Marketing

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Table of Contents
1. Why and how marketing is crucial for economic development and
global economy...................................................................... 2
2. Briefly, differentiate marketing strategy, plan and program? Different
relationship importance? .......................................................... 4
3. What is marketing information system? In addition, why it is important
to marketing management process?.............................................. 5
4. How product life cycle affect strategy planning in the process of
marketing management? ........................................................... 7
5. Discuss the ways in, which a nation can overcome, on unfavorable
balance of payment? ............................................................... 9
6. What is competitiveness in process of marketing management? When
competitive advantage does occurs in the process of marketing? In
addition, what are its source of competitive advantage? .................. 11
References ......................................................................... 13
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1. Why and how marketing is crucial for economic development
and global economy.
Because of it, marketing considered the most important activity in a business enterprise
while at the early stage of development it was considered the last activity. For
convenience, the importance of marketing may be explained as under:
1.1. Delivery of standard of living to the society:
A society is a mixture of diverse people with diverse tastes and preferences. Modern
marketing always aims for customer satisfaction. Therefore, main liability of marketing
is to produce goods and services for the society according to their needs and tastes at
reasonable price.
Marketing discovers needs and wants of society, produces the goods and services
according to these needs creates demand for these goods and services. They go ahead
and promote the goods making people aware about them and creating a demand for
the goods, encouraging customers to use them. Thus, it improves the standard of living
of the society.
1.2. Decrease in distribution cost:
Second important liability of marketing is control the cost of distribution. Through
effective marketing, the companies can reduce their distribution costs largely.
Decrease in cost of distribution directly affects the prices of products because the cost
of distribution is an important part of the total price of the product.
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1.3. Increasing employment opportunities:
Marketing comprises of advertising, sales, distribution, branding and many more
activities. Therefore, the development of marketing automatically gives rise to a need
for people to work in several areas of marketing. Thus the employment opportunities
are born. Also successful operation marketing activities requires the services of
different enterprises and organization such as wholesalers, retailers, transportation,
and storage, finance, insurance and advertising. These services provide employment to
a number of people.
1.4. Protection against business slump:
Business slump cause unemployment, slackness in the success of business and great loss
to economy. Marketing helps in protecting society against all these problems.
1.5. Increase in national income:
Successful operation of marketing activities creates, maintains and increases the
demand for goods and services in society. To meet this increased demand the
companies need to increase the level of production in turn raising their income. This
increase, in turn, increases the national income. Further effective marketing leads to
exports adding to the national income. This is beneficial to the whole society.
Economic growth and development is a two-way relationship. According to them, the
first chain consists of economic growth benefiting human development, since economic
growth is likely to lead families and individuals to use their heightened incomes to
increase expenditures, which in turn furthers human development. At the same time,
with the increased consumption and spending, health, education, and infrastructure
systems grow and contribute to economic growth.
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In addition to increasing private incomes, economic growth also generates
additional resources that can be used to improve social services (such as healthcare,
safe drinking water, etc.). By generating additional resources for social services,
unequal income distribution will be mitigated as such social services are distributed
equally across each community, thereby benefiting each individual. Concisely, the
relationship between human development and economic development can be explained
in three ways.

First,
increase
in
average
income
leads
to
improvement
in health and nutrition (known as Capability Expansion through Economic Growth).

Second, it believed that social outcomes could only improve by reducing
income poverty (known as Capability Expansion through Poverty Reduction).

