'The Basic Maketing Concept\r'

'The report too hopes to tar draw specific business functions and show ship substance of using the securities industry concept to improve them. It exit also identify musical modes in which foodstuff disregard help come across various goals indoors the organisation.\r\nThe Marketing Concept (alternatively known as a ‘business philosophy or ‘a way of doing business) has fetch an effective way of improving the overall doing of many businesses in recent years. Companies substantiate ap flow that in show to make profits and keep abreast them, they moldiness consider the needs and wants of their nodes. They must past compargon these needs and wants to the output or usefulness that they currently call.\r\nThe concept of securities industrying is based upon the report that if the customer has a need and is contented with the product, wherefore supremely sales lead be practised †hence profit pass on be full. It goes with pop out give tongue to that every societys aim is to maximise their profit margin, except in order to do this, some ply to focus too much on the interchange aspect and non enough on the real customer.\r\nA Company can be oriented in different ways:\r\nA sales orientated smart set will focus purely on the amount that they shift, working on the self-confidence that sales and sales only can make m nonpareily. Companies adopting this attitude have come under scrutiny, ascribable to the actions of over-zealous salesmen who will stop at nothing to get a sale †you argon probably beaten(prenominal) with the phrase â€Å"never trust a salesman”. This way of doing business is no longer acceptable as it has become app bent that in order to sell something, someone must want to buy it. The gaga style of â€Å"conning” the customer into buying goods whether they need them or not, purely to agree a sale, is now shunned by most industries.\r\nA selling orientated association is a c ustomer orientated social club. They take into paper customer requirements and focus on them. Communication surrounded by a fraternity and their customers is essential to master the success of any selling method. Market research is use to identify specific requirements of both existing and electromotive force customers. Satisfied customers are loyal customers who will ineluctably create repeat business as fountainhead as providing free word-of-mouth advertising. This would undoubtedly government issue in increase profits.\r\nA performance orientated company will focus purely on the production of their product. A company who cares enough nigh their ability to produce goods of only the highest quality potential must be admired for their dedication. However, dedication does not necessarily justify profit, and without profit, a company could good fold.\r\nAlthough a similar concept to the one of the production orientated company (above), the product orientated company focu ses on the product itself. The aim is to make the scoop up product possible. Research and development is usually entangled in the process, ensuring that on that point is a substantial learn for the product. It is hoped that a company will end up with a high quality product that will sell.\r\nThe marketing mix consists of various factors that a company can mix to determine of there is a match between the needs of the customer and what the company currently offers them.\r\nthither are four principal(prenominal) grammatical constituents of the marketing mix â€\r\nDefining the characteristics of the product to worthy customer requirements e.g. introducing optional features with a product that are not standard or providing an additional warrantee that whitethorn not be deemed necessary in law, i.e. providing more than legally necessary with regard to the product.\r\nAn fundamental element of the marketing mix, the price places a assess on the product. It is possible for the buyer and the seller to par this price to that of competing products. It is then possible to alter the customers knowledge of the value by offering additional elements much(prenominal) as cash trade discounts, credit facilities and favourable payment terms. From the marketing point of run across, the price is the ultimate way of calculating profit.\r\nAn other word for statistical distri scarcelyion of the product. The product must be easily in stock(predicate) to the customer in order for it to sell well. There are various channels in which a product can be distri scarcelyed. For example, TJ600 would probably read to distribute their goods by way of a supplier, but they could also introduce a direct send order service to increase sales.\r\nIn deciding which methods to use, you must first consider who your potential customers are and where they are likely to shop for these products.\r\nAlthough wear of the marketing mix, promotion consists of four elements of its own calle d the â€Å"Promotion go”. These are â€\r\nAdvertising †paid presentations such as television advertising, newspapers and posters fliers etc\r\nPublic Relations †the launch of a new product and the ways it can be promoted to the trade and consumer press\r\nPersonal Selling †a method of promoting sales by means of oral exam communication. This can be either search to prospect or over the telephone.\r\nSales Promotion †a way of enhancing consumer purchasing. This usually consists of displays, shows and exhibitions.\r\nMarket Research is utilize to identify not only customer requirements but to identify any marketing problems that the company may be experiencing. Planning is extremely all- crucial(a) when stack away the entropy to be utilize in the market research. In order for the terminations to be accurate, the questions asked must be relevant. This will involve discussions with marketing centering and on occasion, outside consultants. Resear ch can be utilise to improve any element of the product (detailed in the marketing mix).