Customer relationship management (CRM) is a business strategy that aims to understand, anticipate and manage the needs of an organization's current and potential customers. It is a journey of strategic, process, organizational and technical change whereby a company seeks to better manage its own enterprise around customer behaviors. It entails acquiring and deploying knowledge about one's customers and using this information across the various touch points to balance revenue and profits with maximum customer satisfaction.
1"Customer needs"
Identifying and meeting customer needs is seen as the primary goal of relationship marketing. Despite this high ranking, customer needs tracking has the lowest level of usage among measurement tools.
2"Partnership"
Working in partnership with suppliers and customers is the key focus, both in consumer and business-to-business markets.
3"Increasing profits"
Maximising customer retention and value, and so driving up profitability, is the goal. This seems to reflect the popularity of the findings propounded by Frederick Reichheld that increased retention equals substantially increased profits.
4"Loyalty"
Building loyalty with customers, usually defined as maintaining repeat sales, is the central role of relationship marketing.
5"Value"
Managing and enhancing the value to both customer and company within the relationship.
6 "Satisfaction"
The focus on satisfaction received a relatively low level of mentions, yet this is the most popular customer measure.
(Source: Measuring and valuing customer relationships,Business Intelligence
Many customers are buying a technical product such as mobile telephone, they want to know as much as possible about the phone and how it will benefit them, this is why Nokia mainly distribute their phones to mobile shops. As staff are trained so that so that they can give customers advice and information about the mobile phones. All the staffs are friendly, high knowlegde about technology, cam help and explain everything for customers. Nokia have two forms of distribution channel structure this is the direct supply via the Internet as Nokia sell directly to their customers through the Internet. They post clear needed informations in the Internet about the products so the customer can read and easy to choose.Also Nokia have the short channel as the phones go from producer to retailer
Thursday, December 13, 2007
People as competitive tool
International Marketing:
Nokia, the Finnish company which started as a paper-pulp mill and grew to become the world's dominant mobile phone manufacturer, is again in transition as the market for handsets mature. The company has been trying to fend off additional erosion with new products that have music video and interactive gaming capabilities. Now Nokia is developing a number of new products and solutions in collaboration with other companies. Here are some of the factors that have had impact on Nokia:
· Its sales, costs and revenues are affected by exchange rate fluctuations, particularly between the euro (the reporting currency), and the US dollar, UK pound sterling and the Japanese Yen as well as certain other currencies.
· Changes in various types of regulations around world have affected the business.
· The presence of various competitors has shaken its position as the number one mobile phone manufacturer
Nokia, the Finnish company which started as a paper-pulp mill and grew to become the world's dominant mobile phone manufacturer, is again in transition as the market for handsets mature. The company has been trying to fend off additional erosion with new products that have music video and interactive gaming capabilities. Now Nokia is developing a number of new products and solutions in collaboration with other companies. Here are some of the factors that have had impact on Nokia:
· Its sales, costs and revenues are affected by exchange rate fluctuations, particularly between the euro (the reporting currency), and the US dollar, UK pound sterling and the Japanese Yen as well as certain other currencies.
· Changes in various types of regulations around world have affected the business.
· The presence of various competitors has shaken its position as the number one mobile phone manufacturer
Nicely available?
Marketing channel:
Currently Nokia are trying to extend their product life cycle. At the moment Nokia mobile phones has reached maturity stage they are trying to make sure that the product does not go into decline. It can do this in several ways:
• It is promoting its product more frequently through TV, Internet, magazines, leaflets, radio and posters.
•Finding new markets. Nokia have introduced their mobile phones to other countries such as Asia and other parts of Europe.
•Developing new distribution channels. The Internet is a major new distribution market that Nokia are currently using. Customers can now purchase their mobile phones on their website. There is also the possibility of purchasing the new mobile phones early before they reach the retail outlets. Also Nokia distribute their phones to online mobile shops such as dial a phone, where they sell the phone at special rates
•Distributor Characteristics. Many customers are buying a technical product such as mobile telephone, they want to know as much as possible about the phone and how it will benefit them, this is why Nokia mainly distribute their phones to mobile shops. As staff are trained so that so that they can give customers advice and information about the mobile phones. Nokia have two forms of distribution channel structure this is the direct supply via the Internet as Nokia sell directly to their customers through the Internet. Also Nokia have the short channel as the phones go from producer to retailer
• Nokia keep updating their phone ranges. For example the 7210 will soon have and up dated version of this phone called the 7250, which provides and integrated camera. •Introducing new services such as Internet and picture messaging. Also new Nokia phones provide new facilities such as Radio and Games.