Lastly, social outcomes can also be improved with essential services such
as education, healthcare, and clean drinking water (known as Capability Expansion
through Social Services).
2. Briefly, differentiate marketing strategy, plan and program?
Different relationship importance?
A marketing plan introduction relies on research to identify specific target customers
and how the company's products and services match up with the needs of those
customers.
Marketing strategies explain how you will meet your marketing objectives. The
marketing strategy section in your marketing plan is your "game plan" for success.
Various marketing guides and strategies offer blueprints for success. These strategies
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help a company identify what benefits and values make its brand unique and better
than the competition.
A marketing program is a coordinated and well-designed set of activities to achieve
marketing objectives. Marketing objectives are strategic sales goals that fit the
products’ strengths and are based on various characteristics of the product. One may
follow different marketing programs according to the situation. In order to build strong
customer relationships and maximize sales, the organizations follow different
marketing, sales and loyalty programs.
3. What is marketing information system? In addition, why it is
important to marketing management process?
A marketing information system is a continuing and interacting structure of people,
equipment and procedures to gather, sort, analyses, evaluate, and distribute pertinent,
timely and accurate information for use by marketing decision makers to improve their
marketing planning, implementation, and control.
Marketing System
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A level of creating a marketing information system is different in individual companies.
It determined by size of a company, its structure of production, a degree of realization
of products, hardware for management, as well as available sources. A rationally
working marketing company's information system consists of essentially of four
subsystems:
3.1.
Internal Information Subsystem: it provides current information captured in
corporate records regarding market data on production, costs, orders,
shipments, payments, sales and so on. It formed in a company in a form of
user-oriented system of intelligence.
3.2.
Marketing Intelligence Subsystem: it provides information on developments
in external corporate environment. A source of information is marketing
intelligence of entities in the market, stock market news and information in
a field of external services.
3.3.
Marketing Research: marketing market research is a purposeful collection of
information that is important for addressing and data completion of a
particular marketing problem of the company. An aim of the market research
and its segments is a creation of information and cognitive assumptions to
predict future market development, especially its demand needs, but also
offer in relation to the business plan.
3.4.
Analytical marketing subsystem: is composed of advanced statistical
procedures and models to evaluation of rigorous findings on information
obtained in the first three subsystems.
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4. How product life cycle affect strategy planning in the process
of marketing management?
The marketing management process consists of the activities marketing managers do to
optimize the marketing mix, including sourcing new marketing mix ideas, implementing
them, analyzing the results, and doing it all over again.
Different Products – Different Product Life Cycle Stages
Not all products follow all five stages of the product life cycle. While some products
are introduced and die quickly afterwards, others stay in the mature stage for a very
long time. Some are cycled back into the growth stage after reaching the decline stage
through strong promotion or repositioning. In fact, a well-managed brand could live
forever if wise strategies are applied. Examples include Coca-Cola, Gillette, American
Express, which still live on after more than 100 years.
Product class, form or brand in the Product Life Cycle Stages
Not only single products can go through the product life cycle stages. Indeed, the PLC
concept can also describe a product class (for instance petrol-powered cars), a product
form (e.g. four-wheel drives) or a brand (such as the BMW X5). In each case, the PLC
concept applies differently. While product classes have the longest life cycles, staying
in the maturity stage for a long time, product forms tend to have the standard PLC
shape.
Special Product Life Cycle Forms
We can also apply the Product Life Cycle stages to styles, fashion and fads. Their
product life cycles are somewhat special.
A style is a basic and distinctive mode of expression. For instance, styles appear in
homes (e.g. country cottage, functional art deco), clothing (e.g. formal and casual) and
art (e.g. realist, surrealist and abstract). A style may last for generations, but usually
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passes in and out of vogue. Therefore, a style’s product life cycle stages show several
periods of renewed interest.
A fashion is a currently popular or accepted style in a certain field. For instance, the
more formal ‘business attire’ look in the 1980’s gave way to the ‘business casual’ look
of the 2000’s. Fashions tend to grow slowly and remain popular for a while, before
declining slowly.
Fads are temporary periods of unusually high sales driven by consumer enthusiasm and
immediate product or brand popularity. A fad may be part of an otherwise normal
product life cycle, passing through the product life cycle stages. But at a certain point,
sales raise unexpectedly, but drop afterwards equally quickly. The best example is the
Rubik’s Cube.
Product life cycle
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5. Discuss the ways in, which a nation can overcome, on
unfavorable balance of payment?
"Balance of payments" refers to the amount of money that a nation's citizens,
government bodies and businesses take in from the rest of the world minus the money
that they send out. If more money leaves the nation than is coming in, there is a balance
of payments deficit. While most money entering and leaving the country is the result
of purchases and sales of goods and services, other factors contribute as well. Nontrade factors that can affect the balance of payments include foreign aid paid or
received, people moving in and out and taking their money with them, and individuals
sending cash to family members in other nations.
Make Domestic Companies More Competitive
A balance of payments deficit is likely if foreign corporations produce better goods at
a cheaper price than domestic companies do. In this case, consumers will purchase
imported products, while domestic manufacturers will have a hard time selling their
goods to other nations. This will increase the money leaving the nation and decrease
the funds coming in. An increase in the quality of domestic products can change the
equation. This might involve developing a better-educated and more highly trained
workforce, lowering the corporate tax burden or improving the country's infrastructure.
Such interventions take time, however, and will take a while to pay off.
Currency Devaluation
One short-term solution to a balance-of-trade deficit is making the nation's currency
less valuable. Suppose one Euro equals one U.S. dollar, and therefore a product costing
10 Euros in Germany costs $10 in the U.S. If the dollar is devalued, so that one Euro
now buys 1.2 U.S. dollars, the same European-made product will now cost American
consumers $12. This will reduce its consumption, shifting some demand to local
manufacturers, whose price will not increase because of currency devaluation.
Governments can influence exchange rates through various means, such as lowering or
raising interest rates.
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Import Taxes and Quotas
A direct intervention that will have an immediate impact on a balance-of-trade deficit
is simply putting a cap on the number of certain types of products that can be bought
from abroad. Such import quotas will reduce the amount of foreign goods and the
associated fund outflow, no matter the quality of domestic made products. A less
dramatic measure involves charging importers some form of import tax or duty. This
will not limit the number of imported quantities, but it will make them more expensive
and typically reduce their consumption. However, such measures can backfire because
foreign nations might take similar steps to reduce the exports of the nation in question.
With fewer exports, a country's balance-of-trade deficit will not improve.
Slowing Consumer Demand
Sometimes the balance of payments deficit results from extravagant spending, such as
citizens taking expensive trips or gravitating towards luxury and exotic products that
can only be sourced from abroad. This is usually accompanied by an increase in
consumer credit balances, as such spending is most easily done on credit cards and
borrowed money. Governments can partially curb the resulting deficit by slowing
economic growth and general consumer demand. This can be done through less
government spending, which results in less money in the economy; a rise in interest
rates, which raises the cost of borrowing; and increasing taxes to reduce disposable
income.
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6. What is competitiveness in process of marketing
management? When competitive advantage does occurs in the
process of marketing? In addition, what are its source of
competitive advantage?
As the cultural industries come under increasing competitive pressure, industry
organizations cannot afford to focus exclusively on creative and artistic concerns. They
have to allocate their resources to projects where there is a real market demand, and
must conduct all aspects of their business affairs in a competent manner or fall by the
wayside.
They consider in turn marketing and distribution, new product development, general
management and organizational analysis, accounting and management information
systems, finance, and competitive strategy in a global environment.
Moreover, as creative and other input resources are always limited, improving the
marketing, financial, and operational efficiency of a cultural industry organization is
one way of increasing industry output and providing a richer cultural environment.
Three important points to keep in mind when thinking about the objectives of
competition are:

