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Glossary of marketing

Marketing management: is the process allocating the resources of the organization toward marketing activities. Marketing manager is someone who is responsible for directing expenditures of marketing funds. Marketing plan: a document that describes the activities leading to consumer satisfaction the organization anticipate intends to engage in a coming time period, usually one year. The Marketing Management Cycle First, Planning is the process of examining and understanding the surroundings within which the organization functions. Second, Implementation is the process of putting plans that have been made into action. Third, Monitoring is the process of tracking plans and identifying how plans map to changes that take place during program operation when more information is acquired. Correction is the stage in which we take action to return our plan to the desired state based on feedback obtained in the monitoring stage. Types of Marketing Management Philosophies 1. the production concept 2. product concept . selling concept !. marketing concept ". #nd societal marketing concepts. Production concept: $he philosophy that consumers will favour products that are available and highly affordable, and that management should therefore focus on importing production and distribution efficiency.

Product concept: $he idea that %&l will favour products that offer the most quality, performance and features, and tliat the organization should therefore, devote its energy to making continuous produce improve merits. Selling concept' $he idea that consumers (will not buy enough of the organization)s products unless the organization undertakes large*scale selling and promotion effort. Marketing concept the marketing management philosophy (which holds that #chieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. societal marketing concept: $he idea that the organization should determine the needs, wants and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a +u,ay that maintains or improves the consumer&s and society&s well*being. Target marketing: Directing a company's effort towards serving one or more groups of customers sharing common needs or characteristics. Market segmentation: Dividing a market into distinct groups of buyers with different needs, characteristics or behavior, who might require separate produces or marketing mixes. Types of Market segmentation 1. Levels of market segmentation . segmenting consumer markets !. segmenting business markets ". #egmenting international markets $. multivariate segmentation %. developing market segments &. 'nd requirements for effective segmentation. Levels of market segmentation( )ecause buyers have unique needs and wants, each buyer is potentially a separate market.

Types of Levels of market segmentation 1. *ass marketing . #egment marketing !. +iche marketing ". *icro marketing Mass marketing: ,sing almost the same product, promotion and distribution for all consumers. Segment marketing: 'dapting a company's offerings so they more closely match the needs of one or more segments. Niche marketing: 'dapting a company's offerings to more closely match the needs of one or more sub segments -here there is often little competition. Micromarketing: ' form of target marketing in which tailor their marketing programmers to the needs and wants of narrowly defined geographic, demographic, psychographic or behavioral segments. Types of Micromarketing 1. Local marketing . .ndividual Local marketing: Local marketing involves tailoring brands and promotions to the needs and wants of local customer groups / cities, neighborhoods and even specific stores. Individual marketing: 0ailoring products and marketing programmers to the needs and, preferences of individual customers. Segmenting consumer markets( 0here is no single way to segment a market. Types of segmenting consumer markets 1. 1eographic segmentation . Demographic segmentation 3. 2sychographic

eographic segmentation: Dividing a market into different geographical units such as 0uitions, states, regions, counties, cities or neighborhoods. !emographic segmentation: Dividing the marks into groups based on demographic variables such as age, sex, family si3e, family life cycle, income, occupation, education, religion, race and nationality. Life"cycle segmentation( 4ffering products or marketing approaches that 5ecogni3e the consumer's changing needs at different stages of their life. #sychographic segmentation: Dividing a market into different groups bused 4n social class, lifestyle or personality characteristics.

$e%uirements for &ffective Segmentation 6learly there are many ways to segment a market, but not all segmentations are effective. .ndeed, there is quite a gap between the sophisticated approaches to #egmentation that are sometimes suggested and what is actually used by practitioners,' 0o be useful, market segments must have the following characteristics( Measura'ility. 0he degree to 'which the si3e, purchasing power and profits of a market segment can be measured. (ccessi'ility. 0he degree to which a market segment can he reached and served. 0here are many heavy drinkers, but their imbibing is all they have in 6ommon. 7xcept for a few .slamic states. Su'stantiality. 0he market segments are large or profitable enough to serve. ' segment should be the largest possible homogeneous group worth pursuing with a tailored marketing programmer. (ction a'ility. 7ffective programmers need to attract and serve the segments. 8or example, although the *idland )ank identified seven market segments and developed 9ector and 4rchard accounts for them, its resources were too small to develop special marketing programmers for each segment.

Marketing target
*arketing segmentation reveals the firm's market/segment opportunities. 0he firm now has to evaluate the various segments and decide how many and which ones to target. 7valuating *arket #egments .n evaluating different market segments, a firm must look at two dimensions: segment attractiveness and segment strategy.

Segment (ttractiveness: 0he 6ompany must first collect and analy3e data on current sales value, pro;ected sales/growth rates and expected profit margins for the various segments. Segment Strategy: 'fter evaluating different segments, the company must now decide which and how many segments to serve. 0his is the problem of target/ market selection Types of Segment Strategy 1. ,ndifferentiated *arketing . Differentiated *arketing

)ndifferentiated Marketing: ,sing an undifferentiated marketing strategy, a firm might decide to ignore *arket segment differences and go after the whole market with one offer. !ifferentiated Marketing: ,sing a differentiated marketing strategy, a firm decides to target several market segments and designs separate offers for each.