•Provide the opportunity to upgrade their phones on their website this helps obtain brand loyalty as well as extending the PLC of Nokia phones.
•Enhancements. While not everyone may be able to constantly change their mobile phones Nokia provide the ability to change covers, download games from their website and change ring tones.
Organisation:
Nokia, the Finnish multinational, was renowned for its organizational culture. The company was the world's largest maker of cell phones ahead of rivals such as Motorola, Siemens, and Samsung among others. A flat, networked organization along with speed and flexibility in decision-making characterized Nokia's culture. Nokia believed in providing equal opportunities to people. The company had attempted to shape a culture of respect, openness and trust.
Nokia today announced it will strengthen its multidisciplinary design unit by forming a single company-wide design organization. The new global team will be responsible for the entire design process, from strategy and conceptualization to product development. This change will ensure Nokia is well-positioned to meet the future needs of its customers by offering industry-leading design and a superior user experience. The global unit combines teams in industrial design, user interface and interaction design, ergonomics, communications design, packaging design, colors & materials, sensorial technologies, consumer insight and design management.
Currently Nokia are trying to extend their product life cycle. At the moment Nokia mobile phones has reached maturity stage they are trying to make sure that the product does not go into decline. It can do this in several ways:
• It is promoting its product more frequently through TV, Internet, magazines, leaflets, radio and posters.
•Finding new markets. Nokia have introduced their mobile phones to other countries such as Asia and other parts of Europe.
•Developing new distribution channels. The Internet is a major new distribution market that Nokia are currently using. Customers can now purchase their mobile phones on their website. There is also the possibility of purchasing the new mobile phones early before they reach the retail outlets. Also Nokia distribute their phones to online mobile shops such as dial a phone, where they sell the phone at special rates
•Distributor Characteristics. Many customers are buying a technical product such as mobile telephone, they want to know as much as possible about the phone and how it will benefit them, this is why Nokia mainly distribute their phones to mobile shops. As staff are trained so that so that they can give customers advice and information about the mobile phones. Nokia have two forms of distribution channel structure this is the direct supply via the Internet as Nokia sell directly to their customers through the Internet. Also Nokia have the short channel as the phones go from producer to retailer
• Nokia keep updating their phone ranges. For example the 7210 will soon have and up dated version of this phone called the 7250, which provides and integrated camera. •Introducing new services such as Internet and picture messaging. Also new Nokia phones provide new facilities such as Radio and Games.
•Provide the opportunity to upgrade their phones on their website this helps obtain brand loyalty as well as extending the PLC of Nokia phones.
•Enhancements. While not everyone may be able to constantly change their mobile phones Nokia provide the ability to change covers, download games from their website and change ring tones.
Organisation:
Nokia, the Finnish multinational, was renowned for its organizational culture. The company was the world's largest maker of cell phones ahead of rivals such as Motorola, Siemens, and Samsung among others. A flat, networked organization along with speed and flexibility in decision-making characterized Nokia's culture. Nokia believed in providing equal opportunities to people. The company had attempted to shape a culture of respect, openness and trust.
Nokia today announced it will strengthen its multidisciplinary design unit by forming a single company-wide design organization. The new global team will be responsible for the entire design process, from strategy and conceptualization to product development. This change will ensure Nokia is well-positioned to meet the future needs of its customers by offering industry-leading design and a superior user experience. The global unit combines teams in industrial design, user interface and interaction design, ergonomics, communications design, packaging design, colors & materials, sensorial technologies, consumer insight and design management.
At any cost?
Nokia's current pricing strategy is based on 2 main theories:
1. Penetration pricing- although this strategy is usually for companies that are trying to gain instant market share in a new market, companies who are already well known in the market still do it with new products that carry new technologies so they can take more market share form their competitors.
