Marketing Essays Customer Product Needs

Marketing Essays Customer Product Needs Customer Product Needs Marketing is the process of identifying customer needs and then introducing a product according to those needs. Marketers introduce products in the market so that we can consume everyday. When we buy a product we pay for marketing each time. Marketing acts as an important role in our daily lives. Marketing is basically satisfying customer needs which increase the quality of life and better standard of living. There are two main parties involved in marketing buyers and sellers. Marketing includes the activities of a company associated with buying and selling a product or service. In order to sell the products marketers try to promote their products by different types of medium. The most famous type is bill boards and signs. The internet has been the most easiest and effective way of promoting products to the customers. Magazines, T.V, Radio and newspapers are other ways of introducing products. Marketing is all about selling, delivering products to consumers, promotion of new products to attract customers. There are many definitions of marketing. One of the great management thinkers Peter Drucker said something which acts as a good reminder of the value of good marketing: The aim of marketing is to know and understand the customer so well; the product or service fits him and sells itself. – Peter Drucker http://www.powerpr.com/newsletter.html Marketing Communication: Marketing communication is subdivided into 4 features: Advertising: Advertising is transmitting information to the customers by various kinds of media by paying sum amount of money. It is basically to attract the customers to buy the products. In order words advertising is a publicity to influence the people to purchase the specific product. Advertising media includes T.V, newspaper, cinema, radio, posters, billboards and internet. It promotes the products and tries to convince the consumers to buy a product by pressure that it is more desirable for them than others. Advertising can be done by the organizations, industries as well as by individuals. Advertising can also be used combining with other marketing communications. The amount of advertising in UK can be recognized through posters, billboards and T.V. It has been estimated that the drinks industry spends over  £200 million on advertising and that between 1 and 2 percentage of national income is spent on advertising in United Kingdom. http://www.answers.com/topic/advertising?cat=biz-fin Sales promotion: Sales promotions are the excellent offers to persuade the customers to buy goods and services. Normally to increase in the sales of an organization for the short period and sometimes to sold out the old stock. These are the tricks to trap the customer for the particular product. There are varieties of sales promotions methods to that a business can use to make products appealing. Some of the methods are as under: Discount vouchers: Customers been sent the coupons, or they themselves tear off from the magazines and newspapers which enables them to get the particular product in low price by showing the coupon. Competitions: Sometimes when a customer purchase a product, allows them to enter the draw to win a prize (for e.g. cash, cars, electronics, air tickets etc.) Free gifts: Sometimes when the product is bought by the customers they get another product free with it or sometimes different prizes instantly. Loyalty cards: These are those cards which allow the customers to earn points on the cards when they buy products, later on which can be redeemed as cash or goods. (for e.g. Tesco club card, nectar etc.) Loyalty cards have become the most important bright form of sales promotion. http://tutor2u.net/business/gcse/marketing_promotion_sales.htm Public relations: Public relation doesn’t deal with the product and services. It mainly deals in making good relations between employees or customers. The primary function is to have the trust of public understanding. Examples of public relations are worker preparation, support of charitable events etc. In this type of marketing communication the organization aimed for the increase in sales by improving the image of the company and product. http://www.learnthat.com/define/view.asp?id=52 Direct marketing: Convey of advertising message directly to the consumer on individual basis through any type of medium. The main difference between direct marketing and other kind of promotion is that you have close relation with the needs of the customer and succeed in delivering a message. http://www.investorwords.com/1447/direct_marketing.html Integrated Marketing Communication: The management of the organization is planned in such a way that all the feature of marketing communication work together rather then allows them to work separately. As mentioned above marketing communication includes sales promotion, advertising, direct marketing and public relations. Integrated marketing communication good idea for making business more profit. All the marketing communication departments work together for the betterment and profitably of an organization. They company use only one approach towards everything. Integrated Marketing Communication is more than the management of a companys outgoing message between different media and the reliability of the message throughout. It is a destructive marketing plan that captures and uses a vast