KAMPUS KHAZANAH ALAM | |||||||||||||||||||||
BASIC UNDERSTANDING OF MARKETING THOUGHT | |||||||||||||||||||||
Principle And Practices Of Marketing MKT 501 | |||||||||||||||||||||
BY | |||||||||||||||||||||
AHMAD AMIR BIN ABDUL RAZAK / 2010695074 MOHD NAJIB BIN HUSIN / 2010226608 MUHAMMAD HAFIZ BIN ABD KADIR / 2010258204 MOHD HANAFI BIN UMAR / 2010804562 AS 227 4A | |||||||||||||||||||||
21 February 2011 SUBMITTED TO Prof. Madya Hamdan Hj. Hassan
Table of content |
Basic understanding of marketing thought.
1.0 IS MARKETING PRACTICE THAT NECESSARY IN BUSINESS?
According to Wikipedia Encyclopedia, marketing ethics or marketing behaviors is a subset of a business ethics and marketing in practices deals with the principles, values and ideals by which the marketers also the marketing institutions ought to acts in the business institutions. Marketing ethics is one of the way to performing the Marketing. Marketing can be define as a process of a performing market research, selling product or services to customers and promoting them by advertising to generates a relation between business and customers (Wikipedia, 2011).
In my point of view, business and marketing is very close relationship. Business will need marketing to promote their products or services. Marketing will make a connection for the business product to the customer directly. The content in the marketing that will enhance the needs and wants that will become the demand for the product or services that the business provides. As an example, we look into the business and marketing in the mobile network and internet services, Maxis Communication Berhad, established since 1993 and well known in 2002. At the beginning of their process to join the telecommunication market, they have struggled with so many barriers, now their name has been toughly standing among the top telecommunication provider in Malaysia. How do they becoming like that? From here marketing also play as an important role to make sure the business to provide the satisfying needs and wants for the customer demands. Marketing will look through the customer needs and wants in order to make sure the customer always want their services and products and always the customer will build a strong relationship with them (kotler, 2011). Marketing is a component in the business that can never be separated. When there are businesses, marketing will take part to generate the business to the customer.
2.0 Marketing efforts
Managing the marketing efforts is also important to the business. It can make the flow of business smoothly. The company must analyze the company situation. It can be conduct by SWOT analysis such as strength, weakness, opportunities, and how to treat the problem. The company should measure their strength to help the company to serve the company and realize their objective. The internal limitation and negative situational in the company can make the weakness in business marketing. It can be avoid with the external factor that can make the balance in the business. Besides that, the company should analyze the market and marketing environment to find the opportunities and identify the problem. It should be well as current and possible marketing action to identify the opportunities that can be minimize the threat to the company.
The marketing planning involves deciding on marketing strategies that will help the company to attain its overall strategic objective. Marketing plan is needed for each business, product or brand. Marketing strategies consist of specific strategies for target market, positioning the marketing mix, and the market expenditure levels. In addition, the planer can explain about the how each strategy respond to threat, opportunities, and critical issue that spelled out to earlier in the plan. The last section in the marketing plan is control the monitor progress, measure the return on marketing investment and take corrective action.
The marketing implementation is the process that turns the marketing plan into marketing action to accomplish the strategic marketing objective. The company can have the same strategy with another company. But, they must change the market objective to make good marketing strategies. Marketing managers can make decision about the target segment, branding, packaging, pricing, promoting, and distributing. They also connect with outside people, such as advertising agencies to plan and campaign to obtain the publicity support.
Lastly, marketing control must be practice to evaluating the result of marketing strategies and plan and taking the corrective action , make sure the objective are attained. The manager must look to the four step of marketing control to archive the goals. Four step is specific the marketing goal, measure the performance in the market, evaluated the cause of difference between expected and actual performance.