2. Competitor based pricing- this is used when there is a lot of competition in the market and a company is looking to take another companies market share by offering the same or similar products for a lower price, this happens a lot in the communications market and this strategy is used by every mobile phone producing company that is still in business. Nokia's pricing strategy has proven very effective, this is down to the fact that they first sell their products for high prices and have very limited sales but make big profits on each sale, they then lower the price of their product and have lots more sales but they make less profit, but they still make a large profit due to the amount of sales, the other reason that they are so successful is that they offer high quality products and they sell them for the same price and sometimes even lower prices then the competition and have now built up the highest market share, they currently have 37.2% of the mobile phone market share and are the biggest selling mobile phone company in the world.
There are many priorities within a business, but in a marketing orientated company like Nokia, many of the following principles will be high on the agenda:
1. Customer satisfaction
2. Customer perception
3. Customer needs and expectations
4. Generating income or profit
5. Making satisfactory progress
6. Be aware of the environment
1. Penetration pricing- although this strategy is usually for companies that are trying to gain instant market share in a new market, companies who are already well known in the market still do it with new products that carry new technologies so they can take more market share form their competitors.
2. Competitor based pricing- this is used when there is a lot of competition in the market and a company is looking to take another companies market share by offering the same or similar products for a lower price, this happens a lot in the communications market and this strategy is used by every mobile phone producing company that is still in business. Nokia's pricing strategy has proven very effective, this is down to the fact that they first sell their products for high prices and have very limited sales but make big profits on each sale, they then lower the price of their product and have lots more sales but they make less profit, but they still make a large profit due to the amount of sales, the other reason that they are so successful is that they offer high quality products and they sell them for the same price and sometimes even lower prices then the competition and have now built up the highest market share, they currently have 37.2% of the mobile phone market share and are the biggest selling mobile phone company in the world.
There are many priorities within a business, but in a marketing orientated company like Nokia, many of the following principles will be high on the agenda:
1. Customer satisfaction
2. Customer perception
3. Customer needs and expectations
4. Generating income or profit
5. Making satisfactory progress
6. Be aware of the environment
I was hit
Promotion is all about companies communicating with customers. A business's total marketing communications programme is call " promotional mix". There are 4 elements of the promotinal mix:
+Advertising: Is any non personal paid form of communication using any form of mass media.
+Public relations: Involves developing positive relationships with the organisation media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention.
+Sales promotion: Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers.
+Personal selling: Selling a product service one to one.
There are two types of promotion:
* Trade promotions- manufacturers promoting to retailers and wholesalers.
* Consumer promotions- manufacturers or retailers promoting to the final consumer.
For example about Nokia 7210:
Advertisement:The advertisement of the Nokia 7210 is directed at the selected target market. It shows the above picture of the phone fig 1 and giving the heading of the advertisement " A Sign Of Attitude" It also gives all the main new features of the phone and how it can benefit the user. It also describes the phone as a fashion accessory and having an urban image, which is a popular image at the moment with the selected target market. They also mention how the phone has a range of interesting colours to suit everyone preferences. This advertisement can be seen from the Nokia website. The Nokia 7210 is also advertised on magazines and newspapers. Also celebrities will use the Nokia 7210 in adverts and films. Most of the advertisements for the phone promote the phone as being the most fashionable phone of the year.
Sales Promotion Nokia are giving away a free photo fun pack, which is available to all customers who purchase a 7210, 7650 or 9200. So that customers can send photo messages
Personal Selling:Personal selling of the Nokia 7210 is in mobile phone shops. Staff are trained to learn some information about the phone so that they can offer help on any queries of the customer. Both The Link and Carphone Warehouse provide demonstrations on how the phone is used they both also have buyers guide magazine that give some information on the Nokia 7210.
Public Relations To drive membership for Club Nokia, the community for Nokia phone owners, Nokia launched a promotional campaign, which includes a consumer promotion, supported by radio advertising to win a Mini Cooper car each month during April, May or June, as well as a retailer incentive to win a VIP trip for two to the Italian Grand Prix.
The promotion of this phone is more carefully targeted at the teenagers/ young adults. This is done by a range of advertisements targeted at this market
The product mix is that Nokia also sells other products such as the Nokia mediamaster and provides tools for making networks such as nodes and IP security platforms.
+Advertising: Is any non personal paid form of communication using any form of mass media.
+Public relations: Involves developing positive relationships with the organisation media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention.
+Sales promotion: Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers.
+Personal selling: Selling a product service one to one.
There are two types of promotion:
* Trade promotions- manufacturers promoting to retailers and wholesalers.
