...commodity approach of marketing is related to demand and supply of commodity. This approach is also related to channel of distribution and transportation. So, this approach establishes marketing system for products. It finds out necessary principle, strategy and technology for marketing goods and services. The commodity approach of marketing is practiced mostly in agricultural products, in cotton, jute, wheat, etc. 2. Functional Approach Functional approach of marketing indicates the study of the functions of marketing. Whatever function the marketing performs is called marketing as a whole. Marketing performs exchange function, physical distribution function and other auxiliary functions. The study of these functions is marketing. Exchange Functions: Exchange function of marketing include purchasing and selling. These are the basic functions of marketing. Physical Distribution Function: Physical distribution function includes transportation and storage. These functions transport goods/products to right place at right time as desired by the customers. Auxiliary Function: The auxiliary functions of marketing include, standardization and classification, financing, labeling, packaging, risk bearing, information flow etc. These functions simplify the exchange function. The functional approach of marketing is related to the study of flow of commodities and concerned organizations. It gives more emphasis to the functions that should be done by marketing. But it does not care...
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...Different Approaches for Marketing Submitted by: Ankita Taneja (11PGDM072) The Production Concept • The Production Concept holds that a consumer will favor only that product which is available in the market and at a highly affordable price, as compared to a product which is of a better quality but not easily available or of a higher price. • An example can be the Parle biscuits. They have 14 manufacturing units for biscuits and 5 manufacturing units for confectioneries. Thus with the concepts of mass production, distribution and competitive prices, they have captured 38% market share for biscuits in India and 90% market share for glucose biscuits against its competitors like Sunfeast and Britannia amongst others. The Product Concept • The Product concept holds that consumers will favor products that offer the most in quality, performance and innovative features. Hence this marketing strategy focuses on making continuous product improvements. • An example for this can be the Blackberry phones. After the launch of the smartphones by Blackberry like Curve and Bold, it strived to continuously offer upgrades in each series. From Curve 8520 to Curve 3G which offers compatibility for the 3G services and the Bold series ranging from Bold 9100, Bold II and Bold III, the organization aims at continuous research and upgrades even though the pricing is maintained higher than the competition like Apple iPhone and Samsung Android phones. The Selling Concept • This concept...
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...EVALUATING WORK 1. JOB EVALUATION Job Evaluation is the process of systematically determining the relative worth of jobs to create a job structure for the organization. The evaluation is based on a combination of job content, skills required, value to the organization, organizational culture, and the external market. This potential to blend organizational forces and external market forces is both a strength and a challenge of job evaluation. 2. TYPES OF JOB EVALUATION JOB BASED Job-based employee performance evaluations focus on the duties of the position and the tasks required to perform them successfully. This is a standard type of evaluation you can use for all employees filling the same position. First you must perform a job analysis, separating all duties into large categories, such as essential functions and communication. Under the categories of the position, specify tasks required to fulfill them. Be thorough in your analysis and ask your manager or the human resources department to review it. This will be the performance plan for the position. Each employee will receive the plan, sign it and be reviewed formally at the end of the rating period based on the duties outlined. PERSON BASED A person-based evaluation is specific to each individual employee. It takes into consideration the knowledge, skills and abilities the employee possesses upon hire and learns in the course of the rating period. In this way, an employee is compensated fairly for...
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...Evaluation methods differ from an organization to another depending on the size, industry, power of influence, and complexity of that one. Three of the main evaluation methods that have been widely adopted by business and HR managers, and professionals to evaluate and scale their organizational state of concern. Hay Is ultimately one of the earliest methods of evaluation since it was adopted in The early 1950s. It aids in forming an organizational map that aids in the valuation of jobs and salaries. Its no longer sufficient one because of it generating very low points. Three factors that Hay evaluates the jobs on are presented in: Know how (technical knowledge, breadth, human relations, etc..) Problem solving ( environmental thinking, challenge thinking, etc...) Accountability (freedom, and impact of type and magnitude) Working conditions (human relations, work load, environment, etc..) Mercer Other evaluation approach that was widely used in the 1970s that came up with enhanced factors, one of these was the risk factor that is no longer applied because that nowadays firms are obeying international standards for risk and safety. Three factors that Mercer evaluates the jobs on are presented in: Expertise (knowledge, experience, breadth, interpersonal traits, etc..) Judgement (job environment, reasoning, etc..) Accountability (impact, independence and influence, involvement, etc..) Towers and Watson Another iterative approach of evaluation of...
