Marketing

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The importance of marketing:

The increase in appointing a Chief Marketing Officer (CMO) shows the importance of marketing for many companies. They are on the same management level as Executive Officers and Chief Financial Officers. Jack Welch, General Electrics former CEO, stated ‘Change or die’ when it comes to surviving in business.

What is Marketing?

This chapter will take a look back on the fundamental elements of marketing and also what is happening in the 21st century.

Definition: ‘marketing is an organisational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders.’

Peter Drucker states the aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.

What is Marketed?

Goods: these are the physical goods that most companies put their marketing efforts towards.

Services: it is becoming more and more common for companies to include services into their company. The US economy now consists of 70-30 ratio of services-to-goods mix. Many markets use a combination of both a product and a service for example a fast food restaurant offers a product and a service.

Events: marketers are now using events to promote. These can include trade shows or company anniversaries.

Experiences: this is best represented in Disney theme parks where an experience is bought and therefore marketed.

Places: the tourism industry must promote cities, states and regions to help attract tourists there.

Properties: real estate must be bought and sold, for this to happen the exchanges must require marketing.

Organisations: for any business to be successful they must not only be able to sell and market their product or service but also their company.

Information: the production, packaging and distribution of information are some of the world’s major industries.

Ideas: Charles Revson of Revlon said ‘in the factory, we make cosmetics, in the store we sell hope’. This emphasizes the fact of how products and services are just mediums for delivering an idea or benefit.

Who Market?

A marketer is seeks a response from another party who is called the prospect. These responses could be attention, votes, a purchase or donation.

Marketers are responsible for demand management. One of the duties of a marketing manager is to seek to influence the level, timing and composition of demand to meet the objectives of the company. The eight demand states that are possible are:

- Negative demand: consumers dislike a product and may even pay a price to avoid it.

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