Marketing Explanation Essay

Background of marketing: Starting In the 1920’s 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 1950’s marketing was shown in a sales era. Customers didn’t 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 most 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 therefore developed into what we now see in a modern marketing department. Marketers are involved at a strategic level within the organisation 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. Modern marketers research markets and consumers. They attempt to understand consumer needs (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 1990’s organisation had to start considering what customers actually want and had to form relationships to create ‘loyal customers’. Function of marketing: â€Å"The 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, Page 112) What are the aims of marketing? * Meet customers’ needs * Know the competition * Manage any threats * Research customers need * Know the market Marketing Mix: The marketing mix describes the key elements that an organisation uses to inform and persuade and meet the customers’ needs using the 4 P’s. The 4 P’s are: * Product * Price * Place * Promotion Product: â€Å"a product is anything that is offered to the marketplace that can satisfy a customer’s perceived need† (Eric Davies, Successful 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 best fit for them. The 4 groups are: * Demographic * Social-economic * Geographical * Psychograph Demographic segmentation: â€Å"Gender, age, income, housing type, and education level are common demographic variables.† (http://www.decisionanalyst.com) Social-economic segmentation: Mainly split you’re through your personality. The main groups are consumer attitudes, values, behaviours, emotions, perceptions, beliefs, and interests. Geographical segmentation: This is based on where you live e.g. post code Psychographic segmentation: â€Å"This is perhaps the most 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 certain 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 vision & mission statements. Virgin Atlantic Mission Statement: â€Å"Safety, security and consistent delivery of the basics are the foundation of everything we do.† â€Å"The success of our three year strategy 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 Statement: Ryanair will become Europe’s most profitable lowest cost airline by rolling out our proven ‘low-fare-no-frills’ service in all markets in which we operate, to the benefit of our passengers, people and shareholders. Ryanair’s objective is to firmly establish itself as Europe’s leading low-faresscheduled passenger airline through continued improvements and expandedofferings of its low-fare service.’ Ryanair’s goal 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 Act 1987 * Data Protection Act 1998 * The Unfair In Consumer Contract Regulations 1999 The Consumer Act 1987: An Act to make provision 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 Safety (Amendment) Act 1986; to make provision with respect to the giving of price 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 purchase it for 69p. Data Protection Act 1998: The Data Protection Act (DPA) gives individuals the right to know what 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 influence 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 â€Å"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 advertising 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.T: P.E.S.T stands for: * P- political * E- economic * S- sociocultural * T- technological Travel & tourism organisations have to be aware of the external factors that affect or influence their business. Political factors: Some political factors that would affect an organisation are: * Changes of government * Increase in tax * Security law Economical: Some economic factors that would affect an organisation are: * Recession * Exchange rates * Unemployment Socio-cultural: Some socio-cultural factors that would affect an organisation are: * More tourists * Income/trends Technological: Some technological factors that would affect an organisation are: *New technology * Websites * IT References: 1. (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/)