Relationships

There are three aspects of CRM which can each be implemented in isolation from each other:

Operational - automation of customer processes that offers support to a company’s sales or service representative
Collaborative - the program communicates to customers without a company’s sales or service representative (self service)
Analytical - analysis of customer information for multiple purposes

The latest CRM functionalities
The latest CRM should incorporate features that extend the CRM functionality beyond sales, marketing, and customer support.

Some features are
-Easy user interface
-Easily integrated with popular accounting systems.
-Integration with advanced email support
-Support perforce integration
-Features to make the engine to support automated business rules, email support and alerts etc

Zero footprint web browser: the CRM should be web based and operate from within a browser. One should be able to access the application as one would access any regular web. There must not be any requirement of writing code at the client's end or any requirement to download a plug-inn or an applet. Standard browser access is a must should support open technologies like http/xml which provides all the functionality.

All modules should be inherently integrated with each other. The complete breadth of crm functions spanning sales, marketing, customer support, employee support, partner management, defect tracking and customer portal applications must be integrated by design.

The product should support database like oracle, ms sql server and sybase. A single repository should hold all the data generated across various customer touch points.

If the modules are pre-integrated then you have the flexibility to start with what you need and activate the rest when you need them.

Should be release independent so that the customizations done at installation and over the years are preserved when you upgrade. There is no need to rework them.

Operational
Operational CRM provides support to "front office" business processes, including sales, marketing and service. Each interaction with a customer is generally added to a customer's contact history, and staff can retrieve information on customers from the database when necessary.
One of the main benefits of this contact history is that customers can interact with different people or different contact channels in a company over time without having to describe the history of their interaction each time.
Consequently, many call centers use some kind of CRM software to support their call center agents.
Operational CRM process customer data for a variety of purposes:
Managing Campaigns
Enterprise Marketing Automation
Sales Force Automation

Collaborative
Collaborative CRM covers the direct interaction with customers, for a variety of different purposes, including feedback and issue-reporting. Interaction can be through a variety of channels, such as web pages, email, automated phone (Automated Voice Response AVR) or SMS.
The objectives of collaborative CRM can be broad, including cost reduction and service improvements.

Analytical
Analytical CRM analyzes customer data for a variety of purposes:
Design and execution of targeted marketing campaigns to optimize marketing Design and execution of specific customer campaigns, including customer acquisition, cross-selling, upselling, retention

Analysis of customer behavior to aid product and service decision making (e.g. pricing, new product development etc.)

Management decisions, e.g. financial forecasting and customer profitability analysis
Prediction of the probability of customer defection (churn analysis).
Analytical CRM generally makes heavy use of data mining.

Strategy
Several commercial CRM software packages are available which vary in their approach to CRM. However, CRM is not just a technology, but rather a comprehensive approach to an organization's philosophy in dealing with its customers. This includes policies and processes, front-of-house customer service, employee training, marketing, systems and information management. Hence, it is important that any CRM implementation considerations stretch beyond technology, towards the broader organizational requirements.
The objectives of a CRM strategy must consider a company’s specific situation and its customers needs and expectations.

It is important to distinguish between a Sales software tool and a fully integrated CRM solution. Many small companies may very well meet their and their customer requirements by a sales tool linked to their e-mail system. A stand alone front end solution like this may perfectly well manage customer information, quotations, sales activities, customer interactions and quotations status. However, if customer behaviour and profitability is needed a more integrated CRM software package is needed which is a much more complex solution and interfaces needs to be built with the ERP, or MPS, Financial and service ledgers.

Technology considerations
The technology requirements of a CRM strategy can be complex and far reaching.
The basic building blocks:
A database for customer information.
Operational CRM requires customer agent support software.
Collaborative CRM requires an interactive system, e.g. an interactive website, automated phone systems etc.
Analytical CRM requires statistical analysis software as well as software that manages any specific marketing campaigns.
Each of these can be implemented in a basic manner or in a high end complex installation.

Key functionalities
A typical CRM system is subdivided into three basic sub modules:
-Marketing
-Sales
-Service

Sales Force Automation
Customer-Centric Sales Function Management Sales Management Sales Forecasting Pipeline Management Mobile Sales Sales Commissions Mgmt

Sales Order Processing
Order Lifecycle Management Quotation and Invoicing Inventory Management Shipping & RMA

Marketing Automation
Marketing Management Email Campaigning Direct Mail Campaigning Tele-marketing Marketing Analytics Transpromotional documents (enriching transaction documents with marketing content).

Issue/Project Management
Defect Management Test case Management Product Release Mgmt Time & Cost tracking Project Management

Customer Help Desk
Customer Support Multi Channel Contact Center Mobile Support Customer Portal Customer Self Service Customer Survey SLA Management

Partner Management
CRM Portal Partner Lead Distribution Partner Self-service Partner Order processing

Helpdesk Software
Employee Help Desk Multi Channel Contact Center Mobile Support Asset Management Employee Portal Employee Self Service Employee Survey

Integration
Object API Web Services Back office integration Several functionalities are:
-Service Order Management
-Service Contract Management
-Planned Services management
-Warranty Management
-Installed Base (Equipment) Management
-SLA Management
-Resource Planning and Scheduling
-Knowledge Management (FAQs, How to guides)
-Call Center Support
-Resource Planning and Workforce Management

Channels of communication
It is also important to mention here that a CRM system is capable of executing all the three sub modules via multiple communication Channels. These channels can be:
-Direct
-Online (Internet)
-Call Center (via Phone/FAX/Email etc)

All the three CRM Sub Modules (Marketing, Sales and Service) can be executed across these Communication channels. Based on these criteria, CRM offerings can be further sub divided into following:
Communication Channel
/ CRM Module
-Direct
-Internet
-Call Center
-Marketing
-Online Marketing
-Web Marketing
-Tele Marketing
-Sales
-Online Sales
-Web Shop
-Tele Sales
-Service
-Online Service
Customer Self Service Portal
-Tele Service

Successes
While there are numerous reports of "failed" implementations of various types of CRM projects, these are often the result of unrealistic high expectations and exaggerated claims by CRM vendors.
Many of these "failures" are also related to data quality and availability. Data cleaning is a major issue. If the company CRM strategy is to track life-cycle revenues, costs, margins and interactions between each individual customer this must be reflected in all business processes. Data must be subtracted from sales, manufacturing, supply chain, logistics, finance, service .... databases. This means that a total business integrated processing system needs to be in place with defined structures and data quality. If not interfaces must be developed and implemented to subtract data from different systems. This creates a demand way beyond customer satisfaction to understand the full business to business relationship. Hence a CRM is much more than a fancy sales or customer interaction system.
The experience from many companies is that a very clear CRM requirement with regards to reports, e.g. ouput and input requirements, is of vital importance before starting any implementation. With a proper demand specification a lot of time and costs can be saved based on right expectations versus systems capability. A well operative CRM system can be an extremely powerful tool for management and customer strategies.

