Lectures on marketing for technical schools. Marketing: lecture notes (I. G. Shvaiko). Open Systems Marketing
III. BASICS OF MARKETING
1. Essence, goals, basic principles and functions of marketing
2. Evolution of marketing development and marketing concept
3. Marketing information system
4. Marketing research
5. Marketing environment and its structure
6. Consumer priority. Consumer Behavior
7. Market segmentation and selection of target segments
8. Marketing mix (marketing mix)
9. Marketing strategies
11. New product development
12. Price and pricing
13. Promotion of goods and services
14. Distribution of goods
15. System of marketing plans
16. Marketing Management
17. Finance and marketing control
18. Marketing and society
V. MARKETING RESEARCH
1. Goals, objectives and directions of marketing research
2. Types, sources and methods of collecting marketing information
3. Modern Information Technology and marketing research
4. Marketing research process
5. Determination of the scope and sampling procedure, organization of data collection during marketing research
6. Methods of data analysis and forecasting in marketing research
8. Interaction with specialized organizations in the field of marketing research
VI. MARKETING MANAGEMENT
1. Marketing - as an integrating function in making managerial decisions
2. Marketing management at the corporate level: portfolio strategies, growth strategies, competitive strategies
3. Marketing management at the functional level: market segmentation, selection of target segments, positioning, development of a marketing mix
4. Marketing management at the instrumental level: product management, price management, distribution channels and communication tools
5. Functional communications of marketing at the enterprise. Typical position and organizational structures of the marketing service
6. Competitive advantages of the enterprise
7. Strategic and operational planning in marketing. The sequence of development of marketing plans. Marketing budget
8. Control, evaluation and audit marketing activities
VII. MARKETING COMMUNICATIONS
1. Marketing communications - concept and essence
6. Modern methods for evaluating the effectiveness of advertising
7. Public Relations
8. Direct Marketing
9. Sales promotion
III. BASICS OF MARKETING
1. Essence, goals, basic principles and functions of marketing
According to the definition of the American scientist F. Kotler? marketing - a type of human activity aimed at satisfying needs and requirements through exchange.
The basic idea behind marketing is the idea meeting human needs and requirements(physical needs and needs for food, clothing, warmth, security, social needs and needs, the need for knowledge and self-expression, etc.). The needs of people are unlimited, but the resources to satisfy them are limited. So a person will choose those goods that give him the greatest satisfaction within his capabilities.
Demand is a need backed by purchasing power. It is not difficult to enumerate the demand of a particular society at a particular point in time. However, demand is not a reliable indicator, as it changes. Changes in choice are affected by both price changes and income levels. A person chooses a product whose combination of properties provides him with the greatest satisfaction for a given price, taking into account his specific needs and resources.
Human needs, wants and demands are satisfied by goods. Under commodity v broad sense anything can be understood that can satisfy a want or need and is offered to the market for the purpose of attracting attention, acquisition, use or consumption.
Exchange is the act of receiving a desired object from someone with an offer of something in return.
Market in marketing is understood as a set of existing and potential consumers of goods (sales market).
A key aspect of marketing is mindset. He assumes that when marketing solutions the manager must look at everything through the eyes of the consumer. Therefore, these solutions should be those that the consumer needs and wants.
The American Marketing Association (AMA) defines marketing as follows:
Marketing is the process of planning and inventing, pricing, promoting and realizing ideas, goods and services through an exchange that satisfies the goals of individuals and organizations.
There are four components to this definition:
1) management action (foresight, goal setting and planning, meeting demand);
2) a set of controlled elements of marketing activities (product (idea), price, distribution (implementation) and promotion);
3) objects with the help of which demand is satisfied and goals are achieved (goods, services, ideas, organizations, people, territories);
4) the method of meeting demand (exchange).
Thus, the previous definition can be briefly expressed as follows: "marketing is the management of the satisfaction of demand through trade."
Marketing goals can be:
– maximum consumption;
– achieving maximum customer satisfaction;
– providing the widest possible choice;
- maximizing the quality of life.
From the point of view of enterprise management, the following marketing goals can be distinguished:
- increase in income;
- growth in sales volumes;
– increase in market share;
– creation and improvement of the image, fame of the enterprise and its products.
Marketing management is understood as the analysis, planning, implementation and control of activities designed to establish and maintain exchanges with target customers in order to achieve certain goals of the enterprise.
The following tasks of marketing activities in the enterprise can be distinguished:
1. Research, analysis and assessment of the needs of real and potential consumers of the company's products in areas of interest to the company.
2. Marketing support for the development of new products and services of the company.
3. Analysis, assessment and forecasting of the state and development of the markets where the enterprise operates or will operate, including the study of competitors' activities.
4. Participation in the formation of strategy and tactics market behavior enterprises.
5. Formation of the assortment policy of the enterprise.
6. Development of the pricing policy of the enterprise.
7. Development of a policy for the distribution of goods of the enterprise.
8. Marketing communications.
9. Service.
2. Evolution of marketing development and marketing concept
The evolution of marketing as a science is given in Table. 2.1. The evolution of marketing concepts - in table. 2.2.
Table 2.1
The evolution of marketing as a science
The end of the table. 2.1
| years | Theoretical basis | Methods | Applications |
| 1960 | The doctrine of sales, focus on sales, product and function. Distribution Theory | Motive analysis, operations research, modeling | Consumers of means of consumption |
| 1970 | Scientific basis of behavior and decision making. Marketing is like a recipe. Orientation to trade, sales and partially to the consumer | Factor and discriminant analysis, mathematical methods, marketing models | Consumers of means of production and means of consumption |
| 1980–1990 | situational analysis. The doctrine of marketing as a function of management. Theory of competitive analysis. Strategic Marketing | positioning, cluster analysis, typology of consumers, expertise, causal analysis | Consumers of means of consumption, means of production, services, non-profit organizations |
| 1990 to present | The doctrine of marketing as a function and toolkit of entrepreneurship. The theory of market networks, the theory of communications and interaction. Focus on social and environmental impact | Positioning, cluster analysis, consumer typology, consumer and competitor behavior patterns, benchmarking, game theory | Consumers of means of production, means of consumption, services, non-profit organizations, state business |
Table 2.2
The evolution of the concept of marketing
| years | Concept | Leading Idea | Basic Toolkit | the main objective |
| 1860–1920 | Production | I produce what I can | cost, performance | Production improvement, sales growth, profit maximization |
| 1920–1930 | Commodity | Production of quality goods | Commodity policy | Improvement of consumer properties of goods |
| 1930–1950 | Marketing | Development of the sales network, distribution channels | Sales policy | Intensification of sales of goods through commercial promotion and sale of goods |
| 1960–1980 | Traditional Marketing | I produce what the consumer needs | Marketing mix, consumer research | Meeting the needs and demands of target markets |
| 1980–1995 | Socio-ethical marketing | I produce what the consumer needs, taking into account the requirements of society | Marketing mix, the study of social and environmental impacts from the production and consumption of manufactured goods and services | Satisfying the needs of the needs of target markets, subject to saving human, material, energy and other resources, environmental protection |
The end of the table. 2.2
The manual has been prepared in accordance with the requirements of the State Standard for the discipline "Marketing". In this lecture notes, the main topics on the subject are given. The material is presented in the form of questions and answers for the successful preparation and delivery of the subject. Designed for students of economic specialties.
Published with the permission of the copyright holder LA "Scientific Book"
Lecture 1. The concept of marketing
1. Prerequisites for the emergence of marketing
Marketing as a concept of managing the actions of market entities in a competitive environment has gained its fame on a global scale due to its effective application in both commercial and non-commercial areas. Standing out as an independent science at the beginning of the past XX century, he reasonably took his place among the achievements of economic sciences and business practice. Successful activity of each market entity in competitive environment positively affects the general well-being, which largely depends on the effective marketing management of the relevant objects.
Prerequisites for the emergence of marketing at the end of the XIX century. there was a "wild market" (unorganized competition, ignoring the needs of the consumer, the concentration of industrial and commercial capital, monopoly, etc.) and antitrust laws, i.e. state regulation market.
In 1902, the teaching of marketing as a science was introduced at US universities.
1910 - 1920 marked the beginning of the development of a coherent theory about market regulation tools.
Initially, it was supposed to organize a system of market sales on a scientific basis, which was called distribution. Distribution is distribution in the market. In the course of its development, the theory begins to cover the process of product promotion, the study of demand and its satisfaction, etc. And therefore, in the early 1920s. economist A. Cox proposed another name - "marketing".
2. Stages of marketing development
The stages of development of marketing as a science are closely related to the stages of market development and the market orientation of the company.
First stage associated with a focus on production (lasted until about the 1930s), i.e., the activity of the company is aimed at using production capabilities. So, at this time, demand far exceeds supply, and therefore any manufacturer can sell his product ( important role plays the quantity of goods, not its quality). There is competition between buyers.
Another characteristic feature of this period of time is the monopoly market. At a certain moment, the monopoly of a particular product becomes a brake on the development of its market, so either the state intervenes ( antitrust policy), or the firm is forced to reorient its activities, preventing the fall in consumer demand. As a result, a marketing concept for improving production appears, where the main drawback is the narrowness of the product range. This direction is used in the production of consumer goods. Ultimately, supply begins to exceed demand, a situation of abundance of goods arises. In 1929 - 1931. the presence of overproduction shows that it is not enough to produce a product, one must be able to sell it.