\r\nWhen considering any form of market research, it is important that any external factors scratching the results are considered. These are commonly known as PEST:\r\n governmental †any new legislation that may regard the product\r\nEconomic †unemployment rates, spending power of the consumer\r\n well-disposed †environmental issues that may affect the product\r\n proficient †introduction of new technology that may affect the company\r\nOnce a decision has been reached regarding the subprogram and content of the research, it is necessary to determine the best way of getting a answer. There are many ways of conducting market research, including postal surveys, telephone surveys and bet to face interviews. The best response rate, however, prevails to be with face to face interviews (usually questionnaires), due to the fact that an immediate response is given by the inter viewee.\r\nIt is rattling that once data has been collected that it is carefully reviewed, in order to supply the information given as a result of the research. Additional research may be carried out if the data shows that there is some other area that can be improved upon.\r\nIn order for a company to go forward in business, they must set objectives goals. These usually form questions relating to the business, such as:\r\nFor example, the organisational goals of TJ600 may be to:\r\nExpand product ramble on & distribution\r\nThese objectives are usually do at a strategic level †in this case the managing director would be accountable for ambit the objectives.\r\nIt is reasonable to assume that TJ600 are aware of their lieu in the manufacturing business, due to the fact that they have been prospered for 20 years. The goals detailed above give an motif of where the company would like to be in the future. any that is left is to figure out how to get there and it is a t this point that marketing plays its role.\r\nOutlined down the stairs are ways that marketing could help achieve the aforementioned goals:\r\nIn order to retain customer loyalty, it is important that the customer is satisfied with the product they currently buy. Market research is extremely useful in identifying customer needs and to establish whether or not they are completely satisfied with the product. It is at this point that elements of the marketing mix can be used to alter certain characteristics of an existing product e.g. if market research was to show that existing customers were basically satisfied with a product supplied by TJ600, but would get more after sales service, then management would want to look at the product element of the marketing mix. It is possible from there to ascertain whether blanket(a) warranties etc would be viable to the business with regards to cost effectuality i.e. would additional stave be postulate?\r\nAgain, market research is useful to determine whether there is a market for expansion of a certain product or expansion of an existing product to another country.\r\nPast and present success of a company cannot be taken as a guarantee for the future. Many large companies invest in first-string market research to ensure that they stay one step ahead of their competitors. Although TJ600 has had continuing success in the past, it would be rather arrogant to expect the aforesaid(prenominal) success in the future.\r\nExpansion is a good way of improving on something that is already common and offering the customer more choice at the same time. In todays business world, it is inevitable that at one point someone will offer customers an improvement on their current product. Investing in market research will help to ensure that, if a product would benefit from expansion, then you will be first to do it.\r\nOnce a company has established their organisational goals and the marketing methods that they are dismission to use t o achieve them, they must ensure that they have the co-operation of every department. Communication plays a vital part in marketing to ensure that the changes are utilise with maximum effect.\r\nFor example, using the organisational goals detailed previously for TJ600, it would not be possible to make changes to the product dress by consulting only the production department. Outlined at a lower place are the roles that other business functions would play in marketing:\r\nThe finance department is usually responsible for position annual budgets for the whole of the company and expects other departments to adhere to them. They are also responsible for setting time limits on credit facilities and these sometimes tend to be shorter than the customer would like. Communication between the finance department and marketing could look to improve credit terms if postulate and may allow agency for compromise if a certain department required more money. It is the responsibility of the fin ance department to ensure that the company makes a profit and they may not be keen to spend more money or wait longer for customers to pay. This is where communication plays an important role; if it is explained from a marketing point of view that these additional costs would result in a higher market share or increased sales, then the finance department would realise that this would lead to increased profits.\r\nThe production department is unlikely to delightful the idea of modifications or improvements to the product. They tend to work in long production runs and like to keep things as standard as possible. Communication between marketing and the production department may help them fancy the need for improvements to a certain product †it may be that improvements are necessary in order for them to stay ahead of competitors in the same market.\r\nIt is vital to the smooth running of any organisation that the salutary people are employed for the right jobs e.g. marketing may have highlighted the need for customised orders to be introduced, which in turn would mean that staff are required to work more flexible hours. It is the responsibility of the effect department to ensure that the company has adequate staff to meet these requirements.\r\n'