Privacy and data security
The data gathered as part of CRM must consider customer privacy and data security. Customers want the assurance that their data is not shared with third parties without their consent and not accessed illegally by third parties.
Customers also want their data used by companies to provide a benefit for them. For instance, an increase in unsolicited telemarketing calls is generally resented by customers while a small number of relevant offers is generally appreciated by customers.

People as competitive tools

There are internal and external customer-supplier relationships:

With my MP3 the customer service center exists for the purpose of serving its customers. The whole center is involved in a collaborative process to meet its customers’ needs. In addition to the external “real” customers they also have internal customers. Within the service center they relate to each other and also provide services to each other. Often the needs of the “internal” customer compete with the needs of the external customer. The question arises, how do we balance the internal requests for service with the demands and needs of their real customers?

The way I look at this issue is: If the providing service to you internally enables you to meet the needs of the external customer, then I will treat your request the same way that I would treat a request from an external customer.

It’s all about the customer. My number one priority as a service center has got to be the customer.

Now, beyond servicing the needs of the customer, there is also a need to maintain harmony within the organization. The real customer will always be my number one priority. The internal requests for service that don’t relate directly to servicing the customer will be the second priority.

Its not that they ignore internal requests for service; there are things in any job that we have to do in order to adequately meet the requirements of the position. Not all of these things may relate directly to servicing the needs of the “real” customer. Those things needs to be addressed, but not at the expense of our core mission.

If you are making a request internally for service, especially if you want it to be a high priority, remember that the external customer gets first priority. Unless your request relates directly to servicing their needs your request should only get second priority at best.

If we all had lots of time and unlimited resources, this would not be an issue. But when time and resources are tight, we have to set priorities. With a service center, we exist because of the needs of the customer; therefore, priority has to be given to them. My rule of thumb is: Never sacrifice the needs of the external customer. Work to keep harmony within the organization but never sacrifice the real customers.

So if ones read these texts one should realize how could be the customer service work with the customers with my Mp3.

Nicely available

The term marketing channel is often used interchangeably with “sales channel” or “distribution channel”, i.e. any individual or company used in making the subject company’s products and/or services available to its customers. More specifically, a marketing channel would be any individuals or products through which the subject company conducts its marketing efforts.

Multichannel marketing is offering customers more than one way to buy something - for example, from a Web site as well as in retail stores. For manufacturers, multichannel marketing also includes the use of partners, sometimes known as channels, who market directly to the customer as consultants, repackagers, or retailers.

For retailers, advocates claim that, in addition to offering the customer more options, multichannel marketing allows a business more opportunities to interact with customers - each channel can help promote the other channels. Since Web site and phone-in mail orders collect information about the customer that a retail sale may not, these channels make it possible to develop mailing lists for future promotions and branding campaigns.

Types of Channels of Distribution
Consumer ChannelsChannels for Consumer Products.Vertical dimensions, determined by the # in the channel.

Types of Channels of Distribution

Channel A:Producer >>customer

Channel B:Producer >>retailer>>customer

Channel C:Producer>>Wholesaler>>retailer>>customer

Channel D:Producer>>agent>>wholesaler>>retailer>>customer

Channel E:Producer>>buyer ( My product marketing channel )

Channel F:Producer>>distribution>>buyer
Channel G:Producer>>agent >>buyer
Channel H:Producer>>agent>>distribution >>buyer

In this case we can see the blue one over up.This is the marketing channel of my product .This is just made directly by clas ohlson and they are selling these through their own reatails.So why i think now they are using the channel E method to distribute there product to customers. And they just using the direct marketing methods.

At any cost

Price is of fundamental importance as it is the only mix element that
actually generates income. But, before any pricing decisions can be
undertaken it is important that the factors influencing price are
understood. These factors can be categorized as internal and external.

Pricing decision have to be adapted to a variety of situations and market
segments. This calls for a systematic and well-planned approach that will
lead to an acceptable range of price levels. A systematic approach should
lead to a more reasoned and complete picture of available pricing options.
This approach has two main stages; analysis of the pricing environment,
and price determination.

Internal factors affecting pricing.
The internal factors affecting price include: company objectives and
strategies (with an emphasis on integration); costs and classification
(including fixed and variable costs); economies of scale; experience
effects; price escalation; and the cost of implementing various pricing
schemes.

External influences on price.
A core issue of pricing is the impact of price on demand and sales
volume. Price-volume relationships relate to basic supply and demand
theory and include the effect of branding and stages in the PLC on
demand. Recognition has to be given to the differences between
individual customers and industrial customers. The effect of the
competitive environment on competitive activity is also important
including the structure of the market, level of market concentration and
the existence of competitive advantage. The channel environment, legal
environment, consumer pricing regulations and the international setting
are also key issues in the determination of price.

Pricing objectives, in line with company objectives, strengths and
weaknesses, exploit the possibilities of the marketplace. They can be
classified in a number of ways and they provide overall guidance for
pricing decisions.

One of the step in pricing is the development of a price structure by
applying the foregoing theories. Price levels can be determined by a
number of methods including: simplified decision methods, optimisation
methods, simulation methods, price adjustments, negotiations,
competitive bidding and leasing.

