Marketing 1

Marketing
Marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Promotional media
Printing • Publication • Broadcasting
Out-of-home • Internet marketing
Point of sale • Promotional items
Digital marketing • In-game
In-store demonstration • Brand
Ambassador
Word of mouth • Drip Marketing

Marketing is the process by which companies create customer interest in goods or services. It generates the strategy
that underlies sales techniques, business communication, and business developments.[1] It is an integrated process
through which companies build strong customer relationships and create value for their customers and for
themselves.[1]
Marketing is used to identify the customer, to satisfy the customer, and to keep the customer. With the customer as
the focus of its activities, it can be concluded that marketing management is one of the major components of
business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets
and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their
focus from production to the perceived needs and wants of their customers as the means of staying profitable.
The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of
target markets and delivering the desired satisfactions.[2] It proposes that in order to satisfy its organizational
objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively
than competitors.[2]
Marketing 2

Further definitions
Marketing is defined by the American Marketing Association (AMA) as "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."[3] The term developed from the original meaning which referred literally to going to
a market to buy or sell goods or services. Seen from a systems point of view, sales process engineering views
marketing as "a set of processes that are interconnected and interdependent with other functions,[4] whose methods
can be improved using a variety of relatively new approaches."
The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying,
anticipating and satisfying customer requirements profitably."[5] A different concept is the value-based marketing
which states the role of marketing to contribute to increasing shareholder value.[6] In this context, marketing is
defined as "the management process that seeks to maximise returns to shareholders by developing relationships with
valued customers and creating a competitive advantage."[6]
Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and
selling. However, because the academic study of marketing makes extensive use of social sciences, psychology,
sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized as a
science, allowing numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts
with marketing research and goes through market segmentation, business planning and execution, ending with pre
and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also
adept at re-inventing itself and its vocabulary according to the times and the culture.

Evolution of marketing
An orientation, in the marketing context, related to a perception or attitude a firm holds towards its product or
service, essentially concerning consumers and end-users. Throughout history marketing has changed considerably as
consumer tastes are changing faster.[7]

Earlier approaches
The marketing orientation evolved from earlier orientations namely the production orientation, the product
orientation and the selling orientation.[7] [8]

Orientation Profit driver Western Description

European
timeframe

[8] Production until the A firm focusing on a production orientation specializes in producing as much as possible of a given
Production
methods 1950s product or service. Thus, this signifies a firm exploiting economies of scale, until the minimum
efficient scale is reached. A production orientation may be deployed when a high demand for a
product or service exists, coupled with a good certainty that consumer tastes do not rapidly alter
(similar to the sales orientation).

[8] Quality of the until the A firm employing a product orientation is chiefly concerned with the quality of its own product. A
Product
product 1960s firm would also assume that as long as its product was of a high standard, people would buy and
consume the product.

[8] Selling 1950s and A firm using a sales orientation focuses primarily on the selling/promotion of a particular product,
Selling
methods 1960s and not determining new consumer desires as such. Consequently, this entails simply selling an
already existing product, and using promotion techniques to attain the highest sales possible.
Such an orientation may suit scenarios in which a firm holds dead stock, or otherwise sells a
product that is in high demand, with little likelihood of changes in consumer tastes diminishing
demand.
Marketing 3

[8] Needs and 1970 to The 'marketing orientation' is perhaps the most common orientation used in contemporary
Marketing
wants of present day marketing. It involves a firm essentially basing its marketing plans around the marketing concept,
customers and thus supplying products to suit new consumer tastes. As an example, a firm would employ
market research to gauge consumer desires, use R&D to develop a product attuned to the revealed
information, and then utilize promotion techniques to ensure persons know the product exists.

Contemporary approaches
Recent approaches in marketing is the relationship marketing with focus on the customer, the business marketing or
industrial marketing with focus on an organization or institution and the social marketing with focus on benefits to
the society.[9] New forms of marketing also use the internet and are therefore called internet marketing or more
generally e-marketing, online marketing, search engine marketing, desktop advertising or affiliate marketing. It tries
to perfect the segmentation strategy used in traditional marketing. It targets its audience more precisely, and is
sometimes called personalized marketing or one-to-one marketing.

Orientation Profit driver Western Description

European
timeframe

Building and keeping 1960s to Emphasis is placed on the whole relationship between suppliers and
Relationship marketing
good customer present day customers. The aim is to give the best possible attention, customer services
/ Relationship
[9] relations and therefore build customer loyalty.
management

Business marketing / Building and keeping 1980s to In this context marketing takes place between businesses or organizations.
Industrial marketing relationships between present day The product focus lies on industrial goods or capital goods than consumer
organizations products or end products. A different form of marketing activities like
promotion, advertising and communication to the customer is used.