Underlying variable of competition (price, quantity, quality etc.);

Aimed level of achievement; and

Competitive process that is at least partly determined by the strategic objectives
of agents.
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Source of competitive advantage are

Business’s competitive advantages are, most owners will talk about their great
products or outstanding customer service. While these can certainly offer
competitive advantages, there are other areas where your business can set itself
apart from the competition. Here are some typical sources of competitive
advantage:

High product quality – Most business owners will tell you that they produce highquality products. However, for some companies, it is smarter to produce a lower
quality product and offer it at a lower price to appeal to price-conscious
customers.

Low price – Depending on the product or service and target customers, price can
be a strong competitive advantage – or not. Businesses that have positioned
themselves and their products as being of the highest quality generally will not
focus on low price as their USP.

High level of service – Similar to high product quality, some businesses stress
exceptional customer service as their USP. Again, these businesses likely will not
be among the low-price leaders in the industry. In fact, low prices would likely
give customers the impression that their service might leave something to be
desired.

Industry knowledge and expertise – Some businesses possess in-depth industry
knowledge that helps customers get the most out of the products and services
they buy. They can often charge a premium for products and services because
customers value this expertise and hands-on assistance.

Better technology and innovation – This is the classic “better mousetrap” that
Emerson (or whoever) was referring to. Businesses that can use the latest new
technologies and innovations to make things easier for customers often have a
key strategic advantage over their competitors.
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References
https://www.cfoedge.com/blog/operations-management/salesstrategies/five-sources-competitive-advantage/
https://cjc-online.ca/index.php/journal/article/view/831/737
https://www.bostonprograms.com/en/seminars/marketing-managementcourse/
https://www.impactbnd.com/blog/5-ways-to-perform-a-competitiveanalysis-establish-your-presence
https://www.marketing91.com/customer-profitablity-analysis-2/
https://en.wikipedia.org/wiki/Product_lifecycle_management_(marketing)
https://marketing-insider.eu/product-life-cycle-stages/
https://www.patriotsoftware.com/accounting/training/blog/what-isproduct-life-cycle-management/
http://productlifecyclestages.com
https://www.theseus.fi/bitstream/handle/10024/47037/plc%20tez.pdf?s
equence=1
https://www.sjf.tuke.sk/transferinovacii/pages/archiv/transfer/332016/pdf/016-019.pdf
https://www.ideals.illinois.edu/bitstream/handle/2142/28557/productlif
ecycle1304gard.pdf
https://www.marketing91.com/marketing-management-process/
https://en.wikipedia.org/wiki/Economic_development
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