Concept of Marketing

Marketing is the strategic approach adopted by firms to understand and meet customer needs, leading to increased sales and profitability. Initially proposed by Adam Smith in 1776, the concept gained widespread acceptance only in the last two centuries. In essence, marketing involves attracting customers, building relationships, and aligning their needs with the products or services offered, ultimately ensuring profitability for the organization.

What are Needs, Wants and Demand:

• Needs: Fundamental requirements for survival and healthy living, such as food, water, and shelter.

• Wants: Desires beyond basic needs, influenced by cultural and individual preferences.

• Demands: Arise when wants are accompanied by the ability to pay for them, making them actionable in the market.

Types of Marketing Concept:

Business Domains:

In the business context, a "Domain" refers to a specialized area of expertise vital for a company's operations. These domains encompass various functions such as business management, operations, engineering, manufacturing, product management, and marketing.

Key Components:

Disciplines: These are distinct knowledge areas or activities governed by processes within the business domain.

Methods: Organized plans and actions employed to execute each discipline effectively.

Modes: Specific manners in which methods are applied or enacted within each discipline.

Techniques: Procedural approaches utilized to accomplish tasks or activities within modes.

Hierarchical Structure:

Business Domain: Overarching area of expertise.

Disciplines: Defined knowledge areas.

Methods: Organized plans and actions.

Modes: Specific application methods.

Techniques: Procedural approaches.

Implementation Approach:

• Multiple approaches are employed within each discipline simultaneously.
• Various modes are used interchangeably within each approach.
• Techniques are utilized concurrently or interchangeably within each mode.

By understanding and employing the concept of business domains, companies can effectively organize and optimize their internal frameworks and processes.

Marketing Domain

Marketing is the strategic communication of a company's value and competitive advantage to target audiences. It involves decisions on content, audience, delivery method, timing, and location of information dissemination. The goal is to establish and sustain preference for the company and its products among customers. Marketing encompasses three main disciplines: Product Marketing, Corporate Marketing, and Marketing Communications.

Marketing Domain Disciplines

Product Marketing creates awareness, distinguishes products, and drives demand. Corporate Marketing generates company awareness and differentiation. Marketing Communications employs various media to support marketing objectives.

• (Marketing Domain) Definition:Instructive business domain that serves to inform and educate target markets about the value and competitive advantage of a company and its products.

• (Marketing Domain) Task: Convey pertinent company and product-related information to specific customers.

• (Marketing Domain) Goal:Build and maintain a preference for a company and its products within the target markets.

• (Marketing. Domain) Disciplines:Product Marketing, Corporate Marketing, and Marketing Communications.

• Value: Worth derived by the customer from owning and using the product.

• Competitive Advantage: Depiction that the company or its products are each doing something better than their competition in a way that could benefit the customer.

• Product Marketing: Outbound activity aimed at generating product awareness, differentiation, and demand.

• Corporate Marketing: Outbound activity aimed at generating awareness and differentiation to the company.

• Marketing Communications: Employment of a mix of media vehicles that support marketing objectives.

Marketing Model:

Marketing educates target markets about a company's value and competitive edge. Its aim is to establish and maintain preference among consumers. The Marketing Model outlines the organization and activities within the marketing domain, including departmental roles and strategic plans.

Product Marketing Methods:

Product Marketing Methods aim to create awareness, differentiate products, and stimulate demand. They include Price Competition, Comparative Marketing, and Value Marketing. Price Competition highlights product price, Comparative Marketing emphasizes features, and Value Marketing focuses on value relative to competitors. Product branding is also crucial for establishing and maintaining a brand identity at the product level.

Corporate Marketing Methods:

The primary methods supporting the objectives of the corporate marketing discipline are corporate branding and analyst relations.It includes Corporate Branding and Analyst Relations. Corporate Branding focuses on establishing and maintaining a positive brand image at the institutional level, while Analyst Relations involve exchanging information with financial and industry analysts to influence potential investors and customers indirectly.

Marketing Communications Methods:

It involve advertising, graphic arts, and public relations. Advertising conveys messages about the company and its products through mass media. Graphic arts ensure consistent visual positioning in the target market, while public relations activities promote information dissemination and foster relationships between the company and its audience.

Corporate Organizational Structures:

The marketing domain comprises various disciplines managed by corporate departments with similar names. These departments execute specific methods to achieve business goals. Organizational structures lack uniformity due to diverse interpretations. The "Marketing Model" illustrates these structures, showing how departments are arranged within the corporate hierarchy. Sales and business development, typically operations domain components, are often included within the Marketing division.

Marketing and Strategies:

In a business context, "Strategy" refers to long-term decisions to achieve corporate objectives and gain a competitive edge.?

Marketing strategies encompass both market strategy and marketing strategy.

Market Strategy:

• Defines target markets and marketing objectives.

• Shapes corporate competitive advantage.

• Influenced by product marketing and product planning departments, with inputs from executive management.

Marketing Strategy:

• Aims to establish and sustain preference for a company and its products.

• Utilizes the Marketing Mix (Four Ps: product, price, place, promotion).

• Led by the marketing communications department, involving contributions from other corporate departments.

Product Strategy:

• Impacts marketing efforts.

• Involves decisions to develop and improve products, aligning them with market demands.

• Falls under product management, shaped by product planning department responsibilities.

Marketing and Plan:?

At the strategic level, decisions serve as directives for creating plans guiding marketing activities. Two key plan types exist within the marketing domain: the market plan and the marketing plan.

The Market Plan outlines long-term goals and messages aimed at the target market, detailing market strategy and incorporating elements of product strategy essential for competitive advantage. Roles in product marketing and corporate marketing contribute to its creation. On the other hand, the Marketing Plan builds upon the market plan's guidelines, detailing the selection and application of marketing mixes. Crafted by the marketing communications department, it encompasses the marketing strategy, with contributions from corporate marketing and product marketing departments.

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