Marketing Explanation Essay Example for Free

Marketing Explanation EssayBackground of marketingStarting In the 1920s it was the production era. A product was thought to be good if it was bought by a customer. Producers could only sell what they could produce. From the 1950s marketing was shown in a sales era. Customers didnt buy anything unless they needed it. Communication and persuading customers to buy your good was now stronger then it was so some companies goods were better than others. From the 1960s onwards close to markets have become saturated (the size of the market remains the same). This means that there is now intense competition for customers. The sophistication of marketing management has consequently developed into what we now see in a modern marketing department.Marketers argon involved at a strategic level within the brass and therefore inform an organisation about what should be produced, where it should be sold, how much should be charged for it and how it should be communicated to consumers. Moder n marketers research markets and consumers. They attempt to get word consumer take (and potential needs) and allocate organisational resources appropriately to meet these needs. Modern marketers are particularly interested in brands. They are also increasingly interested in ensuring that employees understand marketing, i.e. that everyone within the organisation involves themselves with marketing activities. Started from the 1990s organisation had to start considering what customers actually want and had to form relationships to create loyal customers.Function of marketingThe function of marketing is to encompass the whole process of deciding which product and services the customer will want and how will they be delivered to the customer. (Travel Tourism book 1, rascal 112)What are the aims of marketing?* Meet customers needs* Know the competition* Manage any threats* Research customers need* Know the marketMarketing MixThe marketing mix describes the key elements that an organis ation uses to inform and persuade and meet the customers needs using the 4 Ps. The 4 Ps are* ware* Price* Place* forwardingProduct a product is anything that is offered to the marketplace that can satisfy a customers perceived need (Eric Davies, triple-crown marketing book, 2012, page 78) Price How much the product is being sold to the customer for? Place The place of marketing focus of how the product is contributed to the customers and where it is being stored. Promotion who the product is being sold to (target audience) Marketing Segmentation marketing segmentation is the way how the target market is divided into different sectors that are a stovepipe fit for them. The 4 groups are* Demographic* Social-economic* Geographical* PsychographDemographic segmentation Gender, age, income, housing type, and education level are common demographic variables. (http//www.decisionanalyst.com)Social-economic segmentation principally split youre through your personality. The main groups ar e consumer attitudes, values, behaviours, emotions, perceptions, beliefs, and interests. Geographical segmentation This is based on where you live e.g. post code Psychographic segmentation This isperhaps the some common form of market segmentation, wherein companies segment the market by attacking a restricted geographic area. For example, corporations may choose to market their brands in trusted countries, but not in others. (http//www.decisionanalyst.com)E-marketing The process of using digital technology to market products and services.Company ethos Values and beliefs that define the company, normally expressed in mess mission statements. Virgin Atlantic Mission StatementSafety, security and consistent delivery of the basics are the foundation of everything we do.The success of our three year schema requires us to build on these foundations by focusing on the business and leisure markets and driving efficiency and effectiveness. (http//www.virgin-atlantic.com)Ryanair Mission StatementRyanair will become europiums most profitable lowest cost airline by rolling out our proven low-fare-no-frills service in all markets in which we operate, to the derive of our passengers, people and shareholders. Ryanairs objective is to firmly establish itself as Europes leading low-faresscheduled passenger airline through continued improvements and expandedofferings of its low-fare service. Ryanairs closing is to provide a no frills service with low fares designed to stimulate demand. (http//www.scribd.com)Consumer protection Rules legislations that protect customers from many bad problems e.g. fraud, flight delay. There are 3 Main act that cover consumers. They are* The Consumer spiel 1987* Data Protection Act 1998* The Unfair In Consumer Contract Regulations 1999The Consumer Act 1987 An Act to make cookery with respect to the liability of persons for damage caused by defective products to consolidate with amendments the Consumer Safety Act 1978 and the Consumer S afety (Amendment) Act 1986 to make provision with respect to the giving of impairment indications to amend Part I of the Health and Safety at Work etc. Act 1974 and sections 31 and 80 of the Explosives Act 1875 to repeal the Trade Descriptions Act 1972 and the Fabrics (Misdescription) Act 1913 and for connected purposes. (http//www.legislation.gov.uk, 15th may 1987)So if there was an item on the plane that says its 69p but its scanned as 80p you have a right to get it for 69p. Data Protection Act 1998 The Data Protection Act (DPA) gives individuals the right to know what selective information is held about them, and provides a framework to ensure that personal information is handled properly. (http//www.admin.ox.ac.uk)The Unfair In Consumer Contract Regulations 1999 The Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999 No 2083) (the Regulations) recognize that, in many circumstances, consumers have no power or fix over the details of the terms which they are asked to agree to when entering into consumer contracts. The purpose of the Regulations is to set a framework within which firms must work when drawing up their contact terms and conditions, and appoints certain third parties (known as Qualifying Bodies) who are authorized to challenge firms when they think a particular term is unfair. (http//www.cml.org.uk)Standards of practice The advertise standards authority is an independent body set up to police the rules for advertising, sales, promotion and direct marketing. The system is aiming to protect consumers and maintain the integrity or marketing communications.P.E.S.TP.E.S.T stands for* P- policy-making* E- economic* S- sociocultural* T- technologicalTravel tourism organisations have to be aware of the external factors that affect or influence their business.Political factorsSome governmental factors that would affect an organisation are* Changes of government* Increase in tax* Security lawEconomicalSome economic factors that would aff ect an organisation are* Recession* Exchange rates* UnemploymentSocio-culturalSome socio-cultural factors that would affect an organisation are* More tourists* Income/trendsTechnologicalSome technological factors that would affect an organisation are* modern technology* Websites* ITReferences1. (www.cim.co.uk)2. http//www.atkinsmarketingsolutions.com/wp/2011/04/07/dr-philip-kotler-defines-marketing/ Friday, 16 November 2012 3. (Eric Davies, Successful marketing book, 2012, page 8)4. (Travel Tourism book 1, Page 112)5. (Eric Davies, Successful marketing book, 2012, page 78)6. (http//www.decisionanalyst.com/publ_art/marketsegmentation.dai) 7. (http//www.decisionanalyst.com/publ_art/marketsegmentation.dai) 8. (http//www.virgin-atlantic.com/en/gb/allaboutus/missionstatement/index.jsp) 9. (http//www.scribd.com/doc/80225985/Marketing-Plan-for-Ryanair) 10. (http//www.legislation.gov.uk/ukpga/1987/43,15th May 1987) 11. (http//www.admin.ox.ac.uk/dataprotection/)