Substantial industrial competition, dynamic process of internationalization and globalization and fast-tracking of technological innovations – these are just few of the factors that affect the global marketing and its related operations. With such phenomenon affecting every company, there is a need to identify the most suitable market solution in order to cope up with such emerging effects – beneficial or destructive – not only to the marketing process but to the firms in general. Marketing can be considered as one of the most important element underpinning successful business creation (Hills, 1994). Perhaps because of its complex applications, marketing have been defined in a variety of ways (Sheth et al., 1988). The marketing concept was first promulgated in the late 1950’s (Elliot, 1990). The importance of marketing concept incorporates oft-repeated elements such as the idea of customer orientation, integrated marketing efforts, and resultant profitability among others. Today, more and more people and organizations are trying to be recognized in the business arena by using marketing as their core competitive identity. With this objective, these organizations had been able to competently and effectively adapt to the situation in the market place by using different strategies that enhanced their competitiveness.
This paper identifies the core marketing principles or philosophies and companies that practice specific concept. Specifically, it focuses on marketing mix, strategic 3Cs concept – company, customer, and competition, and marketing strategy and plan.
Marketing Mix
The marketing mix principles is controllable variable that is why it can be adjusted on a frequent basis to meet the changing needs of the target market and other dynamics of marketing environment (Value Based Management, 2004). In relation to marketing plan, marketing mix includes both short term and long term strategies makes for a more profitable marketing mix. Long term strategies build brand/company awareness and give sales revenue a permanent, gradual boost. Short term strategies create a temporary, immediate revenue boost by giving buyers an incentive to purchase. By implementing both long and short term strategies, you can attend to immediate sales goals while building your business reputation and goodwill (Kyle, 2004) (See Appendix 1).
According to Borden (1964) (cited in Enis & Cox, 1991), the marketing mix is the model in implementing marketing strategies.
1. Product – The product of the organization is considered to be one of the main aspects of the marketing mix as it serves the major representation of the business. In addition, this is also considered as an important element of the marketing mix because provides support to the firm, particularly in terms of profit generation and brand building (Enis & Cox, 1991).
2. Price – It is the amount of money in which the organization allocates and the customer will pay in order to obtain the product or service. Most of the time, marketing principles uses numerous suggestions regarding the formulation of pricing strategy, among this is an affordable product or service but guaranteed to be a quality one.
3. Place – The place variable of the marketing mix theory refers to how the company is able to distribute its products to the consumers. This aspect of the marketing mix theory is important part as it enables the company to offer its products to the consumers.
4. Promotion – Promotion, a marketing mix theory variable, can be a combination of personal selling, advertising, public relations and sales promotion. Through promotion, the company will be able to relay marketing messages to consumers and potential consumers. In spite of the presence of various business challenges, promotion is one effective mean to increase product sales, enhance consumer support, and broaden market coverage.
Strategic 3Cs Concept
The Strategic 3Cs concept in marketing includes company, customer (target market) and competition. These are all interacting components that serve as the primary marketing players.
- Company
Marketing is the interfacing of a company and its target market. A marketer should always consider the strengths and weaknesses of the company in serving the needs and wants of the market. Therefore, there is a need to choose specific market segment where the marketer will establish potential leadership or at least a strong challenger role. Segmentation recognizes that buyers of any product or service category need, desire, want and expect different performance characteristics from products or services in the category. It helps the company to position the product properly and prepare marketing strategies to satisfy a more focused range of consumer needs and wants. Furthermore, it is also a factor in effectively using limited marketing resources, identifying unique market niches, improving profitability and helping to retain consumer loyalty. The basis for the market categorizations of clients and customers include the (1) demographic characteristics, (2) the geographical location, (3) consumer behavior, and (4) psychographic characterizations (Kotler & Armstrong, 2001). In the case of the department store, market segmentation is highly evident in the product and services categorizations within the store that cater to all individuals. Companies now face the challenge of making its target consumers respond accordingly to their marketing efforts. Those who understand its consumers’ responses will have a great competitive advantage (Kotler & Armstrong, 2001). Marketers should balance between the company’s requirements for profits and desired market share.
