1) Marketing is a group of activities designed to expedite transactions by creating, distributing, promoting, and pricing goods, services and ideas.

4. Marketing/Promotion.

1) Marketing is a group of activities designed to expedite transactions by creating, distributing, promoting, and pricing goods, services and ideas.

Marketing focuses on a complex set of activities that must be performed to accomplish objectives and generate exchanges. This functions include buying – a marketer must understand buyers’ needs and desires to determine what products to make available; selling – marketers usually view selling as a persuasive activity that is accomplished through promotion; transporting – the process of moving products from seller to buyer; storing – it means warehousing goods; grading – standardizing products and displaying and labeling them so that consumers clearly understand their nature and quality; financing - marketer provides credit to expedite the purchase; making research – detect new trends and changes in consumer tastes; risk taking – it means that most marketing decisions result in either success or failure.

The central focus of marketing is to satisfy needs. Utility is the ability of a product to satisfy human needs and wants. There are 4 kinds of utility:

1) Place Utility is created by making the product available where the buyer wishes to buy it. Example: department stores should be situated near people houses because it is important that the shop is near the house when someone wants to buy products.

2) Time Utility is created by making the product available when customers wish to purchase it. Example: 24-hour opened stores.

3) Possession Utility is created by transferring ownership of a product to the buyer. Example: some special documents for buying a car or a house. In most cases in casual life and daily purchases formal registration of possession is not necessary.

4) Form Utility is created through the production process rather then through marketing activities.

2) Marketing concept is the principle that an organization should try to satisfy customer’s needs through coordinated activities that also allow to achieve its own goals. It is the basic philosophy that guides all marketing activities, and each business must determine how best to implement the marketing concept, given its own goals and re­sources.

Marketing strategy is a plan of actions for using the firm’s resources and advantages to meet its objectives.

Market segmentation is the process of dividing the total market into groups of people with relatively similar product needs. There are 2 common approaches to segmentation:

1) The concentration approach, where a marketer directs 1 Marketing strategy toward a single market segment;

2) The multi-segment approach, where the marketer aims its Marketing efforts at 2 or more segments, developing a Marketing strategy for each.

3) A market is a group of people who have a need and purchasing power.

A target market is a group of buyers for whom the organization tailors a Marketing strategy. 8) When choosing a target market, a firm first evaluates its own resources and unique abilities. After analyzing potential sales, costs and profits, it identifies an appropriate target market.

Marketing can be divided into 4 main elements that are known as the 4 P’s: product, price, placement and promotion. Each one plays a vital role in the success or failure of the marketing operation.

The product element of marketing refers to the good or service that a company wants to sell.

The company next considers a price to charge for its product.

The 3d element of marketing process – placement – involves getting the product to the customer.

Communication between buyer and seller is known as promotion. It consists of advertising – any paid form of non-personal communication transmitted through a mass medium, publicity – non-personal communication presented as a news story and transmitted through a mass medium and sales promotion – activities and materials that persuade customers to make purchases.

The combination of the 4 P’s is Marketing mix. Elements of the Marketing mix focus on the customer.

Businesses segment markets on the basis of several variables, such as demographics, geographic factors, behaviorist characteristics and psychological factors such as perception, motivation, learning, attitude and personality.

4) Marketing research is a systematic effort to get information about potential customers to guide marketing decisions. Through research, marketers determine the need for new goods and services. By gathering information regularly, marketers can identify new trends and changes in consumer tastes.

Marketing research is a 5-step process: 1) defining problems, 2) developing ideas about the probable causes of events, 3) collecting data, which could be primary, when information observed and recorded or collect directly from respondents or secondary, when information compiled inside or outside the organization for some purpose other than changing the current situation. 4) analyzing and interpreting data. 5) reporting research findings in a way that makes them understandable to the decision makers who have to read the reports and solve the problems.

5) A product can be a good, a service, or an idea. Goods are physi­cal, concrete things you can touch. Services are as real as goods, but you can't actually see them and touch them: you have to experience them. Ideas include philosophies, images, issues, and ways of accomplishing objectives.

6) Marketing is not limited to for-profit business. Individuals and non-profit organizations also engage in product development, distribution, pricing and promotion to achieve objectives.

7) When you think of marketing products, you may think of tangible things - cars, stereo systems, or books, for example. The tangible product itself may not be as important as the image or the benefits associated with it. This intangible "something of value" may be capability gained from using a product or the image evoked by it.

9) Promotion is 1 of 4 components of the marketing mix, which the marketer can manipulate to achieve specific goals within a dynamic marketing environment. Promotion is a persuasive form of communication that attempts to facilitate marketing exchange by influencing individuals, groups or organizations to accept a n organization’s product. So the aim of promotion is to communicate directly or indirectly with individuals, groups and organizations and to facilitate exchanges.

Promotion includes:

· personal selling;

· advertising;

· publicity;

· sales promotion.

10) Advertising is any paid form of non-personal communication transmitted through mass media. Personal selling on the contrary is direct personal communication with customers and potential customers.

12) Publicity is non-personal communication presented as a newspaper story transmitted through mass media. The difference between publicity and ad lies in cost and form. A firm doesn’t pay the media for providing publicity; the firm is not identified as the originator of the story.

Sales promotion is activities (such as demonstrations, sweepstakes, contests) & materials (free samples, displays, coupons) that persuade customers to make purchases.

You can also find other ways of promoting a product, such as:

· packaging;

· PR;

· trade fairs and exhibitions;

· showrooms;

· sponsorship;

· point of sale ad;

· telephone sales;

· word of mouth;

· press relizes.

10) Advertising is probably the most visible component of promotion. There are different types of advertisement:

• TV commercials;
• Radio;
• On-line ad;
• Outside ad;
• Ad on transport;
• Ads in magazines and newspapers (publicity).

Ads on TV and radio mostly appeal to our emotions, it looks so exciting, publicity imparts on small and display ad. Publicity is cheaper that TV commercials but effectively influences the customers and motivates them to buy the products. Outside ad is presented by billboards, posters & ad on transport. It covers huge target audience. So does online ad, which is becoming more popular day by day.

11) What can motivate us to buy products, what influences our opinion? It’s fear, desire for convenience, ego, thriftiness, curiosity, humor, senses. Experienced advertisers manipulate these feelings.

Nowadays endorsement is becoming more popular, because fans like to be closer to their idols and that’s why they try to use the same things as their idols do.

Process of advertising is not an easy one, our market is full of different ads and other types of promotion, and agencies try to do their best to attract people. A deliberately shocking is the simplest way to get additional media coverage, and even if the media coverage is negative it can still help to sell the product. In marketing terms the only real taboo is upsetting the people u want to buy your product. As long as it’s legal and the client is OK with it, u can offend anyone else. Young people are receptive to taboo-breaking as they are more open-minded than the older generation. Besides, they positively welcome ads that annoy their parents.

So, we see that perception of today’s ad differs among generations. Differences in law, languages, religions, traditions, people’s perception play a very important role for a company while advertising its product in other countries.

Marketing is not only selling and advertising, it is a systimatic approach to stysfying consumers. Marketing links the 2 basic economic functions of production & consumption.

Exchange is a heart of Marketing. Without it Marketing is redundant.

Дата добавления: 2015-11-04