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...Business Approaches, Management, and Marketing: Amazon.com vs. Borders Books BUS 302: Management Concepts April 29, 2012 Jeff Bezos, former vice-president of D.E. Shaw, founded Amazon.com in 1994. After reading an article that forecast an annual Web growth of 2,300 percent, Jeff Bezos decided to make Amazon.com’s headquarters in Seattle, Washington. Seattle, Washington was a hot spot for the rapidly growing high tech work force. Bezos had a hard time finding initial investors, because he did not project a profit for the first five to six years of the company’s formation. Bezos startup funds came from family and friends, he ultimately raised one million dollars for his initial capital. Amazon.com started its operations in Bezos garage selling books, but quickly grew to the Amazon.com we know today. Amazon.com sells DVDs, CDs, furniture, jewelry, electronics, software, video games, toys and even food. Amazon.com sells its products all around the world and can reach any consumer that has an interest connection. Borders, or Borders Group, Inc., started out as a single used bookstore in Ann Harbor, Michigan. Borders was founded by Louis and Tom Borders in 1971. In 1975, Louis and Tom bought out stock of Wahr’s an eighty year old bookstore that was closing its doors and moved their store to a much larger location. Borders was bought out by Kmart in 1992. Kmart tried to expand Borders into Canada, but failed because regulations could not be met. Borders did...
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...Approaches to Marketing Management In common parlance, marketing is the process of selling something at a shop or market place. To some it has meant the study of individual commodities and their movement in the more place; to some it has meant the study of institutions and personas who move these products or study of the economic contribution; whereas to product movements and the way eh perosnas involved move them. Thus the study of marketing has, thus, been approached in more than one ways. However, these different approaches have immensely contributed to the evolution of the modern approach and the concept of marketing. To facilitate the study, these different approaches may be broadly classified as the commodity approach, the institutional approach and the managerial approach. Besides these well recognized and established approaches, of late, the recently developed societal and systems approaches have been attracting considerable attention. A brief description of these different approaches is given below, reflectionghtie respective focus and characteristics. (A) Commodity Approach : In the commodity approach to the study of marketing, the focus of study is a specific commodity, say, wheat, rice, approach, the subject matter of discussion around the specific commodity selected for the study; nature and extent of demand, the distribution channels used and the function, such as buying , selling , financing, advertising, storage repeating such studies in case of different...
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...market-based strategy. A market segment is a purchase behaviors and different descriptive characteristics and specific group of customers with distinctive customer needs (Baker M.J, 1995) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the other requirement and technical requirements of each of these, organizations may be able to secure big competitive position than if they attempted to satisfy the fundamental requirements of the market as a whole. In market segmentation there are four criteria that have to be satisfied in order for market segmentation to be effective. A market segment should be accessible, identifiable, substantial, and stable. In Identifiable, there should be indicators of observable that enable the segment to be defined and quantified (Baker M.J, 1995). Accessible, that is, it should be probable to target specifically the segment using distribution channels and existing communication. In Substantial, that the segment should be of enough size to make the effort involved in segmentation worthwhile. In the Stable, the segment there should be capitalized by sufficient time on the investment implicated in segmentation (Baker M.J, 1995). Brief Discussion: Using a variety of philosophical approaches markets can be...
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...MARKETING ESSAY NOTES Q. Application of the marketing mix is no longer relevant for firms adopting a contemporary approach to marketing. What is marketing mix ?? What is contemporary approach? The main funda was to please the customer, making him the “king” and then deciding what is going to please him and how to earn his loyalty. Steps to do this 1. Prioritize the marketing concept acc to the market through R&D and fulfilling the needs and desires of the customer. 2. This way the products& services can be quite welcoming in the market 3. Effective & efficient promotion techniques to attack the desired target market. The contemporary approaches can be subdivided into the following types :- * Relationship Marketing * Business / Industrial Marketing * Social Marketing Relationship marketing is all about building healthy and long lasting relationships between the firm and its customers and then to efficiently leverage this customer base using suitable marketing techniques. This approach has been used since the 1960s and is followed till today. Business Marketing, as the name implies, is applicable to the B2B (Business to Business) domain. In this context the marketing takes place between businesses or organizations. Consequently the marketing efforts have to be altered in a way to suit corporate customer needs as compared to end customer needs. This approach has been used since the 1980s and is followed till today. Social...
