marketing concept. Customers
usually show interest in company with an image and reputation. They believe that customers will
increasingly look for demonstrations of good corporate citizenship.

Most people see the Coca-Cola company as a highly responsible corporation producing drinks that
satisfy consumers tastes. But certain consumers and environmental groups have voiced concerns that
Coca-Cola has little nutritional value, can harm people’s teeth, also it contains caffeine.

To sum up societial marketing concept is slightly similar to marketing concept but aims to society.

Future trends

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The technological revolution is cause of new trends.

Industrial marketing is where a business sells their product to other company to resell them later,
use them to produce other goods.

Relationship marketing was developed via response marketing campaigns. It emphasizes on

customer satisfaction and retention rather than the number of sales made.

External Environment
An external environment is composed of all influences and factors that affect the operation of
business. There are two kinds of external marketing environments: micro and macro. These
environment’s factors are beyond the control of marketers and they influence the decisions made when
creating a marketing strategy.

Micro Environment Factors

1. The supplies: Suppliers can control the success of the business. What happens if your
suppliers do not show up with gas, food and other products? You will have nothing to sell,
which will have a direct influence on your operation. The supplier has power when they are
the only one or the largest supplier of their goods.
2. The customers: The people who buy and use a a will have to close its doors.
3. The competition: Those who sell same or similar products and services as your firm are your
market competition, and the way they sell needs to think about. How does their price and
product differentiation affect you? How can you leverage this to reap better results and get
ahead of them?
4. Marketing Intermediaries are individuals and organizations that support the promotion, sales
and distribution of the company's products. They are important to the ability of a company to
provide value to customers.
5. Publics: publics are an important force in external Micro Environment. Public, according to
Philip Kotler “is any group that has an actual or potential interest in or impact on a company’s
ability to achieve its objective”. Environmentalists, women associations, media groups, local
groups, consumer protection groups, citizens associations are some important examples of
publics which have an important bearing on environment of the firms.
6. The company has direct influence on marketing management. CEOs and senior managers are
influential people since all marketing plans must be adopted by them.

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Macro Environment Factors
1. Demographic Environment includes the size/growth of population, life expectancy of the
people, gender, race, occupation, education, income, and family size. All these factors have an
important influence on the functioning of business firm. For example, the skills and ability of
a firm’s workers determine to a large extent how well the organization can achieve its mission.
2. Natural Environment is the ultimate source of many inputs such as raw materials/energy that
business firms use in their productive activity. Sources of material for the production of the
business. as production activities increase or when natural disasters such as floods, droughts
occur and so on, the production materials of business will gradually decrease and lead to the
decline. Not only weather and climatic conditions affect on business but also location
influence.
3. Economic Environment includes the type of economic system that exists in the economy, the
phase of the business cycle, the nature and structure of economy, the fiscal, monetary and
financial policies of the Government and so on.
4. Social and Cultural Environment - Nowadays people do not accept the activities of business
organization without question. Activities of business firms may harm the physical environment
and impose heavy social costs. Besides, business practices may violate cultural ethos of a
society. For example, advertisement by business firms may be nasty and include racism.
5. Political Environment – Business are generally related to the Government. Laws and
institutions enacted by the national government and ethical rules developed by the society. The
political environment affects many aspects of business operations of enterprises. Regulations,
law will specify how to establish an enterprise, rights, and restrictions on production and
business.

6. Technological Environment - The nature of technology used for production of goods and
services is an important factor responsible for the success of a business firm. Technology
consists of the type of machines and processes available for use by a firm and the way of doing
things.

Micro and macro environments have an important influence on the success of marketing campaigns,
and therefore the factors of these environments should be considered in-depth during the decision
making process of a strategic marketer.

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The role of marketing
Nowadays the role of marketing is too important to be ignored. Big and small companies are today
competing for the same market and the most innovative and proactive have emerged victors. As a
result, a company’s survival is dependent upon their wise marketing efforts coupled by financial
operational among other functions within their structure.

Description of a Marketing Department

Marketing Department Organizational Structure

Vice President is responsible for the entire marketing department and the person who is involved in
planning and creating marketing strategy as well.