Pricing strategy versus tactics is where long term pricing structures and
levels are compared with short term or tactical pricing decisions,
including the role of consumer and retail promotions and trade
promotions.

Pricing, for a number of reasons, is expected to become an even more
important decision in the future, not least amongst these are issues
including customization, technological developments, channel pricing
and international pricing.

Pricing is essential to the overall profitability of the organization.
Effective pricing, however, requires a systematic approach starting with a
review of the environmental factors that prevail. The next step is to set
objectives from which the pricing strategy can be developed and adjusted
as necessary.

There are many ways to price a product. Let's have a look at some of them and try to understand the best policy/strategy in various situations.

Use a high price where there is a uniqueness about the product or service. This approach is used where a a substantial competitive advantage exists. Such high prices are charge for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights.

Penetration Pricing.
The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom in order to

Economy Pricing.
This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc.

Price Skimming.
Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented.

penetration pricing, economy pricing, and price skimming are the four main pricing policies/strategies. They form the bases for the exercise. However there are other important approaches to pricing.

Psychological Pricing.
This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example 'price point perspective' 99 cents not one dollar.
Product Line Pricing.
Where there is a range of product or services the pricing reflect the benefits of parts of the range. For example car washes. Basic wash could be $2, wash and wax $4, and the whole package $6.

Optional Product Pricing.
Companies will attempt to increase the amount customer spend once they start to buy. Optional 'extras' increase the overall price of the product or service. For example airlines will charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other.

Captive Product Pricing
Where products have complements, companies will charge a premium price where the consumer is captured. For example a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor.

Product Bundle Pricing.
Here sellers combine several products in the same package. This also serves to move old stock. Videos and CDs are often sold using the bundle approach.

Promotional Pricing.
Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free).

Geographical Pricing.
Geographical pricing is evident where there are variations in price in different parts of the world. For example rarity value, or where shipping costs increase price.

Value Pricing.
This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales e.g. value meals at McDonalds.

So here after analyzing all the ways of pricing i think my product use Penetration Pricing strategy. Its a new for the company so the price is comparetitively low than other Mp3 providers.For the ultimate goal to get a good market.

But after getting the market i think the price will be rise more and more .And as we know that the product is just now in primary level so it needs time to go further.

I was hit

How do potential customers learn about new product ,try them and adopt or reject them?Anyway, adoption is an indivisul's decision to become a regular user of a product.The consumer -adoption process is later followed by the consumer-loyalty process,which is the concern of the established producer.Years ago,new-product mareketers used a mass-market approach to lauch products.This approoach has two main drawbacks.:its called for heavy marketing expenditures and it it involved many wasted exposures.These drawbacks leds to a second approach ,heavu user target marketting.This approach makes sence provided that heavy users are identifyable and are early adopters.However even within the heavy -user group ,many heavy users are loyal to existing brands.New product marketers now aim at consumers who are early adopters.

The theory of innovation diffusion and consumer adoption helps marketers identify early adopters.

stages in the adoption process

An innovation is any good service or idea that is perceived by someone as new.Innovations take time to spread through the social system.Rogers define the innovation diffusion process as " the spread of new idea from its source of inventionor creation to its ultimate users or adopters.

Adopters of new products have been observed to move through five stages:

1. Awarness- The consumer becomes aware of the innovation but lack information about it.


2. Interest-The consumers id stimulated to seek information about the innovation.


3. Evalution-The consumers consider whether to try the innovation.


4. Trial-The consumers try the innovation to improve his or her estimate of its value.


5. Adoption-The consumers decides to make full and regular use of the innovation.

This is something i love

For many a product is simply the tangible, phsysical entity that they may be buying or selling. You buy a new MP3 and that's the product - simple! Or maybe not. When you buy a MP3, is the product more complex than you first thought? In order to actively explore the nature of a product further, lets consider it as three different products - the CORE product, the ACTUAL product, and finally the AUGMENTED product.

These are known as the 'Three Levels of a Product.' So what is the difference between the three products, or more precisely 'levels?'

The CORE product is NOT the tangible, physical product. we can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the Mp3 example, the benefit is convenience i.e. the ease at which you can listen to music, when you want to. Another core benefit is getting news with the radio voice.

The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the mp3 example, it is the product that we listen,try, buy and then collect.

The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a mp3, part of the augmented product would be the warranty, the customer service support offered by the mp3's manufacture, and any after-sales .

Product lining is the marketing strategy of offering for sale several related products. Unlike product bundling, where several products are combined into one, lining involves offering several related products individually. A line can comprise related products of various sizes, types, colors, qualities, or prices. Line depth refers to the number of product variants in a line. Line consistency refers to how closely related the products that make up the line are. Line vulnerability refers to the percentage of sales or profits that are derived from only a few products in the line.So here we can see the Class Ohlson sell the same related products.Though they have Mp3s with diffrent price,colour,desighn,model,feature etc.


The number of different product lines sold by a company is referred to as width of product mix. The total number of products sold in all lines is referred to as length of product mix. If a line of products is sold with the same brand name, this is referred to as family branding. When you add a new product to a line, it is referred to as a line extension. When you add a line extension that is of better quality than the other products in the line, this is referred to as trading up or brand leveraging. When you add a line extension that is of lower quality than the other products of the line, this is referred to as trading down. When you trade down, you will likely reduce your brand equity. You are gaining short-term sales at the expense of long term sales.

Image anchors are highly promoted products within a line that define the image of the whole line. Image anchors are usually from the higher end of the line's range. When you add a new product within the current range of an incomplete line, this is referred to as line filling.

Price lining is the use of a limited number of prices for all your product offerings. This is a tradition started in the old five and dime stores in which everything cost either 5 or 10 cents. Its underlying rationale is that these amounts are seen as suitable price points for a whole range of products by prospective customers. It has the advantage of ease of administering, but the disadvantage of inflexibility, particularly in times of inflation or unstable prices.

There are many important decisions about product and service development and marketing. In the process of product development and marketing we should focus on strategic decisions about product attributes, product branding, product packaging, product labeling and product support services. But product strategy also calls for building a product line.

