Introduction: offers. Internal environment The internal environment of

Introduction:

Marketing is one of the
most misunderstood disciplines in management today. It is commonly used as a
synonym for activities related to shopping, but it goes far beyond selling a product.
In addition, many people believe they are experts in marketing, having shopped
for various items all their lives and having been exposed to many
advertisements.

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In this introductory
marketing course, you will learn the theories of marketing through practice
(examples and illustrations). This course will explain what marketing
management is all about in the simplest of terms and lay the foundation to your
pathway to excellence in the wonderful world of marketing.

 

Lo1:  Explain the role of marketing and how it
interrelates with other functional units of an organization.

Task 1.1

Marketing
is defined by the American Marketing Association as “the activity, set of
institutions and processes to create, communicate, deliver and exchange offers
that have value for clients, customers, partners and society in general1”.
If you read the definition closely, you will see that there are four
activities, or components, of marketing:
1. Creating. The process of collaboration with suppliers and customers to
create offers that have value.
2. Communicating. In general, describing those offers, as well as learning from
customers.
3. Delivery. Obtain those offers for the consumer in a way that optimizes the
value.
4. Exchange. Commercial value for those offers.

Internal
environment
The internal
environment of the business includes all the forces and factors within the
organization that affect its marketing operations. These components can be
grouped under the Five Ms of the business, which are:

·       
Men

·       
Money

·       
Machinery

·       
Materials

·       
Markets

 

The
internal environment is under the control of the seller and can be modified
with the changing external environment. However, the internal marketing
environment is as important to the business as the external marketing
environment. This environment includes the sales department, the marketing
department, the manufacturing unit, the human resources department, etc.

External
environment
The external environment constitutes factors and forces that are external to
the business and in which the marketer has little or no control. The external
environment is of two types:

Micro
Environment
The micro component of the external environment is also known as the task
environment. It is composed of external forces and factors that are directly
related to the business. These include suppliers, market intermediaries,
customers, partners, competitors and the public

• Providers include all parties that provide the resources needed by the
organization.
• Market intermediaries include parties involved in the distribution of the
organization’s product or service.
• Partners are all separate entities, such as advertising agencies, market
research organizations, banking and insurance companies, transport companies,
intermediaries, etc. who do business with the organization.
• Clients are part of the organization’s target group.
• Competitors are players in the same market that target customers similar to
those in the organization.
• Public is composed of any other group that has a real or potential interest
or that affects the company’s ability to serve its customers.

 

Environment
macro
The macro component of the marketing environment is also known as a broad
environment. It constitutes the external factors and the forces that affect the
industry as a whole, but that do not have a direct effect on the business. The
macro environment can be divided into 6 parts.

Demographic
environment
The demographic environment is made up of the people who make up the market. It
is characterized as factual research and the segregation of the population
according to its size, density, location, age, sex, race and occupation.

 

Task 1.2

Marketing
plays an important role in establishing relationships between clients and the
organizations that offer to the market. It gives us the confidence of wanting
to try a new product in the market instead of situations in which the products
enter the market without advertising. This makes the marketing function
critical in all organizations, regardless of whether the organization is
profit-oriented or not-for-profit. Marketing shapes the image of the
organization, how people associate the products or services of the organization
and, in fact, give people confidence in their products or services.
When it comes to for-profit organizations, marketing is responsible for
increasing revenue and, by extension, increasing the profitability of
organizations. In addition, the function also helps the growth of the customer
/ client base for the organization. This is especially true when the
organization deals with more corporate clients, and where the decisions involve
more than one party.
The marketing function is also responsible for the brand of the organization,
participation in advertising activities, advertising and interaction with the
client through the collection of comments. The launch of each product begins
with the commercialization and the end with the commercialization, where the
department establishes the needs of the consumers and after presenting the
product, the department seeks to identify if the client’s needs were met.
Organizations are competing to be in the minds of customers and at the same
time trying to protect their market share. Marketing is the center of customer
loyalty and customer retention. As a result, the function carries out
promotions, campaigns from time to time and this has been shown as a successful
initiative that also attracts more customers.
Without commercialization, our brands will not be enlightened and our
organizations will not have life. The success of the organization is determined
not only by the prudent application of the funds to the various investment
portfolios, but also by the relationship established with the clients, which is
a function of marketing.

