Marketing Management Philosophies – New Economy – Information Bussinesses   no comments

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Marketing is a social and manager process whereby individuals and groups obtain what they need and want through creating and exchanging products and values with others. There are five alternative concepts under which organisations conduct their activities, the so-called marketing management philosophies: the production, product, selling, marketing and societal concepts. The production concept holds that consumers favour products that are available and highly affordable; management’s task is to improve production efficiency and bring down prices. The product concept holds that consumers favour products that offer the most in quality, performance and innovative features; thus, little promotional effort is required. The selling concept holds that consumers will not buy enough of the organisation’s products unless it undertakes a large-scale selling and promotion effort. The societal marketing concept holds that generating customer satisfaction and long-run societal well-being are the keys to both achieving the company’s goals and fulfilling its responsibilities.

Most successful and well-known companies have adopted the marketing concept, according to which achieving organisational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors do. Implementing the marketing concept often means more than simply responding to customers’ stated desires and obvious needs. Customer-driven companies research customers to learn about their desires, gather new product and service ideas, and test proposed product improvements.

The explosive growth in connecting technologies has created a New Economy which provides marketers with new ways to learn about and track customers as well as create product and services tailored to meet customer’s needs. Marketers have redefined how they connect with their customers; in contrast with yesterday’s companies that focused on mass markets, today’s companies are selecting their customers more carefully and developing more lasting and direct relationships with them. Web seems to enable customer relationship building as companies can demonstrate the abovementioned marketing concept on their web sites by including features that are important to consumers; online companies have moved from mass marketing to segmented marketing or one-to-one marketing, in which they target carefully chosen individual buyers.

The New Economy revolves around information businesses; information has the advantages of being easy to differentiate, customize, personalise and dispatch at incredible speeds over networks. With rapid advances in connecting technologies companies have grown skilled in gathering information about individual customers and more adept at individualising their products. Marketing companies go to great lengths to learn about and understand their customers‚Äô needs, wants and demands; they build extensive customer databases containing rich information on individual customer preferences and purchases and then they mine these databases to gain insight by which they ‚Äėmass-customise‚Äô their offerings to deliver greater value to individual buyers. Web enables consumers and companies to access and share an unprecedented amount of information with just a few mouse clicks. In order to be competitive in today‚Äôs new marketplace, companies should adopt web technologies or risk being left behind.

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Armstrong, G. & Kotler, P. (2003) Marketing: An Introduction. New Jersey: Pearson Education Ltd

Drummond, G. & Ensor, J. (2005) Introduction to Marketing Concepts. Oxford: Elsevier Butterworth – Heineman

Kotler, P., Armstrong, G., Saunders, J., Wong, V. (2001) Principles of Marketing. New Jersey: Pearson Education Ltd

Palmer, A. (2012) Introduction to Marketing: Theory and Practice. Oxford University Press

Masterson, R. & Pickton, D. (2010) Marketing: An Introduction. London: SAGE Publication Ltd

Written by Evangelia Papadaki on November 4th, 2012

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