Markeeting manager is responsible for marketing strategy. The marketing manager reports to vice
president and also manages employees.

Marketing Research finds information about the target audience. Working with surveys information
and study statistics can help with marketing plan creation.

Creative Services can help with designing display informations for the business. Creative services
usually are web designers and they can help make company’s sites easier to use.

A marketing department promotes your business and drives sales of its products or services.

The marketing department helps a business to do the following: research, products, promotions,
business development.

Research

Research plays important role in marketing activities. Without demographic research, product
developers will not understand customer’s needs and wants. Research is used to measure buying
habits, product usage and opinions of you business. It also helps to understand competitor’s strengths
and weeknesses. The better your research, the less money you will waste. For example, buying ads
that will not reach your customers or making a fail product that no one will buy.

Products

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The aim of the product function is to track and predict what customers want in their products. The
relationship between customers and products can help product designer analyze and differentiate your
products from those of a competitors.

Promotions

The main job of promotion activities is to carry out promotional strategies and services to push
customers to buy company’s products. The sale force is assisted by promotion staff with sale
promotions, trade shows and other events, offer public relations support, purchase ads that can
illustrate product benefits and innovations.

Business Development

Business development is about making connections. It’s building upon the brand that you have
established through marketing efforts to connect your audience to your products and services. Staff
entices potential customers into your company in many ways, for example, even when visiting a
website and then encouraging customers to keep thinking about the product so sales staff can come
up with the idea to get them to buy the company's products.

Overview of marketing processes

The Marketing Process
I. Analysis
First step of marketing process is analyzing market opportunities. Through analysis of the situation
the firm finds itself serves as the basis for identifying opportunities to satisfy unfulfilled customers
needs.

The company conducts effective market research that would tell the valuable information about the
customers, general trends, and any changes occurred in the market that can be useful for company.
The analysis should include not only present aspects but also past and future. It should include a
history outlining how the situation evolved to its present state. Good analysis can reduce the change
of spending a year delivering a product to market only to find that the need no longer exists.

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II. Strategic Planning
The marketing strategy involves:

1. Segmentation
2. Target market
3. Positioning the product within the target market

Market Segmentation

The process in which the whole market is split into different units of consumers, each unit having
similar characteristics, wants and behavior of consumers which need different marketing mixes and
strategies.

Many of the consumer’s market segmentation variables can be applied to industrial markets.

Target Market

Nowadays to succeed in competitive marketplace, companies must be customer centered. They must
win customers from competitors and keep them by delivering greater value. Knowing their needs/want
we can easy choose target market.

Two main factors to consider when selecting a target market segment are the attractiveness of the
segment and the fit between the segment and the firm’s objectives, resources, and capabilities.

Market segment also should be evaluated according to how they fit the firm’s objectives, resources,
and capabilities.

Market Positioning

This concept relates to the positioning of the product of a firm in the minds of the customers as
compared to the products of competitors. In other words the company tries to maintain a clear and
specific impression in customers about its products. When a firm wants to position its product, it first
specifies the competitive edge for which it offers competitive advantages to its target customers. The

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entire marketing program of the company should concentrate its identified positioning strategy. The
positioning works when the company truly provides the efficient, competitive offering to its customers
in order to give them maximum value as compared to the offering of competitors.

III. Marketing Mix

Mixed Marketing is a business tool used in marketing and used by marketing professionals. Marketing
decisions generally fall into the following four controllable categories (in marketing services 4P has
been extended to 7P):

1. Product
2. Price
3. Place (distribution)
4. Promotion

Product

A product is an item that is made to satisfy the needs/wants of a certain group of people. The product
can be intangible, invisible or tangible as it can be in form of services or goods.

You must provide the right type of product that is in demand for your market. Therefore, during the
product development phase, the marketer must do an extensive research on the life cycle of the product
that they are creating.

Price

The price of the product is the amount that a customer pays for to enjoy it. Price is also a very important
component of the marketing mix definition. Adjusting the price has a big influence on the entire
marketing strategy as well as hugely affecting the sales and demand of the product.