Second phase associated with sales orientation (1930 - 1959). The main idea of this concept was that it is necessary to make significant marketing efforts in order for the product to be in demand. Firms began to use various methods of selling their products - from aggressive (forcing a one-time purchase) to focusing the consumer on long-term purchases. Well organized production and extensive network marketing gives priority to more expensive or lower quality goods. The task of the manufacturer was to produce as much product as possible and sell it as sophisticatedly as possible. All this has led to the fact that the market is oversaturated with a narrow product range, and increased competition has forced companies to apply the concept of "product improvement". The bottom line is that a product will be in demand if it good quality, and therefore, the key to success is the continuous improvement of the quality of the manufactured product. The disadvantages are: the high price, the "passion" of the company for its product, and many others.
Subsequently, the “consumer concept” appears (late 1970s), based on the desires and preferences of the consumer. And sales will be successful if production is preceded by a study of the situation and market needs. The orientation of the company to the immediate needs of the individual often contradicted the long-term well-being of the whole society, which led to the need to focus on social and ethical marketing (1980s), this concept is characterized by the fact that if the production of goods causes negative processes in nature or in some way harms society, then such production should be eliminated or modified. All this is possible only in a society with a developed market that has gone through many years of mass orientation towards marketing.
Each of the above concepts has its pros and cons. The marketing concept proposed by J. McCarthy tried to connect the structural elements. This system includes five directions market activity firms:
1) sellers and buyers (people);
2) product (product);
3) price (price);
4) sales promotion (promotion);
5) product positioning on the market (place).
The concept originated in the 1960s. as a response to an unequivocal marketing decision.
3. The concept and essence of marketing
Marketing(from the English market - "market") - this is the original unity of rigorous science and the ability to work effectively in the market.
Marketing- this is a single complex for organizing the production and marketing of goods (services), aimed at identifying and satisfying the needs of a specific group of consumers in order to make a profit.
Marketing is a relatively young science (about a hundred years), but this does not mean that before the recognition of this science, no one used its methods. Basically, this happened on a subconscious level: from the moment the product and the market appeared, each merchant was interested in selling his product using various promotion attempts (advertising, customer research, etc.). Naturally, this was all at a primitive level. And only in recent decades in the science of management a new trend has appeared, with clearly defined boundaries, functions, goals, methods, called "marketing". This term appeared for the first time at the beginning of the 20th century. in the USA, and after only 15 - 20 years it penetrated and began to be actively used and developed in many countries of the world. Marketing begins its development in 1960 - 1970, it is influenced by both external and internal factors:
a) increased standard of living;
b) an increase in the share of disposable income;
c) improving the quality of services provided social sphere;
d) the development of communication systems (people are actively starting to travel, bringing with them not only new goods, but also new needs);
e) the desire to use their free time to their advantage.
In this regard, entrepreneurs are beginning to explore these factors in order to improve their products, increase sales and maximize profits. In these marketing programs, firms include measures to improve the quality of goods, its assortment groups, research of buyers, potential competitors, pricing policy objectives, methods and techniques for increasing demand, and much more.
Marketing is a kind of philosophy of production, which is constantly subject to the market, political, economic and social influences. With the right "understanding of the environment", the ability to quickly respond to market changes, the ability to accept flexibility in solving strategic and tactical tasks, marketing can become the foundation for the long-term and profitable activities of any company.
In the very essence of marketing, certain concepts are laid down: need (need), request (demand), product and exchange. The initial component of human nature is need: the need for food, clothing, warmth, security, and so on, i.e. need It is the feeling of a lack of something. But the need, which has taken a specific form under the influence of the level of culture and personality of the individual, is called a need. Needs are limitless, and therefore a person chooses only those that allow him to financial opportunities. The world of goods and services is designed to satisfy human needs.
A need backed by purchasing power is called demand. Demand is a variable. It is influenced by such factors as the price level, income level, fashion and many others.
Product- this is what can satisfy the need (need) and is offered to the market for the purpose of sale.
Exchange is the act of getting something in return for something.
The commercial exchange of values between the two sides is a transaction.
To complete a transaction, certain conditions must be met:
a) availability of objects of the transaction;
b) the presence of the subjects of the transaction;
c) determination of the terms of the transaction;
d) determining the time and place of the transaction.
Any transaction takes place in the market. In modern society, the market is not necessarily a physical quantity (place).
From here the role of marketing for the economy This is an increase in trade and market efficiency.
4. Marketing principles
One of the foundations of the activity of any enterprise operating on the principles of marketing is the motto: "to produce only what the market needs, what the buyer will demand." The main idea of marketing is the idea of human needs, which is the essence of this science. From this follow basic principles,which include:
1) achievement of the final justified result of the company's activities;
2) taking over a certain market share in the long run;
3) effective implementation goods;
4) choice of effective marketing strategy and pricing policies;
5) the creation of market novelty products that allow the company to be profitable;
6) constantly conduct market research in order to study demand for further active adaptation to the requirements of potential buyers;
7) use an integrated approach to linking the set goals with the available resources and capabilities of the company;
8) finding new ways for the firm to improve efficiency production line, creative initiative of the staff to introduce innovations;
9) improving product quality;
10) cost reduction;
11) organize the delivery of the company's products in such a volume, at a place and time that would most suit end user;
12) monitor the scientific and technological progress of the society;
13) to achieve advantages in the fight against competitors.
The experience and practice of marketing clearly indicated that the use of only some components (studying the product or studying consumers) does not give the desired result. Only an integrated approach gives a result to the enterprise - it allows you to enter the market with your product and be profitable.
5. Goals and objectives of marketing
Marketing It is a social science and therefore affects a great many people. For a number of reasons (education, social status, religious beliefs, and much more) the attitude to this discipline is ambiguous, giving rise to contradictions. On the one hand, marketing is an integral part of the life of a product, on the other hand, it carries a negative perception: the creation of unnecessary needs, develops greed in a person, “attacks” with advertising from all sides.
What are the true goals of marketing?
Many believe that the main goal of this science is sales and promotion.
P. Drucker (management theorist) writes as follows: “The goal of marketing is to make sales efforts unnecessary. Its goal is to know and understand the customer so well that the product or service will fit the customer exactly and sell itself.”
It does not follow from this that sales and promotion efforts lose their importance. Most likely they become part of the marketing activities of the enterprise to achieve the main goal - maximizing sales and profits. From the foregoing, we can conclude that marketing is a type of human activity that is aimed at meeting human needs and requirements through exchange.
So, the main goals of marketing are the following.
1. Maximization a possibly high level of consumption - firms are trying to increase their sales, maximize profits using various methods and methods (introduce fashion for their products, outline a sales growth strategy, etc.).
2. Maximization consumer satisfaction, i.e. the goal of marketing is to identify existing needs and offer the maximum possible range of a homogeneous product. But since the level of customer satisfaction is very difficult to measure, it is difficult to evaluate marketing activities in this area.
3. Maximization of choice. This goal follows and, as it were, is a continuation of the previous one. The difficulty in realizing this goal lies in not creating branded abundance and imaginary choice in the market. And some consumers, with an excess of certain product categories, experience a feeling of anxiety and confusion.
4. Maximizing the quality of life. Many tend to believe that the presence of a range of goods has a positive effect on its quality, quantity, availability, cost, i.e., the product is “improved”, and therefore, the consumer can satisfy his needs to the maximum, improve the quality of life. Proponents of this view recognize that improving the quality of life is a noble goal, but at the same time, this quality is difficult to measure, so sometimes contradictions are born.
Marketing Tasks:
1) research, analysis, assessment of the needs of real and potential buyers;
2) marketing assistance in the development of a new product (service);
3) provision after-sales service;
5) research, analysis, evaluation and forecasting of the state of real and potential markets;
6) research activities of competitors;
7) sale of goods (services);
8) formation of assortment policy;
9) formation and implementation of the company's pricing policy;
10) formation of a strategy for the behavior of the company.
6. Marketing functions
General Functions marketing is management, organization, planning, forecasting, analysis, evaluation, accounting, control. Specific functions are: studying the market, consumers and demand, studying the environment, implementing the company's product policy, organizing service maintenance, maintaining a pricing policy, merchandising, maintaining and stimulating demand, etc.
Marketing functions are the interconnection of activities.
The functions of marketing derive from its principles and come in the following widows:
1)analytical- this is a comprehensive analysis of micro and macro environments, which includes an analysis of markets, consumers, demand, competitors and competition, as well as products;
2) production- this is the production of new goods that meet the ever-increasing requirements of consumers and includes the organization of the production of a new product, the organization of supply and quality management;
3)marketing- this is a function that includes everything that happens to the product after its production, but before the start of consumption, namely: the organization of product distribution, the organization of service, the organization of demand formation and sales promotion, the formation of commodity and pricing policies;
4)managerial: search for possible ways to develop the activities of the enterprise, especially in the long term, i.e. organization of strategy and planning, information management, organization of communications;
5)control.
7. Concept of marketing
At one time, F. Kotler, professor of marketing at Northwestern University in the USA, gave the concept of "marketing concept", defining it "as a relatively new approach to entrepreneurial activity, where the key to achieving the organization's goals is to determine the needs and requirements of target markets and provide the desired satisfaction with more efficient and more productive than the competition in ways."