3.0 Marketing strategy
Business and marketing are always important in a human life. They are needed the marketing to show a way how to get a successful business. In the business, marketing is an important part in a business plan. Goods are not sold if marketing is not activated. People will do not know about the goods because marketing strategy not influence in the business. Marketing strategy will show you how to get low cost and high profit. it is focusing on organizations goal to lead increase sales and dominance in the business environment. It is determines the choice of target market segment, positioning, marketing mix and allocation resources.
Marketing strategy is a process allows an organization to limit resources on the opportunities to increase sales and sustainable competitive advantage. This process is should use to meet the main goal; customer satisfaction.
This strategy is a method that can focus on organization's energies and resources to increase sales and dominance in a market competition. Product development, promotion, distribution, pricing and relationship management are combined to identify firm's marketing goal. Choice of target market segments, positioning, marketing mix and allocation of resources are determined in the marketing strategy. It can define how the organizations successfully engage customers, prospects and competitors in market arena. Marketing strategy is closely linked wits sales and often to keep marketing in a line with a company's overarching mission statement. Target audience, proposition/key element and implementation are basic theory that usually use in the marketing strategy.
"Use a low cost product to attract to attract consumers". This tactic make marketing plan more effective. Marketing strategies serve as fundamental underpinning to fill market wants and meet marketing objectives. Generally, plans and objectives are tested by measurable results. Advertising, channel marketing, internet marketing, promotion and public relations are various strands of strategy to be orchestrated. Creating strategy tactics in companies will be a strategy goal for the next level or group.
Market dominance strategies have four types; leader, challenger, follower and nicher. Porter generic strategies are strategy based on strategic scope and strategy strength (Porter 1984). Strategic scope is refers to a market penetration while strategic strength is refers to a firm's sustainable competitive advantage. A Porter generic strategy comprises two alternatives scope which Differentiation and low cost leadership each with dimension of Focus-broad or narrow; Product Differentiation (broad), Cost leadership (broad) and Market Segmentation (narrow). Innovation strategies are deal with the organization's rate of the new product development and business model innovation. Three types of innovation strategies are Pioneers, close followers and late followers. Growth strategies are related with question; "How should the firm grow?" The common answers are horizontal integration, vertical integration, diversification and intensification. Marketing warfare strategies draw parallels between military strategies and marketing strategies. These all above are types of marketing strategy.
4.0 Marketing Planning In Build Customer Relationship
Business strategic plan establishes to what kind of business company want to operate, each business department must be operate detail planning. Major department in business Marketing, Finance, Accounting, Purchasing, Operation, Human resource and other must work together to achieve an organization goal.
Marketing in business must play a role in the company strategic planning; however there are two ways in strategic planning.
I. Marketing in business need to provide marketing concept that suggest to company strategic revolve building profitable relationship with group of customers.
II. Marketing provides inputs to strategic planning by help identify market opportunity on customer and take advantage from them.
In customer relationship management, the business must practice to build a customer relationship, they must work closely with their partner to get effective value chain when serve the customer.
Each company department can be as link in company. So each department carries out value creating with customer, produce, market and delivery to each store. An example, Nestle Company in Malaysia goal is to create customer value and satisfaction by providing shopper or store shop with their product at the lowest price; they also learn what customer need.
A company value chain is only strong as it weakest link. Success depends on how well each department performs it work of adding customer value and various activities. Marketing department must find way to get all department to think customer and to develop a smoothly function value chain. To create customer value, the business needs to look beyond its own value chain and into the value chain through supplier, distributor and customer. As an example, Kentucky Fried Chicken (KFC), KFC nearly over 4000 restaurants in Malaysia and serve more than 3 million customer daily and they capturing over 60% of the Fried chicken market. People do not swarm to KFC because they love the chain of fried chicken. They customer typically rank KFC behind other fast food company such as McDonald, Fried chicken world and others.
References
http://en.wikipedia.org/wiki/Marketing
6. Miles, Raymond (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University Press. ISBN 0804748403.
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