amount of customer information in setting and tracking marketing strategy. It can be also defines as a holistic approach to promote buying and selling of digital economy. A management concept which is mainly designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a combined force, rather than allowing each to work in remoteness. In practice, the goal of Integrated Marketing Communication is to create a single appearance or message in all fundamentals of a marketing campaign. A successful integrated marketing communication plan should be customize what is required by the client based on time, budget and resources to reach the target or goals. Small business can start an integrated marketing communication plan on a small budget by creating a website, email and SEO. A large business organization can start an integrated communication plan on a larger budget than a small organization. They can use things like print, mail order radio, TV plus many other online ad campaigns. The main aim at the end is to sell their product. TV is used in order to get the generation aware of the product where as Prints are used to educate the public and Radio is also used to keep the message delivered on the top of the mind. There are 3 Ps which one has to remember in integrated marketing communication which are the first one is for product. This means that overall everything is done for the customers. What are consumer requirements and what they desire? The goods they are looking for and what are the benefits in demands, and what are the unfulfilled demands. The second P is the price. One has to look at the cost which the customers are looking for. What is their perception of the cost of the goods and how much are they able to pay and willing to spend. The third P is for the place or distribution. This means where to sell their goods, and which is the best possible place to promote you affectively. David Ogilvy thinks IMC means providing â€Å"one stop shopping†, setting up your agency to deliver all the functions a client might want to buy, and learning to manage them together. Maybe this is a tail. David further said that IMC may be the key to getting away from the disease of talking about creativity all the time and getting back to focus on sales. This is at least leg. Integrated Marketing Communication can also be called as integration of all promotional tools. All of the communications tools work better if they work together in agreement rather than working separately. While different departments such as sales, direct mail and advertising can help each other through Data Integration. This requires a marketing information system which collects and shares relevant data across different departments. Marketing and communications objectives must support the higher level corporate objectives and corporate missions. http://marketing.about.com/od/marketingglossary/g/imcdef.htm Marketing communications comprises five broad categories: Personal selling, advertising, public relations, direct marketing and sales promotions. Each has its own set of pros and cons and can be accomplished in a variety of ways. However, the key is to look at the available options in a comprehensive way and to ensure consistency throughout the selected media. The selection of communications methods is subject to a variety of factors. The factors that influence the selection and effectiveness of a promotional mix include: †¢ Nature of the market (market size, geographic scope, type of customer, etc.) †¢ Nature of the product (complexity of the product, service requirements, etc.) †¢ Stage in the product life-cycle (earlier versus later stages of the life cycle) †¢ Price (high versus low unit price) †¢ Funds available for promotion This funding point is very relevant to all companies. Budgeting is an essential function of the IMC process. The following items impact the budget determinations: †¢ Percentage-of-sales method (a specified percentage of either past or forecasted sales) †¢ Fixed-sum-per-unit method (predetermined dollar amount for each unit sold or produced) †¢ Meeting competition method (match competitor’s promotional outlays) †¢ Task-objective method (amount and type of promotional spending needed to achieve promotional Objectives) Advantages of Integrated Marketing Communication: The key advantages of using integrated marketing communication or IMC is that it is indispensable and cost effective to any organization. IMC talks about the four different messages that an organization has to know of so it can run if not manipulate. In order to effectively integrate public relations and marketing, there are six procedures that have to be followed to achieve an organization’s objective. In order to attain the organizations goals, public relations practitioners are commonly asked to perform many other tasks side by side with advertising and marketing. It total communication program is merged with public relations, it not only save time and money but strengthen the organizations capacity to safeguard the reliability of the product or service. (Miller Rose, 1994). Public relations practitioners are told everyday to design programs that are compatible with marketing and advertising strategies accurately and cost effectively. Public relations can help to attain marketing objectives and increase awareness by playing a very tactical role (Miller Rose, 1994). Public relations are anticipated to notify as well as persuade