In other words, F. Kotler defines the essence of the concept of marketing using expressions like: “Find needs and satisfy them”, “Love the client, not the product”, “Produce what you can sell instead of trying to sell what you can produce ”, “To do everything in our power to fully recoup every dollar of value spent by the client with value, quality and satisfaction.” In other words, the main object of the marketing concept is a comprehensive study of the company's customers with their requests, needs and needs. The firm must build all its activities with the calculation of maximum customer satisfaction, in return receiving the corresponding profit.
According to F. Kotler, the core of the marketing concept is focusing on the needs, requests and needs of customers, maximizing consumer satisfaction to achieve the main goal of the company.
Thus, the starting point of the concept is the theory of consumer sovereignty. F. Kotler, conducting research, as well as relying on marketing concepts taken in a historical context, identified five global, basic concepts on the basis of which any company interested in making a profit has conducted (is and will conduct) its activities.
1. Production improvement: The main idea of this concept is that consumers choose (buy) those goods that they know and that suit them at a price. Therefore, managers of firms should first of all improve production, and then - increase the efficiency of the distribution system. This concept works in the following situations: when there is a shortage of a certain product on the market and when the cost price needs to be reduced to increase demand.
2. Product improvement: this concept begins to "work" only after the implementation of the first - the completion of production.
The essence of the concept of "product improvement" is that consumers will purchase only those products that have the best properties, the best quality characteristics. And most importantly, the product should be improved according to the opinions and wishes of customers.
When implementing this concept, one condition must be observed - the market must be saturated with this type of product. If this condition is not met, then there can be no question of any quality.
3. Intensify commercial efforts: this concept is that consumers will not buy goods in sufficient quantities for the organization until the latter takes appropriate measures to stimulate demand and sales. This is the situation when the product is present on the market in the required quantity and with the appropriate quality, but there is such an aspect as the factor of "intensification of commercial efforts", i.e. the company must make its product not only affordable and of high quality, but also show the consumer that the possession of this product is prestigious, distinguishes it from the surrounding reality. A stake is placed on the psychological factor, the "processing of the consumer" to strengthen his well-being in him.
4. The concept of actual marketing or target marketing: it is not only to identify the needs and requirements of customers, but the main thing is to provide them with a satisfaction that is more desirable for them than for competitors.
In the words of F. Kotler, this is explained in the aphorism: “Find needs or create a customer’s need and satisfy them”, i.e., in order to increase demand, it is necessary to come up with some kind of “know-how” for the product, it is necessary to distinguish it from the mass of goods in such a way that to make you want to buy it.
5. The concept of social and ethical marketing: F. Kotler considers it the most modern. The main goal of this concept is that for the company the main task should not be the fulfillment of all the conditions reflected in the above concepts, but should be the preservation and strengthening of social welfare, as well as the welfare of each individual client (consumer). The difference between social and ethical marketing from previous concepts is that any company, satisfying any needs, must act with regard to the long-term benefit of society. And it is precisely this direction of the company's image that should attract buyers as a competitiveness among many other organizations. And also this concept must be balanced in all three factors: the profit of the company, consumer needs and the interests of society.
8. Classification of marketing
Main classification of marketing by priority tasks:
1. Differentiated- this is the activity of the company in several market segments with the production of a separate product for each of the segments. For example, the General Motors Corporation is trying to produce cars "for any purpose, any persons and purses." It is trying to achieve sales growth and the deepest penetration into each of its market segments being mastered by producing a variety of goods. It expects that its product in the minds of consumers will be associated with the name of this company. An increasing number of firms are beginning to use differentiated marketing.
2. Undifferentiated- this is the activity of the company, aimed at addressing the entire market at once with one offer, i.e. the company is not focused on individual needs, but is looking for a common thing in these needs. Strives to develop a consumer product by creating an image of superiority in the minds of customers.
This marketing is designed for the largest market segments.
3. Concentrated is the focus of marketing efforts on the largest share of one or more submarkets.
Thanks to this marketing, the company can secure a fairly strong market position in those market segments in which it operates, since it knows the needs of the buyers of this niche better than others and enjoys a certain reputation. And with the specialization of production and the use of measures to stimulate sales, it can achieve cost reduction in many areas of its activity.
Depending on the breadth of market coverage, mass marketing is distinguished, which is characterized by mass production, mass distribution and promotion of a single product for all buyers. This marketing is aimed at selling a large quantity of a homogeneous product at an affordable price, i.e. the main objective- maximum sales.
So, for example, the Mercedes automobile company, while maintaining certain permanent elements of product design, as well as a trademark (a three-pointed star in the ring), tries to create an image of its company for the consumer, which, subject to the quality of the product, contributes to the subsequent promotion of new products.
There are also vertical and horizontal marketing.
Vertical is marketing aimed at a vertical niche of the market, with the aim of finding ways to sell a given product that will allow it to find a new buyer.
It is quite an expensive way to develop, produce and produce a different product (one assortment group) for each sales market. It is much more profitable to produce goods of common, so to speak, use, but capable of performing different tasks depending on the characteristics of the areas of use, due to the presence software and/or other options.
Vertical Marketing It's not about creating a niche and holding onto it. V modern world with its frantic pace of life, the company itself must constantly create a market for the sale of its products, and not try to keep the old one, and even more so, only some part of it.
Horizontal- this is marketing focused on a horizontal niche of the market in order to satisfy the need of the buyer for the whole range of products and services that the latter can only need. The fundamental difference between this classification and the previous one is that the company tries to produce as many homogeneous goods as possible, even if there is no close functional relationship between them, in order to meet growing needs.
A lot of books, cassettes, magazines appear on the market, aimed at helping the buyer to learn more about some product, more fully and use the potential of buying "to the fullest". It must always be remembered that when a firm finds its niche, there will always be another firm that will try to squeeze in and start competing. That is why you need to constantly be in search of this very “own niche”, since any niche can eventually turn into a market for mass production. Of course, if this suddenly happens, it is better for the company not to leave its niche, but to continue to develop its business while looking for the next one. And the main thing to know is that horizontal marketing is the way to supply the N-number of consumers with more than a million of the most diverse products.
One of the main problems of this classification is the inability to translate existing needs and demand from the language of specific requests and preferences into the language of specific goods (services).
9. Subjects of marketing
The subjects of marketing are manufacturers and service enterprises, wholesale and various trade organizations, marketing specialists, as well as various consumers.
Each of them have their main functions.
1. Producer or service enterprises - firms that produce goods or provide services.
2. Wholesale organizations- firms that purchase products for resale in retail trade.
3. Various organizations carry out the sale of goods to end consumers.
4. Marketing professionals perform certain marketing functions.
5. The consumer purchases products for his personal consumption.
It is important to note that usually one entity cannot assume all marketing functions due to the fact that it does not have sufficient financial resources; often does not produce relevant products; has no desire to carry out marketing activities; dimensions do not allow and much more.
Under the object of marketing, they mean the main categories and market factors:
1. Goods (services), i.e. everything that can satisfy a need or need and is offered to the market for the purpose of acquisition, consumption or use;
3. Offer;
6. Consumer;
7. Seller;
8. Deal;
9. Need, need.
10. Types of marketing
1. Conversion. This type is associated with negative demand. Negative demand is a situation where all or many consumers on the market reject a particular type of product (service). For example, vegetarians show a negative demand for animal products, etc.
The main task of this type of marketing is to develop a specific plan that contributes to the emergence of demand for such products, with a possible development perspective.
2. Stimulant.This type is associated with the indifference of consumers to certain goods. The indifference of the lack of demand occurs, firstly, when the product loses its value in the eyes of buyers; secondly, the goods have no value in this market; thirdly, when the market is not ready for the appearance of this product. The main task of marketing is to stimulate demand through certain methods.
3. Developing, associated with the beginning of the formation of demand for goods.
The main task is to identify potential demand and create an appropriate product.
4. Remarketing is the search for new ways of marketing in order to create a new life cycle for a product for which demand has fallen.
5. Synchromarketing designed to change the structure of demand. So, for example, in relation to theaters, which are rarely visited on weekdays, but are overcrowded on weekends. To solve this problem, synchronous marketing can offer either to advertise those performances that are on weekdays, or to increase the price of admission on weekends.
6. Supportive- this is marketing focused on maintaining the existing full demand by maintaining the required sales volume, stimulating marketing activities as well as cost control.
7. Demarketing is marketing that solves the problem of excessive demand by raising the price of a product, stopping sales promotion, etc.
8. Reactive designed to eliminate or reduce the demand for goods that harm public welfare (alcoholic beverages, tobacco products).
11. Elements of the marketing mix
Knowing the basic elements and relationships that form the marketing system allows both sellers and buyers to achieve their goals.
Marketing mix- it whole system market relations and information flows that connect the firm with the markets for its products. Allocate two main elements of the marketing mix are firms and the market. These two elements are connected by four significant flows. The firm establishes links with the market and delivers its products to it, and in exchange receives money and information.
The marketing mix applies to both commercial and non-commercial activities. For example, the Anti-Drug and Tobacco Society conducts research and treatment for drug and tobacco addiction, and the public, in turn, voluntarily participates in its work. The marketing mix includes a fairly large number of elements that affect the methods, methods and results of the company. When developing marketing plans, all these elements must be taken into account.
The first group of elements is represented by suppliers, competitors and marketing intermediaries.
The second group is public state organizations such as the press, financial institutions, government and legislators, the general public.
The third group is such factors as legislation, politics, economics, science, culture, demography, technological progress, etc.
12. The concept of marketing activities
The philosophy of marketing is quite elementary - the company must produce such a product for which demand is provided in advance and which will lead the company to the intended level of profitability and maximum profit.
