Essentials of Marketing and Market Research
Market:
According to Philip Kotler , “A Market consists of all the potential customers showing a particular need or want who might be willing and able to engage in exchange to satisfy the need or want”.
Concepts of Market:
Place Concept :
A Market is convenient meeting place of buyers and sellers to gather together in order to conduct buying and selling activities. Eg- Vegetable Market.
Area Concept :
A market develops in any area , small or large , the moment there are three pre-requisites for exchange: Two or more individuals have unmet wants. Eg- Money Matket.
Demand Concept:
Today, a market is equated with the total demand. Hence , market means a group of people having unmet wants , purchasing power and the will to spend their income to satisfy those wants. Eg- Domestic Market.
Features of Market:
In a narrow sense , market refers to a particular place whereas in a wider sense any convenient place, region, state, nation and world can be considered as market.
Buyers (demand) and sellers (supply) are the two sides of the market.
The needs of the people, their capacity to spend money, their willingness to part with money, and the availability of goods and services are the requirements of the market.
In the Free market system , price is determined by interaction of Forces of demand and supply.
Factors affecting the exchange process are:
Demand and supply,
Price,
Market information with sellers and buyers,
Legal control and regulations to ensure fair price
Feedback information points out buyers ‘ Post purchase experience.
Under Market driven approach , consumer service and satisfaction become the focus around which entire enterprise is centred and through demand satisfaction , profit is made even against keen competition.
Types/Classification of Market:
Marketing:
The American Marketing association defined marketing as “Market is an organizational function and a set of process for creating, communicating value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders."
Marketing can be further understood by defining several of its core concepts,
Needs, wants and Demands—→ Product or offering ——→ Value and Satisfaction —→ Exchange and Transaction –→ Marketing and Marketing Management.
Features of Marketing:
Marketing activities are aimed at satisfying the needs and desires of consumers and therefore, finding out consumer needs and wants in the starting point for all marketing activities. It starts with consumers and ends with consumers by satisfying their needs.
Marketing deals with exchange of goods and services with money as the medium of exchange.
Marketing concept has undergone changes over a period of time i.e., the recent one is the societal marketing concept which focuses on three factors : Customer demand satisfaction, Public interest and Profitability.
Production and Marketing are related and Production takes place based on the needs and expectations of the consumer.
Marketing Facilities' Large-scale production, employment opportunities and social welfare.
Marketing is an integral part of business. The survival and growth of business depend upon the effectiveness of marketing operations in an organisation.
Marketing is an integrated Process and is based on strategies and plans.
The Long term objective of marketing is profit maximization through customer satisfaction.
Scopes of Marketing:
Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information And Ideas.
Importance of Marketing:
To the Society
Marketing generates gainful employment opportunities both directly and indirectly.
Marketing helps in stabilizing economic condition in the sense that marketing helps in selling the products or services
To the firms/companies
Marketing sustains the company by bringing in profits
Marketing is the source of new ideas.
Marketing provides direction for the future course.
To the Consumers
Meeting the unmet needs or wants.
Reducing the price of products or services.
Functions of Marketing:
Product Planning
Packaging
Product Pricing
Advertising and Sales Promotion
Distribution
Marketing Research
Management of Sales Force
Approach of Marketing:
Commodity Approach
Functional Approach
Institutional Approach
The Systems Approach
Marketing Process:
According to Clark, the modern marketing machinery involves three major processes i.e. concentration, dispersion and equalization of goods, which are mutually inter-related and interdependent.
Concentration: The concentration is the first process of modern marketing. It refers to gathering of goods in large quantity at a single point.
Small Lot of Output
Assembly of Parts.
Dispersion: Concentration takes place because of dispersion. Otherwise concentration has no meaning. The goods or products, assembled at a central place, have to be distributed to the consumers.
Equalization: Between the two activities i.e., concentration and dispersion, there is the equalization process. It implies the reconciliation between demand and supply through storage and transportation, in needed quantity and quality at the required time and place. Adjustments of supply to demand are effected.
Marketing Orientation:
Market orientation is a marketing approach wherein the processes of product development and creation are focused on satisfying the needs of consumers.
Advantage of Marketing Orientation:
Performing data analysis can reveal trends and desires that are not explicit.
They can be used for long-term development strategies.
It enhances brand loyalty and word-of-mouth advertising by existing consumers.
Disadvantages of Marketing Orientation:
Consumers reduces the scope for innovation in an organization
Desires are not fixed and can change very rapidly
Examples:
Amazon
Cocacola
Marketing Environment:
The marketing environment of a company is composed of the people, institutions, and forces outside marketing that influencer marketing management’s ability to develop and maintain a successful relationship with its target customers.
Market Segmentation:
Market segmentation and targeting refer to the process of identifying a company’s potential customers, choosing the customers to pursue, and creating value for the targeted customers. It is achieved through the segmentation, targeting, and positioning (STP) process.
Segmentation: Segmentation is the first step in the process. It groups customers with similar needs together and then determines the characteristics of those customers.
Targeting: The second step is targeting, in which the company selects the segment of customers they will focus on. Attractiveness depends on the size, profitability, intensity of competition, and ability of the firm to serve the customers in the segment.
The last step is positioning or creating a value proposition for the company that will appeal to the selected customer segment.
Market Research:
Market research define as ,” systematically gathering data about people or companies – a market – and then analyzing it to better understand what that group of people needs”.
Types of Market Research:
Primary: Primary data is first-hand information to gather , or with the help of a market research firm.
Secondary: Secondary data is pre-existing public information, such as the data shared in magazines and newspapers, government or industry reports.
Objectives of Marketing Research:
The objective of market research is to find out the consumer
The firm needs consumer insight to determine the positioning of all different brands in the consumer mind.
To increase sales the objective of market research will be to look into buying patterns , packaging and other such attributes to bring better results.
Steps in MR:
Define the Problem
Define the Sample
Carry out data collection
Analyze the results
Make the Research Report
Make Decisions
Advantages of MR:
Make well-informed decisions
Gain accurate information
Determine the market size
Choose an appropriate sales system
Learn about customer preferences
Gather details about customer perception about the brand
Analyse customer communication methods
Productive business investment.
Elements of Marketing Research:
Intensive Study
Scientific Approach
Decision Tool
Functions of Marketing Research:
