Marketing principles for organizations

1. Marketing PhilosophyThe adoption of merchandising is nearly as old as humanity itself. Whenever there is a consumer demanding a intersection point or service and a supplier willing to supply such(prenominal) good, securities industry placeing is adopted. The interchange philosophy essentially entails the strategic organizational aim of determining needs and wants of selected marketplaces and providing goods and work that satisfy such wants in a more competent and rough-and-ready way than competitors. In the last decade several organizations started following such principle in order to endure in the market.For instance, McDonalds Corporation applies a strong merchandising druthers. They atomic digit 18 ever incisive on what the client wants and change their products and services accordingly. For example, McDonalds adopted the philosophy of QSC & V to appeal and retain clients. It stands for quality, service, cleanliness and value. They guarantee that clients enter a spotless clean restaurant and are served by tender personnel. Indeed employees are carefully thought the art of servicing clients in all regions across the world.Recently the aforesaid(prenominal) marketing concept has evolved to consider in any case the need of society. The societal marketing philosophy, as it is commonly known, comprises that apart(predicate) from determining the needs and wants of clientele in target markets and delivering goods and services that better than competitors, these goods and services are also provided in a way that abide the societys well-being.This is a challenging principle as one can note. However, some meticulous organizations are already following it. For example, when the tampered cyanide-laced capsules of Tylenol were marketed by Johnson & Johnson and terminate up killing a number of persons, the company immediately collected back all the incorrect goods, even though the corporation supposed that the pills had been altered only in a few r etail shops. Although the collection expenses amounted to $240 million, the company managed to keep customers confidence and loyalty on the products offered, leading such good to outride a leading pain reliever in its market.1.1 Need for market researchAs one can note, to successfully adopt an effective marketing orientation, it is all important(p) that managers are fully aware of the customers needs and wants. To further commingle the issue, todays markets are extremely dynamic and susceptible to change. For example, car manufacturers are extremely keen on customer tastes in order to produce vehicles in line with such wants. Therefore solicitude is required to be constantly on the alert of what the client is demanding. The effectiveness of marketing intelligence systems to support such cultivation is weak. The need thus arose of obtaining information directly from the market with marketing research.The marketing research process consists of the following four steps Defining the problem and research objectives market worry and researchers define thoroughly the problem at hand and the research objectives that can aid in puzzle out such issue. Developing the research plan the information needed is determined at this stage. Researchers will because seek the secondary data already available and how the primary data can be obtained. primordial market data can be achieved through a variety of marketing research mediums available, such as experimental research, observational research and more. Implementing the research plan once the methods of collecting information are set, the collection of such information commences in this stage together with the processing and analyzing of such information gathered. interpreting and Reporting the findings the last but not least step is the interpretation of the date collected and presented together with with valid conclusions.Marketing research is a very expensive business operation, which sometimes may amount t o millions of dollars. However, the information derived is very valuable to the organization and can aid management in good decisions to be a market leader. A typical example that comes to mind is the Kentucky Fried Chicken (KFC) venture in the Nipponese market.Such market seems impenetrable by many American and European organizations. The non-tariff barriers, the iron grip of the keiretsu kigyi (banking groups), and the committed Japanese workforce make it very complex for an outside firm to infiltrate their market. KFC, yet, was capable to enter this market and is actually performing better than the United States Market. As a matter of fact, in the 90s the 1,470 Asian outlets gross revenue averaged 60% more than the United States average.Through vigilant marketing research the KFC management, comprehended that in large Asian cities there is an increasing absorption of young middle-class workforce with growing income who are eager to hold further for American-style restaurants. T his exposed the viability of the project to KFC managers. Market research also brought to KFC attention that the number of Asian women in the labour force is increasing considerably, who has a smaller amount of time for food preparation at home and consequently the need for fast-food restaurants in Asia is increasing. With this information KFC management instantaneously recognised the strategic window of opportunity that is available and took appropriate action to operate fruitfully in that market.1.2 Marketing Mix ElementsThe marketing desegregate concept originated from Neil. H. Borden who suggests the utilization of the four main controllable variables of management to reach the marketing orientation approach. The marketing mix elements are the following Product there are three levels of products, which the organization should kick downstairs their products in, because customer attitude and response would be different under each category. These are augmented, actual and cent er products. In marketing, the product quality and features are not the only elements that form a good product. straightaways fierce competition demands that managers also focus on the product design apart from the ones previously mentioned. Nike, for example, employs 60 designers and issue 500 different footwear designs each year. Attention should also be order towards branding, product packaging and labeling. These are important features to attain market leadership.Every product or service marketed passes through a life, commonly known as product life cycle. These are product development stage, introduction, growth, due date and decline. The other marketing mix elements described below should be in line with the stage the product is in to ensure a proper market orientation. Price the price decision is also an important one. Management can choose from three main categories, being cost based pricing methods, market pricing methods and competition based pricing methods. The sele ction of the optimal price depends on internal and outdoor(a) variables. Internal factors affecting pricing decisions are marketing objectives, marketing-mix strategies, costs and organizational considerations. The external factors are market features and demand, competitors costs, prices and offers and other external factors like economic conditions. Distribution the distribution channels utilized should be effective in order to ensure that the product is delivered more effectively than competitors. There are different number of distribution channels used, like direct-marketing channel in which no intermediary levels are adopted, vertical marketing system and horizontal marketing system. Under the latter two intermediaries are used. Promotion the advancement mix is a very expensive but effective marketing mix element. It can for instance sustain a product brand. Promotion is also important to inform clients about the product or services offered especially at the introductory st age of a product/service. The mass-promotion tools available are advertising, sales promotion and public relations. These should be designed and implemented carefully to maximize their effectiveness. Likewise it is important that personal selling maintain the messages adopted in the promotion mix through the sales force behavior with clients.1.3 nett Thought Benefits of MarketingEven though marketing seems elaborate it is very fruitful for a firm. By understanding the customer we can reach the clients and sell our goods. Client retention and market leadership can also be attained with the aid of marketing. Failure to apply marketing to understand the client can be detrimental. . For instance, Disney make the fatal mistake of not separating European customers with American ones in the Euro Disney project.They originally designed a third estate similar to the American one, incorrectly neglecting the cultural differences that exist. For example, they adopted a policy of serving no a lcoholic beverage in the super acid. This was extremely unpleasant to such culture because in France wine is habitual for lunch and dinner. so the organization suffered $921 million losses in the first financial year, and had to rapidly change some aspects of the park in order to survive in the European market.ReferencesHartley R. (2000). Management Mistakes & Successes. Sixth Edition. New York John Wiley & Sons Inc.Hume S (1990). Advertising Age. McDonalds Fred Turner making all the right moves.Kotler P. Armstrong G. Saunders J. Wong V. (1999). Principles of Marketing. Second Edition. London Prentice Hall.