behavior, generate an environment for customer acceptance and build trust. These activities can best be done by working with marketing and advertising functions in the organization (Miller Rose, 1994). In order for public relations, advertising and marketing to work more efficiently the three functions need to be more closely aligned. One approach to IMC was developed by program director, Tom Duncan and his faculty at the University of Colorado. Duncans IMC Message Typology explains the four messages that an organization needs to be aware of so it can control, or if not control, then perhaps influence. The four types of messages are; planned, inferred, maintenance and unplanned. Although Integrated Marketing Communications requires a lot of effort it delivers many benefits. It can create competitive advantage, boost sales and profits, while saving money, time and stress. IMC wraps communications around customers and helps them move through the various stages of the buying process. The organization simultaneously consolidates its image, develops a dialogue and nurtures its relationship with customers. This Relationship Marketing cements a bond of loyalty with customers which can protect them from the inevitable onslaught of competition. The ability to keep a customer for life is a powerful competitive advantage. IMC also increases profits through increased effectiveness. At another level, initial research suggests that images shared in advertising and direct mail boost both advertising awareness and mail shot responses. So IMC can boost sales by stretching messages across several communications tools. Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process and this reduces their misery of choice in a complex and busy world. IMC also makes messages more reliable and therefore more believable. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons. Un-integrated communications send disjointed messages which weaken the impact of the message. This may also confuse, frustrate and arouse anxiety in customers. On the other hand, integrated communications present a reassuring sense of order. Consistent images and relevant, useful, messages help raise long term relationships with customers. Here, customer databases can identify accurately which customers need what information when they need and throughout their whole buying life. Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature. Integrated Marketing Communications Moriarty, Sandra E. PR and IMC: The benefits of integration. Public Relations Quarterly, Fall94, Vol. 39 Issue 3, p38, 7p, 1bw. Once IMC strategy has been determined, marketing managers look to control the four basic elements of the marketing mix: product, price, place, and promotion, known as the four Ps of marketing. Since these four variables are controllable, the best mix of these elements is determined to reach the selected target market. Product: The first element in the marketing mix is the product. Products can be either tangible or intangible. Tangible products are products that can be touched; intangible products are those that cannot be touched, such as services. There are three basic levels of a product: core, actual, and augmented. The core product is the most basic level, what consumers really buy in terms of benefits. For example, consumers do not buy food processors, per se; rather, they buy the benefit of being able to process food quickly and efficiently. The next level of the product is the actual product—in the case of the previous example, food processors. Products are typically sorted according to the following five characteristics: quality, features, styling, brand name, and packaging. Finally, the augmented level of a product consists of all the elements that surround both the core and the actual product. The augmented level provides purchasers with additional services and benefits. For examp le, follow-up technical assistance and warranties and guaranties are augmented product components. When planning new products, firm managers consider a number of issues including product quality, features, options, styles, brand name, packaging, size, service, warranties, and return policies, all in an attempt to meet the needs and wants of consumers. Price: Price is the cost of the product paid by consumers. This is the only element in the marketing mix that generates revenue for firms. In order to generate revenue, managers must consider factors both internal and external to the organization. Internal factors take the form of marketing objectives, the marketing-mix strategy, and production costs. External factors to consider are the target market, product demand, competition, economic conditions, and government regulations. There are a number of pricing strategies available to marketing managers: skimming, penetration, quantity, and psychological. With a price-skimming strategy, the price is initially set high, allowing firms to generate maximum profits from customers willing to pay the high price. Prices are then gradually lowered until maximum profit is received from each level of consumer. Penetration pricing is used when firms set low prices in order to capture a large share of a market quickly. A quantity-pricing strategy p rovides lower prices to consumers who purchase larger quantities of a product. Psychological pricing tends to focus on consumer perceptions. For example, odd pricing is a common psychological pricing strategy. With odd