The consumer makes his own specific requirements for each product: the required quality, quantity, delivery time, technical characteristics, etc.
As a result, competition is growing, which forces manufacturers to purposefully set tasks for scientific and technical developments, determine production technology, improve sales service, and much more.
Marketing activity is just focused on identifying and accounting market demand and organization of production and marketing activities of the company.
The task of marketing activities- reflect and constantly strengthen trends towards improving production in order to increase the efficiency of the company by defining specific current and long-term goals, ways to achieve them, as well as determining the product range, its quality, production structure and the level of possible profit.
13. Methods of marketing activities
In carrying out its activities and achieving its goals, the company can operate with several methods of marketing.
1. The method of orientation to the product, service.
Producing a good product (service, product) is only half of what a firm can do.
The second half is bringing the product to the end consumer. And not just to convey information, but to make every effort so that the buyer appreciates and wants to buy it. All this is much more difficult to do if the product is fundamentally new, unparalleled. Consequently, approaches to marketing activities should be fundamentally new. After all, for a completely new product, those methods and methods that previously explored the market turn out to be unsuitable. Sometimes it can be very difficult to find out from consumers how much they need this new product, which they did not know before and did not feel the need for it. One of the main directions of the company should be not just the creation of a fundamentally new product (service), but the creation of such a product that could stand at the origins of the formation of a new industry. And only under this condition this method will be justified.
2. Method of consumer orientation.
This marketing method is preferred for small companies. The point of the consumer orientation method is to find a buyer, determine what product he needs, and satisfy this need. But finding a buyer is not enough. The main thing is to single out from the whole mass of goods only the goods that a given circle of consumers is ready and willing to buy. Being in search of that “only product”, it is best to rely on your own strength and meet personally with potential buyers, find out their tastes and preferences, wishes and needs.
3. Integrated marketing.
Since the industrial era, it has been believed that the cause always precedes the effect, that is, it is enough to find the cause and the result will not be long in coming. Thus, within the product-oriented marketing method, it is clear that the firm will not be able to sell what it does not already have. And until the moment the consumer learns about your product (service), you will incur large costs of money and time. Here the product is the root cause, and consumer demand is the consequence. All this was natural in the era of industrial development. But in our time, when the world of industries is not stable, the market for goods is not standard, it no longer works. As needs become more and more diverse and unlike each other, manufacturers must constantly offer the market more and more perfect products, seeking and inventing innovations and improvements, with the sole purpose of satisfying these needs more fully. And so the consumer is already becoming the root cause for companies. And as a result - the production of a new product that can satisfy the increased individualized needs of people.
In today's world, obtaining one result can be so transformed that this result itself becomes the cause for obtaining another result.
And the essence of this method lies in the fact that both the product and the buyer can be created at the same time.
4. Marketing of open systems.
The main difference between an open system and a closed one is exchange. An open system (like a living organism), in order to exist, must perform exchange processes with the external environment and other economic entities. The exchange can take place with different resources: material, labor, information, etc., otherwise it will not receive development and death is inevitable. Open systems marketing means the following:
a) the transaction should bring profit to the company, and welfare to society;
b) the company must adapt to the external environment;
c) competition interferes with the successful development of the firm.
In the process of an exchange in an open system, each party must receive some benefit, for which this exchange exists. Moreover, the value of the result obtained must be higher than that which was paid. But this is all purely subjective and depends on the individual value system of each of the participants.
At the moment when the transaction is made, a certain value is created in society, a certain well-being, which was not there before. It is very difficult to determine the degree of satisfaction of all parties.
In order for both parties to get the maximum benefit for themselves, they must at least be different from each other, and therefore the benefit of one party must be different from the benefit of the other side of the transaction. This is the main thing for creating a new level of prosperity in the world.
People will never exchange exactly the same items: it would be foolish to pay for bread with exactly the same bread.
And the whole history of mankind proves that money, wealth and property appear only where there are differences that interact with each other.
15. Structure of marketing activities
Structure of marketing activity is a set of elements for achieving goals and satisfying the target market.
The structure includes a product (service), product distribution (sales), promotion and pricing. For the specific goals of the firm and their achievement, the marketer must choose the best combination of the above elements.
For this, a number of solutions are possible:
1) in relation to a product (service), it is necessary to determine what to introduce to the market, what quality, in what quantity, sales conditions, promotion;
2) in relation to the movement of goods (sales), choose the type of sale, the number of places of sale, the type of control or cooperation, and much more;
3) in relation to the promotion of goods - the definition of promotion tools (advertising, personal selling, sales promotion), definition of promotion agents, methods of measuring effectiveness, level of service, choice of media, volume and forms of advertising, etc.;
4) in relation to pricing - the choice of price level, range, relationship with quality, degree of importance price factor, type of pricing.
Importance in developing the structure of marketing activities - maintaining integrity, harmony and integration.
16. External marketing environment
Internal marketing environment is the macro environment of the firm. It includes the main factors affecting the activities of the company in a particular area (segment) of the market:
1) demographic, that is, it is important for an enterprise which group of the population purchases its product, which contingent produces this product, etc.;
2) economic, i.e., management must necessarily take into account the economic situation in the country in order to be able to rationally adjust its policy;
3) political and legal, i.e. it is necessary to be aware of the legislation on the regulation of entrepreneurial activity, to be well aware of the political side of society;
4) scientific and technical, i.e. to introduce into production last works R&D, follow scientific and technological progress, keep abreast of state control over the quality and safety of goods;
5) natural, i.e., this is a shortage of certain types of raw materials, and the growth of problems associated with environmental pollution, as well as the actions that the state is taking on the problem of regulating natural resources;
6) cultural, i.e. this is the attitude of people to society, nature, to the universe, individually-personalized attitude to certain types of goods, the presence of cultural traditions, habits.
When conducting marketing research, it is necessary to take into account all factors of the internal (macro-) environment.
17. Internal Marketing Environment
The firm's marketing environment is a set of subjects and facts that influence the successful operation of the entire company.
The marketing environment can be both external (macro environment) and internal (micro environment).
In the microenvironment, there are external forces that are directly related to the firm itself and its business opportunities: suppliers, customers, intermediaries, consumers, competitors and the public. The main goal of any company is to obtain the maximum possible profit. Marketing must ensure the production of goods that are attractive from the point of view of target markets and provide a favorable microenvironment of the company, since success largely depends on intermediaries, competitors, and various contact audiences. In order to have a clear understanding of the internal environment, it is necessary to give concepts to its components.
Suppliers are firms and individuals, supplying the company with the material resources necessary for the implementation of its activities.
The activity of the company directly depends on the relationship with suppliers.
Intermediaries- these are organizations that help the company in the promotion, marketing, distribution of its products on the market. It is much more profitable and wiser to use an intermediary with a developed trade network than to create such a network for your company. Finding a good, conscientious, honest intermediary is difficult, because in a well-organized market, an intermediary is a kind of force that dictates its terms.
Firms-specialists- these are organizations that help the company in the movement of goods from the place of their direct production to the destination. This railways, water, land and air transport.
Warehouses- this is the place chosen by the company for the accumulation and preservation of its goods on the way of their movement to the next destination.
Credit and financial institutions are banks, credit, insurance companies that help the company in financial and insurance matters.
Clients are persons or organizations that have a business relationship with the firm.
Public is the public outside the firm itself. It is necessary to listen to the opinion of the public and respond to consumer complaints.
Internal contact audiences is the entire staff of the company.
18. Marketing process and system
Like any system, marketing is a unity of processes associated with external and internal environment. Ensuring the unity of these processes ensures the achievement of the organization's goals. The main process in the marketing system is management associated with the exchange of information between the elements of the system. This management consists in obtaining information about the state of the system at each moment of time and in achieving the goals set by influencing the system.
Allocate the main marketing processes:
1) receiving marketing information;
2) analysis of the information received using various techniques and methods;
3) the formation of results in projects of management decisions.
Purpose of the marketing system is the achievement of the highest possible accuracy of marketing forecasts and plans. It is obvious that the financial result of the company, as well as the achievement of strategic goals, ultimately depend on the accuracy of determining sales volumes, on the accuracy of forecasts of changes in demand for goods or on the reaction of the market to decisions made. Creating an effective marketing system consists of several stages, and underestimating one of them can lead the company to receive a “poor quality product” at the end.
Stages of marketing activity:
1.Identification of objects of management of the marketing system. This stage consists in identifying and documenting the name of the management objects, as well as the processes of the marketing system.
2.Determination of parameters of control objects. Here, the main elements and processes are described using evaluation criteria.
3. Reflection of management technologies in the marketing system. It is necessary to clearly define the tools and technologies to improve the efficiency of business management, reduce risk and increase income.
19. Marketing Management
In the industrial era with a characteristic bureaucratic management system, it was justified for a company to entrust all management to narrow specialists in a particular area of management, forming management teams from them, headed by vice presidents responsible for a certain area of activity. And at the head of the company was a general manager. The structure of such companies was approximately the same and consisted of four main areas of activity: engineering, production, sales and financial services. This division of management functions was quite justified for that period of time and corresponded to the tasks ahead: to come up with a product, produce it and sell it at a profit. If a question arose that required a joint decision of employees from two functional areas, the intervention of the general manager was necessary.
Over time, the life cycle of a product (service) became shorter and shorter, which required more flexible and dynamic management structures, and the functional division of labor in the field of management faded into the background. At this time, marketing appears as a kind of gap between the two styles of management organization.
