Overview of Marketing Key Concepts in Companies
User Rating: 0 / 5
- Details
- Hits: 6425
Overview of Marketing Key Concepts
Companies try to avail quality products while at the same time building its image to establish a unique competitive position in the market through developing technical innovations appealing to customers. Businesses present plans, its resource distribution and interactions with its competitors, customers, market forces and other environmental factors in different ways. Each company rolls out its services considering factors that influence its operations and customer perceptions and purchasing behaviors (Lan, Sheng and Zhang (2014). Companies learn from customers, the market, business environment and competitors to develop good marketing strategy that enables them develop a market stand and expand their market share. Relevant marketing strategies are portrayed with a reflection on the balance of cost and demands of operation and the market in which a business operate on
Business image is an aspect that influences customers’ perception and attitudes towards the company’s product or service. Such judgment dictates consumer purchasing power and preference to products and services (Slavin, 2014). Building a new business involves understanding how network development process can work for a company and the contributions of marketing strategy. According to Besser, Miller and Webber (2012), there is the need for the “identification and description of critical transformation phases and the implicit impacts on the retail by the strategy and the development process”.
Building networks enable companies collaborate and formulate strategies to overcome challenges of running business through sharing market suggestions. Must businesses to preview the environment they are operating in or which it is going to operate in and understand the complexities within its environment of operation and their effects on the business. Conducting analysis of the market on the aspects of social, legal, political and technological dimensions also influence business operations in different ways and require concrete analysis by the business. According to Besser, Miller and Webber (2012), "failure to understand the social/cultural aspects of the market brings complexity to managing a business”. Companies also need to conduct an analysis of its business environment in relation to market regulations to follow the laws that may affect its marketing strategies and practices.
Trading infrastructures and agreements are developed to foster trade based on economic policies that would make the company aware of the direction in which the market it is operating in is moving economically, and whether the business can satisfy market demand and compete with firms already in the market. Political environment also may affect business operations or decision-making process. Politics plays a role in business establishments and the market development as it is directly linked to the government position on business and operations in their jurisdictions. Technological advancements help in market research, data gathering and marketing through the communication technologies presented by the advancements and discoveries. Businesses thus need to develop their marketing strategies in line with these aspects.
Companies need to develop clear understanding of their target market, or that which they are working in order to understand the links. The company should be aware of possible changes that are likely to take place and their implications on the business. The company thus needs to go deeper on to each factor and analyze it on how it affects its market. This can be done through examining past trends in order to advise on possible future changes in the market. The business will be able to develop strategies containing contingency plans that can deal with varied situations the business may find itself.
Shawn (2012) in marketing strategy, from the origin of the concept to the development of a conceptual framework organized marketing strategy approaches, terms and concepts into frameworks using history of marketing thought to inform the current marketing practice. He noted in his article that using appropriate marketing strategy is a critical element of business. Understanding how the different strategies available work under different environments and business conditions is crucial. The framework would allow managers “to choose most effective strategies from among the most feasible alternatives to attain marketing management” goals (Shawn, 2012, p.31)
Shawn (2012) notes that the plan concept was generalized into marketing in Athens, that just like the general of an army, a business manager must actually locate the resources and organize activities to achieve desired goals and objectives. Marketing strategy concept made a bang in the mid-20th Century, followed by the academic field of marketing at the turn of the 20th Century. The book reviews earlier marketing strategies such as the Borden’s marketing matrix, which appeared in Harvard business review and Smith’s differentiation, and segmentation strategy. It also features Deans skimming, penetration strategies, and Forrester’s product life cycle. These strategies all have different marketing concepts, which are applicable by companies and businesses depending on their markets and targets.
The article discusses differently cooperate policy ideas developed by different scholars overtime. Using the different ideas and strategies, Shawn (2012) developed a framework for marketing strategy. This structure is generated having dissected the relevant literatures to the study to integrate those concepts into a workable framework that can be applied in the company. The structure indicates where at every stage the relevant procedures are applicable to the organization, and describes where those different strategies begin and ends.
There are different strategies for every market level from the entry to maturity. The market introduction strategies are of penetration and niche, which focuses on aggressive market mix for a large market, and narrowly customer defined section respectively. Market growth strategies involve the sector development or the brand expansion. In segment extension, the methods add more segments to the already served (Goyat, 2011). The brand development is in the growth stage adds new products or variations to the line, availing more choice to the customers.
There are also procedures peculiar to the market maturity stage, where sales stabilize or get slow. It is important to maintain or hold to a marketing mix, through the employment of market maintenance strategy. Differentiation strategy is another mix and involves using marketing mix elements to enhance customer purchase value. Harvesting is another approach discussed in the book, relevant to market maturity strategies. There is also the market decline strategy which a strategy of focus when sales declines to exceed costs.
Strengths and Weakness
The research by Shawn (2012) provides for the history and the general overview of marketing concepts. It explains the genesis of the marketing core concepts as well as how they evolved to their current state. Shawn (2012) examined the original sources of ideas to eliminate inconsistent concepts integrate strategic approaches and develop an overall framework for understanding strategies and applying marketing management plans. The paper explored the literatures to bring out any interrelationship between strategies or any disproportion.
The paper focus on historical aspects of marketing that to an extent may not be applicable in the current business environment. Even though it provides a comparison and develops a framework that is intended to be used by managers, the structure may be entirely focused on the past than the present though there are still commonalities. The research was concentrated on paperwork and literature than the actual focus on the happenings of the 21st Century and its diverse rapid environment.
Woolworths Company required creating and maintained competitiveness over other market players. The article by Shawn (2012) presents the strategies that can be employed by businesses from their point of entry to the market to the time when they achieve maturity on a well-connected manner readily understandable. The work presents strategies in terms of the customer, the market, the product and the forces of the market that Woolworths is concerned about in its operation. The firm concentrates on a single line of product and will focus on brand expansion or perfection strategy in order to provide a perfected brand and range of products to choose on.
The paper presents ways in which a company or business can make its products unique from the rest in the market. Strategies such as of differentiation are a focus for Woolworths in order to ensure that their products triumph over the rest of competing products in the market. Product and image branding is one thing a business should concentrate on if it were to sell. The company needs policy mix as have presented in Shawn (2012) to ensure its products survive the market, and the sales are not stagnated.