[9] Benefit to society 1990s to Similar characteristics as marketing orientation but with the added proviso
Social marketing
present day that there will be a curtailment on any harmful activities to society, in either
product, production, or selling methods.

Branding Brand value 2000s to In this context, "branding" is main company philosophy and marketing is
present day considered an instrument of branding philosophy.

Customer orientation
A firm in the market economy survives by producing goods that persons are willing and able to buy. Consequently,
ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern. Many
companies today have a customer focus (or market orientation). This implies that the company focuses its activities
and products on consumer demands. Generally there are three ways of doing this: the customer-driven approach, the
sense of identifying market changes and the product innovation approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is
pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the
product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale
for this approach is that there is no point spending R&D funds developing products that people will not buy. History
attests to many products that were commercial failures in spite of being technological breakthroughs.[10]
A formal approach to this customer-focused marketing is known as SIVA[11] (Solution, Information, Value, Access).
This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a
demand/customer centric version alternative to the well-known 4Ps supply side model (product, price, placement,
promotion) of marketing management.
Marketing 4

Product → Solution

Price → Value

Place → Access

Promotion → Information

If any of the 4Ps had a problem or were not there in the marketing factor of the business, the business could be in
trouble and so other companies may appear in the surroundings of the company, so the consumer demand on its
products will become less.

Marketing mix C&C

This concept of marketing mix shows relations between Company and Customers: 5P&5C model.[12]

Product → Consumer desire

Price → Cost

Place → Convenience

Promotion → Communication

People → Customer approach

The human factor is becoming a key competitive advantage and therefore the model 5C&5P is becoming significant
in the 21st Century.

Organizational orientation
In this sense, a firm's marketing department is often seen as of prime importance within the functional level of an
organization. Information from an organization's marketing department would be used to guide the actions of other
departments within the firm. As an example, a marketing department could ascertain (via marketing research) that
consumers desired a new type of product, or a new usage for an existing product. With this in mind, the marketing
department would inform the R&D department to create a prototype of a product/service based on consumers' new
desires.
The production department would then start to manufacture the product, while the marketing department would
focus on the promotion, distribution, pricing, etc. of the product. Additionally, a firm's finance department would be
consulted, with respect to securing appropriate funding for the development, production and promotion of the
product. Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation. Production may
oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new
product. Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the
organization.

Herd behavior
Herd behavior in marketing is used to explain the dependencies of customers' mutual behavior. The Economist
reported a recent conference in Rome on the subject of the simulation of adaptive human behavior.[13] It shared
mechanisms to increase impulse buying and get people "to buy more by playing on the herd instinct." The basic idea
is that people will buy more of products that are seen to be popular, and several feedback mechanisms to get product
popularity information to consumers are mentioned, including smart card technology and the use of Radio Frequency
Identification Tag technology. A "swarm-moves" model was introduced by a Florida Institute of Technology
researcher, which is appealing to supermarkets because it can "increase sales without the need to give people
discounts."Other recent studies on the "power of social influence" include an "artificial music market in which some
Marketing 5

19,000 people downloaded previously unknown songs" (Columbia University, New York); a Japanese chain of
convenience stores which orders its products based on "sales data from department stores and research companies;" a
Massachusetts company exploiting knowledge of social networking to improve sales; and online retailers who are
increasingly informing consumers about "which products are popular with like-minded consumers" (e.g., Amazon,
eBay).

Further orientations
• An emerging area of study and practice concerns internal marketing, or how employees are trained and managed
to deliver the brand in a way that positively impacts the acquisition and retention of customers, see also employer
branding.
• Diffusion of innovations research explores how and why people adopt new products, services and ideas.
• With consumers' eroding attention span and willingness to give time to advertising messages, marketers are
turning to forms of permission marketing such as branded content, custom media and reality marketing.

Marketing research
Marketing research involves conducting research to support marketing activities, and the statistical interpretation of
data into information. This information is then used by managers to plan marketing activities, gauge the nature of a
firm's marketing environment and attain information from suppliers. Marketing researchers use statistical methods
such as quantitative research, qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlations,
frequency distributions, poisson distributions, binomial distributions, etc. to interpret their findings and convert data
into information. The marketing research process spans a number of stages including the definition of a problem,
development of a research plan, collecting and interpretation of data and disseminating information formally in form
of a report. The task of marketing research is to provide management with relevant, accurate, reliable, valid, and
current information.
A distinction should be made between marketing research and market research. Market research pertains to
research in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable
market segment. In contrast, marketing research relates to all research conducted within marketing. Thus, market
research is a subset of marketing research.

