Modern marketing is a much more exact science than it was. In the past, marketing was essentially an art – depending almost entirely on the intuition and judgment of the entrepreneur who was an all-around expert in marketing, production, and finance. Of course, the market environment was much less complex. The number of competitors and…
Competition is a powerful influence in determining the extent and nature of a firm’s marketing activities. Very few firms operate in a market environment all by themselves. Most companies face competition from at least one other business, and usually from several. Broadly speaking, all firms compete with each other for the buying power of consumers….
As a practical matter, all sellers’ offerings are differentiated from those of their competition. Differentiation may be based upon certain characteristics of the product itself. It may also exist concerning the conditions surrounding its sale. A company’s product may also be differentiated by the images of its personnel and the type of distribution channel it…
A particular product has 5 levels (core benefit, generic product, expected level, augmented product, and potential product). When a buyer buys a product, he buys a package, not only the tangible product. With a soap, you purchase, for example, the soap itself, an image, and a number of interrelated satisfactions. Marketers should, therefore, need think…
A successful marketing plan needs proper segmentation, targeting, and positioning. The process of segmentation, targeting, and positioning is called STP Model ((segmentation, targeting, and positioning). For a brand and its products to be successful, the marketer needs the identify the segments of the market and understand under which bases each segment falls. Once the segments…
A market segment means a homogeneous group consisting of buyers who seek the same offering. In market segmentation, the aim is not merely to divide the market into sub-classes based on product differentiation but to distinguish want categories that correspond to the distinct demands of various groups in the market. For proper market segmentation, the…
Market segments refer to the sub-classes of the market reflecting sub-classes of wants and the process of conceptually distinguishing segments is known as the process of market segmentation.
Business markets need to be segmented like consumer markets geographically or by benefits sought, user status, usage rate, and loyalty status. Some additional variables are also used for segmenting business markets. These are Business Market Segmentation bases; Customer demographics (industry, company size), operating characteristics, purchasing approaches, situational factors, and personal characteristics. The table below examples…
Product differentiation is the path chosen by most brand leaders in any industry. Cellulose tape became known as ‘Sellotape,’ and the vacuum cleaners are referred to as ‘Hoovers’ is a great credit to the originators. They become natural first choice brands against which all competitors are judged. Maturing markets mean increased competition for market share…
Forecasting is estimating future demand by anticipating what buyers are likely to do under a given set of conditions. Forecasting is a difficult task for most products or services. Forecasting is relatively easier for products with steady sales or growth in a stable competitive situation. But most markets lack stable total and company demand. Therefore,…
Undertaking actions based on a marketing plan can place a company better than its competitors. Preparing the plan requires a few sequential steps, which should be followed for a better plan to follow. A marketing plan contains an executive summary, statement of the current marketing situation, analysis of the opportunities and issues, objectives of the…
The task of managing the marketing function starts with a detailed analysis of the company’s situation. For this purpose, the company must make an analysis of its markets and marketing environment to locate opportunities and to avert environmental threats. It must review company strengths and weaknesses, as well as current and possible marketing action, which…
The strategic plan outlines the company’s overall mission and objectives. Marketing plays an important role in helping achieve overall strategic objectives. What Are The Factors Influencing Marketing Strategy? The figure shows the marketing’s role and activities in the organization. The figure shows at a glance the entire marketing process and the forces influencing company marketing…
In addition to evaluating current businesses, designing the business portfolio aims at finding businesses and products the company should consider in the future. For this purpose, management uses a device called product/market expansion grid. What is Product-Market Expansion Grid? The product/ market expansion grid is a portfolio-planning tool for identifying company growth opportunities through market…
Economic society’s central problems are similar to individual problems except that the problems now relate to the economy. The main problem is the scarcity of resources in the face of unlimited wants. The scarce resources have, however, alternative uses. 3 basic problems of an economic society; What to produce? How to produce? For whom to…
Microeconomics is a branch of economics that studies how individuals, households, and firms allocate limited resources, typically in markets where goods or services are bought and sold. The microeconomic theory seeks to explain whether the scarcity and allocation of resources so determined are efficient. Microeconomics is also concerned with individual prices, wages, price of factors,…
Strategic alliances are cooperative agreements between two or more firms to help each other in business activities for mutual benefits.
If you have made it to college, I bet you have already read your fair share of books. But when it comes to success, it is not the quantity but the quality that counts. Only the right books will give you practical advice you can follow and will be engaging enough for you not to…
Manufacturing does not just offer products, and service organizations do not just offer services. Both types of organizations normally provide a package of goods and services. Although service provides cannot inventory their outputs, they must inventory the inputs for their products. As for customer contracts, many service operations have little outside customer contracts. Such as…
Operation management refers to the direction and control of the process that transforms inputs into products and services. Broadly interpreted, operation management underlies all functional areas, because, processes are found in all business activities. Narrowly interpreted, operation refers to a particular department. What is Operation Management? – Why Operation Management is a Systematic Design Direction…