Marketing Concept and Orientation Essay
Marketing Concept and Orientation
The marketing concept is concerned with matching the capability of a company and the needs of the customers. According to William (2003: p17), the process of matching takes place in the so called marketing environment. The marketing concept is driven by an organization’s senior managers, who are passionate about satisfying and delighting their customers. In the process of marketing, businesses do not market alone, but rather face threats from their competitors, and other threats from the social, economic, political and technological environment.
All this factors must be considered when a business attempts to match its capabilities with the wants and needs of the target customers. A business that adopts the concept of marketing, accepts the wants of potential consumers as the foundation for its operation. The success of any organization depends on the ability of a business to satisfy the needs and wants of the customers. A marketing oriented organization is a business that has adopted the marketing concept (Douglas, 2006: p72-75).
Alternative Definitions of Marketing
There are varying definitions for marketing. The best definitions are focused upon consumer satisfaction and orientation of customer needs. The Chartered Institute of Marketing (CIM) defines marketing as the management process that anticipates, identifies and satisfies the requirements of the consumers profitably. This definition is not only concerned with identifying the needs of the customers, but also with satisfying them, and anticipating the future needs. This in result would cause a long term retention of the market share.
According to Lawrence (2003: p25), marketing essentially deals with marshaling the resources in the organization, so that they can meet the changing needs of the consumers who depend on the organization. Another definition given for marketing by Colston (2006: p34), states that, marketing is a social process through which groups and individuals obtain what they want and need, through creating and exchanging products and their value with others. A more realistic and recent definition considers matching capabilities of an organization with the needs of the consumers, and states that marketing is the process through which the society in want of consumption needs, lead to the emergence systems of distribution composed of various participants, who interact under social, economic, and technical constraints. This makes it necessary to create flows or transactions to resolve separations in the market, and result in the exchange of products and consumption.
The philosophy marketing concept, defines marketing as being broader than just selling, marketing is not a specialized activity, it involves the entire business. It is the whole organization viewed from the point of final result, this approach is based on the consumer’s point of view. Responsibility and concern for marketing must therefore include all areas of a business enterprise.
Characteristics of a Marketing Oriented Organization, Considering Whether Dell exhibit These
An organization that is marketing oriented possesses three major characteristics. Such an organization attends to three elements of marketing concept that include consumer orientation, the organization implements the orientation of customers, and looks into the long-range societal and customer welfare. The organization identify and anticipates the future needs of the consumers, so as to retain the market for a long time. A market oriented business focuses on profitability, and specifically in the corporate sector. Dell being a multinational company specializes in the manufacturing, sale and support of computers and other computer related products, such as printers. The company has a policy to satisfy the needs of the consumers by providing them with good quality products at the right time. To a large extent, the company has been able to apply the marketing concept in its operations (Irving, 2005: p128-132).
Various Elements of the Marketing Concept
There are various elements of marketing concept. First, marketing concentrates on satisfying the needs and wants of the consumers. The other element is such that the marketing concept should be owned by anyone who works within the organization. This is an effective way of ensuring that all people cooperate towards attaining a certain goal, and hence attain the best results for the organization. According to Marrios (2007), the future needs of the consumers are identified and anticipated to ensure that an enterprise enjoys the competitive market advantage for a long time. Lastly, an organization focuses on profitability.
The Benefits and Costs of a Marketing Approach to Dell
A company using the marketing approach, and especially the strategic interactive marketing approach enjoys benefits and cost reduction in its operation. Dell computers by use of marketing approach will attract more affluent customers. The customers who will be served by use of modern printers, computers and other equipments with improved technology, will be willing to pay for the corespondent services offered, and for having their needs met.
The company will be in a position to attain higher sales conversions. This comes as a result of winning the confidence of the customers, by being able to target and meet their needs. This can be done by giving complex offers, where product benefits may be interlinked to attract more customers, such as the production of interactive software that have stimulation techniques. The company could make use animations on the software to illustrate the use of a product in real life. A company using market approach is able to do product awareness for the people within the organization, and to the customers too. Acquisition of comprehensive information concerning a product helps the company to address a wide range of customer needs. The cost of sales and distribution are lowered since product information can easily be provided by use of the information in the software (Coskun, 2005: p204)
There will therefore be no need for expensive premises and sales people expenses. Servicing cost can be reduced where the company applies e-mail type of links through which customers can inquire information, or view inquiries their product portfolio. Product retention is achieved, where sale representatives or customers have the access to comprehensive information concerning a product. In case a company wants to invest, it gets the best advise from either the sale representatives or the customers on the product information. This helps to ensure that a company captures both the present and future needs of the market.