Market segmentation
Market segmentation pertains to the division of a market of consumers into persons with similar needs and wants. As
an example, if using Kellogg's cereals in this instance, Frosties are marketed to children. Crunchy Nut Cornflakes are
marketed to adults. Both goods aforementioned denote two products which are marketed to two distinct groups of
persons, both with like needs, traits, and wants.
The purpose for market segmentation is conducted for two main issues. First, a segmentation allows a better
allocation of a firm's finite resources. A firm only possesses a certain amount of resources. Accordingly, it must
make choices (and appreciate the related costs) in servicing specific groups of consumers. Furthermore the
diversified tastes of the contemporary Western consumers can be served better. With more diversity in the tastes of
modern consumers, firms are taking note of the benefit of servicing a multiplicity of new markets.
Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and Position.
Marketing 6

Types of marketing research

Marketing research, as a sub-set aspect of marketing activities, can be divided into the following parts:
• Primary research (also known as field research), which involves the conduction and compilation of research for
the purpose it was intended.
• Secondary research (also referred to as desk research), is initially conducted for one purpose, but often used to
support another purpose or end goal.
By these definitions, an example of primary research would be market research conducted into health foods, which is
used solely to ascertain the needs/wants of the target market for health foods. Secondary research, again according to
the above definition, would be research pertaining to health foods, but used by a firm wishing to develop an
unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to information. Nonetheless, while
secondary research is relatively inexpensive, it often can become outdated and outmoded, given it is used for a
purpose other than for which is was intended. Primary research can also be broken down into quantitative research
and qualitative research, which as the labels suggest, pertain to numerical and non-numerical research methods,
techniques. The appropriateness of each mode of research depends on whether data can be quantified (quantitative
research), or whether subjective, non-numeric or abstract concepts are required to be studied (qualitative research).
There also exists additional modes of marketing research, which are:
• Exploratory research, pertaining to research that investigates an assumption.
• Descriptive research, which as the label suggests, describes "what is".
• Predictive research, meaning research conducted to predict a future occurrence.
• Conclusive research, for the purpose of deriving a conclusion via a research process.

Marketing planning
The area of marketing planning involves forging a plan for a firm's marketing activities. A marketing plan can also
pertain to a specific product, as well as to an organization's overall marketing strategy. Generally speaking, an
organization's marketing planning process is derived from its overall business strategy. Thus, when top management
are devising the firm's strategic direction or mission, the intended marketing activities are incorporated into this plan.
There are several levels of marketing objectives within an organization. The senior management of a firm would
formulate a general business strategy for a firm. However, this general business strategy would be interpreted and
implemented in different contexts throughout the firm.

Marketing strategy
The field of marketing strategy encompasses the strategy involved in the management of a given product.
A given firm may hold numerous products in the marketplace, spanning numerous and sometimes wholly unrelated
industries. Accordingly, a plan is required in order to manage effectively such products. Evidently, a company needs
to weigh up and ascertain how to utilize effectively its finite resources. As an example, a start-up car manufacturing
firm would face little success, should it attempt to rival immediately Toyota, Ford, Nissan or any other large global
car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of
production may be made. With regard to the aforesaid questions, each scenario requires a unique marketing strategy
to be employed. Below are listed some prominent marketing strategy models, which seek to propose means to
answer the preceding questions.
Marketing 7

Marketing specializations
With the rapidly emerging force of globalization, the distinction between marketing within a firm's home country
and marketing within external markets is disappearing very quickly. With this occurrence in mind, firms need to
reorient their marketing strategies to meet the challenges of the global marketplace, in addition to sustaining their
competitiveness within home markets.[14]

Buying behaviour
A marketing firm must ascertain the nature of the customers buying behaviour, if it is to market its product properly.
In order to entice and persuade a consumer to buy a product, marketers try to determine the behavioural process of
how a given product is purchased. Buying behaviour is usually split in two prime strands, whether selling to the
consumer, known as business-to-consumer (B2C) or another business, similarly known as business-to-business
(B2B).

