Monday, November 16, 2009

marketing in business

Marketing is a "social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others." It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Marketing is used to create the customer, to keep the customer and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. The evolution of marketing was caused due to mature markets and overcapacities in the last decades. Companies then shifted the focus from production more to the customer in order to stay profitable.
marketing concept holds that achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal.
marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. Marketing plans cover between one and five years. A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.
Internet marketing is worthwhile only if it is done well. For example you can spend thousands of dollars on a television marketing campaign but if no one sees your commercials, or your commercials do not reach your target audience and generate sales, the advertising was not worthwhile. So, Internet marketing is worthwhile only when it works, and it works only when you do your homework and apply the proper techniques.
The history of marketing as a recognized discipline, along with concomitant changes in marketing theory and practice. (Marketing comprises all activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling.[citation needed])

This section requires expansion.
Much of traditional marketing practice prior to the twentieth century remained hidebound by rules-of-thumb and lack of information. Information technology, especially since the mid-twentieth century, has given the marketeer new channels of communication as well as enhanced means of aggregating and analyzing marketing data. Specializations have emerged (especially sales versus marketing and advertising versus retailing) and re-combined (business development) over the years.
The study of the history of marketing as an academic field emerged only recently[update].[when?] Controversies and disputes abound in the field.[citation needed] The publication in 1976 of the book The History of Marketing Thought, by Robert Bartels marks a turning-point[citation needed] in marketing thought. Since then, academics specializing in marketing decided[citation needed] to imitate economics, distinguishing theory and practice. Two different fields of study emerged:
1.the history of marketing thought, giving theoretical accounts history, focusing on the history of marketing practice
This division parallels the distinction between the history of economic thought and economic history.
Practitioners of the history of marketing thought note that both practitioners and academics know relatively little about the field.[citation needed] But history has significance for academics because it helps to define the baselines upon which they can recognize change and evolve marketing theory.On the other hand, proponents of marketing history argue that one cannot fully compare the marketing field with economics and hence suggest the impracticality of divorcing theory and practice.[citation needed] First, marketing scholars seldom engage in the practice of marketing as much as economists engage in the development and execution of public policies.
History of marketing thought
The history of marketing thought deals with the evolution of theories in the field of marketing, from the ancient world . Marketing historians agree that the discipline branched out of at the turn of the twentieth century, though some argue that scholars in the ancient and medieval ages had already studied marketing ideas.
Robert Bartels in The History of Marketing Thought' categorised the development of marketing theory decade by decade from the beginning of the 20th century thus:
1900s: discovery of basic concepts and their exploration
1910s: conceptualisation, classification and definition of terms
1920s: integration on the basis of principles
1930s: development of specialisation and variation in theory
1940s: reappraisal in the light of new demands and a more scientific approach
1950s: reconceptualisation in the light of managerialism, social development and quantitative approaches
1960s: differentiation on bases such as managerialism, holism, environmentalism, systems, and internationalism
1970s: socialization; the adaptation of marketing to social change
Timeline of innovation
1450: Gutenberg's metal movable type, leading eventually to mass-production of flyers and brochures
1730s: emergence of magazines (a future vector of niche marketing)
1836: first paid advertising in a newspaper (in France)
1839: posters on private property banned in London
1864: earliest recorded use of the telegraph for mass unsolicited spam
1867: earliest recorded billboard rentals
1880s: early examples of trademarks as branding
1905: the University of Pennsylvania offered a course in "The Marketing of Products"
1908: Harvard Business School opens
1922: radio advertising commences
1940s: electronic computers developed
1941: first recorded use of television advertising
1950s: systematization of telemarketing
1970s: E-commerce invented
1980s: development of database marketing as precursor to CRM
1980s: emergence of relationship marketing
1980s: emergence of computer-oriented spam
1984: introduction of guerrilla marketing
1985: desktop publishing democratizes the production of print-advertising
1991: Integrated marketing communications gains academic status
1990s CRM and IMC (in various guises and names) gain dominance in promotions and marketing planning
1995-2001: the Dot-com bubble temporarily re-defines[citation needed] the future of marketing
1996: identification of viral marketing
2000s: Integrated marketing gains acceptance and in 2002 its first dedicated academic research centre.
Birth of marketing ideas

This section requires expansion.
In pre-modern economies, the predominance of small enterprises militated against the recognition of marketing as a separate field of expertise. Changes in the patterns and intensity of economic activity, as well as the rise of economics as a science, particularly in the 19th century, paved the way for studies of marketing. The growth in size and scope of national and international economies in the course of the Industrial revolution led eventually to a transcendence of ad hoc retailing and advertising innovations and eventually to systematization. Marketing emerged as a separate technical field only in the late 19th century. The OED traces the abstract usage of the word only as far back as 1884.

One marketing standard chronology[which?] subdivides marketing history as follows:
Production orientation era
Product orientation era
Sales orientation era
Market orientation era
Customer orientation
production orientation dominated business thought from the beginning of capitalism[when?] to the mid 1950s, and some[who?] argue it still exists in some industries.[citation needed] Business concerned itself primarily with production, manufacturing, and efficiency issues.[citation needed] Say's Law encapsulated this viewpoint, stating: "Supply creates its own demand". To put it another way, "if somebody makes a product, somebody else will want to buy it". This orientation rose to prominence in an environment which had a shortage of manufactured goods relative to demand, so goods sold easily.
Implications of this orientation include:[citation needed]
narrow product-line(s)
pricing based on the costs of production and distribution
research limited to technical product-research
packaging designed primarily to protect product
minimal promotion and advertising, limited to raising awareness of the existence of the product
consumers more interested in simply obtaining the product, and less in its quality
Some examples:
The early[when?] car industry provides the classic example of production orientation, exemplified by the story of Henry Ford’s Model T. At this time[when?] production orientation, an industry-wide philosophy, applied in many industries.[citation needed]
As of 2009[update] one sees examples of production-orientation marketing in individual companies rather than in whole industries because of increased competition.[citation needed] One might argue[original research?] that some elements of the production orientation appear in the electronics industry where firms manufacture large quantities of low-cost, low-price goods when they know that a market exists. As a possible[original research?] supplementary factor, one can usually replace an electronic product much more cheaply than fixing it.[citation needed]
Philip Kotler argues that assembly-line techniques have migrated to services like government benefits offices, in which they deal with people very efficiently, but without necessarily entailing full satisfaction on the part of the customer[citation needed]
The societal marketing concept
Main article: Societal marketing
Societal marketing emerged in the 1960s. The societal marketing concept deals with the needs, wants and demands of customers: how to satisfy them by producing superior value that should satisfy the customers and promote the well-being of society.[citation needed] The producer should not produce products deemed hazardous to society.[citation needed]
Societal marketing developed into sustainable marketing.

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