* Consumer promotions- manufacturers or retailers promoting to the final consumer.
For example about Nokia 7210:
Advertisement:The advertisement of the Nokia 7210 is directed at the selected target market. It shows the above picture of the phone fig 1 and giving the heading of the advertisement " A Sign Of Attitude" It also gives all the main new features of the phone and how it can benefit the user. It also describes the phone as a fashion accessory and having an urban image, which is a popular image at the moment with the selected target market. They also mention how the phone has a range of interesting colours to suit everyone preferences. This advertisement can be seen from the Nokia website. The Nokia 7210 is also advertised on magazines and newspapers. Also celebrities will use the Nokia 7210 in adverts and films. Most of the advertisements for the phone promote the phone as being the most fashionable phone of the year.
Sales Promotion Nokia are giving away a free photo fun pack, which is available to all customers who purchase a 7210, 7650 or 9200. So that customers can send photo messages
Personal Selling:Personal selling of the Nokia 7210 is in mobile phone shops. Staff are trained to learn some information about the phone so that they can offer help on any queries of the customer. Both The Link and Carphone Warehouse provide demonstrations on how the phone is used they both also have buyers guide magazine that give some information on the Nokia 7210.
Public Relations To drive membership for Club Nokia, the community for Nokia phone owners, Nokia launched a promotional campaign, which includes a consumer promotion, supported by radio advertising to win a Mini Cooper car each month during April, May or June, as well as a retailer incentive to win a VIP trip for two to the Italian Grand Prix.
The promotion of this phone is more carefully targeted at the teenagers/ young adults. This is done by a range of advertisements targeted at this market
The product mix is that Nokia also sells other products such as the Nokia mediamaster and provides tools for making networks such as nodes and IP security platforms.
This is something I love
Product life cycle-Nokia
1/Introduction :
When Nokia phones were first introduced they required a lot of promoting and advertising as they weren't established enough to sell based on their quality and what they offer to the consumer, so this is where Nokia spent the largest amount of money promoting their products and establishing their brand as a leader in the communications market. Also when mobile phones were first available there were only a few companies as well as Nokia in the market (Sony e.t.c) so they could charge higher prices then they can at the present time in the product life cycle because no companies would dare to enter a price war with such a new product.
2/ Growth :
This stage of the life cycle also has high promotion costs involved in it, this is due to the fact that mobile phones are becoming established as a consumer necessity and lots of other companies decide to enter the growing market, although companies do not need to assure customers that they need a mobile phone, Nokia have to assure the customers that they want a Nokia phone and this is where the high promotional costs come from.
3/Maturity:
In this stage the promotional costs do decrease as the more popular brands, such as Nokia and Samsung, have gathered the majority of the market share and only have to show customers that they have a new model out and it will sell well, as they have been established as a quality brand and customers no-longer need to be persuaded to buy Nokia brand technology.
4/Decline:
This is the stage that the mobile communications market, including Nokia, have recently entered (Nokia had reported the first drop in sales in the first quarter of 2002), and companies are now promoting, heavily, their new MMS products to the market in an attempt to get out of decline and back into growth, with a new generation of technologically advanced phones that offer motion picture capture, camera technology and the opportunity to watch television on your handset.
Branding
Nokia phones are seen as being of the highest quality and this is reflected in their massive sales figures. The fact that they are seen to be such high quality products is partly down to successful branding, they have a highly recognisable packaging style and the style of their handsets is similar in every line of production with the company name printed just above the screen and just below the earpiece
Moreover, a necessity of using all the possible phone variations became one of the side effect of a wide product line. Nokia company started offering new form-factors (clamshells, sliders) and didn't bother of producing models similar to Samsung phones (being very popular). And this means Nokia will produce more clamshells and sliders in short time. If the Rotate form-factor gets necessary popularity, such devices will also be manufactured.
1/Introduction :
When Nokia phones were first introduced they required a lot of promoting and advertising as they weren't established enough to sell based on their quality and what they offer to the consumer, so this is where Nokia spent the largest amount of money promoting their products and establishing their brand as a leader in the communications market. Also when mobile phones were first available there were only a few companies as well as Nokia in the market (Sony e.t.c) so they could charge higher prices then they can at the present time in the product life cycle because no companies would dare to enter a price war with such a new product.