Marketing to B2B 

When
you’re promoting a B2B, you want to focus on the logic of the product. You do
this by focusing on the characteristics of the product. There is little or no
personal emotion involved in the purchase decision. You want to focus on
understanding the buyers of the organization and how they operate within the
limits of your organization’s procedures. What is your role? What is important
to them?

If you take away something from this article about B2B marketing, remember that
when it comes to marketing of commercial products / services, it is not about
the product, but about the people who use the product and / or service.
 If you are struggling with your messages, try to focus more on what your
product or service does with what it means for your business.
 
The B2B market is thirsty for knowledge and seeks information. Be more thorough
with your marketing materials. Your most effective marketing message will focus
on how your product or service saves you time, money and resources.
What is the return on investment you can expect with your purchase? That ROI
can save time, save resources or save money, but it has to be clear so that
everyone is on board.
Your business-to-business market is required to corroborate your purchase
through a logical argument, financial scrutiny and data. This does not mean
that there are no emotions behind the purchase, while you are dealing with a
business, behind that business there are people, then emotion still plays a
role in the decision, but you deal with “more” emotions because more
times otherwise, it is about more people who must reach a consensus on the
decision. Keep your needs, desires and motivations on the table, but support
them with logic, financial benefits and solid data. The business buying process
also tends to be longer than a consumer; this can be correlated with the need
to have multiple points of contact to ensure the sale.

Marketing to B2C
When you do marketing for a consumer, you want to focus on the benefits of the
product. Your decision is more emotional. Consumers are different in that they demand
a variety of distribution channels for their convenience, but not in the B2B
market. Consumers are less likely to be interested in a long marketing message.
They’ll want you to go straight to the point. Consumers do not want to work to
understand their benefits. Instead, they’ll want you to clearly point out the
benefits.
With consumers, your message should be simple, easy to understand. It will also
tend to discover that consumers have a much shorter purchasing process than
companies. They can buy in a few minutes or within a few days.
 
Your most effective marketing strategies will focus on the results and benefits
that your product or service will provide. Your business-to-consumer market
buys more in excitement. They are more interested in the benefit of the
product. They will want to know more about how their product or service helps
them and what benefits they provide personally. Focus on the problem or point
of pain that you solve

Task 1.3

Increasingly,
marketing is seen less as a distinct functional unit and more as a set of
organizational processes in which the entire company participates in the
market-oriented behavior of the entire organization. The question in this
regard is whether marketing and sales are necessary as management functions for
the successful implementation of market orientation. Consequently, the
following questions arise: What is the current role of marketing and sales
departments in companies? What factors drive your role? How does its power
interact with the orientation of the market with respect to the performance of
the business?
Here, authors Götz, Hansen, Jo and Krafft conduct an intersectoral study to
explore whether powerful marketing and sales departments strengthen the
performance of market orientation. The authors focused on CEOs, marketing
managers and sales managers in the automotive, cosmetics, electronics,
financial services and food industries with an email questionnaire, obtaining
153 responses.
Their results show that the marketing department has a significant positive
effect on the relationship between market-oriented behavior and performance,
while the sales department reveals a negative interaction effect. These
findings indicate that the responsibility for marketing activities should be in
the hands of the marketing function and not the sales unit.
The findings of the study suggest that the marketing function plays a crucial
role in the successful implementation and management of market orientation in
companies. The results imply that the orientation of the market and a strong
marketing function are mutually dependent and indicate that senior managers
should strengthen the marketing function if they intend to align the entire
organization with the market and, therefore, improve the performance of the
business. . The findings also indicate that companies should reallocate power
between marketing and sales functions.