1.Market introduction stage
-cost high
-sales volume low
-no/little competition - competitive manufacturers watch for acceptance/segment growth losses
-demand has to be created
-customers have to be prompted to try the product

2. Growth stage
-costs reduced due to economies of scale
-sales volume increases significantly
-profitability
-public awareness
-competition begins to increase with a few new players in establishing market
-prices to maximize market share

3. Mature stage
-Costs are very low as you are well established in market & no need for publicity.
-sales volume peaks
-increase in competitive offerings
-prices tend to drop due to the proliferation of competing products
-brand differentiation, feature diversification, as each player seeks to differentiate from competition with "how much product" is offered
-very profitable

4. Decline or Stability stage
-costs become counter-optimal
-sales volume decline or stabilize
-pices, profitability diminish
-pofit becomes more a challenge of production/distribution efficiency than increased sales

The mp3 i am talking about is just in primary level in the market.That means it goes in Market introduction stage.THE PRODUCT JUST MAKING ITS MARKET. Consumers are applying there demand over the product.And commonly the sales volume is low.

Well lets now turn eyes over the branding.A brand is a name, term, design, symbol, or other feature that distinguishes products and services from competitive offerings, as defined by the American Marketing Association;[1] however, according to The Chartered Institute of Marketing, a brand represents the consumers' experience with an organization, product, or service.

In Branding the company not perform well.Cause though they said the product is of EXIBEL but with the product they just mention the product seller name That is Clas Ohlson personal product.But also notice that in branding with the company name is also makes sense to the consumers,cause as we know the big market of clas ohlson with its retailing serivices and high quality products.

Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Package labelling (BrE) or labeling (AmE) is any written, electronic, or graphic communications on the packaging or on a separate but associated label.

The purposes of packaging and package labels

Packaging and package labelling have several objectives:

Physical Protection - The objects enclosed in the package may require protection from, among other things, shock, vibration, compression, temperature, etc.

Barrier Protection - A barrier from oxygen, water vapor, dust, etc., is often required. Package permeability is a critical factor in design. Some packages contain desiccants or Oxygen absorbers to help extend shelf life. Modified atmospheres or controlled atmospheres are also maintained in some food packages. Keeping the contents clean, fresh, and safe for the intended shelf life is a primary function.

Containment or Agglomeration - Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. Liquids, powders, and flowables need containment.
Information transmission - Packages and labels communicate how to use, transport, recycle, or dispose of the package or product. With pharmaceutical, food, medical, and chemical products, some types of information are required by governments.

Marketing - The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Package design has been an important and constantly evolving phenomenon for dozens of years. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display.

Security - Packaging can play an important role in reducing the security risks of shipment. Packages can be made with improved tamper resistance to deter tampering and also can have tamper-evident features to help indicate tampering. Packages can be engineered to help reduce the risks of package pilferage: Some package constructions are more resistant to pilferage and some have pilfer indicating seals. Packages may include authentication seals to help indicate that the package and contents are not counterfeit. Packages also can include anti-theft devices, such as dye-packs, RFID tags, or electronic article surveillance tags, that can be activated or detected by devices at exit points and require specialized tools to deactivate. Using packaging in this way is a means of loss prevention.

Convenience - Packages can have features which add convenience in distribution, handling, display, sale, opening, reclosing, use, and reuse.

Portion Control - Single serving or single dosage packaging has a precise amount of contents to control usage. Bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households. It is also aids the control of inventory: selling sealed one-liter-bottles of milk, rather than having people bring their own bottles to fill themselves.

Here it can be justify with these points of view that the Mp3´s packaging really makes a positive sence to the consumers for the great attraction of the consumers.IF í compare with the other competitive Mp3 products i am sure the packaging stood in such a standard position that comparatabely with other products.

For example, i observed the product of Creative mp3 and comparatively its more attractive with the packing .

Targetting strategy

THE FUNDAMENTAL ELEMENTS OF THE DEFINITION OF A CUSTOMER TARGETING (MARKETING) STRATEGY Corporate Strategy Customer Targeting (Marketing)Customer Targeting (Marketing) Environmental Scan Formulation of Customer Targeting (Marketing) Strategy )Budgeting and operational budgets • Mission of the firm • Strategic thrusts and planning challenges Customer Targeting (Marketing) Requirements (Marketing) Internal Scrutiny • Strengths and weaknesses • Distinctive Customer Targeting competencies for all strategic categories of decisions • Industry and competitive analysis • Customer Targeting (Marketing) intelligence Customer Targeting (Marketing Strategic Agenda Strategic funds programming.

I think my product the Mp3 maintain allmost all the strategy to get a big market .The main strategyto get the market with the people who are really mad to listen to music.And with the competitive advantage it has video option with the price of 50 € whereas the other selling with like 110-200€.IT also include FM radio.The main idea was to get the mediocare buyers with a good product.OF course the feature of the product is also mind blowing.

However i think the following strategys are very much considerable to the starategy of a product.

MAJOR CATEGORIES OF STRATEGIC DECISIONS LINKED TO CUSTOMER TARGETING

1. MARKETING INTELLIGENCE
It corresponds to the effort conducted by the firm to decipher competitors' standing and to try to anticipate their future moves. Important issues areproduct introductions, marketing approaches, changes in segmentation practices, price policies, product liabilities, new distribution channels, and improved services approaches.

2. DEFINING AND ANALYZING MARKETS
These decisions are concerned with generating marketing intelligence for the firm. It starts with an appropriate market segmentation, and a finer definition of product-market segments so as to capture the different preferences and needs of customers. In each of those segments, ananalysis of the behavior of consumers and organizational buyers is conducted, as well as of the overall strategic competitive situation.

3. PRODUCT STRATEGY
It refers to decisions on how to position a business unit product offering including
specific products, breadth of product lines, mix, and bundling - to serve its target markets, establishing strategic objectives for products - market share, profit contribution, and selecting a branding strategy.

4. NEW PRODUCTS DEVELOPMENT AND INTRODUCTION
Issue included are: idea generation, screening and evaluation of ideas, business analysis, development of a prototype, formulation of a marketing approach, market testing in pilot regions, adjustment of administrative and support systems, and new products introduction.

