Marketing comes in a wide variety of flavors based on audience, media platform Therefore, it's no surprise that marketers define what they do differently. . It's a process that helps companies build relationships with prospects Lois Geller – President, Lois Geller Marketing Group, Author of Response!. Marketing is a broad, somewhat simplistic concept, where “selling” is thought of The principal marketing functions might be defined as Marketing Information. The goal of CRM, by contrast, is to continually increase the volume of business with . of distribution so that it has a wider appeal to your target market. your marketing plan) with the information they need to define the scope of the project. Make sure that you investigate whether your industry or professional group.
This is a perenial topic in forums and will get lots of responses — particularly I have found from sales folk. Their basic message is that Sales and Marketing are different.
Is Marketing the Same as Selling?
Sales people are important and underappreciated. The basic problem with the topic and discussion is that very few participants understand or use the terms correctly. It is difficult to have a useful discussion if the key terms are not understood and agreed So here are a few useful definitions to help I hope the discussions Marketing The process of exchange of value between Provider Seller and Customer Buyer. Involves creating and providing what customers want in return for something they are willing to give money, time, or membership The systematic planning, implementation and control of a mix see Marketing Mix Strategy of business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products Sale, Hire, Acquisition for some form of Payment.
The process of planning and executing the conception, Product Pricing, Promotion and Place Distribution of offers ideas, goods and services to create exchanges that satisfy individual and organisational objectives. Teach Yourself Marketing, John Stapleton, It then moves on to determining a means of satisfying these needs and of promoting, selling and supplying a satisfaction.
The principal marketing functions might be defined as Marketing Information and Research, Product Planning, Advertising and Promotion, and Distribution. Second, the marketing concept, a market orientation, and their influences on the management of a firm and a supply chain are described. Third, an explanation of how relationship marketing affects SCM, as well as the management of a firm, is provided.
Fourth, an integrated framework of the relationships between the marketing concept, a market orientation, relationship marketing, and SCM is proposed. Fifth, the implications of this framework are presented. Research propositions are provided throughout.
Marketing strategy - Wikipedia
Definition of marketing Kotler proposed the essence of marketing is the transaction exchange of values actually made between parties and, thus, marketing is specifically concerned with how transactions are created, stimulated, facilitated, and valued.
According to the American Marketing Associationmarketing is "the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals". In other words, the objective of marketing is creating exchanges, and the output of it is customer satisfaction. Kotler and Churchill and Peter defined an exchange as a process in which two or more parties voluntarily provide something of value to each other.
The role of marketing in supply
According to Kotlera transaction takes place when an agreement is reached, whereas exchange is the process to produce an agreement. Exchange takes place within a market, defined as a collection of buyers and sellers that interact Pindyck and Rubinfeld, In this context, Churchill and Peter proposed various parties are involved in the marketing effort: The marketing concept and a market orientation The marketing concept is essentially a business philosophy cf.
Barksdale and Darden, ; McNamara,and the philosophical foundation of a market orientation Jaworski and Kohli, Kohli and Jaworski conceptualized a market orientation as the implementation of the marketing concept.
The marketing concept Based on previous conceptualizations of market orientation offered in Table I, Kohli and Jaworski argued the marketing concept consists of three pillars: The marketing concept has strong influences on the management of a firm, inter-firm relationships, and the supply chain. The marketing concept, as a business philosophy, guides firms to look for customer satisfaction at a profit in a coordinated manner.
Webster proposed that marketing as a culture means a basic set of values and beliefs about the importance of the customer that guide the firm: The marketing concept provides the philosophical foundation of individuals' activities or behaviors called a market orientation within a firm. Cravens argued the customer is at the center of the relationship-marketing paradigm. The marketing concept, as a business philosophy, guides a firm's behaviors called relationship marketing to develop, maintain, and enhance inter-firm relationships to satisfy customers.
The marketing concept is also a necessary component for implementing SCM. The marketing concept i. Under compatible marketing philosophies, supply chain partners become more willing to be efficient i. A market orientation Based on definitions provided in Table II, Slater and Narver argued their definition of a market orientation is commensurable with Kohli and Jaworski and Jaworski and Kohli because the measures of market orientation consist of three behavioral components, each of which involves market intelligence generation, dissemination, and managerial action.
Regardless of Slater and Narver's commensurability argument, it is proposed that the different conceptualizations of a market orientation as a culture and a set of behaviors are not identical, and the definition of a market orientation as an organizational culture has a critical weakness because it contains circular logic.