Marketing environment: The actors and forces off eat marketing management's ability to successful transactions with its target customers.

outside marketing that develop and maintain

Micro environment: The forces close to the company that affect its ability to serve its customers < the company, market channel firms, customermarkets, competitors and publics.

Types of Micro environment


1. The company *. Suppliers 3. Marketing Intermediaries +. ,ustomers -. ,ompetitors .. #u'lics Suppliers: 8irms and individuals that provide the resources needed by Lie Company and its competitors to produce goods and services. Marketing intermediaries: Firms that help the company to promote, sell and distribute its goods to final buyers; they include physical distribution firms, mark ting service agencies and financial intermediaries. ,ustomers: 0he 6ompany must study its customer markets closely. 0he six types of customer market. Consumermarkets consist of( 1. .ndividuals and households that buy goods and services for personal consumption. 2. !usiness markets buy goods and services for further processing or for use in their production process, whereas . "eseller markets buy goods and services to resell at a profit. !. #nstitutional markets are made up of schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. ". $overnment markets are made up of government agencies that buy goods and services in order to produce public services or transfer the goods and services to others who need them.

-. 8inally, international markets consist of buyers in other countries, including consumers, producers, resellers and governments. 7ach market type has special characteristics 6hat call for careful study by the seller. $esellers: 0he individuals and to resell ar a profit. organi%ations that buy goods and services

,ompetitors: 0he marketing concept states that, to be successful, a company must provide greater customer value and satisfaction than its competitors do. #u'lic: &ny group Chat has an actual or potential interest in or impact on an organi%ation'sability to achieve its ob'ectives. The seven types of pu'lic 1. Financial publics. 8inancial publics influence the company's ability to obtain funds. )anks, investment houses and stockholders are the principal financial publics. (. )edia publics. *edia publics are those that carry news, features and editorial opinion. 0hey include newspapers, maga3ines and radio and television stations. !. $overnment public*. *anagement must take government developments into account. *arketers must often consult the company's lawyers on issues of product safety, truth/in/advertising and other matters. +. Citi%en action publics. & company's marketing decisions may be questioned by consumer organi3ations, environmental groups, minority groups and other pressure groups. .ts public relations department can help it stay in touch with consumer and citi3en groups. $. Local publics. 7very company has local publics, such as neighborhood residents and community organi3ations. Large companies usually appoint a community/relations officer to deal with the community, attend meetings, answer questions and contribute to worthwhile causes.

%. $eneral public. & company needs to be concerned about the general public's attitude towards its products and activities. 0he public's image of the company affects its buying. 0hus, many large corporations invest huge sums of money to promote and build a healthy corporate image. &. #nternal publics. & company's internal publics include its workers, managers, volunteers and the board of directors. Large companies use newsletters and other means to inform and motivate their internal publics. =hen employees feel good about their company, this positive attitude spills over to their external publics.

Macro environment: The larger societal forces that affect the ,whole microenvironment demographic, economic, -atural, technological, political and cultural forces. Types of macro environment 1. !emographic &nvironment *. Natural &nvironment 3. Technological &nvironment +. #olitical &nvironment -. ,ultural &nvironment

!emography: The study of human populations in terms of density, location, age, se., race, occupation and other statistics. 1. #opulation Si/e and ro0th Trendy *. ,hanging (ge Structure of a #opulation 3. $ising Num'er of &ducated #eople +. ,hanging ,onsumer Spending #atterns #opulation Si/e and ro0th Trendy: .n any geographic market, population si3e and growth trends can be used to graph its broad potential for a wide range of goods and services

,hanging (ge Structure of a #opulation( 0he most noticeable demographic shift in 7urope, the ,nited #tates and affluent 'sian countries is the changing age structure of the population $ising Num'er of &ducated #eople: 's economies in 7astern 7urope and 'sia develop, we may expect to see more money spent on education. 0he proportion of the population that is educated will rise and the population, as a whole, will become better 7ducated. ,hanging ,onsumer Spending #atterns: *arketers also want to identify how spending patterns of consumers at different income levels vary. 6hanges in ma;or economic variables such as income, cost of living, interest and savings and borrowing patterns have a large impact on the changing consumer spending pattern.

Natural environment: -atural resources that are needed us inputs by affected by marketing

Types of natural environment


1. Shortages of Raw Materials 2. Increased Cost of Energy Shortages of Raw Materials: 6ompanies in the forestry business are required to reforest timberlands in order to protect the soil and to ensure enough wood supplies to meet future demand. Increased Cost of Energy: 4ne non/renewable resource / oil / has created the most serious problem for future economic growth. 0he large industrial economies of the world depend heavily on oil. 'nd until economical energy substitutes can be developed, oil will continue to dominate the world political and economic picture

Technological environment: 8orces that create new technologies, creating1 product and market opportunities.

#olitical environment: Laws, government agencies and pressure groups that influence and limit various /rgani%ations and individuals in a given society. ,ultural environment( institutions and other forces that affect society's basic values, perceptions, preferences and behaviors.

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