Macro and Micro Environmental Factors Which Influence Marketing Decisions in Dell
Arch (2003: p144) posited that the micro environmental factors look into the internal operations of a company in determining marketing decisions. Factors that may influence marketing decisions on the basis of micro environment include the character and culture of Dell, the company’s competitors, people involved in the supply chain, the stakeholders and the customers. Macro environment considers the external business environment, and the potential influence that can cause threat to the success of the company, or create opportunities for the success of the company. A company considers the macro environment while making marketing decisions. This includes both the legal and political environment surrounding the company.
A Proposed Segmentation Criteria to be Used for Dell Printers
Dell Computers should divide its market into several groups, by use of strategy directed at gaining a big portion of consumers in the category, rather than adopting the system of limited purchase shares by all categories. Dell should use segmentation research to know which subgroup of consumers they are to target in the market, while selling their printers. If Dell follows this segmentation criteria, it will be in a position to enjoy several advantages. This will help Dell to match the needs and wants of the customers (Stephen, 2002: p102).
Due to differing customer needs, separate offers should be made for the different segments. This increases profits for the company. A company will be in a position to produce different levels of products according to the income of customers in different market segments. Rich customers for instance will get expensive products. This ensures that customers get value for their money, and the company is also able to maximize profits.
Factors Influencing the Choice of Targeting Strategy
According to Rogers (2006), decisions on targeting strategies are mainly influenced by various factors, including the maturity of the market. A business ensures that it picks out a subgroup in a mature market subcategory where there are likely to be potential customers. The diversity of buyers preferences and needs is another factor influencing decisions on targeting strategy.
A business should first consider the needs and preferences of consumers, and then assess whether it has the capability of matching the wants and needs of a certain category in the market. The next step would be to choose that segment of the market if the business has the capability to meet the needs. The strength of competition is considered. An organization first looks at the potential competitors in the market, and then evaluates its capability to fight with such consumers before joining the market. The quantity of sales is considered to ensure that a business is able to sell more products, so as to maximize profits.
Buyer Behavior’s Impact on Marketing Activities for Printers
The task of any marketing is to identify the wants and needs of consumers, then to develop services and products that will satisfy them. To be successful in marketing, it is not sufficient to just know what customers require, but to also find out why the product is required. It is only after gaining a comprehensive and deep understanding of the behavior of a buyer, that marketing goals can be realized. The understanding of consumer behavior is advantageous to both the marketer and the consumer. This enables the marketer to get well equipped, to meet the needs of the consumers efficiently, and to identify a group of potential consumers who have a positive attitude towards the products produced by the company.
According to Prakash (2003: p204-206), Consumer behavior refers to the acts of individual persons, who are involved in using and obtaining economic services and goods. Including the process of making decisions that determine and precede these acts. The behavior of the consumers on the other hand are influenced by various factors, such as cultural and social influences, social class, reference groups, individual buyer behavior and motivation. All these factors are considered by business managers in the production of company products, such as printers. If target consumers are from a high social class, the company would need to produce high quality printers with the latest technology, to meet the needs of the consumers. Tastes and preferences may also change due to technological developments. The Dell therefore has to improve its printers to adjust to the modern technology, so as to satisfy the requirements of the consumers.
How Dell’s Products are Developed to Sustain Competitive Advantage
In the manufacturing of its products, the company carries out a market research to get comprehensive product information. Aldrich (2004: p64), explained that this information is either provided by the customers, or by the sale representatives employed by the company. The company has over time developed its products to adjust to the changing technology, by installing new and developed features that may be preferred by the consumers.
The company has also been able to come up with a diversified product category to serve different market segments, depending on the need for each market segment. The corporation has developed specific brand names for both the business class and consumers, or home class. This helps to ensure that the company serves both the needs of the business people and the individual persons.
Business class brand include desktop computers to serve in offices, small business desktops, workstation systems, business servers, note work-attached storage, among others. Consumer or home class products include consumer note book systems and desktops, consumer slim and medium desktops and laptops, high performance and enthusiastic note books and desktop systems, among others. These and other products are developed to ensure that the company enjoys a competitive advantage in the market.
How Distribution is Arranged to Provide Customer Convenience
Dell company has tried to ensure that its products are distributed to all its potential markets in the world. The company ships its products to various retail and wholesale outlets in its various markets. Dell has various direct retail offices in Canada, Eastern Europe, in the United Kingdom and in Australia. These offices are used to distribute Dell’s products to various chains of supply, to ensure that people at all levels are catered for.
