The Basic Maketing Concept

The report as well as hopes to target specific strain functions and show ways of using the trade plan to improve them. It go out also identify ways in which selling can attend to achieve motley goals within the organisation.The Marketing Concept (alternatively cognize as a telephone line philosophy or a way of doing business) has become an effective way of improving the overall performance of m all businesses in recent years. Companies have realised that in monastic localise to make profits and sustain them, they must numerate the engages and wants of their customers. They must then comp be these needs and wants to the output or serving that they watercoursely offer.The concept of trade is based upon the idea that if the customer has a need and is cheerful with the product, then ultimately gross gross revenue will be good hence profit will be good. It goes without saying that every callers stimulate is to maximise their profit margin, but in order to do th is, some tend to heighten to a fault much on the selling aspect and non enough on the actual customer.A come with can be orientated in different waysA gross revenue orientated confederacy will focus purely on the amount that they sell, working on the assumption that sales and sales only can make money. Companies adopting this attitude have come under scrutiny, delinquent to the actions of over-zealous salesmen who will cylinder block at nothing to get a sale you argon probably familiar with the phrase neer trust a salesman. This way of doing business is no longer acceptable as it has become obvious that in order to sell something, someone must want to buy it. The old style of conning the customer into buying goods whether they need them or not, purely to find a sale, is now shunned by most industries.A merchandising orientated companionship is a customer orientated comp some(prenominal). They take into account customer requirements and focus on them. dialogue in the mi dst of a company and their customers is essential to ensure the success of any merchandising method. Market interrogation is used to identify specific requirements of both animate and potential customers. Satisfied customers are loyal customers who will inevitably create repeat business as well as providing sinless word-of-mouth advertising. This would undoubtedly result in increased profits.A achievement orientated company will focus purely on the production of their product. A company who cares enough about their ability to modernise goods of only the highest quality presumable must be admired for their dedication. However, dedication does not necessarily undertake profit, and without profit, a company could easily fold.Although a similar concept to the one of the production orientated company (above), the product orientated company focuses on the product itself. The aim is to make the best product possible. research and development is commonly involved in the process, e nsuring that there is a substantial demand for the product. It is hoped that a company will end up with a high quality product that will sell.The marketing fuse consists of various occurrenceors that a company can combine to teach of there is a match between the needs of the customer and what the company currently offers them.There are four main elements of the marketing mix Defining the characteristics of the product to meet customer requirements e.g. introducing optional features with a product that are not streamer or providing an additional warranty that whitethorn not be deemed unavoidable in law, i.e. providing more than legitimately requirement with regard to the product.An important element of the marketing mix, the price places a value on the product. It is possible for the buyer and the seller to compare this price to that of competing products. It is then possible to alter the customers perception of the value by offering additional elements such as cash trade di scounts, credit facilities and easy payment terms. From the marketing point of view, the price is the ultimate way of calculating profit.Another word for distribution of the product. The product must be easily available to the customer in order for it to sell well. There are various channels in which a product can be distributed. For example, TJ600 would probably choose to distribute their goods by way of a supplier, but they could also introduce a direct mail order service to increase sales.In deciding which methods to use, you must first consider who your potential customers are and where they are resemblingly to shop for these products.Although part of the marketing mix, promotion consists of four elements of its own called the Promotion Mix. These are advertize paid presentations such as television advertising, sunrise(prenominal)spapers and posters fliers etcPublic Relations the launch of a new product and the ways it can be promoted to the trade and consumer pressPersonal Selling a method of promoting sales by means of oral communication. This can be either face to face or over the telephone.Sales Promotion a way of enhancing consumer purchasing. This usually consists of displays, shows and exhibitions.Market query is used to identify not only customer requirements but to identify any marketing problems that the company may be experiencing. readiness is extremely important when compiling the data to be used in the market research. In order for the results to be accurate, the questions asked must be relevant. This will involve discussions with marketing management and on occasion, outside consultants. Research can be used to improve any element of the product ( comminuted in the marketing mix).When considering any form of market research, it is important that any external factors affecting the results are considered. These