B2C buying behaviour

This mode of behaviour concerns consumers, in the purchase of a given product. As an example, if one pictures a
pair of sneakers, the desire for a pair of sneakers would be followed by an information search on available
types/brands. This may include perusing media outlets, but most commonly consists of information gathered from
family and friends.If the information search is insufficient, the consumer may search for alternative means to satisfy
the need/want. In this case, this may be buying leather shoes, sandals, etc. The purchase decision is then made, in
which the consumer actually buys the product. Following this stage, a post-purchase evaluation is often conducted,
comprising an appraisal of the value/utility brought by the purchase of the sneakers. If the value/utility is high, then a
repeat purchase may be bought. This could then develop into consumer loyalty, for the firm producing the pair of
sneakers.

B2B buying behaviour

Relates to organizational/industrial buying behavior.[15] The term "B2B" stands for Business to Business. B2B
marketing in its most simple definition is when one business markets a product or service to another business. B2C
and B2B behavior are not exact, as similarities and differences exist. Some of the key differences are listed below:
In a straight re-buy, the fourth, fifth and sixth stages are omitted. In a modified re-buy scenario, the fifth and sixth
stages are precluded. In a new buy, all aforementioned stages are conducted.

Use of technologies
Marketing management can also note the importance of technology, within the scope of its marketing efforts.
Computer-based information systems can be employed, aiding in a better processing and storage of data. Marketing
researchers can use such systems to devise better methods of converting data into information, and for the creation of
enhanced data gathering methods. Information technology can aid in improving an MKIS' software and hardware
components, to improve a company's marketing decision-making process.
In recent years, the netbook personal computer has gained significant market share among laptops, largely due to its
more user-friendly size and portability. Information technology typically progress at a fast rate, leading to marketing
managers being cognizant of the latest technological developments. Moreover, the launch of smartphones into the
cellphone market is commonly derived from a demand among consumers for more technologically advanced
products. A firm can lose out to competitors, should it refrain from noting the latest technological occurrences in its
industry.
Technological advancements can facilitate lesser barriers between countries and regions. Via using the World Wide
Web, firms can quickly dispatch information from one country to another, without much restriction. Prior to the
Marketing 8

mass usage of the Internet, such transfers of information would have taken longer to send, especially if via snail
mail, telex, etc.

Services marketing
Services marketing relates to the marketing of services, as opposed to tangible products. A typical definition of a
service (as opposed to a good) is thus:
• The use of it is inseparable from its purchase (i.e. a service is used and consumed simultaneously)
• It does not possess material form, and thus cannot be smelt, heard, tasted, or felt.
• The use of a service is inherently subjective, in that due to the human condition, all persons experiencing a service
would experience it uniquely.
As examples of the above points, a train ride can be deemed as a service. If one buys a train ticket, the use of the
train is typically experienced concurrently with the purchase of the ticket. Although the train is a physical object, one
is not paying for the permanent ownership of the tangible components of the train.
Services (by comparison with goods) can also be viewed as a spectrum. Not all products are pure goods, nor are all
pure services. An intermediary example may be a restaurant, where the waiter service is intangible, but the food is
tangible.

See also
• Advertising
• Consumer behaviour
• Demand chain
• Distribution (Placement)
• Market segmentation
• Marketing acronyms
• Outline of marketing
• Positioning
• Pricing
• Product
• Promotion (marketing)
• Targeting (advertising)
• Types of marketing
• White Space (management)

References
[1] Kotler, Philip; Gary Armstrong, Veronica Wong, John Saunders (2008). "Marketing defined" (http:/ / books. google. com/
books?id=6T2R0_ESU5AC& lpg=PP1& pg=PA7#v=onepage& q=& f=true). Principles of marketing (5th ed.). p. 7. . Retrieved 2009-10-23.
[2] Kotler, Philip; Gary Armstrong, Veronica Wong, John Saunders (2008). "Marketing defined" (http:/ / books. google. com/
books?id=6T2R0_ESU5AC& lpg=PP1& pg=PA7#v=onepage& q=& f=true). Principles of marketing (5th ed.). p. 17. . Retrieved 2009-10-23.
[3] "Definition of Marketing" (http:/ / www. marketingpower. com/ AboutAMA/ Pages/ DefinitionofMarketing. aspx). American Marketing
Association. . Retrieved 2009-10-30.
[4] Paul H. Selden (1997). Sales Process Engineering: A Personal Workshop. Milwaukee, WI. p. 23.
[5] "Definition of marketing" (http:/ / www. cim. co. uk/ resources/ understandingmarket/ definitionmkting. aspx). Chartered Institute of
Marketing. . Retrieved 2009-10-30.
[6] Paliwoda, Stanley J.; John K. Ryans. "Back to first principles" (http:/ / books. google. com/ books?id=dwZz2eHBCjUC& lpg=PP1&
pg=PA25#v=onepage& q=& f=false). International Marketing: Modern and Classic Papers (1st ed.). p. 25. . Retrieved 2009-10-15.
[7] Kotler, Philip; Kevin Lane Keller (2009). "1". A Framework for Marketing Management (4th ed.). Pearson Prentice Hall. ISBN 0136026605.
[8] Adcock, Dennis; Al Halborg, Caroline Ross (2001). "Introduction" (http:/ / books. google. com/ books?id=hQ8XfLd1cGwC& lpg=PP1&
pg=PA15#v=onepage& q=& f=true). Marketing: principles and practice (4th ed.). p. 15. . Retrieved 2009-10-23.
Marketing 9