pricing, the cost of the product may be a few cents lower than a full-dollar value. Consumers tend to focus on the lower-value full-dollar cost even though it is really priced closer to the next higher full-dollar amount. For example, if a good is priced at $19.95, consumers will focus on $19 rather than $20. Place: Place refers to where and how the products will be distributed to consumers. There are two basic issues involved in getting the products to consumers: channel management and logistics management. Channel management involves the process of selecting and motivating wholesalers and retailers, sometimes called middlemen, through the use of incentives. Several factors are reviewed by firm management when determining where to sell their products: distribution channels, market-coverage strategy, geographic locations, inventory, and transportation methods. The process of moving products from a manufacturer to the final consumer is often called the channel of distribution. Promotion: The last variable in the marketing mix is promotion. Various promotional tools are used to communicate messages about products, ideas, or services from firms and their customers. The promotional tools available to managers are advertising, personal selling, sales promotion, and publicity. For the promotional program to be effective, managers use a blend of the four promotional tools that best reaches potential customers. This blending of promotional tools is sometimes referred to as the promotional mix. The goal of this promotional mix is to communicate to potential customers the features and benefits of products. Get help with your essay from our expert essay writers IMC at BBC: The Bombay Bicycle Club is London 1st choice Indian cuisine restaurant. I joined the Islington branch 10 months ago. So I selected to write about this restaurant. It is called the 1st Indian cuisine franchise in London. The first restaurant was inaugurated at Clapham 20 year’s back which is, still favorite for many Londoners and chefs. Many braches have been opened after that, now The Bombay Bicycle Club owns around 18 braches, in different parts of London. The aim of the employers of the company is maximum satisfaction of consumers. According to Tana Ramsay (Gordon Ramsay) told to the latest issue of the London Magazine that â€Å"the Bombay Bicycle Club was a local favourite.†It has to be from the Battersea one though, thats the best† Marketing communication of the Bombay bicycle club is effective. They apply all the marketing features in order to get the maximum profit and consumer satisfaction. I will now analyze all the marketing communication according to The Bombay Bicycle Club. Advertising: Bombay Bicycle Club invests in for advertising too. They have different ways of advertising. Since online shopping is a rage these days, they have also invested in e-retailing and the respond is overwhelming. It’s been made easy for the convenience of consumers. Customers can order their food without any hassle of walking down or driving down and finding the parking space. They can order food right from home by just clicking on the updated menus. The customers also get a discount for ordering their food online. They also provide facilities for customers to book a table or the whole place online. They also have leaflets with menus which they distribute it to shops, customers, and even as poster on bikes and other vehicles. Even billboards are used at high traffic areas to attract new customers They have regular ads in the Local and other news papers in the United Kingdom. Newspapers are a good source of reaching out to a large number of people. Another way the Bombay Bicycle Club has implemented is the use of magazine ads, as magazine ads are generally better as they are able to reached the desired demographics Sales promotion: Every now and then the Bombay Bicycle Club gives out vouches or coupons to customers, with these coupons customers get discounts on the food and drinks depending upon the season. For the regular customers, there is a flat discount which they get every time they visit the place. Public relations: All the employees and the managers are courteous, friendly and the atmosphere of the restaurant is warm and homely. The satisfaction of the customer to the smallest detail is the main priority for Bombay Bicycle Club. It also takes part in any community services by distributing food and drinks completely free. Direct marketing: The Bombay Bicycle club is mainly a direct marketing establishment as there is more of human to human contact. People are given all the details of a food item ot any product on a individual basis Conclusion: After all the research I came to conclude that marketing plays an important role in the business. Marketing is basically satisfying customer needs which increase the quality of life and better standard of living. I came to know about the marketing communications. Advertising and sales promotion increases the sales of the organization which also increases the profitability of the company. Sales promotion and direct marketing makes the organization to keep in touch with the previous customers. It not only helps the organization to retain the valuable customers but also to attract new customers. In short if all these feature of marketing work together, they can expand their business, make large amount of money and retain the customers. 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