Summary
Summary Digital Marketing Fundamentals, ISBN: 9789001887124 Online Marketing And Communication
- Course
- Institution
- Book
Summary of the concepts clearly and beautifully elaborated
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Online marketing plan
-
Samenvatting Digital Marketing
-
Summary Digital Marketing
Seller
Followjenteldorrestein
Content preview
Chapter 1The meaning of marketing
Differences between selling and marketing:
Companies do 2 things: make products/services and put them on the market. In
other words, they produce something, and they are involved in marketing.
The difference between marketing and selling is the difference between a society
in which consumers can choose from products and services designed to meet
their specific needs and wants, and a society in which people have very little if
any choice.
Main purpose of marketing-oriented companies is to anticipate and satisfy the
needs and wants of the consumer.
In short selling is ‘trying to get rid of what you have on the shelves’.
Marketing is ‘making sure that what you have on the shelves is what the
costumer wants’.
The purpose of marketing is to get to know and understand the customer so well
that the product is precisely what the customer wants. Then the product will sell
itself.
A definition of marketing.
Marketing requires not only an appropriate product, but also the right type of
distribution, the right price and the right kind of promotion. Together these
factors make up the so-called marketing mix.
Marketing is the process of developing, pricing, promoting and distributing
products, services or ideas that are tailored to the market; it includes all other
activities that create value and systematically lead to increased sales or another
desired response, establish a good reputation and ongoing relationship with
customers, so that all stakeholders achieve their objectives.
The marketing mix.
The marketing or the 4 Ps is a strategy that consist of a clever combination of 4
marketing instruments that are used to tackle the market.
Product
Product: goods, services or ideas that meet the wants and needs of the customer.
Besides the physical product, this P includes other factors that determine which
brand a person buys, such as the warranty, packaging, brand image, product
range and customer service.
Price
Price: the amount of money exchanged for a product or a service.
When developing a price strategy, a company will consider not only the product’s
manufacturing costs, but also the prices being charged by its competitors and
how an increase or reduction in the selling price is likely to affect the demand.
Place
Place (distribution): how the company gets its product into the buyers’ hands.
,How a product is distributed often matters more in determining its success that
the product itself. Distribution strategy is concerned with decisions about which
distribution channels and intermediaries (the wholesale and retail trade) should
be used, the number of sales outlets, the necessary stock levels and best forms
of transportation (physical distribution).
Promotion
Promotion: the supplier’s activities to communicate with the market and to
promote sales.
Potential buyers first have to be made aware of the product and its benefits.
Promotion or marketing communication includes advertising, sponsorship, sales
promotion (such as free gifts, contests and product demonstrations), direct
marketing, and personal selling and public relation activities, including free
publicity.
Relation between 4P-model and 4C-model.
Four Ps Four Cs
Product Customer solution: the solution for the customer
Price Cost to the customer: value for money
Place Convenience: ease for the customer
Promotion Communication: mutual communication between the
organisation and the customer
Target market selection and the process of exchange.
Figure 1.1
Something of value: money,
labour, effort, etc.
Buyer (market, Seller (industry,
demand) supply)
Something of value: product,
service, idea.
This group of consumers is known as the target market, the part of the market
that an organisation concentrates on and wants to turn into customers.
Customers, after all, are loyal consumers who will make repeat purchase. Once a
company has divided the market into market segments, on the basis of certain
criteria, it will then select one or more target markets. With these groups the
organisation tries to bring about an exchange, in which the 2 parties agree to
exchange something of value so that both parties’ needs are met.
This exchange transaction underlies all marketing activities. In fact, exchange
transactions are items of worth. Often, they are products that are exchanged for
money, but they can also be something less tangible, such as a service, an idea,
labour or even status.
,Levels of marketing systems.
Bartering: was an exchange ‘in kind’. That is to say, no money changed hands,
and those involved in the exchange were only interested in products they
wanted.
Micromarketing.
Micromarketing, a process that must function effectively for a society as a whole
to realise its economic objectives. When it comes to micromarketing, we are
primarily interested in the system that a society has developed to arrange the
exchange of goods and services to the ensure that its scarce resources will meet
its needs as effectively as possible.
Mesomarketing.
Mesomarketing occurs when at a level that lies between the 2. This form of
marketing is best analysed within the framework of the supply chain.
· The supply chain.
We can depict a system by referring to the supply chain: the series of
persons and organisations – from the original manufacturer to the
consumer – involved in the production, distribution and consumption of
products and services. If these individuals and organisations in the supply
chain organise marketing activities, they do so at the level of
mesomarketing.
This marketing system consists of various horizontal sections or links. One
such link, which is made up for companies that perform the same function
in the production or trade of a certain product, is known as sector.
Within such a sector, a group of organisations that is similar in its
production techniques and end products is known as a Branch of industry.
· Definition of mesomarketing.
Marketing activities – designed to meet a certain need – that parties in the
supply chain carry out jointly fall within the domain of mesomarketing.
We can now define mesomarketing as all activities developed by several
collaborating organisations within a supply chain or sector to match supply
and demand and meet a certain need, in order to realise their shared
marketing objectives.
Micromarketing.
While micromarketing refers to the society as a whole and meso marketing refers
to collaborating organisations in the supply chain, the focus of micromarketing is
the individual firm.
Marketing management is the analysis, planning, implementation and constant
evaluation of all activities designed to ensure that the products and services
produced and provided by an organisation are tailored to meet the needs and
wants of potential customers as effectively as possible.
, Production- and product-oriented companies.
A product-oriented company does everything possible to make its production
process highly efficient. Beginning 20th century, production concept was the most
common business philosophy. By concentrating on mechanising and increasing
production, entrepreneurs were able to greatly reduce the cost of their products.
They reasoned that if a product was inexpensive and widely available, it was
bound to sell.
The aftermath of World War 2, the manufacturers shifted their attention to the
production process to the product itself. Once the product concept was adopted
in this era, the main objective became to improve quality. Despite the product-
oriented market approach, sales flourished, primarily because demand exceeded
the limited supply. It was a typical sellers’ market, in which the suppliers or
sellers had the upper hand – to the detriment of the customers.
Selling-oriented companies.
With technological progress and huge investments in the post-war economy,
production capacity grew so fast that products were no longer in short supply.
Greater prosperity gave rise to a buyers’ market, in which the buyers were in a
stronger position than the suppliers because supply exceeded demand. Although
the sales department became more important, little else change in the business
philosophy. Even with the shift to the selling concept, the company itself was still
seen as the point of departure. Its technical knowledge and experience
determined what was produced, while the sales staff tried to stimulate sales
simply by making a huge sales effort.
Marketing-oriented companies.
Faced with greater consumer buying power and greater competition, companies
finally learned that they had to tailor their products and services to meet the
needs and wants of the buyers more effectively.
Market orientation.
More than ever before, the business sector is characterised by a high degree of
market orientation.
Market-oriented companies consider not only customers, but also intermediaries
and competitors, in making business decisions at all levels of the organisation.
this is the crucial distinction between a market-oriented and a product-oriented
or selling-oriented market approach.
Figure 1.5 comparison of a product and a market orientation.
Product orientation Market orientation
ARRANGE THE IDENTIFY CUSTOMER
FINANCING/ORGANISTATION NEEDS
Produce the product Arrange the
financing/organisation
feedback
Sell the product (more profit Produce the product
via increased sales)
Market the product (more profit
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jenteldorrestein. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.05. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77988 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now