2/ Growth :
This stage of the life cycle also has high promotion costs involved in it, this is due to the fact that mobile phones are becoming established as a consumer necessity and lots of other companies decide to enter the growing market, although companies do not need to assure customers that they need a mobile phone, Nokia have to assure the customers that they want a Nokia phone and this is where the high promotional costs come from.
3/Maturity:
In this stage the promotional costs do decrease as the more popular brands, such as Nokia and Samsung, have gathered the majority of the market share and only have to show customers that they have a new model out and it will sell well, as they have been established as a quality brand and customers no-longer need to be persuaded to buy Nokia brand technology.
4/Decline:
This is the stage that the mobile communications market, including Nokia, have recently entered (Nokia had reported the first drop in sales in the first quarter of 2002), and companies are now promoting, heavily, their new MMS products to the market in an attempt to get out of decline and back into growth, with a new generation of technologically advanced phones that offer motion picture capture, camera technology and the opportunity to watch television on your handset.
Branding
Nokia phones are seen as being of the highest quality and this is reflected in their massive sales figures. The fact that they are seen to be such high quality products is partly down to successful branding, they have a highly recognisable packaging style and the style of their handsets is similar in every line of production with the company name printed just above the screen and just below the earpiece
Moreover, a necessity of using all the possible phone variations became one of the side effect of a wide product line. Nokia company started offering new form-factors (clamshells, sliders) and didn't bother of producing models similar to Samsung phones (being very popular). And this means Nokia will produce more clamshells and sliders in short time. If the Rotate form-factor gets necessary popularity, such devices will also be manufactured.
Targeting strategy
Pull vs Push Strategies: By increasing its brand loyalty in past few years, Nokia has become more of a pull brand. Customer have started going to Nokia showrooms and asking for latest handsets.
Nokia Marketing Strategy:
1. Nokia club was born to strengthen the loyalty of Nokia mobile phones' users, in order to offer them enterprises, duties, contents, meanwhile boosting the commitment towards customers.
2. Nokia's communication strategy is planned as the sole activity of media-mix, structured by offline, online and below the line programmes. Nokia's marketing plan is mainly based on two essential elements: the rank of products and the needs of customers, belonging to the same category.
Nokias current marketing strategy
The marketing mix
1.Price- The phones that Nokia produce are usually sold at high prices (new phones can be expected to enter the market at around £200+, if they carry the latest technology). The price of the new phones usually decreases after an introductory period, which is usually around 2 months long. Nokia's prices are usually competitor based, in such a way as, they try to keep their prices a bit lower then those of the closest competitors, but not as low as the "smallest" competition as consumers do not mind paying the extra money for the "extra quality" they will receive with a well known brand, such as Nokia
2.Place- Nokia phones are generally sold at all established mobile phone dealerships. The products are only sold in the electrical suppliers and stores other then dedicated phone dealerships after the introductory period so the phones can remain limited edition, as this will encourage younger consumers to buy them.
3.Promotions- Nokia tend to promote the new technologies and mobile devices they create using one big advertising campaign that focuses on a singular technology instead of each individual handset so they can appeal to a lot of different markets with one campaign.
4.Product- Nokia phones tend to include all the latest technology and a lot of the consumers favourite aspects such as text messaging and games like Snake and Memory. When the phones came out they were big and bulky and quite unattractive but now they are all quite sleek and stylish with phones now getting small enough to fit in the palm of your hand as standard. Most of the phones produced nowadays have accessories that consumers must buy with them (carry cases, hands free kits and in-car chargers) these generate Nokia a lot of profit, as they are very high priced.
This is what I am
As a consumer, my standards for choosing service or buying goods are quality, model, price and brand. Nowadays, the technology is more and more develop, so the demand of people is more higher. They choose the product not only for its quality, but also for its good looking. Almost people will choose the product has cheaper price but their quality are same. However, consumer choose or buy the product/ service for its brand because they trust and they think that the products of famous brand are always good.
Through the advertisement, I know that Nokia is one of famous brand about mobile phone. Mobile phones of this company has a lot of models and functions: not only use for calling, hearing the calls, send and received message but also play music as walkman, play game, take picture with high quality as camera, high storage capacity. With high technology, Nokia has some mobile phone was be designed and used like small computer ( Nokia 770,Nokia N800,… ) Beside that, the most importance reason that I really like Nokia because sometime I made the mobile phone fall down but it still work well. So Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. The staffs are so friendly, one of them answered all my questions, I can have a good advise for buying new mobile corresponding with my pocket.
