Marketing Questions & Answers
What Is Marketing?
The term “marketing” refers to many different applications of company, business or concept promotion. The umbrella term “marketing” can include e-mail marketing, print marketing, television marketing, radio marketing, internet marketing, etc. The whole of these efforts are generally referred to as a company Marketing Plan, and is essentially a continuous and dynamic strategic decision making process.
How is marketing a business philosophy?
Today’s thinking about marketing has evolved greatly from previous definitions. Marketing now includes all stages of the product or sales process, and ultimately is designed to establish a brand and create a relationship with a customer. There are many variations in philosophy on this, but generally these different schools of thought include the following four terms:
Product Orientation: This production concept is based on the old adage, “build it and they will come”. This philosophy includes a strategy designed to make products widely available, affordable, and require little selling effort.
Sales Orientation: Many companies find themselves with unsold inventory, and therefore transition into the Sales Orientation. This strategy is designed to “sell what we make”. Sales oriented businesses communicate with the market, though the communication tends to be unidirectional, or one-way. This is because the primary communication is coming from the seller. This can lead to the negative association of a “hard sell”, or a high pressure sales environment. Many sales firms are now beginning to think about long term goals and focus on the customer relationship.
Market Orientation: In contrast to the product and sales orientations, market oriented firms gather and distribute information about the “market” itself, prior to making decisions about the sales process. In sum, the Market Orientation company has a two-way relationship with the customer. In this way, the market oriented company seeks out the customers needs and wants and then develops products and services in response those market shortages and desires. The formal definition of the market-oriented organization is one that utilizes the three pillars of the Marketing Concept. These three basic tenets of the traditional marketing concept include Customer Focus, Coordinated Marketing Effort and Long Term Success.
Relationship Marketing Orientation: As opposed to the Marketing Orientation, which integrates customer needs and wants into their business philosophy, the relationship marketing concept seeks to create and sustain lasting customer relationships, not only with company customers but also employees, suppliers, distributors, retailers and more. Many companies who focus on this use Customer Relationship Management systems (CRM) which offer formal tools and applications to assist in building and maintaining strong relationships with all company stakeholders.
Ultimately, the concept of marketing is tied to the exchange process which takes place between two or more parties. This can include purchasing, selling, transportation, storing, financing, risk analysis and more. The process of marketing facilitates this transaction between two or more parties. The process of establishing clear marketing goals often times is based on clear “transaction” goals.