Sunday 27 February 2011

“Is Marketing Practice That Necessary In Business”

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UNIVERSITI TEKNOLOGI MARA
PAHANG BRANCH
PRINCIPLES AND PRACTICE OF MARKETING
MKT 501

“Is Marketing Practice That Necessary In Business”

MUHAMMAD AZIZUL BIN RADHI
2010806862
MUHAMMAD RAHMAN BIN MOHD TAHIR
2010892216
MOHAMAD ALIF BIN MOHD YAZIED
2010620384
MUHAMAD SALIMI BIN KHAIRUDIN
2010675388

SUBMIT TO:
PROF. MADYA HJ HAMDAN BIN HASSAN


Introduction
Business marketing is the practice of individuals, or organizations, including commercial business, goverments and institutions, facilating the sale of their products or service to other companies or organizations that in turn reselll them, use them as components in products or services they offer, or use them to support their operations. Business marketing is also called business- to-business marketing or B2B.
Business marketing
Business marketing generally entails shorter and more direct channels of distribution. Although on the surface the differences between business and consumer marketing may seem obvious, there are more subtle distinction between both of this. Most business marketers commit only a small part of their promotional budgets to advertising, and it is usually through direct. While compare to customer marketing is aimed at large groups through mass media or retailer, the negotiation process betweeen the buyer and seller is more personal in business marketing.
Marketing strategies in business
There are several marketing strategies which may be consider in the business. Firstly is business branding, including the need to closely align corporate brands, divisional brands and product/service brands and to apply hte brand standards should be considered. The second one are related to the product/service and the pricing. Because  business customers are focused on creating sh cyclesareholder value for themselves, the cost- saving or revenue-producing benefits of products and services are important to factor in throughout the product development and marketing  cycles. However the business market can be convinced to pray premium prices more often than the consumer market if know how to structure the pricing and payment term well. The price premium is particularl achievevable if have a support it with a strong brand.
Quite often, the target market is another strategi for a business product or service is amaller and has more specialized needs reflective of a specific industry. it can be described in term of firmograhics which requires marketers to have good business intelligence in order to increase response rates. Regardless of the size of the target market , hte business customer is making an organizational purchase decision and the dynamics of this, both procerdurally and in term of how they value what which buying from the business. Another one is related about  to promotion. Promotion  planning is relatively easy when the business know the media, information seeking and decision making habits of the customer base, not to mention the vocabulary unique to their segment. Specific trade shows analysts,publications,blogs and retail outlets tend to be fairly common to each industry area. What is mean is that once the figure is out from the industry, the promotion plan almost writes itself depending on the budgets but figuring it out can be a special skill and it takes time to build up experience in specific field. Promotion technique rely heavily on marketing communications strategies.
This is necessary because marketing strategy is a process that company can allow an organization to concentrate its limited resources on the greatest opportunity to increase sales and achieve a sustainable competitive advantage. The concept is simple. The concept is to building an organization or make some group to attract the profitable satisfaction of customer needs to achieve success in high-growth, moderately competitive markets. However, to be successful in markets in which economic growth has leveled and in which there exist many competitors who follow the marketing concept, a well developed marketing strategy is required. Such a strategy considers a portfolio of products and takes into account the anticipated moves of competitors in the market.
There is the marketing strategy concept that why it is necessary in the business:
·        Price or selling effort strategies. A firm that follows a skimming strategy seeks to be the first to introduce a product with very good performance, selling it to the innovator market segment and charging a premium price for it. It makes as much profit as possible, and then moves on when the competition arrives. The price is likely to fall over time as competition is encountered. Such a skimming strategy contrasts with a penetrating strategy, which seeks to gain market share by sacrificing short-term profits and increasing the price over time as market share is gained.
·        Competitors have certain strengths and abilities. To succeed, a firm must leverage its own unique abilities.
·        A firm should prepare defensive strategies before potential threats arrive. If the competition surprises a firm with the introduction of a vastly superior product, the firm should resist the temptation to proceed with its mediocre product. A firm never should introduce a product that it obsolete when it hits the market.
·        The competition’s probable response to a firm’s action should be considered carefully.






Retention the customer in our business
What is customer retention?




Here are four of the most common of these “no longer sufficient” practices for marketing.
·        Creating sales by relying totally on outside salespeople

In the past, it was good to hire a number of salespeople, give them some basic training, and charge them to, “Go forth and sell a lot.”  Sales territories were geographically based and each salesperson was a clone of the other. Accountability was a nasty word that no one repeated. Today this practice is a prescription for failure. The better approach is a variety of sales methodologies, based on the potential and dynamics of the customer.

·        Managing the sales force by pay plan

In other words, pay them straight commission and everything will take care of itself. There was a generation for whom this worked. Unfortunately, today’s work force is rarely motivated by just money.

·        Relying on “on-the-job” training

The old thought was that anyone can learn how to be an effective salesperson.  Just put them out there in a sales territory, and sooner or later they will figure out how to do the job well. When the job of the salesperson was simpler, and the customer less sophisticated, this was OK.  Today, of course, it positions your sales force as the less educated, less competent one in the market.

·        Hiring by “feel”

When it comes time to hire a new salesperson, find someone who has some experience in the industry and about whom you “feel” good. This is prescription for a group of clones who please the boss but are rarely what the job demands. Today there are far more sophisticated and effective hiring criteria and practices than this. This list could go on and on but these are the most common.  If they apply to you, it is time to rethink your position so you can succeed in the new economy.


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