It was observed that the staff of the sales departments is most oriented to the needs of people, and the engineering departments - to solve exclusively technical issues when creating a product. The task was to force employees to equally approach the study of consumer needs and the improvement of the technical level of products. To do this, companies are beginning to unite the staff of different structural divisions into teams, involuntarily forcing them to engage in marketing. The effective work of such teams in meeting the needs was noted. And also this style of work allows you to identify the skills of leaders in the staff. In the end, everyone benefited from this form of organization.
But in the modern world (a world of rapid change), where the ability to think outside the box and the ability to respond quickly to the situation in the market (in society) plays an important role, a wider range of human qualities plays a more important role for marketing. After all, the production of goods should be at minimal cost, and therefore production workers should also become an integral part of the marketing team. Thus, the idea of reorganization according to the product (project) principle was implemented, where brigades (teams) were created to solve specific problems in the development of a specific product.
Before such brigades should be placed clear goals, and when they are achieved, new tasks, etc. With this form of management organization, there is a shift in the company from strict administrative control from above to the creative work of several departments to achieve the overall goals of the organization.
This form of intra-company management is very quickly able to respond to changes in the external environment. Such companies are engaged in constant improvement and improvement in all areas of their activities. And they judge the results of work not by the share of a rapidly changing market, but by the main indicators: the amount of profit and the level of costs (the number of costs).
In general, the process marketing management can be presented in the following form:
1) analysis of market opportunities: conducting marketing research and collecting information about the marketing environment, consumer markets and enterprise markets;
2) selection of target markets: study of demand volumes, market segmentation, choice of company strategy;
3) development of marketing policy: development of goods, determination of pricing policy, identification of distribution channels, sales promotion;
4) implementation of marketing developments.
20. The role of marketing in the activities of the enterprise
The efficiency of the enterprise is determined by the method of production and its effectiveness. There are different ways to improve production efficiency:
a) the introduction of new technologies will allow the company to reduce costs, which will increase profits;
b) modernization of equipment and resource saving;
c) attraction of investments and their rational use;
improving product quality;
d) the effectiveness of ongoing research, development and company policy (marketing).
So, what role does marketing play in a business? Firstly, with the help of marketing research, different aspects of the market with which the company interacts are analyzed; secondly, it develops and embodies the tactics of the company's behavior in the market.
In today's world, a company can only succeed if it "listens to its customer." And by satisfying the maximum number of needs, it will be able to thereby increase its efficiency. Marketing is the study of consumer behavior. In practice, marketers have identified six rules of conduct with the client:
1) know the buyer better than he knows himself;
2) pay great attention to the design of the store;
3) constantly think about customers;
4) improve services by stimulating wages;
5) constantly train the company's personnel;
6) care for employees.
The application of these rules in working with clients allows companies to increase their sales, and therefore profits.
The innovation of world marketing is franchising. The bottom line is that firms are invited to produce products under the trademark of some large company with the provision of equipment, technologies in exchange for a part of the profits. The company "Dovgan" works according to this scheme. With the help of professional marketing research and its correct application in practice, firms can significantly increase their profitability, and therefore efficiency.
At present, when the world's population is constantly increasing, the number of sellers and buyers is also increasing, which is becoming increasingly difficult to find each other. In this they come to the aid of promotion tactics - an integral part of marketing activities.
21. Marketing service at the enterprise
A firm's marketing can be carried out either by a specialized intermediary (a third-party organization directly involved in marketing activities) or by the firm's own marketing service (if any). This choice depends on the size and objectives of the firm in the market.
In large or medium-sized companies, the marketing services included in the structure are clearly structured. It is usually headed by a vice president of marketing who reports directly to the head of the firm. It is entrusted with the functions of coordinating units, the service subordinate to it, contacts with other services, setting marketing goals and objectives, as well as monitoring their solution.
The smaller the firm, the less specialized marketing, the more often there is a combination of positions.
The structure of marketing services can be built according to the following principles:
1. Functional. The simplest and most common among small firms. Here, divisions are created depending on the marketing functions (advertising, sales, pricing, service, etc.). This organization is distinguished by ease of management and low costs, and on the other hand, it loses its effectiveness with an increase in the product range and entry into new markets.
2. Divisional. All departments of the service perform the same type of functions, but are divided according to any of the signs:
a) geographic - used in companies trading throughout the country, as well as abroad. Allocate a planning department, a marketing research department, a public service sales department (salespeople and sales agents living in the service area, therefore, they can work effectively with customers with minimal time and money spent on travel);
b) market - a company can build its work in relation to consumers that make up specific market segments. This organization will be successful for firms selling their products in different markets;
c) commodity - used in firms with a wide product range. The advantage is the quick reaction of the product manager to emerging problems, and the negative side is that the company incurs high costs for the maintenance of such a service.
3. Problematic. To solve the problem, a group of specialists from different departments is formed. The result of their work is often quite effective.
4. Mixed organization. used big companies. Based on the use of dual subordination. The disadvantages of such an organization are high costs, actions often require coordination, and the risk of conflicts. Plus - the coverage of their attention to goods and markets.
Each company approaches the process of organizing marketing services independently. Only the main requirements can be singled out: efficiency, flexibility, cost-effectiveness and high qualification of specialists.
THEORETICAL PART OF THE DISCIPLINE "MARKETING"
Topic 1 The concept and content of marketing.
- Basic concepts of marketing.
Basic Marketing Management Concepts
Goals and functions of marketing. Marketing principles.
Tasks and types of marketing depending on the state of demand.
Features of using marketing in Russia
Marketing is a combination of rigorous science and the art of effectively working in the market. For the first time this term appeared in 1902 in the USA, and after 20 years this term was already used in many countries of the world.
Marketing(marketing) The social and managerial process by which individuals and groups satisfy their needs and wants through the creation and exchange of goods and consumer value.
Marketing - a type of human activity aimed at satisfying needs and requirements through exchange.
Need(human need) A person's perceived lack of something necessary.
Need(human want) A need that has taken a specific form in accordance with the cultural level and individuality of a person.
Requests(demands) A person's needs backed up by their purchasing power.
Product(product) Anything that can be offered to the market for attention, familiarization, use or consumption and that can satisfy a need or requirement.
customer value(customer value) A consumer's value judgment about the ability of a product to satisfy his needs.
Customer Satisfaction(customer satisfaction) The degree of coincidence of the characteristics (properties) of the product, subjectively perceived by the client, with the expectations associated with this product; if the merits of the product are below the expectations associated with it, the consumer remains unsatisfied; if the merits are as expected, the consumer is satisfied; if they exceed expectations, the consumer is delighted.
Exchange(exchange) The act of receiving from someone a desired object in exchange for another object.
Basic concepts of marketing.
Here are five concepts that guide companies in their marketing activities:
- The concept of production improvement. It is based on the assertion that the consumer will prefer products that are widely available and affordable; Marketing management should be aimed at improving production, forms and methods of marketing.
The concept of product improvement. It is based on the assertion that the consumer will give preference to products whose quality, properties and characteristics are constantly improving; therefore, the manufacturing company must make every effort to improve its products.
The concept of intensifying commercial efforts. It is based on the fact that consumers will not actively buy a product produced by a given company unless special measures are taken to promote the product to the market and sell it on a large scale.
Marketing concept. The philosophy of marketing management, which assumes that the achievement of its goals by the company is the result of determining the needs and demands of target markets and satisfying the consumer more effectively than competing companies.
The concept of social and ethical marketing. Its essence is that the company must determine the needs, needs and interests of target markets, and then provide the highest customer value in ways that are more effective than competitors in ways that maintain or improve the well-being of both the client and society as a whole.
- Consumption maximization.
Maximizing the degree of customer satisfaction.
Maximizing consumer choice.
Maximizing the quality of life.
- always closely related to the activities of the company;
- specific, can be expressed in numbers;
- limited time frame;
- flexible, situational, can be adjusted in connection with the changing situation in the market and in the company itself.
Marketing Functions
- Marketing Analytic Function:
- Comprehensive market research;
Analysis of production and marketing opportunities of the company;
Development of a marketing strategy.
- Marketing mix planning;
- Development of a marketing program.
- Production and marketing function (involves the implementation of the directions laid down in the plans)
- Control of marketing activities and evaluation of its effectiveness.
Marketing Principles
- The need to focus all research and production and marketing activities on the market, taking into account market requirements.
The need for a differentiated approach to the market.
Innovation orientation.
Flexible response to any change in market requirements.
Constant and targeted impact on the market.
Orientation for a long period of time.
Effective management, the need for a creative, innovative approach to management by management.
The need for marketing thinking for all employees of the company
- Negative (negative) demand - means that the vast majority of consumers reject the product. To overcome negative demand, it is necessary to use conversion marketing. Task.
Learn the most effective ways to solve this problem. For example, product improvement, price reduction, etc.
Missing demand - means an indifferent attitude to the product. In this case, you must use promotional marketing. Task. Stimulate demand. To disseminate information about the product more widely, to form a need for it.
Latent (potential) demand - means a state in which consumers feel the need for a product or service, but it is not satisfied due to lack of market. In this case, it is used evolving marketing. Task. Explore this problem and create products that meet the needs of consumers.
Decreasing (falling) demand means that sooner or later any product begins to lose its attractiveness. Apply in this case remarketing. Task. Create a new life cycle for this product.
