Assignment 2 (CMM125)- College communication
Changing forms of marketing
Marketing is the science of meeting the needs of a customer by providing valuable products to
customers by utilizing the expertise of the organization, at same time, to achieve organizational
goals. According to The American Marketing Association “Marketing is the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large.”
With this definition, it is important to realize that the customer can be an individual user, a
company, or several people who contribute to the purchasing decision. The product can be a hard
good, a service, or even an idea – anything that would provide some value to the person who
provides an exchange. An exchange is most often thought of as money, but could also be a
donation of time or effort, or even a specific action. A producer is often a company, but could be
an individual or non-profit organization. Marketing has both inbound and outbound activities
. Inbound activities largely center on discovering the needs and wants of the potential customers.
The collective group of all potential customers is called a market. Categorizing these needs into
groups is called segmentation. Organizing markets into segments allows a producer to more
logically decide how to best provide value to that group of potential customers. The analysis of
market segment needs; analysis of existing sales and profitability; the descriptions, design and
introduction of new products; and the analysis of competitor offerings are also inbound activities
that are important but not often seen by the public.
Outbound activities include all aspects of informing the market that a product is available,
delivering that product and encouraging the purchase decision. These activities include
advertising, promotion, supply chain, sales support, product training, and customer support.
To the public, the most common interaction with marketing is where it touches the discipline of
sales in the form of advertising. This interaction leads to a common misconception that
marketing is only this aspect of promotion. The market consists of all prospective customers for
a given product, service, or idea. Customers can be purchasers who intend to resell the product or
end users who intend to use or consume the product. The market can be categorized into separate
groups called segments. When a producer appeals to a market or market segment, the producer
must take into account the distinction between the end user or consumer and the purchaser or
decision maker(s). This is especially true in B2B models. The market may be individuals or
organizations who are able to purchase the organization’s product. Each entity in the delivery
chain will have different needs, so a complete market needs analysis must include all potential
segments and all entities within each segment.
Marketing has many aspects or sub-disciplines within the broad discipline of marketing. They
• Customer relationship management (CRM).
• Direct marketing.
• Event planning.
• Graphic design.
• Internet Marketing.
• Loyalty marketing.
• Market research.
• Marketing communications.
• Media relations.
• New product development.
• Product management.
• Public relations.
• Sales management and support.
• Search engine optimization (SEO).
• Social media optimization.
• Strategic planning.
• Supply chain management.
Goods: Goods are a physical product capable of being delivered to a purchaser and involves the
transfer of ownership from seller to customer.
Service: A service is a non-material action resulting in a measurable change of state for the
purchaser caused by the provider.
Ideas (intellectual property): Intellectual Property is any creation of the intellect that has
commercial value, but is sold or traded only as an idea, and not a resulting service or good. This
includes copyrighted property such as literary or artistic works, and ideational property, such as
patents, appellations of origin, business methods, and industrial processes.
Classical marketing is often described in terms of the four “P’s, which are:
Product – what goods or services are offered to customers. Products that can be marketed
include all goods, services, and ideas that are sold or traded. Products can be either tangible, as
in the case of physical goods, or intangibles, such as those associated with service benefits or
ideas (intellectual property), or any combination of the three. The producer is the entity that
offers the product to the market. The producer can be the manufacturer, the wholesaler, the
retailer, the service provider, or a combination of these. For services, it is sometimes easier to use
the term provider instead of producer.
Promotion – how the producer communicates the value of its products. Once an organization
has learned the market needs, produced or procured a product, and priced it, it then needs to
promote the product by letting the market know that it exists, and how it can be purchased.
Promotion involves providing information about a product, product line, brand, or company.
There are many ways to promote including:
Word of mouth, including electronic endorsements
Price – the value of the exchange between the customer and producer. Once an organization
has its product to sell, it must then determine the appropriate price to sell it at. The price is set
by balancing many factors including supply-and-demand, cost, desired profit, competition,
perceived value, and market behavior. Ultimately, the final price is determined by what the
market is willing to exchange for the product. Pricing theory can be quite complex because so
many factors influence what the purchaser decides is a fair value.
It also should be noted that, in addition to monetary exchange, price can be the exchange of
goods or services as in a barter agreement, or an exchange of specific behavior, such as a vote in
a political campaign.
Placement – how the product is delivered to the customer. Once an organization has produced or
procured, priced, and promoted a product, it then needs to deliver that product to the purchaser.
Some distribution examples:
Direct sale to the customer from the producer
Wholesale distribution where the producer sells in large quantities only to an
intermediary, not the end user
Retail sales where a retailer will buy large quantities, but sell smaller quantities to
Value added resale (VARs) where an organization purchases a product from a producer
and, in turn, resells it to a consumer after adding additional products, services, or
Understanding potentials customers and the external business environment in as much
detail as possible
Identifying opportunities and developing a strategy to capitalize on these
Using established marketing tools to deliver the strategy.
Measurement of your results and a process of continual improvement
What marketing is: What marketing is not:
Putting the customer first
A business ethos
A planning processCore to sustained business success
Allocating resources to achieve your goals Simply advertising / promotion
Just a department
An optional extra
At the end of the day, the exact definition of marketing is not important. What is crucial to both
large and small businesses alike is to ensure that the customer is at the very core of your vision
throughout all departments and understood by every one of your employees.
http://marketing-made-simple.com/marketing-introduction/ HYPERLINK “https://en.wikibooks.org/wiki/Marketing/Introduction” https://en.wikibooks.org/wiki/Marketing/Introduction