Deshpande and Webster defined the marketing concept as referring to a distinct organizational culture, a fundamental shared set of beliefs and values that put the customer at the center of the firm's thinking about strategy and operations. Accepting Deshpande and Webster's definition of the marketing concept as an organizational culture, Deshpande et al.
As such, if we take the conceptualization of a market orientation as an organizational culture, we would conceptualize the marketing concept as synonymous to market orientation. Thus, we propose to adopt Kohli and Jaworski's conceptualization of market orientation as the implementation of the marketing concept culture. A conceptual model of the impacts of a market orientation on a firm, inter-firm relationships, and a supply chain is presented in Figure 1.
Management of a firm. A market orientation provides a unifying focus for the efforts and projects of individuals and departments within a firm Kohli and Jaworski, Slater and Narver argued a market orientation is valuable because it focuses the firm on: A market orientation encourages interfunctional coordination that is a firm's coordinated efforts, involving more than the marketing department, to create superior value for buyers cf.
Narver and Slater, ; Day, This is so because customer satisfaction, the ultimate goal of a market orientation and the evaluation of the created customer value by a firm, is affected by many factors that lie either inside or outside the scope of the marketing department Kotler, For example, delivery reliability, invoice accuracy, invoice clarity, and personnel are major factors that determine customer satisfaction.
A market orientation requires a firm to redefine the responsibilities of each function within a firm, especially those of marketing.
Narver and Slater argued a seller's creation of value for buyers is analogous to a symphony orchestra in which the contribution of each subgroup is tailored and integrated by a conductor. Thus, in addition to traditional marketing activities, marketing should perform a guiding and coordinating role to make sure the rest of the company delivers on customers' expectations Kotler, A market orientation becomes instrumental in coordinating the activities of all departments, with the marketing function playing a pivotal role in the success of the firm because everyone is involved in marketing activities.
The responsibilities of functions, other than marketing, are also broadly redefined so that everyone within the firm becomes a marketer either on a full-time or part-time basis Gummensson, - because any individual in any function in a firm can potentially contribute to value creation for customers Porter, ; Webster, As inter-functionally coordinated actions prevail within a firm and the responsibilities of each function are redefined, the boundaries between each function become blurred.
Since the marketing concept is concerned with company-wide efforts i. A form of interfunctional coordination is the organization of cross-functional teams across functional silos with experts from different functional areas working together toward common goals cf.
Kahn and Mentzer, At the extreme, the marketing function could disappear as a distinct management function and specialty Day, Thus, Kotler proposed a firm should consider managing a set of fundamental business processes, rather than independent functional departments for more efficient and effective response to fulfill customer satisfaction.
Given the discussion above: A market orientation forces a firm to restructure its organizational system.What Is The Meaning Of Market Environment??
Jaworski and Kohli found a firm's financial performance return on investment ROI and return on assets ROA and employee-related performance organizational commitment and esprit de corps are positively related to a firm's degree of market orientation. Narver and Slater and Slater and Narver also found a positive relationship between a firm's market orientation and its sales growth and new product success.
A market orientation positively contributes to a firm's business performance. Management of inter-firm relationships. The influences of a market orientation do not stop within the boundaries of the firm, but expand to inter-firm relationships with consumers, customers, suppliers, and distributors. Apple owns all their own software, hardware, designs and operating systems instead of relying on other businesses to supply these.
Also by decreasing outside businesses input it will increase the efficient use of inputs into the business. Another benefit of vertical integration is that it improves the exchange of information through the different stages of the production line. Also if the business is not well organised and fully equipped and prepared the business will struggle using this strategy.
There are also competitive disadvantages as well, which include; creates barriers for the business, and loses access to information from suppliers and distributors. The market leader dominates the market by objective measure of market share. Their overall posture is defensive because they have more to lose. Market leaders may adopt unconventional or unexpected approaches to building growth and their tactical responses are likely to include: The market challenger holds the second highest market share in the category, following closely behind the dominant player.
Their market posture is generally offensive because they have less to lose and more to gain by taking risks. They will compete head to head with the market leader in an effort to grow market share.
Their overall strategy is to gain market share through product, packaging and service innovations; new market development and redefinition of the to broaden its scope and their position within it. Followers are generally content to play second fiddle. Their market posture is typically neutral. Their strategy is to maintain their market position by maintaining existing customers and capturing a fair share of any new segments. They tend to maintain profits by controlling costs. The market nicher occupies a small niche in the market in order to avoid head to head competition.
Their objective is to build strong ties with the customer base and develop strong loyalty with existing customers. Their market posture is generally neutral.