Irregular (fluctuating) demand - means a state when supply in the market does not coincide with demand and is caused by seasonal, weekly and even daily fluctuations, as well as cyclical and other changes. The problems of regulating this demand are dealt with synchromarketing. Task. Flexible price changes and incentive measures, switching consumer incentives.
Full (satisfied) demand - means the most desirable situation. In this case, you must use supportive marketing. Task. Tactics associated with the implementation of price policy, maintaining the required volume of sales, cost control.
Excessive Demand - means the demand is much greater than the supply. Applies demarketing. Task. Raise prices, stop advertising and other promotional activities, switch demand from one product to another.
Irrational demand - means a situation where the satisfaction of the needs of some consumer groups causes serious opposition from others. (alcohol and tobacco products) In this case, it is used counter marketing. Task. Liquidation or significant restriction of demand. Price increase. Conduct powerful anti-alcohol and anti-nicotine propaganda.
Features of using marketing in Russia
At present, in Russia, the use of marketing as an integral management concept is not the rule for all organizations. First of all, we are talking about organizations that produce products or provide services intended for the mass consumer. Organizations operate in competitive conditions in markets dominated by consumers, and when the management of organizations has the conditions for making independent coordinated decisions on all elements of the marketing mix. These organizations primarily include private and joint-stock enterprises of small and medium size, which adapt more quickly to a market economy.
More realistic for our country in the current conditions is the use of groups of interrelated methods and means of marketing activities, as well as individual elements of the marketing mix.
Topic 2 The marketing environment of the company.
- The microenvironment of the firm and its main components.
Macroenvironment of the firm and its main components.
Analysis of competitors.
Microenvironment- forces directly related to the firm itself and its customer service capabilities:
- the company itself (top management, company personnel, marketing service, financial service, logistics service and other services);
- suppliers - business firms and individuals providing the company with the material resources necessary for the production of individual goods and services;
- marketing intermediaries - firms that help companies in the promotion, marketing and distribution of goods among consumers;
- consumers (customers);
- contact audiences - any group that shows interest in the organization or influences its ability to achieve its goals;
- competitors.
The macro environment of the firm and its main components
macro environment - broader social forces influencing the microenvironment:
- demographic factors;
- economic factors;
- natural factors;
- scientific and technical factors;
- political factors;
- cultural factors.
Competitor analysis
Competitor analysis- the process of identifying key competitors, evaluating their objectives, strategies, strengths and weaknesses and the range of likely responses, and selecting competitors to attack or avoid.
To effectively plan competitive marketing strategies, a company needs to find out everything they can about their competitors. It must constantly compare its products, prices, distribution channels, and sales promotions with those used by its closest competitors. In this way, the company can find areas of potential competitive advantage and possible damage.
The study of the positions and capabilities of competing organizations in general involves the search for answers to four groups of questions around which the structure of the competition tracking system is built:
- What are the main goals of competitors?
What are the current strategies to achieve these goals?
What means do competitors have to implement their strategies?
What are their likely future strategies?
- Company image.
The product concept on which the company's activities are based.
Product quality.
The level of diversification of production and economic activities (types of business), the diversity of the product range.
The total market share of the main types of business.
Power research and design base.
Production base power.
Stability of the financial and economic situation.
Market price including possible discounts and markups.
Frequency and depth of conducted marketing research.
Sales efficiency in terms of the distribution channels used.
The level of sales promotion (own staff, trade organizations, consumers).
The level of advertising activity.
after-sales service level.
The policy of organizations in the external business environment.
Tracking competitors should not be carried out occasionally, but on an ongoing basis.
Topic 3 Market as an object of marketing activity.
- The concept of the market in the marketing system
Classification of markets.
Market functions.
Factors of emergence and development of the market.
Market- represents the sphere of exchange (circulation), in which communication is carried out between the agents of social production in the form of purchase and sale, i.e. connection of producers and consumers, production and consumption.
Market- a place where goods are bought and sold at freely folding prices.
Classification of markets.
1. By application objects:- goods market, services market, construction market, technology market, information market, credit market, stock market, labor market.
2. Spatially:- local, regional, national, regional by a group of integrated countries, world markets.
3. According to the mechanism of functioning:- free, monopolized, state-regulated, planned-regulated.
4. By saturation level: - equilibrium (in terms of volume and structure), scarce and excess.
Market functions.
The essence of the market finds its expression in its economic and social functions:
1.
Informational.
2.
Intermediary.
3.
Regulatory.
4.
Pricing.
5
. Stimulating.
6.
Economy of consumption.
7.
Equivalent.
8.
Creative-destructive.
9.
Sanitizing, wellness.
10.
differentiating
Factors of emergence and development of the market.
Market exists only when people meet directly or through intermediaries in order to sell or buy goods or services.
Approaching the concept of the market in more detail, it can be noted that the presence of a market is characterized by the presence of its mandatory elements:
- People (organizations) with their own needs.
Purchasing power (usually money)
Relevant opportunities (buy and sell)
Desire to buy (the presence of buyers who want to buy a product)
Sellers who are willing and able to produce and sell goods.
One of the main elements of research in marketing is the capacity of the market, which is determined by the volume (in physical units or in value terms) of goods sold on it, usually during the year.
Market capacity is determined by the volume of national production plus the volume of imports.
Knowing the market capacity is related to determining the market share. The increase in market share is a key factor in achieving a leading position in the market, expanding the business activity of the company, increasing its profits.
Topic 4 Marketing information and marketing research.
- Marketing Information system(MIS)
Information classification.
The concept and basic principles of marketing research.
The process of conducting market research
The most important areas of marketing research.
Marketing research methods.
Marketing information system.
In successful organizations, marketing information is collected, analyzed and distributed within the marketing information system (MIS), which is part of the organization's management information system.
Marketing Information System - this is a set (single complex) of personnel, equipment, procedures and methods, designed to collect, process, analyze and distribute reliable information necessary for the preparation and adoption of marketing decisions.
MIS is intended for:
- early detection of possible difficulties and problems;
- identification of favorable opportunities;
- finding and evaluating strategies and activities of marketing activities;
- estimates based on statistical analysis and modeling of the level of implementation of plans and implementation of marketing strategies.
Under marketing information means information intended for use in planning, coordinating and monitoring the implementation of marketing activities (such as advertising a new product, changing prices, expanding the distribution network, etc.)
Scheme of MIS (see Fig. 1)
Rice. 1 Marketing information system.
Information classification.
Marketing information is heterogeneous and is classified according to several criteria:
- By type of source (primary and secondary)
At the place of receipt (internal and external)
By type (sales, costs, consumer behavior, etc.)
By time reflecting information (about the past and future)
By regularity of collection (constant and episodic)
The concept and basic principles of marketing research.
Marketing research - it is a systematic research activity that meets the needs of marketing, i.e. a system for collecting, processing, analyzing and forecasting data necessary for a specific marketing activity at any level. The principal feature of marketing research, which distinguishes it from the collection and analysis of internal and external current information, is its targeted focus on solving a specific problem or a set of marketing problems.
Marketing research is subject to uniform scientific requirements based on general theoretical and methodological principles and pursues common goals: - to give an adequate description of market processes and phenomena, to reflect the position and capabilities of firms in the market.
The main principles of conducting marketing research are:- objectivity, accuracy, thoroughness.
The process of conducting marketing research.
Marketing Research Process consists of four stages:
- Identification of research problems and goals (This is a very important stage for all marketing research. The goals can be divided into three groups: - search, descriptive and experimental. The goals of marketing research stem from the formulated problems. The goals must be clearly and clearly formulated, be sufficiently detailed, there must be the possibility of their measurement and assessment of the level of their achievement.);
- Development of a research plan (A research plan is a general idea of conducting marketing research; it defines the needs for various data and the procedure for collecting, processing and analyzing this data. This stage also determines the need for information, the type of information required, sources and methods for obtaining it, sample);
Implementation of the research plan. (from the point of view of organizing the process of implementing the plan, there are three alternative approaches: - by the efforts of employees marketing service, by forces of a specially created group or with the involvement of research centers, agencies. An important link in the implementation of the plan is the collection of data. This process is usually the most expensive and requires a high level of professionalism from the participants.);
Processing, analysis and presentation of the results. (It starts with the transformation of the initial data. Then a statistical analysis is carried out. The results of the studies carried out are drawn up in the form of a final report and provided to the company's management).
Marketing research conducted annually by firms is distinguished both by scale and by type. The most important factors determining the scope of marketing research and its direction are the size and specialization of the firm. Depending on the tasks set, the following areas of marketing research are distinguished:
- Studying the characteristics of the market;
Measurements of potential opportunities;
Analysis of the distribution of market shares between firms;
Sales analysis;
Study of business activity trends;
Study of goods;
Short-term forecasting;
Studying reactions to a new product and its potential;
Studying competitors;
The study of price policy.
Long term forecasting
Marketing research methods.
For the collection of primary data, it is best to develop a special plan that requires preliminary decisions regarding research methods, research tools, sampling plan, method of communication with the audience.
There are three main ways to collect primary data, observation, experiment, survey. For the collection of primary data, it is best to develop a special plan (See Figure 2)
Rice. 2 Primary data collection plan
When collecting primary data, the most common research tool (tool) is questionnaire. In a broad sense, a questionnaire is a series of questions to which the respondent must provide answers. The questionnaire requires careful development, testing and elimination of identified shortcomings before its widespread use.
During the development of the questionnaire, it is necessary to carefully select the questions that need to be asked, choose the form of these questions, their wording and sequence. Each question needs to be examined in terms of their contribution to the achievement of the research outcome.