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... What constitutes good marketing research? 2. What are the best metrics for measuring marketing productivity? 3. How can marketers assess their return on investment of marketing expenditures? CHAPTER SUMMARY 1. Companies can conduct their own marketing research or hire other companies to do it for them. Good marketing research is characterized by the scientific method, creativity, multiple research methods, accurate model building, cost-benefit analysis, healthy skepticism, and an ethical focus. 2. The marketing research process consists of defining the problem, decision alternatives, and research objectives, developing the research plan, collecting the information, analyzing the information, presenting the findings to management, and making the decision. 3. In conducting research, firms must decide whether to collect their own data or use data that already exist. They must also choose a research approach (observational, focus group, survey, behavioral data, or experimental) and research instruments (questionnaire, qualitative measures, or technological devices). In addition, they must decide on a sampling plan and contact methods (by mail, by phone, in person, or online). 4. Two complementary approaches to measuring marketing productivity are: (1) marketing metrics to assess marketing effects and (2) marketing-mix modeling to estimate causal relationships and measure how marketing activity affects outcomes. Marketing dashboards are a structured...
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...Identifying market segments is critical to the successful development of management strategies based on marketing mix components (i.e., product, distribution, price, and promotion)(Kyle, 2002). By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the technical and other requirements of each of these, organizations maybe able to secure greater competitive position than if they attempted to satisfy the general requirements of the market as a whole. There are four criteria that are crucial to an effective marketing segmentation. A market segment should be identifiable, substantial, accessible and stable. Identifiable, at which there should be observable indicators that enable the segment to be defined and quantified. Substantial, meaning that the segment should be of enough size to make the effort involved in segmentation worthwhile. Accessible, that is, it should be probable to target specifically the segment using existing communication and distribution channels. Stable, so that after classification of the segment there should be sufficient time to capitalize on the investment implicated in segmentation. (Baker, 1995) Markets can be segmented using a variety of philosophical approaches. In terms of operationalizing these approaches, demographic approaches, geographic approaches, socio-economic approaches and psychographic approaches are commonly used. There are a number of demographic-related bases for segmenting markets such as age...
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...image (the way it is promoted) and, of course, the price which should be charged. These are some of the ingredients which a marketing manager must mix together when optimising a limited amount of resources. What is the best mix? A marketing manager has to juggle resources and decide on the best marketing mix. Should money be spent or forfeited on: reduced prices? Improved products? New delivery trucks? Or maybe invest all your money in a high risk TV advertising campaign? Did you recognise the 4 Ps just there? In 1960 Jerome McCarthey presented the 4 Ps to the world. Since then marketing managers around the world have become familiar with them. Can you recall them? In addition to the 4 Ps, there are other approaches to the mix. These are explored under 'Different Approaches' subtopic as shown in the title map. Let's look at each of the 4 Ps briefly. Product - this means the product's (or service's) quality, the functions, the features and benefits of its design plus packaging, guarantees and level of after-sales service. Choices can be made about any of these aspects. Price includes recommended prices to end-user customers, distributor's trade prices, cash discounts, bulk discounts, terms of credit. Place means where and when the customer buys and consumes the product or service. Place is sometimes referred to as the marketing channels, physical distribution, logistics or location. Promotion means the promotions mix or the communications mix. This mix...
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...Consumer Behavior – Week Two Keller University 1/15/2016 Introduction Since 1907, UPS was known for being a business of small package transportation and delivery. They decided to expand its business offerings by being more than what they were known for. In order for the company to get the message out about its repositioning, they purse an integrated marketing communication. Their goal was to shift their consumer’s mindset of what they thought about the company, and to be known as a synchronized commerce. They changed their logo, discovered the color brown as a way of personifying their brand, and delivered a consistent brand message across all significant media and events. UPS now print labels, track shipments, order a pick-up, and provides many other services. UPS’ Decision to Pursue Integrated Marketing Communications UPS was led to pursue an integrated marketing approach because they were expanding their business offerings. For years the company was mainly known for small package transportation and delivery, by majority of their customers. They knew the only way to help their consumers see them as a synchronized commerce, they had to effectively communicate for it to be relevant and memorable. They conveyed their brand message consistently across all significant media and events. Promotional Objective The promotional objective for UPS, was to build awareness to their four primary audiences. They were repositioning itself as a synchronized...
