Relevance of marketing concept to the 21st century business of Essay

Relevance of marketing concept to the 21st century business of sainsbury - Essay Example Marketing is science of choosing the target market via market segmentation and analysis and also getting the insight of the consumer buying behaviour and giving them superior and better customer value (Roe, 2004). Description of the Marketing Concept The marketing concept is goal oriented and integrated concept that producers of services and goods practice and the basic focus is upon the satisfaction of needs of the consumers over needs of the company that is producing (McCarthy, 1960). The marketing concept says that the needs and the desires of the target market should be determined and fulfilled so that the goals of the producer can be achieved successfully. The major role of marketing is to assist in the identification, satisfaction and retention of the customers. The loyalty of the customers can be gained by constantly delivering the competitive advantage. A general term that is used for describing the various kinds of options that are available to the company for bringing their service or product into the market is known as marketing mix (Fletcher, 2004). There are four Ps that come in this marketing mix that mean product, promotion, price and place. The value added selling concept is gaining importance day by day for quite some time now. So many services and products in the market today are considered to be commodity and therefore the addition of value to them is absolutely important. It is very important to provide a high professionalism level and an expert advice. (Ferrell et al., 1998). Packaging, service levels, frequent buyer programs, recognition and rewards, transitions, education, qualititative presence, speed of service and delivery, insider information and dedicated personnel are all important things when it comes to adding value (Wrigley, 2000). Market segmentation is also an important phenomenon as the buyers of the service or a product are not members of a homogenous group. In actual all the buyers have their own specific needs, characterist ics, preferences etc (Assael, 1992). The common characteristics help in the development of standard marketing mix for all similar customers in a segment. Some of the researchers have regarded segmentation as the strategy for conquering the markets by dividing them. Target Market is a term that describes the segment of the market o which the specific service or good is marketed. This is mainly done on the basis of gender, age, geography, demographics and socio economic grouping etc. Target marketing relates to the market breaking up into segments, and after that concentration of the marketing efforts upon a single or few of the key segments. The process of target marketing makes the process of pricing, promotion, distribution much easier and much more cost effective. It provides a focus on all the marketing activities (Smith, 2001). Positioning relates to the way the potential buyers visualize the product and it is the position that your brand has in the minds of target consumer. Dom estic marketing involves the marketing strategies that attract and impact the customers within a country’s political boundaries. In the international marketing

Key Word in Marketing Essay Example | Topics and Well Written Essays - 2500 words

Key Word in Marketing - Essay Example into different clusters is widely known as customer segmentation. By the help of customer segmentation organizations can put more focus on their customers and use all the resources for the benefit of those targeted customers. As per Jill Griffins, Cisco Systems, Demographic, psychographic are the main factor of segmentation. Other type of customer segmentation is called value based segmentation. Here customer is been categorized as per the revenue they created to the organization. That also include the cost of services and maintenance and cost of maintain relationship with those customers. Procedure of customer segmentation is given below. a. What data needs to be collected and how to collect the same. b. Collection of data and representation of data. c. Analysis of data. d. Proper coordination between several departments of marketing and customer relationship management is necessary. e. Conclusion and recommendation from the data collected from sources and effective development of t hose recommendations is done here. Explanation of the procedure has to be done in the form of word combination or phrases but it should not be mixed.(Rashidi, 2013) In modern marketing it is one of the main factors of market. In this process, the customers get the most priority and it also helps the organization to maximize its resources to compete in the market. Many researchers claimed that segmentation is a good way to market a product or a service since it does involve a head to head competition with the rivals. Only customer’s satisfaction is the main criteria, so customers get benefitted more out of it. That is one reason why the popularity and acceptance of this method of marketing is increasing widely throughout the globe. Effect of market segmentation is a long term result and organizations get benefited out of it. Market can be divided into four different segments which have been shown in the diagram below: As shown above, the market in divided in four segments, Geo graphic, Demographic, Behavioral and Psychographic (Weinstein, 2013). A. Geographic: In this type of segmentation market is divided geographically, like continents, countries, states, districts, cities and neighborhoods. The geographical difference has a huge effect on the culture of the society. The consumer’s choice, behavior, attitude and characteristic differ as per the changes in the culture of the society. No organization which has business worldwide can treat the whole world market as a single market. For example, let us take Europe and Africa. There is a vast difference in the lifestyle and the economy in both the continents. The choices and the behaviour also changes accordingly. Another situation that can be considered would be the people residing in regions like Greenland or Alaska versus the population in tropical regions like Brazil or Malaysia. The climate is the major difference here. From a marketer’s point of view, Greenland or Alaska is the best place to sell warm clothes, whereas promotion of cotton garments can be advised in the case of Brazil or Malaysia (Burkard, 2011). B. Demographic: The commonly used Demographics in market segmentation include age, sex, education, income, marital status and number of family members. Age: Any person’s age hugely influence their buying behavior. There are several products where strictly age is described and if restricted age customers try to buy, sellers are strictly instructed not to sale them those product. Products like alcohol, certain drugs, several movies which are only for adults etc. Products like toys, where age group is mentioned. In a toy store it is been mentioned like toys for 1 to 2 years old children, 3 to 5 years old children and 6 to 10 years old children. Parents search for the toys as per their