5. DISTRIBUTION STRATEGY
Decisions involved: selection of a distribution channel - whether direct or via retailers, wholesalers, or agents; design and management of the physical distribution system -including customer service, demand forecasting, inventory control, materials handling, order processing, parts and service support, warehousing and storage, procurement, packaging, returned goods handling, and traffic and transportation; and push vs. pull mode of operation of the distribution and sales systems.

6. PRICE STRATEGY
The central factors that affect price strategy are product competitive positioning, product mix, brand strategy, and product quality and features. The distribution strategy also influences how the price decision will be affected by the advertising and sales force strategy

7. PROMOTION AND ADVERTISING STRATEGIES
An integrated promotion strategy has four components: advertising - presentation and promotion of ideas, goods, or services by an identified sponsor; personal selling - oral presentation to one or more prospective purchasers; sales promotion - includes trade shows, contests, samples, point-of-purchase displays, and coupons; and publicity - exhibition in mass media not paid for directly by sponsor.

8. SALES STRATEGY
This encompasses all of the key decisions that should support a coherent sales strategy including account management, cross-selling and up-selling, territory management lead closure, opportunity management, sales force incentives, sales team composition, and customer engagement process.

9. SERVICE STRATEGY
The extend to which service activities become a highest priority to the firm is a critical element of service strategy. Critical decisions are the scope of the service offering, the degree of technical support provided, the amountof customization of service activities, the management of account inquiries, service dispatch, problem resolution, and service tracking.

10. MARKETING ORGANIZATION AND MANAGERIAL INFRASTRUCTURE
It includes the development of an organization structure; planning, control and information systems; and rewards and incentives systems in accordance with the culture of the firm and the marketing strategy. It is important to reflect on the proper segmentation in the organizational structure of product marketing - which typically resides in the back-end of the organization, and customer marketing - which typically resides in the front-end.
Target market is, the market segment to which a particular product is marketed. It's often defined by age, gender, geography, and/or socio-economic grouping.

Targeting strategy or targeting is the selection of the customers you wish to service. The decisions involved in targeting strategy include:

-which segments to targeting
-how many products to offer
-which products to offer in which segments

There are three steps to targeting:
-market segmentation
-target choice
-product positioning

Targeting strategy decisions are influenced by:
-market maturity
-diversity of buyers' needs and preferences
-strength of the competition
-the volume of sales required for profitability

The marketing mix is generally accepted as the use and specification of the 4 Ps describing the strategic position of a product in the marketplace. One version of the origins of the marketing mix starts in 1948 when James Culliton said that a marketing decision should be a result of something similar to a recipe. This version continues in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term 'Marketing-Mix'. A prominent person to take centre stage was E. Jerome McCarthy in 1960; he proposed a four-P classification which was popularised.

Marketing mix (Price, Place, Promotion, Product)

When marketing their products firms need to create a successful mix of:

the right product
sold at the right price
in the right place
using the most suitable promotion.


To create the right marketing mix, businesses have to meet the following conditions:
-The product has to have the right features - for example, it must look good and work well.
-The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.
-The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation.
-The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.

The 4Ps and the marketing mix
The 4Ps are the ideas to consider when marketing a product. They form the basis of the marketing mix. Getting this mix right is critical in order to successfully market a product. The 4Ps are:

Product
Price
Promotion
Place

If market research is carried out effectively, a company can plan a promotion for the right product, at the right price, and to get it to their chosen market, in the right place.

Now look at the 4Ps in more detail.

Product
A product can be either a good or a service that is sold either to a commercial customer or an end consumer. A customer buys a product, and a consumer uses it. Sometimes these are one and the same, as an industrial firm can also be a customer and a consumer. For example, British Airways might buy aeroplanes from British Aerospace, so it is a customer. It won't sell on the planes to another buyer, as BA needs the planes to provide its service, so it is also a consumer. Sometimes a wide product range covers both (Mercedes produce lorries for haulage companies, and cars for domestic use).

More commonly, there will be a number of sellers forming a chain of distribution. For example, a gold mine may sell gold to a jewellery manufacturer, who in turn will sell on rings to wholesalers and retailers, before we get to buy them in the high street. Each is a customer, but only the final user is the end consumer. A marketing manager will identify who his/her target market is, what they want, and sell it to them at each stage in the chain.

Price
No matter how good the product is, it is unlikely to succeed unless the price is right. This does not just mean being cheaper than competitors. Most people associate a higher price with quality, so you would expect to pay more for a Rolls Royce than for a Lada. On the other hand, is one cola worth more than another, and if so, how much?

As a rule, a producer of luxury or medical products will use skim pricing or premium pricing initially, in order to maximize its profits. This is useful, as it helps them to recover expensive research and development costs quickly.

For fast moving consumable goods (fmcg's) like colas, penetration pricing is usually used. The firm will want a large share of the market, so will settle for a small profit on each item. In the long term, they hope that the turnover, and therefore their profits, will be high.

The simplest method of all is cost-plus pricing , where a firm adds a profit mark-up to the unit cost.

Promotion
The specific sections of society (market segments) being targeted will affect the types of media chosen, as will the cost. If you were a toy manufacturer, you might want an advertising spot during children's TV. If you ran a local restaurant, you might choose a local paper or radio.

A small or local business would not usually advertise on TV, because it is very expensive. Sales promotion is designed to encourage new and repeat sales. Loyalty cards, free gifts, competitions and voucher schemes are the most popular.

Companies use sponsorship and public relations to improve their image, notably through financing sports, the arts and public information services.

Place
Distribution channels are the key to this area. A firm has to find the most cost-effective way to get the product to the consumer. Direct marketing through catalogues, via a TV shopping channel and through the Internet have become popular, because the consumer can shop from home.

For the firm, they can cut out the middleman in the process, and can therefore make more profit. Going through wholesalers and high-street retailers, however, is the most popular form of distribution, as that is still where most people shop.

