Date. 1st October 2021
Marketing has seen the advent of the new economy, thanks to the technology innovation, development and strategies in marketing. To understand the new economy, it is important to understand in brief characteristics and features economies.
Industrial revolution was the starting point of the old economy to a modern economy, with focus on producing massive quantities and quality of standardised products. This mass product and productivity was important for cost reduction and satisfying large consumer base needs. As production increased companies expanded into new markets across geographical areas. The old economy had the organizational hierarchy where in top management gave out instructions which were executed by the middle manager over the workers.
In contrast, the new economy has seen the buying power at all time thanks to the digital revolution. Consumers have access to all types’ information for product and services. Furthermore, standardisation has been replaced by more customization with a dramatic increase in terms of product offering. Purchase experience has also changed as well with the introduction of online purchase, which can be done all the time with products getting delivered at office and home.
Companies have also taken advantage of information available and are designing more efficient marketing programs global and local for consumers as well as the distribution channel. Digital revolution has increased speed of communication mobile, e-mail SMS, etc. This helps companies take faster decisions and implement strategies more swiftly. Marketing is art of developing, advertising and distributing goods and services to consumer as well as business. However, marketing is not just limited to goods and services it is extended to everything from places to ideas and in between. This brings forth many challenges within which marketing people have to take strategy decisions. And answer to these challenges depends on the market the company is catering to, for consumer market decision are with respect to product, packaging and distribution channel.
The knowledge and awareness of product is very essential for marketing people as businesses are on the lookout to maintain or establish a credential in their respective market. For global market, marketing people have to consider not only culture diversity but also be careful with respect to international trade laws, trade agreement, and regulatory requirements of individual market. For non-for-profit organization with limited budgets, importance is related to pricing of products, so companies have to design and sell products accordingly.
This is employed by any given company has to be mix of organization interest, consumer interest and societal interest. In production philosophy, companies focus is on numbers, high production count, which reduces cost per unit and along with mass distribution. This kind of concept is usually making sense in a developing market where there is the need of product in large numbers. The product philosophy focusses on some consumers who are willing to pay an extra premium for high quality and reliable performance, so companies focus on producing well made products.
The selling concept believes in pushing consumers into buying of products, which under normal circumstance, they would be resistant. The marketing concept believes consumer satisfaction, thereby developing and selling products keeping focus solely on customer needs and wants. The customer philosophy believes in the creation of customized products, where in products is design looking at historical transaction of consumers. The main philosophy is societal concept which believes in developing products, which not only generate consumer satisfaction but also take into account well-being of society or environment.
This have made companies fine tune the way they conduct their business. One major trend observed is the need of stream lining processes and systems with the focus on cost reduction through outsourcing. Another trend observed in companies is, encouragement to entrepreneur style of work environment with global and local approach.
At the same time, marketers of companies are looking forward to building long term relationship with consumers. This relationship establishes platform understanding consumer needs and preference. Marketers are looking at distribution channels as partners in business and not as the customer. Companies and marketers are making decisions using various computers simulated models. Finally modern marketing is the challenge, which is to keep up pace with changing time.
Marketing strategy is the comprehensive plan formulated particularly for achieving the marketing objectives of the organization. It provides a blueprint for attaining these marketing objectives. It is the building block of a marketing plan. It is designed after detailed marketing research. A marketing strategy helps an organization to concentrate its scarce resources on the best possible opportunities so as to increase the sales.
Marketing strategy provides an organization an edge over its competitors. Strategy helps in developing goods and services with best profit-making potential. Marketing strategy helps in discovering the areas affected by organizational growth and thereby helps in creating an organizational plan to cater to the customer needs. It helps in fixing the right price for organization’s goods and services based on information collected by market research.
Strategy ensures effective departmental co-ordination. It helps an organization to make optimum utilization of its resources so as to provide a sales message to its target market. A marketing strategy helps to fix the advertising budget in advance, and it also develops a method which determines the scope of the plan. It determines the revenue generated by the advertising plan. Finally, marketing strategy clearly explains how an organization reaches its predetermined objectives.
With target markets, this means to whom the organization wants to sell its products. Not all the market segments are fruitful to an organization. There are certain market segments which guarantee quick profits, there are certain segments which may be having great potential but there may be high barriers to entry. A careful choice has to be made by the organization. An in-depth marketing research has to be done of the traits of the buyers and the particular needs of the buyers in the target market.
Marketing mix, we mean how the organization proposes to sell its products. The organization has to gather the four Ps of marketing in appropriate combination. Gathering the marketing mix is a crucial part of marketing task. Various decisions have to be made such as follows. The most appropriate mix of the four Ps in a given situation? What distribution channels are available and which one should be used What developmental strategy should be used in targeting market How should the price structure be designed?
Better quality of production Marketing leads to an improvement in the quality of production. Because competitors trying to out beat one another in the process of marketing would naturally undertake better quality of production. Moreover, international marketing would always exhort manufacturers to come out with super-class production, to capture foreign markets. Existence of business enterprises Marketing justifies the reason for existence of business enterprises, as without marketing the business performance is incomplete.
Marketing gives a finishing touch to business performance. Encourages healthy competition Marketing encourages a healthy competition among manufacturers. This not only ensures more profitably to them by excelling one another; but also leads to a better utilisation of scarce resources of the economy-as each competitor would undertake production of those goods and services which result in maximum consumer satisfaction. Upgrading Consumer Status Marketing, through caring for consumers’ needs and preferences, upgrades their status in society.
The old dictum, consumer is the king, is really given a true meaning, under the modern marketing concept. Integration of enterprise and societal objectives Marketing harmonizes or integrates the objectives of a business enterprise with those of the society, by maximising both enterprise profitability and consumer satisfaction. Marketing career A study of marketing helps the young persons in society in choosing an appropriate career in marketing. Regulating force in society Marketing acts as a regulating force in society. It allocates resources in the light of consumers’ demands. It affects distribution and size of income, in the economy.
In a modern industrial economy, productive capacity has been built up to a point where most markets are buyers’ markets. The buyers are dominant and sellers have scramble hard for consumers and ultimately consumers began to occupy a place of unique importance. The business firms recognize that the best valid method of business purpose is to create a customer. In other words, the recognition of the importance of marketing leads to the acceptance of marketing concept. To ensure companies achieve considerable market shares, profit and sustainability.
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