are commonly known as PESTPolitical any new legislation that may affect the product scotch unemployment rates, pass bying power of the consumerSocial environmental issues that may affect the productTechnological introduction of new technology that may affect the companyOnce a decision has been reached regarding the purpose and content of the research, it is necessary to determine the best way of getting a response. There are numerous ways of conducting market research, including postal surveys, telephone surveys and face to face interviews. The best response rate, however, tends to be with face to face interviews (usually questionnaires), due to the fact that an immediate response is given by the interviewee.It is vital that once data has been collected that it is guardedly reviewed, in order to interpret the information given as a result of the research. Additional research may be carried out if the data shows that there is another area that can be meliorate upon.In order for a company to go forward in business, they must set objectives goals. These usually form questions relating to the business , such asFor example, the organisational goals of TJ600 may be toExpand product range & distributionThese objectives are usually made at a strategic level in this case the managing director would be responsible for setting the objectives.It is reasonable to assume that TJ600 are aware of their position in the manufacturing business, due to the fact that they have been successful for 20 years. The goals detailed above give an idea of where the company would like to be in the future. All that is left is to figure out how to get there and it is at this point that marketing plays its role.Outlined below are ways that marketing could help achieve the aforementioned goalsIn order to retain customer loyalty, it is important that the customer is satisfied with the product they currently buy. Market research is extremely useful in identifying customer needs and to establish whether or not they are completely satisfied with the product. It is at this point that elements of the marketing mix can be used to alter certain characteristics of an brisk product e.g. if market research was to show that existing customers were basically satisfied with a product supplied by TJ600, but would welcome more after sales service, then management would want to look at the product element of the marketing mix. It is possible from there to ascertain whether extended warranties etc would be viable to the business with regards to cost effectiveness i.e. would additional staff be required?Again, market research is useful to determine whether there is a market for expansion of a certain product or expansion of an existing product to another country.Past and present success of a company cannot be taken as a guarantee for the future. Many large companies invest in regular market research to ensure that they stay one step ahead of their competitors. Although TJ600 has had continuing success in the past, it would be rather despotic to expect the same success in the future.Expansion is a good w ay of improving on something that is already popular and offering the customer more choice at the same time. In todays business world, it is inevitable that at one point someone will offer customers an improvement on their current product. Investing in market research will help to ensure that, if a product would emolument from expansion, then you will be first to do it.Once a company has established their organisational goals and the marketing methods that they are going to use to achieve them, they must ensure that they have the co-operation of every segment. Communication plays a vital part in marketing to ensure that the changes are implemented with maximum effect.For example, using the organisational goals detailed previously for TJ600, it would not be possible to make changes to the product range by consulting only the production subdivision. Outlined below are the roles that other business functions would play in marketingThe finance department is usually responsible for se tting annual budgets for the whole of the company and expects other departments to adhere to them. They are also responsible for setting time limits on credit facilities and these sometimes tend to be shorter than the customer would like. Communication between the finance department and marketing could look to improve credit terms if required and may allow room for compromise if a certain department required more money. It is the responsibility of the finance department to ensure that the company makes a profit and they may not be keen to spend more money or wait longer for customers to pay. This is where communication plays an important role if it is explained from a marketing point of view that these additional costs would result in a higher market carry on or increased sales, then the finance department would realise that this would lead to increased profits.The production department is unlikely to welcome the idea of modifications or improvements to the product. They tend to wo rk in long production runs and like to keep things as standard as possible. Communication between marketing and the production department may help them understand the need for improvements to a certain product it may be that improvements are necessary in order for them to stay ahead of competitors in the same market.It is vital to the smooth running of any organisation that the right people are employed for the right jobs e.g. marketing may have highlighted the need for customised orders to be introduced, which in turn would mean that staff are required to work more plastic hours. It is the responsibility of the personnel department to ensure that the company has adequate staff to meet these requirements.