The form of the question may affect the answer. Marketing researchers distinguish between two types of questions: closed and open questions. Closed ones include all possible answers, and the respondent simply chooses one of them. An open question gives respondents the opportunity to answer in their own words.
The sequencing of the questions also requires special attention. The first of these should, if possible, arouse the interest of the respondents.
Drawing up a sampling plan. Sample - a segment of the population designed to represent the population as a whole. When determining the sample, three decisions must be made: - whom to interview, how many people should be interviewed, how should the sample members be selected? (in the third case, you can use the random selection method or select on the basis of belonging to a certain group)
Ways to connect with the audience:
- Telephone interview;
Questionnaire sent by mail;
Personal interview;
Individual interview;
Group interview.
- Model of consumer behavior.
Factors influencing consumer behavior.
Types of consumer behavior when making a purchase decision.
Purchase decision process.
Making a decision to buy a new product.
Understanding consumer rights. Consumerism.
The ultimate goal of managing a company from a marketing position is to satisfy the needs and desires of customers. Therefore, in a saturated market, the most important part of market analysis is modeling the behavior of buyers.
Buying behavior - it is the behavior of end consumers - individuals or families who purchase goods and services for personal consumption.
The behavior of buyers differs significantly depending on the type of market - the market for consumer goods (consumer market) or the market for industrial goods (enterprise market).
Consumer market - they are individuals and families who purchase goods and services for personal consumption.
Every day, consumers make many decisions about what to buy. Most large companies research the buying decision process to find out what, where, how and how much, when and why consumers buy. The answers to these questions are given by the model of consumer behavior. (See Fig. 3)
Marketing and other incentives "Black box" Reaction
(subconscious) buyer consumer
______________________________
__________________________ ______________
product economic characteristics selection process: - product,
price technological buyer acceptance of the brand,
dissemination of political trade decisions
promotion cultural about the buyer-intermediary,
ke time
purchases,
volume
purchases.
Rice. 3 Model of consumer behavior.
Factors affecting consumer behavior
Buyer choice is strongly influenced by cultural, social, personal and psychological factors. (See fig. 4)
Rice. 4 Factors influencing consumer behavior.
Culture - a set of core values, models of perception, needs and stereotypes of behavior embedded in a member of society by his family and various social institutions.
Subculture - a group of people who adhere to a certain system of values based on their common life experience and position in society.
Public classes - relatively stable and large groups of society, whose members have approximately the same interests, behavior and value system.
Reference groups - groups that are direct (in direct communication) and indirect objects for comparison or role models in shaping the views or behavior of an individual.
Family - this is the most important consumer cell of society, so marketers study it comprehensively: they are interested in the distribution of roles in the family and the impact that the opinions of its various members - husband, wife, children - have on the choice of goods and services.
The role of a person a set of actions that, in the opinion of others, this individual should perform.
Status - the general assessment given to this role by society.
Stage life cycle families - the stages a family goes through in its development.
Occupation - human activity that influences the choice of goods and services
Economic situation - consumers' incomes that affect their choice of goods.
Lifestyle- a concept characterizing features Everyday life people and expressed in their activities, interests and views.
Personality type - a unique set of psychological characteristics that determine persistent and repetitive human reactions to environmental factors.
Man's conception of himself self-perception.
When a need reaches a sufficient level of intensity, it becomes a motive. Motive -(or motivation) is a need that has reached such a level of intensity that it induces a person to take actions aimed at satisfying it.
Perception - the process by which a person selects, organizes and interprets information, forming in his mind a picture of the world around him.
Assimilation - changes in the behavior of the individual as a result of the accumulation of life experience.
Views - enduring favorable or unfavorable assessments, feelings and inclinations towards objects or ideas.
Opinion - an individual's idea of something.
Types of consumer behavior when making a purchase decision.
Consumer behavior changes significantly depending on what product he buys. The more difficult it is to make a purchase decision, the more participants are required and the more cautious the consumer behaves. Figure 5 shows the types of consumer behavior when making a purchase decision.
Rice. 5 Four types of buying behavior.
Purchase decision process.
Most companies scrutinize the buying decision process to answer questions about what, where, how much and why consumers are buying. But studying the causes of buying behavior and the decision-making process is not an easy process, since the full answers lie in the mind of the consumer himself.
Theoretically, the buyer goes through five stages with each purchase:
- Awareness of need.(the buyer first realizes the need or need).
Search for information(the buyer tries to get additional information, shows increased attention and can start active actions to collect the necessary information).
Options evaluation(the buyer evaluates different options based on the information received).
Buying decision(the buyer actually purchases the goods).
Purchase reaction(buyer undertakes next steps after purchasing the product, based on the feeling of satisfaction or dissatisfaction).
Making a decision to buy a new product
New product - it is a product, service or idea that is perceived by a potential buyer as something new. A novelty product is not necessarily a completely new phenomenon in the market; each product can become a novelty for a buyer who did not know about it before. Therefore, marketers are interested in how the consumer recognizes it for the first time and how he comes to the decision of whether to buy it.
Acceptance process - it is a thought process through which a person goes from the moment when he first heard about a new product, until the moment of its full acceptance, and acceptance is like a decision of a person to become a user of the product.
To adapt to a new product, the buyer needs to go through five stages:
- Recognition. The consumer learns about a new product, but lacks information about it.
Interest. The consumer is looking for information about a new product.
Grade. The consumer decides whether to purchase a new product.
Try. The consumer gets to know the product better (acquires a test sample) in order to get a more complete picture of it.
Perception. The consumer decides to use the product regularly and permanently .
Consumers can be conditionally divided into categories according to the speed of adaptation to new products. See fig.7.
34%
34%
Early Late
majority majority
13,5%
Early
followers
2,5%
16%
Innovators Laggards
Acceptance time of the new product
Understanding consumer rights. Consumerism.
In countries with a developed market economy, various consumers appear on the market not in isolation and in isolation, but as an organized mass. This complicates the activities of commodity producers and traders, who must take into account not only individual, but also the aggregate requirements of consumers. Consumer rights are absolute and inviolable. Deception, poor quality of goods, inattention to claims are considered as a violation of the legitimate rights of consumers.
Consumer Sovereignty - this is the right and a real opportunity, within the available means, to acquire everything that the consumer considers necessary for consumption, free choice of the seller, place, time and other conditions of acquisition.
Consumerism - The organized movement of consumers for the expansion and protection of their rights, as well as the strengthening of the consumer's influence on producers and traders, arose in the mid-60s.
The concept of "consumerism" has replaced the concept of "sovereignty" of consumers (freedom and independence). His theorists consider the movement of consumers as a product of economic evolution, as a transition from the economy of producers to the economy of consumers, from the seller's market to the buyer's market.
Consumer rights were first formulated in 1961 in the United States. Currently, in world practice, consumer rights include the following "seven rights of consumers":
- The right to choose a product to satisfy one's basic needs, in conditions of sufficient variety of offers at competitive prices and with the restriction of any monopoly influence on the consumer.
The right to the safety of goods and their functioning in strict accordance with the offer of the seller (manufacturer).
The right to be informed about the most important properties of goods, sales methods, guarantees, etc.
The right to protection from substandard goods and compensation for damage associated with their use.
The right to be heard and receive support in the defense of one's interests in state and public bodies.
The right to receive consumer education, the acquisition of comprehensive knowledge and skills that make it easier for the consumer to make a decision.
right to healthy environment, which does not pose a threat to decent and healthy life current and future generations.
Topic 6 Development of the target market.
- Segmentation of the consumer market.
Market segmentation levels.
Evaluation and selection of target market segments.
Marketing strategies for market segments.
Positioning.
Markets consist of their buyers, and buyers differ from each other in a variety of ways: - in terms of their needs, financial capabilities, habits, etc. When segmenting a market, firms divide large heterogeneous markets into smaller (and more homogeneous) segments that can be served more efficiently, in according to the specific needs of these segments.
Market segmentation - it is the allocation within the market of clearly defined groups of consumers, differing in their needs, characteristics and behavior, for the service of which certain products or marketing complexes may be required.
There is no single method of market segmentation. Marketers need to select segmentation options based on different variables, one or more at once. See fig. eight.
| Geographic principle |
Psychographic principle |
behavioral principle |
Demographic principle |
| County Region Cities Neighborhoods Population density Climate |
public class Lifestyle Personality type |
Reason for making a purchase. Seeking Benefits User status Consumption intensity Degree of commitment Attitude towards the product |
Age Gender Family size Stage of the family life cycle. income level Occupation Education Religious beliefs Race Nationality |
Fig.8. Some variables used to segment consumer markets.
There is no universal approach to market segmentation. In order to assess the structure of the market with maximum objectivity, it is necessary to use various options for segmenting the market based on several segmentation variables (Fig. 8) applied individually or in combination with others.
When choosing a market coverage strategy, the following factors need to be considered:- company resources, degree of product homogeneity, stage of the product life cycle, degree of market homogeneity, marketing strategies of competitors.
Companies spend most of their time combining different market segmentation methods. There are several ways to successfully combine different sharding methods:
- Simple multi-factor sharding(market segmentation based on two or more demographic variables).
More complex multi-factor sharding- AID method (Automatic Interaction Detection) Automatic detection of interaction (segments are formed based on taking into account several segmentation variables simultaneously).
