The definition and purpose of marketing. In my own opinion marketing is all about the 4P’s the product, price, place, and promotion in order to satisfy the needs and wants of the consumer. Company aims to develop a product that will be useful to their target markets. The marketing has 4 concept it is the product which is the output of the business that will be given to their customers. the price it is the amount that the customer should give for the exchange of the product. next is the place it is the location where the business operates. And last is promotion, it is the strategy on selling the product. In other words, marketing is all about finding the best product that is affordable in a certain place with a trustful brand. Marketing concept is not firm as is today, it started in production concept. In this stage businesses tend to create new products every day, selling product in this era is not hard because customer tends to buy everything that they did because it is new. The focus on this type of concept is to create, create and create new products more quantity. The next concept is the product concept, this is where the quality of the product is focused. Businesses have their competition but not that many, so that they start to satisfy the needs of their consumer by providing quality products. Next is sales concept this is where the competition starts. Many businesses tend to create almost the same type of product and the same quality as well, they differ only in the brand name so that many strategies are created in this phase. And final concept is the marketing concept, this is where the business venture provides and satisfy the needs and wants of their customers.
Marketing can be performed both individuals and organization. This where the flow of goods will enter or the distribution of product will fall. We don’t need to go to manufacturer to get what we need. Business intermediaries will do it for us, for example you just need things for personal hygiene do you need to go to its manufacturer to buy some stuff? All you need to do is to buy it in your nearest grocery store or convenient store. It can also perform by individual itself. They are the one who will buy the product you need, then you’ll just buy it on them in return. For example, my father’s friend is a vendor he always went to commonwealth wet market to buy some fish, pork, and chicken. Then he was the one who sell it on us. So, the distribution of product is happened through individual-to-individual transaction. But then you can also buy it directly on the wet market so that you can acquire business to individual transaction. At some point it happens to retailing industry, where the retailers buy products to manufacturer it is called business to business transactions. Marketing also affects lots of stake holders such as, retailers, wholesalers, distributors, manufacturer and the society as well. The production chain will be affected so the distribution of the product as well as the transportation will be affected by marketing. In other words, marketing decides for the distribution of the product. Marketing also creates value for their customer, they value everything for their customer so that the marketing itself evolves.
The Immediate Environment: Successfully Leveraging Company Capabilities
iMarketer always find changes to the needs and want of their consumer they always monitor the change of trends. In analyzing the market environment, the marketers always recognize the factors that can affect the change in consumers’ needs and wants. First factor is the consumer itself you must recognize the change and buying behavior of your customer. What are his priorities? With this you will know what to adjust in your product. You must see every opportunity that will be open overtime. Next factor is the immediate environment, it is the incident that happens every time. You must always monitor this because every change that possibly happen can open a door of opportunities, this immediate environment includes company capabilities, competitors and partners. It is the factors that can affect the trend that the company should maximize. There are First factor is the company capabilities, you should observe the business entity, depending on how far they can go. How big they can see, and how good they can give. By this you will recognize if the company is applicable to adapt to the trend or they need to improve something to be adaptable. You can also use SWOT analysis in order to see what are the possible treats and opportunities that you will face. Next one is your competitors; these competitors will bring you some ideas on what are the possible solution to specific problems. It can give you also an opportunity to learn, and also gives you advance knowledge about possible treat that will happen in your business, so that you can anticipate those problems. Your competitor will be your basis or standard on measuring your progress as a company. Next one is corporate factors, this corporate factor should be value as well. Their planning for innovation will affect your product as well. For example, you are manufacturing motorcycles, you have your supplier for every parts. If you aim to improve your product, they should adapt to your change, and if they want to innovate your product will be affected as well.
I learned that Macro environmental factor is very important, because it will be the significant aspect of external environment that affects the company’s business, such as cultures, demographic, technology, economic and political situation of an environment. The demographics is very important to a business entity, it tells us numbers about how many are living there, what are their age, income. This factor may affect the business itself. It will tell you where should you focus on targeting your market. With these you can see an opportunity that can boost your company’s capabilities. Next one is economic factors can affect the growth, because it tells us how large are the purchasing power of the consumer, as well as the inflation. You must see the performance of the country for the past few years, if the country has progress or not. Next one is socio-economic factors; you must see the religion and beliefs of the country so that you can adjust to this aspect. You can observe the quality of the education so that you can target what they need and what they want. And last is technology, you must observe if the country is adapting the advancement of technology or not. You may inform them or maybe your product is new to their market because of the advancement of the technology. A holistic Marketing it is an orientation in order to see the customer’s value. It has 4 parts, the Internal Marketing, integrated marketing, building lasting relationship, and socially responsible marketing. The holistic marketing framework is design for these 3 concepts, the value exploration, it is how the company see new opportunities. It is where the company explore to have innovative ideas for their products. Next is value delivery, it is how the company offers a new products or services, this where the ideas in exploration will be applied. Next one is Value delivery, it is how the company perform their new product and services, it is the continuation of the application of both value delivery and value exploration. In my own opinion this holistic marketing is very essential to one’s business. It starts from gathering new ideas to application of new idea, to risking your business on putting all the efforts just to innovate and form new products to satisfy the unveiling needs and wants of the customers.
The Immediate Environment: Competitors
This unit is all about the competitive environment, the competitive environment is composed of 4 types of competition. The monopoly, oligopoly, monopolistic competition, and perfect competition. Monopolistic competition is a type of competition that has only one dominant seller. For example, here in the Philippines, the company named Meralco. They are number one provider of electricity here in the Philippines this kind of business is the very best example of monopoly. Next is Oligopoly, it is the type of competition that has few sellers, but in a certain location the supplies are evidently huge. They have a typical market location where they supply all their products. For example, a hardware, or a supplier of construction materials. They have few competitions that sell the same product but still it is a healthy competition, they don’t need to outstand one another because consumer still buy their products and offerings. Next is Monopolistic competition, this type of competition has lots of competitors, but they didn’t sell identical products instead they sell quite different attributes of product, at some point it contains same use. For example, Transportation industry, they use to give same purpose by transmitting people from one place to another, but differs in service meaning to say it has the same purpose but differ in output. Lastly the perfect competition, it is a type of competition that has lots of consumer buying products from lots of small businesses, because the seller is not quite big to affect the price of the product, the availability of competition, and consumer buying decision. For example, in a market place. They all sells the same product, but still, they have their own market.
In lots of competition, we must have a competitor analysis to outstand competition. A competitor analysis is an overall assessment of all the strengths and weaknesses of current and potential competitors this will lead to a new possible idea to innovate your product and avoid possible treats. In gathering a competitor analysis, we must consider these factors to easily identify competition and find ways to outstand it. first is look at the market form the customer’s view point. From this technique you will recognize your competitor, because the consumers are the one who avail the product, their response or data will be analyze and process, this will tell who your competitors are. Next one is Group your competitors according to their various Competitive strategies for you to know what motivates them. This will be your advantage; you can use their advantage if their applicable to your business venture. You can use it to as advantage to take down your competition. For example, here in the Philippines Jollibee food corporation is consider as number one fast food chain. Then Mang Inasal join the competition, they are indirect competitors but still Mang Inasal affects selling point of Jollibee, so that Jollibee study the weakness of Mang Inasal and decided to buy the entire mang inasal and mix it to the entire Jollibee food corporation. As of now the market of Jollibee and Mang Inasal are joint. In other words, Jollibee avoid possible threat given by Mang Inasal, from Competitors to partner that’s how marketing managers of Jollibee thinks. In gathering a competitor analysis, we must consider these factors.