If company is new to the market and has not made a name for themselves yet its unlikely that your
target market will be willing to pay a high price. Pricing always help the image of your product in
consumers eyes. A low price sometimes means that they might compare your product to a competitor.
However, prices too high will make customers value their money over your product.

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When setting the product price, marketers should consider the perceived value that the product offers.

Place

Placement is an important part of the product mix definition as well. You have to position and
distribute your good in a place that is accessible to your potential customers. This comes with a deep
understanding of your target market. Understand them inside out and you will discover the most
efficient positioning.

Promotion

Promotion helps your firm to boost brand recognition and sales.

Advertising typically covers communication methods that are paid for like television advertisements,
radio commercials, print media, and internet advertisements. Public relations are communication that
generally not paid for. This includes exhibitions, press releases, seminars, sponsorship deals,
conferences, events and so on. Social media also helps with promoting.

The different roles of marketing within both a B2C and B2B

context.
Most small businesses sell to other businesses or to consumers and the acronyms B2B and B2C
represent these relationships in abbreviated form.

Key Differences Between B2B and B2C

1. B2B is shorthand for business to business.

2. B2C is shorthand for business to costumers.
3. B2B focus on the relationship with companies, but B2C focus is on the product.
4. In B2B the buying and selling cycle is every long. Usually took month or even more.
5. In B2C the buying and selling cycle is short ( it might took few minutes )
6. In B2B the desion making is planned and logical, in B2C the decision making is emotions.
7. In B2B the value of brand is created through relationships between business entries, but in
B2C is created through promoting.
8. The lifetime value of B2B customers higher when in B2C is lower.

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 9. The cost of sale in B2B is higher than B2C. B2C sales can range in cost from a dollar to a
few thousand dollars when in B2B sale can range from few thousand dollars to millions.

B2B vs. B2C Marketing Example

For example, consider this: My product is lotion.

My lotion will moisturize the skin and relieve itching skin.

If I have a B2B client they will be most interested in the feature of the client which is moisturizing
the skin. If I have a B2C client they will be most interested in the benefit which is relief of itching
skin.

We will be most effective in marketing if we understand what both markets need in order to make a
decision.

(thebalance 2017)

Explain how roles and responsibilities of marketing relate to the wider

organizational context.

Marketing as business function

Marketing is a important process to the success. Good marketing campaigns help drive sales and
better inform your consumer about your business.

Research and development

Research plays huge function in marketing. Paying attention to trends and looking for product that
satisfy customers is a way to success. Research also requires checking your opponents to discover
disadvantage of your good and develop them.

Finance is an important element in an organization. They work closely with the CEO and the
strategic leaders across an organization to decide exactly which initiatives make financial sense and
which don’t. They determine how much money a department receives, and whether the investment

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will grow or shrink and at what rate. It means this part plays the role of controlling and using budget
as effective as possible

Manufacturing is process of creating the product by hand or by machine that upon completion the
business sells to a customer. Items used in manufacture may be raw materials or component parts of
a larger product.

Conclusion
This assignment has a clear understanding of marketing. Before I had no idea what is marketing and
how it made of. During this assignment, I have learnt a lot of new thing about marketing and how it
is important in business.

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References

http://heidicohen.com/marketing-definition/

https://www.marketing91.com/concepts-of-marketing/

https://www.quora.com/What-are-some-examples-of-societal-marketing

https://www.difference.wiki/micro-internal-environment-vs-macro-external-environment/

http://www.economicsdiscussion.net/business-environment/business-environment-types-external-micro-
and-external-macro/10095

http://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-macro-environment-
factors-on-marketing/

http://smallbusiness.chron.com/

http://www.netmba.com/marketing/process/

http://www.businessstudynotes.com/marketing/principle-of-marketing/explain-the-marketing-process-in-
detail/

http://marketingmix.co.uk/

https://www.thebalance.com/b2b-vs-b2c-marketing-2295828

https://www.mymarketingdept.com/comparing-b2b-versus-b2c-marketing

http://yourbusiness.azcentral.com/relationship-between-marketing-human-resources-14661.html

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