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...different approaches to the study of marketing. These approaches explain clearly the mechanism and concept of marketing. These approaches are Commodity Approach, Institutional Approach, Functional Approach and Decision Making Approach. (1) Commodity Approach or Product Approach: This approach refers to the study of a product in detail. The marketing situation of each product chosen for study is examined from such viewpoints as sources and conditions of supply, producer marketing organisations, policies, different middlemen (wholesaler’s 6f retailers etc.) who take part in distributing the product. Problems with regard to a particular product are studied in detail under this approach. Products of any nature e.g. agricultural products wheat, rice, maize, etc., industrial products like machine tools, lathe-machines, generators, oil engines, etc., and any other products can be covered under this study. In practice, this approach tends to be repetitive and time consuming. (2) Institutional Approach: This approach relates to various marketing institutions viz., wholesalers, retailers etc., engaged in marketing. In applying this approach, a thorough study with regard to a particular middleman is undertaken. For example, in retailing, nature and significance of retailing in terms of functions and services performed and rendered by retail institutions like departmental stores, multiple shops, mail order houses etc. Besides wholesalers and retailers, other marketing institutions...
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...Business and Management Referred/Deferred Coursework Critique: The Effects of Social Media Marketing on Online Consumer Behaviour Table of Contents Summary 2 Main Critique 2 Research Approaches 5 Conclusion 7 Reference 8 Summary The paper is providing a critical review of “The Effects of Social Media Marketing on Online Consumer Behaviour” by Simona Vinerean, Iuliana Cetina, Luigi Dumitrescu,and Mihai Tichindelean. The article is reviewing the communication of brand with consumers (Vinerean, Cetina, Dumitrescu, & Tichindelean, 2013). Internet and social media is proved to be the most effective platform for consumers and businesses to socialize or communicate. Organizations can access a wide array of consumers throughout the globe, as social media is a platform to publicize the personal evaluation of consumers. The article is focusing on 236 social media users to examine different measures reflecting positive influence of networking websites on the consumers’ perception about advertising through this platform (Vinerean, Cetina, Dumitrescu, & Tichindelean, 2013). It is found in the paper that the social media marketing provides the evidence of virtual presence of online consumers for organization reflecting the positive outlook on sales and reputation. The aim of this research is to empirically investigate, determine the communication with social media marketing, and have a positive outlook regarding advertising on social networking websites (Vinerean...
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...Customer value-based pricing strategies: why companies resist Andreas Hinterhuber Andreas Hinterhuber is based at Hinterhuber and Partners, Innsbruck, Austria. Introduction Pricing has a huge impact on profitability. Pricing strategies vary considerably across industries, countries and customers. Nevertheless, researchers generally concur that pricing strategies can be categorised into three groups: 1. cost-based pricing; 2. competition-based pricing; and 3. customer value-based pricing. Of these, customer value-based pricing is increasingly recognised in the literature as superior to all other pricing strategies (Ingenbleek et al., 2003). For example, Monroe (2002, p. 36) observes that: ‘‘ . . . the profit potential for having a value-oriented pricing strategy that works is far greater than with any other pricing approach’’. Similarly, Cannon and Morgan (1990) recommend value pricing if profit maximisation is the objective, and Docters et al. (2004, p. 16) refer to value-based pricing as ‘‘one of the best pricing methods’’. Practitioners have also recognised the advantages of value-based pricing strategies. Several companies have successfully adopted such strategies. These include pharmaceutical companies such as Sanofi-Aventis, information technology companies such as SAP and Vendavo, wireless internet service providers such as the Australian company Xone, airlines such as Lufthansa, vehicle manufacturers such as BMW, and biotech companies such as Tigris Pharmaceuticals...
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