- Customer (or Target Market)
Majority of marketing experts stated that in achieving business success, all you need is a customer. Theories and concepts on how to manage are not really necessary on this situation. Solving all problems is not also a guarantee to be efficient. All you need is to find out what you do right for the customers and you have already got and do more of it. Truly, the customers play as the key players in the success of a business. In this case, market orientation is the main mechanism that caters the needs of the organization in providing the best service or product possible. The knowledge of the needs and wants of the consumers is an excellent way to improve the marketing management strategies. The rationale is that the more an organization understands and meets the real needs of its consumers, the more likely it is to have contented customers who will come back for more product or service purchase, and possibly tell their friends. Marketing is about satisfying the wants and needs of customers. By doing so, it also facilitate the achievement of an organization’s objectives. By paying attention to customer wants and needs, organizations are more likely to achieve their objectives in the marketplace (Porter, 2000).
Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before. In turn, company management had shifted their focus on their clients or customers so as to stay successful in business. This transition meant that organizations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered. Moreover, employing proactive customer commitment involves the consideration on culture and infrastructure (Lowenstein, 1997). Organizations that capitalize on customers' active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (Lovelock & Young, 1979; Reichheld & Sasser, 1990). Rather than going after every potential source of revenue, companies eliminate useless assets that do not add value for customers’ satisfaction. Business organizations implement bureaucratic policies and procedures for the benefit of the staff, customers and the company in general. According to Bowers, Martin and Luker (1990), if consumers somehow become better customers – that is, more knowledgeable, participative, or productive – the quality of the service experience will likely be enhanced for the customer and the organization. Companies now face the challenge of making its target consumers respond accordingly to their marketing efforts. Those who understand its consumers’ responses will have a great competitive advantage. As such, the department store targets groups of individuals that practically spends most of their time together in order to attract large units of customers (See Appendix 2). These groups of individuals include families, friends, classmates, work colleagues, and couples that elicit relatively higher purchase of items and services offered in the store.
- Competition
According to Proctor (2000), competition is important since it affects the success of a business venture. Proctor added that competition is more than just producing and distributing products and services that matches the needs of the consumers. Competition is about the company’s capability of positioning itself in the market so that they will stand out among the rest in the perception of the consumers (See Appendix 3). Through an effective and efficient competitive advantage strategy, the organization will be able to reach its prescribed objectives and continuously operate in the chosen field of industry and at the same time earning more profit and expanding its operations.
Marketing Strategy and Plan
Marketing stimuli often consist of the four Ps of marketing: product, price, place and promotion while the other stimuli may include economic, technological, political and cultural factors which exist in the marketing environment. The ability of a business to stay in significant period of time in the industry where it belongs is one measure of its success. This means that being able to survive is a necessity and survival translates to the ability of a business to compete. Since the 1980s, marketing strategies have played key roles in planning to overcome challenges. It is believed that this line of thinking will continue to direct the activities of business into the 21st century (Paley, 1999). Every business is subject to factors that affect its function as a whole. These factors are the ones attributed for the success or even the failure of a business (Oliver, 1997). In lieu, there are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the marketplace in terms of marketing. In a profit-making business, the business organization obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit (Moschis, 1994). Bruckner and colleagues (1999) affirmed that market expectations are hard for managers to understand and even harder for them to change. They also noted that there are applicable and practical ways that could be use to deal with such. It is much more bounded by science than the abstractions present in the marketing field. As they evaluate the relationship of the market and the business, they particularly put emphasis on strategy.
In the field of marketing, strategy falls in various areas and types (e.g. market segmentation, competition, innovation, growth, etc.). Proctor (2000 p. 1) comprehensively stipulate the term as:
A strategy is a plan that integrates an organization’s major goals, policies, decisions and sequences of action into a cohesive whole. It can apply at all levels in an organization and pertain to any of the functional areas of management. Thus there may be production, financial, marketing, personnel and corporate strategies, just to name a few.
Specifically in marketing, they may be pricing, product, promotion, distribution, marketing research, sales, advertising, merchandising, etc. strategies. Strategy is concerned with effectiveness rather than efficiency and is the process of analyzing the environment and designing the fit between the organization, its resources and objectives and the environment (Porter, 2000, p. 1). Marketing strategy is the fundamental groundwork of marketing plans designed to achieve measurable marketing objectives (Meek & Meek, 2003). It is given that a good strategy in marketing encompasses the organization’s marketing goals, policies, and action cycle. With this fact, strategy is the foundation of the marketing activity.
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