- first you need to analyze all consumers and identify the variable that most strongly affects the size of the company's income;
- at the second step, it is necessary to single out the most significant (in terms of the company's income) factor related to consumers;
- at the third step, it is determined how families with a high level of income differ from each other (for example, belonging to different social classes), etc. See fig. 9
The entire set of consumers
Families Single
Tall Short Youth Elderly
income income
Tot. Cl Total Cl. Students Couples
A and B B and C1
Tot. Cl General cl. Non-students Widowed
C1 and C2 C2 and D
Rice. 9 The AID market segmentation process
For market segmentation to be useful, segments must have the following characteristics:
- Measurability. The extent to which it is possible to measure the size of a market segment, its purchasing power and expected profitability.
Availability. The extent to which a market segment can be reached and served.
Significance. The extent to which a segment can be considered sufficiently large and profitable.
Suitability. The extent to which effective marketing programs can be developed for a given segment to attract and serve its constituent customers
Market segmentation levels.
Because each customer's needs and requirements are unique, each customer can potentially be considered a separate market. However, while some companies are trying to serve customers on a one-to-one basis, others see no point in such full-blown segmentation. They try to isolate broader groups of buyers, with their own requirements for the product or responses to marketing incentives. Thus, market segmentation can be carried out using different levels:
- Mass Marketing. The use of essentially the same product, promotional and distribution methods, regardless of the specific needs of consumers.
Segment Marketing. The formation of companies offering goods and services that are largely tailored to the specific needs of consumers belonging to one or more market segments.
Marketing at the level of market niches. The formation of companies offering goods and services that are largely tailored to the specific needs of consumers in one or more sub-segments of the market, often characterized by less competition.
Micromarketing. A form of targeted marketing in which a company targets its marketing programs to the needs and wants of well-defined and fairly narrow geographic, demographic, psychographic, and behavioral segments.
Individual marketing. Tailoring product lines and marketing programs to the needs and preferences of individual consumers.
Market segmentation opens up new marketing opportunities for the company. The company must evaluate the various segments and decide how many and which segments to target.
When evaluating different market segments, a company should consider two things:
- Attractiveness.
- Taking into account the strengths of the company when choosing a segment.
Selecting market segments. If the development of a segment corresponds to the potential of the company, then it is necessary to decide whether it will have the necessary skills and resources to succeed in this segment. Each segment puts forward its own requirements for success. If a company does not have and cannot quickly strengthen its strengths for successful competition in the segment, it should not even try to enter this market. Even when the company has the necessary strengths, to finally conquer the chosen segment, it must show marketing skills and use resources that are many times superior to rivals.
Marketing strategies for market segments.
After evaluating the different segments, the company must decide how many and which segments it will serve. This is the task of choosing the target market segment.
Target market. A group of buyers with similar needs or General characteristics which the company intends to serve.
A company can choose one of three market coverage strategies:
- undifferentiated marketing. In this case, the company enters the entire market with a single offer, ignoring the differences between market segments.
Differentiated Marketing. The company decides to focus on several market segments and develops separate offers for each of them.
Concentrated Marketing. The company strives to cover the largest part of one or more sub-markets.
Rice. 10. Three Market Coverage Strategies
Positioning.
Once a company has decided which segments it wants to enter, it needs to decide what “positions” it would like to occupy in those segments.
Positioning - It is the way in which consumers identify a product by its essential characteristics. Product position - the place occupied by this product in the minds of consumers in comparison with similar competing products.
An important tool that can be useful in positioning are maps. This is a product positioning tool. designed to visualize the proximity between products and segments, measured in terms of psychological factors, which are assessed using the method of multidimensional scaling of consumer perceptions and preferences.
Marketers can follow several positioning strategies. These strategies are based on certain associative links that affect the perception of these products by consumers.
Many products that are technical products are positioned based on product characteristics. The position of other commodities is based on the benefits they provide or the needs they are intended to satisfy.
For some companies, choosing a positioning strategy is not difficult. For example, a company well known in certain market segments for the high quality of its products or services will adhere to the same position when penetrating into a new segment if there are a sufficient number of consumers in this segment who value high quality as an additional advantage.
In many cases, two or more firms apply for the same position. . Each company must differentiate its offering by creating a unique set of interrelated competitive advantages that are attractive to a representative group within a given segment.
Topic 7 Commodity Policy
- Components of a commodity policy.
The concept and levels of perception of the goods. Classification
New goods. Product development process.
Characteristics of the product range.
Product life cycle (LCT) Marketing strategy at different stages of the product life cycle.
Goods packaging. Types and functions of packaging.
Trademark.
- Components of a commodity policy
(all of the above refers to the components of the commodity policy)
When developing a commodity policy, it is necessary to take into account:
1.GOALS OF COMMODITY POLICY:
Ensure the continuity of decisions and measures to form the optimal assortment.
- Maintain the competitiveness of goods at a given level.
- Purposefully adapt the assortment set to the requirements of the market.
- Contribute to the development and implementation of the strategy of trademarks, packaging, service.
2. CONDITIONS FOR THE DEVELOPMENT AND IMPLEMENTATION OF THE COMMODITY POLICY:
A clear idea of the goals of production and marketing in the future.
- Existence of a corporate strategy of action for the long term.
- Good knowledge of the market, its requirements and prospects, a clear idea of its capabilities and resources.
A well-thought-out product policy not only allows you to optimize the process of updating the product range, but also serves as an indicator for the enterprise of the general direction of action and makes it possible to correct the current situation.
- THE CONCEPT AND LEVELS OF PERCEPTION OF THE PRODUCT
- designed to meet specific needs;
- produced by the manufacturer for sale;
- is purchased by the consumer at a free market price.
PRODUCT - anything that can satisfy a want or need and is offered to the market for the purpose of attracting attention, acquiring use or consumption.
The concept of a product is not limited to physical objects. A product is anything that can provide a service.
In addition to products and services, these may include:
- activities;
- ideas;
- personality;
- organizations;
- money, etc.
Gotta remember that from a marketing point of view commodity
you can only count what has been sold, and what has not yet been sold is product
.
A product for a company is strictly different from a product in that the product is made by an engineer, and the product is made by a marketer. In order to become a commodity, a product must necessarily contain:
- the level of quality required for this segment.
if possible, related products and services assembled in the technological package of the product.
unconditional provision of advertising support.
unconditional provision of both technological and purely consumer side of sales in terms of convenient social and economic efficiency of the acquisition of goods.
unconditional provision of warranty and post-warranty service.
Trade item - isolated integrity, characterized by indicators of size, price, appearance and other attributes.
For example, toothpaste is a commodity, and a tube of Lesnaya paste by Nevskaya Kosmetika, worth 25 rubles, is a commodity unit.
From a marketing point of view, the product should be perceived as consisting of three levels.
FIRST LEVEL
PRODUCT BY DESIGN
Product by design
is the benefit of the product
Example:
A woman who buys lipstick isn't just buying lip paint. She wants to be beautiful, attractive. Ch. Revson, the head of the Revlon company, said: - “We make cosmetics at the factory. We sell hope in the shop.”
SECOND LEVEL
GOODS IN REAL PERFORMANCE
Product in real performance may have the following characteristics: - quality level, set of properties, specific design, brand name and specific packaging.
THIRD LEVEL
PRODUCT WITH REINFORCEMENT
Product with reinforcement - it is the use of opportunities to support their product offering in the most competitive way. These may include:- installation, supply and lending, warranty, after-sales service, expert advice and other things that people appreciate.
- CLASSIFICATION OF GOODS
One convenient way to classify all products is to break them down into groups based on consumer buying habits. On this basis, goods can be distinguished: -
- FMCG.
These are goods that the consumer usually buys often, without hesitation. For example: - bread, soap, newspapers, etc. FMCG
can be further subdivided into:- basic goods of constant demand people buy regularly. (bread, sugar, toothpaste etc.) - impulse buying goods acquire without any preliminary planning and searches. (chocolates, newspapers, magazines, etc.)
- emergency supplies buy when there is an urgent need for them (umbrellas during a downpour.)
Pre-selection goods. These are goods that the consumer, in the process of choosing and buying, as a rule, compares with each other in terms of suitability, quality, price and appearance. For example: - furniture, clothing, electrical appliances. Pre-selection products can be further subdivided into similar products and dissimilar.
Goods of special demand. These are goods from unique characteristics and/or individual branded products for which a significant proportion of buyers are willing to spend extra effort to acquire. For example: - specific brands and types of fashion products, cars, photographic equipment.
Goods of passive demand. These are goods that the consumer does not know or knows but does not usually think about buying them. For example: - life insurance, encyclopedias, ritual goods, etc.
- NEW GOODS
There are several levels of product novelty:
- Completely new;
With improved features;
New application;
With additional features;
at lower cost;
With new design;
With new brand;
With new packaging.
- PRODUCT DEVELOPMENT PROCESS
To be successful, a product must look new, not like other products. Sometimes, if the product did not have the inscription “New!”, hardly anyone would pay attention to it.
The organization can get new product two ways:
- By buying a company, patent, license, know-how.
Through in-house development of a new product
The process of developing a new product consists of 8 stages:
- Generation of ideas.
- systematic search for ideas about new products. There are many excellent sources of ideas for creating new products. The most profitable in the search for ideas are consumers. Their needs and requirements can be monitored using various methods and methods of research. Scientists are another source of ideas. In addition, competitors, sales personnel, etc. can be a source of ideas.
Selection of ideas - analysis of all put forward ideas about a new product in order to screen out unpromising ones.
etc.................
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