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Marketing Basics - Kotler Philip

Summary

Each company is interested in the effective management of its marketing activities . In particular, she needs to know how to analyze market opportunities, select suitable target markets, develop an effective marketing mix and successfully manage the implementation of marketing efforts. All this makes up the marketing management process.

The starting point of marketing activity is the analysis of market opportunities. Management needs to know how to identify and evaluate these opportunities. It can find them by working with a grid for the development of goods and the market and paying attention to new attractive areas of activity. Each opportunity must be evaluated in terms of its relevance to the goals and available resources of the company.

The analysis should reveal a number of attractive market opportunities for the firm. Each will require more in-depth study before they stop at it as the next target market. To make sure that the opportunity is attractive enough, the firm will need to conduct a more thorough assessment of current and future demand. If the result is positive, the next step is to segment the market to identify consumer groups and needs that the company can best satisfy. A market segment consists of consumers responding equally to the same set of marketing incentives. A firm may focus on serving one or more market segments. In relation to each of them, the firm must decide which position it wants to take in it. She should study the positioning of competitors' branded goods on the target market in terms of properties, which, according to consumers, are the most important. In addition, the volume of demand for possible combinations of product properties should be estimated. Then it remains to be decided what exactly to create: a brand designed to satisfy the remaining unmet need, or a brand similar to one of the existing ones. In the latter case, the company should be ready to enter the battle with a competing brand, introducing into the minds of consumers the idea of ​​the differences in its product.

Having made a decision on market positioning, the company develops a marketing mix to maintain it. The marketing mix is ​​a combination of four components: product, price, distribution methods and incentive methods. The firm will have to decide on the total amount of the marketing allocation, on the distribution of these allocations by the main components of the marketing mix and within each of these components.

To perform all this marketing work, the company needs to create four systems - marketing information, marketing planning, organization of a marketing service and marketing control. The marketing planning system includes both strategic and marketing planning. The strategic planning system has as its main goal the creation of a strong company, in which there are at least several growing industries, compensating for those that may be going downward. Within the framework of the marketing planning system, long-term and annual plans are developed for each of the specific manufactures of ordinary and branded goods, which are already assigned strategic tasks.

When creating marketing departments, the most common option is a functional organization, in which the responsibility for each individual marketing function lies with its own manager, reporting to the vice president of marketing. Geographic organization allows sales agents to focus on a specific geographic market. Another option is the organization for commodity production, in which the production of each individual product is managed by its own manager, collaborating with specialists from other functional services. The next option is market-based organization, in which the main markets are assigned to market managers. A number of large firms use the organization on a commodity-market basis.