SO if we consider these aspect we can see that my product in case of place they use the big ratail shops.Which is specificly the All Class Ohlson shops.The price which is less comperatively other mp3's .And The main aims of promotion are to persuade, inform and make people more aware of a brand, as well as improving sales figures. Advertising is the most widely used form of promotion, and can be through the media of TV, journals.or outdoors
(billboards, posters).


In case of my product the internal accessibility is only visible.There is no external-accessibility of this product.

This is What I am!!!

Business buyers respond to many influences when they make their decisions.When suppliers offerings are similiar,business buyers can satisfy the purchasing requirements with any suppliers,and they place more weight on the personal treatement they receive.When suppliers pfferings differ substaatially,business buyers are more accountable for their choices and pay more attention to economic factors.

Categories that Effect the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following three factors:

-Personal
-Psychological
-Social

The marketer must be aware of these factors in order to develop an appropriate MM for its target market.

Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the decision making.
Young people purchase things for different reasons than older people.

Psychological factors
Psychological factors include:

Motives
A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal.Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix.
MASLOW hierarchy of needs!!

-Physiological
-Safety
-Love and Belonging
-Esteem
-Self Actualization
-Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases.

Perception
What do we see?? Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. IE we chose what info we pay attention to, organize it and interpret it.Information inputs are the sensations received through sight, taste, hearing, smell and touch.Selective Exposure-select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies current needs, intensity of input changes (sharp price drop).

Selective Distortion-Changing/twisting current received information, inconsistent with beliefs.

Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. A current example...MCI and AT&T...do you ever get confused?

Selective Retention-Remember inputs that support beliefs, forgets those that don't.
Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned. Exposed to 1,500 advertisement per day. Can't be expected to be aware of all these inputs, and certainly will not retain many.

Interpreting information is based on what is already familiar, on knowledge that is stored in the memory.

Problems marketing wine from South Africa. Consumers have strong perceptions of the country, and hence its products.

Ability and Knowledge
Need to understand individuals capacity to learn. Learning, changes in a person's behavior caused by information and experience. Therefore to change consumers' behavior about your product, need to give them new information re: product...free sample etc.
South Africa...open bottle of wine and pour it!! Also educate american consumers about changes in SA. Need to sell a whole new country.

When making buying decisions, buyers must process information.Knowledge is the familiarity with the product and expertise.

Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product.
Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they assume that the greater price indicates greater quality.

Learning is the process through which a relatively permanent change in behavior results from the consequences of past behavior.


Attitudes
Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible, living or non- living.....Drive perceptions
Individual learns attitudes through experience and interaction with other people.
Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy.

Honda "You meet the nicest people on a Honda", dispel the unsavory image of a motorbike rider, late 1950s. Changing market of the 1990s, baby boomers aging, Hondas market returning to hard core. To change this they have a new slogan "Come ride with us".

Attitudes and attitude change are influenced by consumers personality and lifestyle.

Consumers screen information that conflicts with their attitudes. Distort information to make it consistent and selectively retain information that reinforces our attitudes. IE brand loyalty.

There is a difference between attitude and intention to buy (ability to buy).

Personality
all the internal traits and behaviors that make a person unique, uniqueness arrives from a person's heredity and personal experience. Examples include:
-Workaholism
-Compulsiveness
-Self confidence
-Friendliness
-Adaptability
-Ambitiousness
-Dogmatism
-Authoritarianism
-Introversion
-Extroversion
-Aggressiveness
-Competitiveness.

Traits effect the way people behave. Marketers try to match the store image to the perceived image of their customers.
There is a weak association between personality and Buying Behavior, this may be due to unreliable measures. Nike ads. Consumers buy products that are consistent with their self concept.


Lifestyles
Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy, natural lifestyle.
Lifestyles are the consistent patterns people follow in their lives.

EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable in US until 1920's. Now an assault by the American Academy of Dermatology.

Extra credit assignment from the news group, to access Value and Lifestyles (VALS) Program, complete the survey and Email alex@udel.edu the results. This is a survey tool that marketers can use to better understand their target market(s).
Return to Contents List

Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and culture.

Opinion leaders
Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay) spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.)
Can be risky...Michael Jackson...OJ Simpson...Chevy Chase


Roles and Family Influences
Role...things you should do based on the expectations of you from your position within a group.People have many roles.

Husband, father, employer/ee. Individuals role are continuing to change therefore marketers must continue to update information.
Family is the most basic group a person belongs to. Marketers must understand:

that many family decisions are made by the family unit consumer behavior starts in the family unit family roles and preferences are the model for children's future family (can reject/alter/etc) family buying decisions are a mixture of family interactions and individual decision making family acts an interpreter of social and cultural values for the individual.
The Family life cycle: families go through stages, each stage creates different consumer demands:
bachelor stage...most of BUAD301
newly married, young, no children...me
full nest I, youngest child under 6
full nest II, youngest child 6 or over
full nest III, older married couples with dependant children
empty nest I, older married couples with no children living with them, head in labor force
empty nest II, older married couples, no children living at home, head retired
solitary survivor, in labor force
solitary survivor, retired
Modernized life cycle includes divorced and no children.

Because 2 income families are becoming more common, the decision maker within the family unit is changing...also, family has less time for children, and therefore tends to let them influence purchase decisions in order to alleviate some of the guilt. (Children influence about $130 billion of goods in a year) Children also have more money to spend themselves.

Reference Groups
Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviors of the group members.

Families, friends, sororities, civic and professional organizations.
Any group that has a positive or negative influence on a persons attitude and behavior.
Membership groups (belong to)

Affinity marketing is focused on the desires of consumers that belong to reference groups. Marketers get the groups to approve the product and communicate that approval to its members. Credit Cards etc.!!

The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group.


Social Class
an open group of individuals who have similar social rank. The rank with criteria; occupation, education, income, wealth, race, ethnic groups and possessions.
Social class influences many aspects of our lives. IE upper middle class prefer luxury cars Mercedes.

upper-upper class > inherited wealth, aristocratic names.
Lower-upper class > newer social elite, from current professionals and corporate elite
Upper-middle class > college graduates, managers and professionals
Middle Americans-middle class > average pay white collar workers and blue collar friends
Working class- average pay blue collar workers
Lower Americans-lower class > working, not on welfare
Lower-lower class > on welfare

Social class determines to some extent, the types, quality, quantity of products that a person buys or uses.