[9] Adcock, Dennis; Al Halborg, Caroline Ross (2001). "Introduction" (http:/ / books. google. com/ books?id=hQ8XfLd1cGwC& lpg=PP1&
pg=PA16#v=onepage& q=& f=true). Marketing: principles and practice (4th ed.). p. 16. . Retrieved 2009-10-23.
[10] "Marketing Management: Strategies and Programs", Guiltinan et al., McGraw Hill/Irwin, 1996
[11] Dev, Chekitan S.; Don E. Schultz (January/February 2005). "In the Mix: A Customer-Focused Approach Can Bring the Current Marketing
Mix into the 21st Century". Marketing Management 14 (1).
[12] Rotschedl, Jiri (2010). (in Czech)Moderní řízení (Prague: Economia): p. 46-47. ISSN 0026-8720.
[13] "Swarming the shelves: How shops can exploit people's herd mentality to increase sales?". The Economist. 2006-11-11. p. 90.
[14] Joshi, Rakesh Mohan, (2005) International Marketing, Oxford University Press, New Delhi and New York ISBN 0195671236
[15] "Chapter 6: Organizational markets and buyer behavior" (http:/ / www-rohan. sdsu. edu/ ~renglish/ 370/ notes/ chapt06/ index. htm).
Rohan.sdsu.edu. . Retrieved 2010-03-06.
Article Sources and Contributors 10

Article Sources and Contributors

Marketing  Source: http://en.wikipedia.org/w/index.php?oldid=390748400  Contributors: 032gavmal, 16@r, 1B6, 1exec1, 5 albert square, 7luigi7, A purple wikiuser, A. B., A3RO, A8UDI,
ACDJ, AHAHA123, AJD, Aapo Laitinen, Abhigo86, Abhinav201, Abrech, Abritek, Academic Challenger, Accounting4Taste, Acewolf359, Ackees, Acpeacoc, AdjustShift, Adnandx,
Adrianfleming, AeonicOmega, Aervanath, AgainErick, Agricmarketing, Ahoerstemeier, Ais.bul, Aitias, Akol, Alan Au, Alansohn, AlefZet, Alex.g, Alex.muller, Alex43223, AlexandrDmitri,
Allstarecho, Alsandro, Altenmann, Amatulic, Amberine, AmoebaMan, Andonic, Andres, AndrewHowse, AndrewTLM, Andreworkney, Andrewpmk, Andrewspencer, AndriuZ, Android Mouse,
Andycjp, Angela, Anita Burr, Anna Lincoln, AnnalisaShanghai, Antandrus, Antoncampos, Antonio Lopez, Anup1965, Aparcher, Apparition11, Aquatics, Ardavanv, ArglebargleIV,
Artemis10000, Asboog, Ascobb, Aspireinernational, Atifk, Avernet, Avocado kebab, Azwhole, B1atv, Bangersandmash, Baraka bls, Barek, Bart133, Basawala, Batmunkh, Bcecka, Bearian,
Beetstra, Bemoeial, Benauld345, Betelgeuse, Biguangying, Bijupillai, Bill.albing, Binary TSO, Birigogos, Bksikdar, Blainster, BlazerKnight, Blue520, Blueronin, Bobo192, Bobtrothphd,
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Bwfoster, Byronsharp, CIreland, Cabanaman, Cacycle, CallamRodya, Caltas, Cameron Dewe, Can't sleep, clown will eat me, Cansem, CapitalR, Capricorn42, Careless hx, CarlFink, Carnildo,
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monster under your bed, DaGizza, Daf, Damicatz, Dana Mason, Dancefreak76, Danlev, Darkfrog24, DaveDuarte, Davemcarlson, Daveswagon, David Breth & Associates, David Massumi, David
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