Coskun (2005: p56-59), explained that in the improved technology system, the company has been able to advertise its products and effect distribution through the Internet. Dell kiosks were opened from the year 2001, the opened Kiosks helped to serve as shopping malls in the United States. This enabled giving personalized services to consumers who choose to shop for the company’s products by use of telephone system or the Internet. Despite this being an extra expense for the company, the prices offered at the kiosks beat or match prices available through the various retail channels used by the company.
The company has since expanded the location for the kiosks, and has opened shopping malls in Hong Kong, Canada, Singapore and Australia. These distribution strategies are meant to ensure that customers get the required products at their convenient places and convenient time. The distribution strategies used by Dell have been quiet successful in increasing a large volume of sales for the company’s products.
How Dell’s Prices are Set to Reflect their Objectives and Market Conditions
The pricing of Dell’s products has been used as one of its marketing strategies to ensure that the company realizes its objectives, and maintains its market conditions. The company’s prices are lowered at all times of the year, free bonus is offered for the products, like the Dell printers, the company also ships the products for free in order to boost sales and to ensure that its competitors are starved off. A good demonstration of an instance where the company lowered its prices was in 2006, when Dell reduced its prices trying to maintain its market share of 19.2% (Aldrich, 2004: p92).
How Promotional Activity is Used to Achieve Marketing Objectives
Promotion is a significant marketing tool which provides an extra incentive for the company, even if such impact is normally realized in the short run. Arch (2003: p176), posited that promotion is mainly directed to trade, consumers and other influential groups. Promotion is used to accelerate action on the part of the trade and consumers, it supplements the selling and advertising efforts. Promotion helps to change the price value relation of a product, and to stimulate a consumer to buy the product. It achieves the objective by lowering prices in most incidences, or through increasing a product’s value or by doing both.
Recommend marketing mixes for Dell’s printers, in Consumer Market Segments
Instead of offering similar marketing mix to different consumers, marketing segmentation enable firms to tailor their marketing mix for certain target markets, this in turn allow better satisfaction for the customer needs. According to George (2002: p34), a marketing mix need not to have all the elements changed from one segmentation to another. In certain situations, it may only be necessary to change the promotional campaigns. A market segmentation for Dell should be able to respond to a marketing mix.
Segmentation basis is a factor that differs among groups of consumers in the market, this factor should be in a consistent form within the groups. Dell can segment the consumer market on the basis of demographic segmentation. This will require the company to consider variables such as income, occupation, education, gender or age. Segmentation in consumer markets for Dell should also be based on behavioral segmentation considering attitudes, values and lifestyle of the potential consumers. This would help the company to match its capability with the requirements for the consumers.
Differences in Marketing Products and Services to Organizations Rather than Consumers
Williams (2002: p74-77) expressed that, though there is no clear answer in designing marketing companies, various companies in the consumer industries have experimented marketing organizations and have come up with successful results. Though the strategies are not the same, the common theme involves a direct link between marketing skills and strategy, which is similar to integration across a business system, and coming up with a clear and effective marketing culture. Marketing services and products to organizations also help a business enterprise to compare its operations, product value, and management with its competitors. In effect, a company is able to improve its management so as to match standards with its competitors, or to outshine them if it is to enjoy the competitive advantage in the market. This differs to marketing products and services to the consumers in the sense that, while marketing to the consumers aim at meeting the needs and wants of the consumers, marketing products and services to organizations aim at improving the quality of goods and services offered by the business.
How and Why International Marketing Differ from Domestic Marketing
Decisions for international marketing are preceded by two major decisions; which market may be entered into, and how a company can succeed in such markets. Lechter, & Boli (2004: p48) stated that these answers are provided through international marketing research. International and domestic marketing in fact defers not in nature, but in the scope. International marketing research mainly differ from domestic marketing in three ways; the impact of the environment in the international play is mainly based on profit gains. For instance, a project on marketing research considering the potential of price hike, looks into questions that would not be considered in the domestic markets, for instance, as to whether the subsidiary of a company can be nationalized in the event that prices increase beyond a specific level.
Many frameworks and concepts that constitute the basis for domestic marketing decisions, may not be useful in international markets. The concept may be transferable, but the important information to make the transfer may not be available. For instance, where a country lacks a concurrent data for distribution on a country, the evaluation for the product demand will assume income categories that may not be correct, and cannot in effect be efficient for practical purposes. The ethnocentric form of marketing leads to differences in culture of nations, domestic market culture can naturally be understood, but international marketing cultures must fully be researched (Michael, 2000)
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