Lower class people tend to stay close to home when shopping, do not engage in much prepurchase information gathering.Stores project definite class images.

Family, reference groups and social classes are all social influences on consumer behavior. All operate within a larger culture.


Culture and Sub-culture
Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation.
Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values are good health, education, individualism and freedom.

Culture can be divided into subcultures:

geographic regions
human characteristics such as age and ethnic background.
IE West Coast, teenage and Asian American.
Culture effects what people buy, how they buy and when they buy.

Well practially i can remember about my Mp3 of Exibel ,which is a personal product of Clas Ohlson.Clas Ohlson is a Swedish chain that sells technical tools, boats, car accessories, electronics, computer accessories and clocks. It is the largest hardware chain in Scandinavia.

It originated in 1918 as a mail order business based at Insjön, Dalarna (and was well known as such), expanding into the retail business only in 1989. [1]
It will start opening shops in the UK during 2008/2009 in the London area.
Clas Ohlson AB was founded by Clas Ohlson (1895–1979).

I found the product from the magazine of Clas ohlson.I had chosen another mp3.But when i saw that Mp3 in the magazine and found that the price is ok for me.I decided to take this.Also one more effect that the 1st one was without charger and the other one was with charger with USB cord.So for the detailed infroming in add i influenced to buy that.

Marketing Environment

The micro-environment

The term micro-environment denotes those elements over which the marketing firm has control or which it can use in order to gain information that will better help it in its marketing operations. In other words, these are elements that can be manipulated, or used to glean information, in order to provide fuller satisfaction to the company’s customers.

The objective of marketing philosophy is to make profits through satisfying customers. This is accomplished through the manipulation of the variables over which a company has control in such a way as to optimise this objective. The variables are what Neil Borden has termed ‘the marketing mix’ which is a combination of all the ‘ingredients’ in a ‘recipe’ that is designed to prove most attractive to customers. In this case the ingredients are individual elements that marketing can manipulate into the most appropriate mix. E Jerome McCarthy further dubbed the variables that the company can control in order to reach its target market the ‘four Ps’. Each of these is discussed in detail in later chapters, but a brief discussion now follows upon each of these elements of the marketing mix together with an explanation of how they fit into the overall notion of marketing.

The term macro-environment denotes all forces and agencies external to the marketing firm itself. Some of these forces and agencies will be closer to the operation of the firm than others, e.g. a firm’s suppliers, agents, distributors and other distributive intermediaries and competing firms. These ‘closer’ external constituents are often collectively referred to as the firm’s proximate macro-environment to distinguish them from the wider external forces found, for example, in the legal, cultural, economic and technological sub-environments.

This consists of people, organizations and forces within the firm’s immediate external environment. Of particular importance to marketing firms are the sub-environments of suppliers, competitors and distributors (intermediaries). These sub-environments can each have a significant effect upon the marketing firm.

The supplier environment
This consists of other business firms or individuals who provide the marketing firm with raw materials, product constituents, services or, in the case of retailing firms, possibly the finished goods themselves. Firms, whether they be retailers or manufacturers, will often depend on numerous suppliers. The buyer/supplier relationship is one of mutual economic interdependence, both parties relying on the other for their commercial well-being. Although both parties are seeking stability and security from their relationship, factors in the supplier environment are subject to change, such as industrial disputes which will affect delivery of materials to the buying company, or a sudden increase in raw material prices which forces suppliers to raise their prices. Whatever the product or service being purchased by the marketing firm, unexpected developments in the supplier environment can have an immediate and potentially serious effect on the firm’s commercial operations. Because of this, marketing management, by means of the marketing intelligence component of its marketing information system, should continually monitor changes and potential changes in the supplier environment and have contingency plans ready to deal with potentially adverse developments.

The distributive environment
Much reliance is placed on marketing intermediaries such as wholesalers, factors, agents and distributors to ensure that their products reach the final consumer. To a casual observer, it may seem that the conventional method of distribution in any particular industry is relatively static. This is because changes in the distributive environment occur relatively slowly, and there is therefore a danger of marketing firms failing to appreciate the commercial significance of cumulative change. Existing channels may be declining in popularity over time, while new channels may be developing unnoticed by the marketing firm. Nowhere has this ‘creeping’ change been more apparent over recent years in the UK and other parts of the world than in the retailing of fast moving consumer goods (fmcg). In the 1960s well over half of all fmcg retail trade was accounted for in the independent sector plus a further large proportion to the Co-operative Societies. Nowadays, the sector represented by the larger food multiples has well in excess of this proportion.

The competitive environment
Management must be alert to the potential threat of other companies marketing similar and substitute product whether they are of domestic or foreign origin. In some industries there may be numerous world-wide manufacturers posing a potential competitive threat and in others there may only be a few. Whatever the type, size and composition of the industry, it is essential that marketing management has a full understanding of competitive forces. Companies need to establish exactly who their competitors are and the benefits they are offering to the market. Armed with this knowledge, the company will have a greater opportunity to compete effectively.

The macro-environment

Changes in the wider macro-environment may not be as close to the marketing firm’s day-to-day operations, but they are just as important. The main factors making up these wider macro-environmental forces fall into four groups.

1. Political and legal factors
2. Economic factors
3. Social and cultural factors
4. Technological factors


The political and legal environment
To many companies, domestic political considerations are likely to be of prime concern. However, firms involved in international operations are faced with the additional dimension of international political developments. Many firms export and may have joint ventures or subsidiary companies abroad. In many countries, particularly those in the so-called ‘Third World’ or more latterly termed ‘Developing Nations’, the domestic political and economic situation is usually less stable than in the UK. Marketing firms operating in such volatile conditions clearly have to monitor the local political situation very carefully.
Many of the legal, economic and social developments, in our own society and in others, are the direct result of political decisions put into practice, for example the privatization of state industries or the control of inflation.

In summary, whatever industry the marketing firm is involved in, changes in the political and legal environments at both the domestic and international levels can affect the company and therefore needs to be fully understood.