Through the advertisement, I know that Nokia is one of famous brand about mobile phone. Mobile phones of this company has a lot of models and functions: not only use for calling, hearing the calls, send and received message but also play music as walkman, play game, take picture with high quality as camera, high storage capacity. With high technology, Nokia has some mobile phone was be designed and used like small computer ( Nokia 770,Nokia N800,… ) Beside that, the most importance reason that I really like Nokia because sometime I made the mobile phone fall down but it still work well. So Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. The staffs are so friendly, one of them answered all my questions, I can have a good advise for buying new mobile corresponding with my pocket.
Marketing Environment
The marketing environment surrounds and impacts upon the organization.Macro marketing environmental force : Political, legal, regulatory, societal/green, technlogical, economic and competitive
The micro-environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence.
Micro marketing environmental forces : The business, suppliers, marketing intermediaries, buyers, competitors and publics
Micro marketing environmental forces : The business, suppliers, marketing intermediaries, buyers, competitors and publics
The macro-environment includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws. It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology.
For example: Nokia Company
For example: Nokia Company
Political factors- Legal constraints are the hardest external factor to try and avoid making any serious impact on any pricing, or marketing choices made. The only legal constraint that my new strategy "dodges" is the G3 licensing, as the new style of Nokia product doesn't need any of the newest technologies under the G3 frame.
Technological factors- This is the most important external factor in the communications as mobile phones are based around technology and new discoveries. The new strategy does have to be careful with technological advances as Nokia do not want to make the new phones to complicated as my market research discovered that this is exactly what the target market does not want, they want phones that are simpler to use.
Environmental and Social factors- Nokia have never really had any of these affect the way in which they operate because they have never done anything that is really anti-environmental
Wednesday, November 14, 2007
Marketing From My View Point!
There are a lot of definitions of Marketing:
1/ American Marketing Association Definition :The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
2/ American Heritage Dictionary's Definition of Marketing :The commercial functions involved in transferring goods from producer to consumer.
3/ Merriam Webster's Marketing Definition: the process or technique of promoting, selling, and distributing a product or servicean aggregate of functions involved in moving goods from producer to consumer
4/ Marketing Definition From MSN Encarta Dictionary:the business activity of presenting products or services to potential customers in such a way as to make them eager to buy. Marketing includes such matters as the pricing and packaging of the product and the creation of demand by advertising and sales campaigns.
As a process, there are certain foundations of marketing that will never become obsolete. We still have products, services, and ideas to sell at some price. We deliver to our customers via some means of distribution. We promote and we advertise. Those are the basics. Those basics still exist and always will.
*The role of marketing* :
Marketing is the management process responsible for identifying, anticipating and satisfying consumer requirements profitably
1/ Identifying - This will involve answering questions such as 'How do we find out what the consumer's requirements are?' and 'How do we keep in touch with their thoughts and feelings and perceptions about our good or service. This is a key purpose of market research.
2/ Anticipating - Consumer requirements change all the time. For example, as people become richer they may seek a greater variety of goods and services. Anticipation involves looking at the future as well as at the present. What will be the Next Best Thing (NBT) that people will require tomorrow.
3/ Satisfying - Consumers want their requirements to be met. They seek particular benefits. They want the right goods, at the right price, at the right time in the right place.
4/ Profitability - Marketing also involves making a margin of profit. An organisation that fails to make a profit will have nothing to plough back into the future. Without the resources to put into ongoing marketing activities, it will not be able to identify, anticipate or satisfy
=>Marketing collects and analyses data on markets and consumers / customers, and then uses this information to guide business decisions as to which products they should produce and the best methods to promote them.
E.g:
[1] A customer will approach a manufacturer (or a number of manufacturers) with the requirements of a product. It is likely that the customer has a good idea of the requirements of the product so the role of marketing is likely to be reduced to the role of advertising your companies services.
[2] With no one particular customer to provide the requirements, an analysis of the existing marketplace and talking with potential customers can determine what the requirements of a product should be and try and find some niche or opening for a new product to occupy. This implies that the organisation must do extensive market research in order to determine what requirements the product must satisfy. There is no point developing a product, no matter how well engineered, if there is no market for it. The marketing department will therefore
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