The economic environment
Economic factors are of concern to marketing firms because they are likely to influence, among other things, demand, costs, prices and profits. These economic factors are largely outside the control of the individual firm, but their effects on individual enterprises can be profound. Political and economic forces are often strongly related. A much quoted example in this context is the ‘oil crisis’ caused by the Middle East War in 1973 which produced economic shock waves throughout the Western world, resulting in dramatically increased crude oil prices. This, in turn increased energy costs as well as the cost of many oil-based raw materials such as plastics and synthetic fibres. This contributed significantly to a world economic recession, and it all serves to demonstrate how dramatic economic change can upset the traditional structures and balances in the world business environment.

As can be seen, changes in world economic forces are potentially highly significant to marketing firms, particularly those engaged in international marketing. However, an understanding of economic changes and forces in the domestic economy is also of vital importance as such forces have the most immediate impact.

One such factor is a high level of unemployment, which decreases the effective demand for many luxury consumer goods, adversely affecting the demand for the industrial machinery required to produce such goods. Other domestic economic variables are the rate of inflation and the level of domestic interest rates, which affect the potential return from new investments and can inhibit the adoption and diffusion of new technologies. In addition to these more indirect factors, competitive firms can also pose a threat to the marketing company so their activities should be closely monitored.

It is therefore vital that marketing firms continually monitor the economic environment at both domestic and world levels. Economic changes pose a set of opportunities and threats, and by understanding and carefully monitoring the economic environment, firms should be in a position to guard against potential threats and to capitalize on opportunities.

The socio-cultural environment
This is perhaps the most difficult element of the macro-environment to evaluate, manifesting itself in changing tastes, purchasing behaviour and changing priorities. The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs.
Core cultural values are those firmly established within a society and are therefore difficult to change. They are perpetuated through family, the church, education and the institutions of society and act as relatively fixed parameters within which marketing firms are forced to operate. Secondary cultural values, however, tend to be less strong and therefore more likely to undergo change. Generally, social change is preceded by changes over time in a society’s secondary cultural values, for example the change in social attitude towards credit. As recently as the 1960s, personal credit, or hire purchase as is sometimes known, was generally frowned upon and people having such arrangements tended not to discuss it in public. Today, offering instant credit has become an integral part of marketing, with many of us regularly using credit cards and store accounts. Indeed, for many people it is often the availability and terms of credit offered that are major factors in deciding to purchase a particular product.

Marketing firms have also had to respond to changes in attitude towards health, for example, in the food industry people are now questioning the desirability of including artificial preservatives, colourings and other chemicals in the food they eat. The decline in the popularity of smoking is a classic example of how changes in social attitudes have posed a significant threat to an industry, forcing tobacco manufacturers to diversify out of tobacco products and into new areas of growth.
Changes in attitudes towards working women have led to an increase in demand for convenience foods, ‘one-stop’ shopping and the widespread adoption of such time-saving devices as microwave cookers. Marketing firms have had to react to these changes. In addition, changes in moral attitudes from the individualism of the ‘permissive society’ of the 1960s and early 1970s to the present emphasis on health, economic security and more stable relationships, are all contributory factors to a dynamically changing socio-cultural environment that must be considered by companies when planning for the future.

The technological environment
Technology is a major macro-environmental variable which has influenced the development of many of the products we take for granted today, for example, television, calculators, video recorders and desk-top computers. Marketing firms themselves play a part in technological progress, many having their own research department or sponsoring research through universities and other institutions, thus playing a part in innovating new developments and new applications.

One example of how technological change has affected marketing activities is in the development of electronic point of sale (EPOS) data capture at the retail level. The ‘laser checkout’ reads a bar code on the product being purchased and stores information that is used to analyse sales and re-order stock, as well as giving customers a printed readout of what they have purchased and the price charged. Manufacturers of fast-moving consumer goods, particularly packaged grocery products, have been forced to respond to these technological innovations by incorporating bar codes on their product labels or packaging. In this way, a change in the technological environment has affected the products and services that firms produce and the way in which firms carry out their business operations.

Other macro-environmental factors
The macro-environmental factors discussed are not intended to be an exhaustive list, but merely to demonstrate the main areas of environmental change. Other sub-environments may be important to marketing management, for example, in some countries the religious environment may pose an important source of opportunities and threats for firms.

Definition of marketting

Definition of Marketting

"Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stasellingkeholders".

A market-focused, or customer-focused, organization first determines what its potential customers desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product or service because they have a need, or because it provides a perceived benefit.

Two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management). Once a marketer has converted the prospective buyer, base management marketing takes over. The process for base management shifts the marketer to building a relationship, nurturing the links, enhancing the benefits that sold the buyer in the first place, and improving the product/service continuously to protect the business from competitive encroachments.

For a marketing plan to be successful, the mix of the four "p"s must reflect the wants and desires of theconsumers in the target markets. Trying to convince a market segment to buy something they don't want is extremely expensive and seldom successful. Marketers depend on marketting research, both formal and informal, to determine what consumers want and what they are willing to pay for it. Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process. The offer is also an important addition to the 4P's theory.

Within most organizations, the activities encompassed by the marketing function are led by a Vice President or Director of Marketing. A growing number of organizations, especially large US companies, have a chief marketting officer position, reporting to the chief executive officer.

The American Marketing Association (AMA) states, “Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives".

Marketing methods are informed by many of the social sciences, particularly psychology,sociology and economics.Anthropology is also a small, but growing, influence. Market research underpins these activities. Through advertising, it is also related to many of the creative arts. Marketing is a wide and heavily interconnected subject with extensive publications. It is also an area of activity infamous for re-inventing itself and its vocabulary according to the times and the culture.

Let's know what is marketing

Hi everyone !!!!!!!!!!!!

This is Md. Ismail Faisal and welcome in my first Blog about informing you bit about marketing. You can visit my school http://www.slk.fi/ & send me e-mail to me about the blog to ismail.faisal@yahoo.com.

Source:

Marketing Management by Philip Katler

principle of marketing by Gary armstrong,John saunders,Veronica Wong

Internet (google,Business professional etc.)