Premium Essay

The Aim of Marketing Is to Make Selling Unnecessary

In: Business and Management

Submitted By ediuntungtamba
Words 2119
Pages 9
MADE BY EDI TAMBA

INTRODUCTION

According to American Marketing Association (2013), marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Regarding communication, promotion is a powerful instrument to deliver the valuable offerings to customers, either one or two ways communicating and then increase shareholder value in return (Luo and Donth, 2006). There are five major promotion tools which company mostly use: advertising, sales promotion, personal selling, public relations, and direct and digital marketing (Kotler and Amstrong, 2012, p. 447). Among these promotion tools, personal selling is the most effective tools as it offers two-way communications (Blythe, 2005). However, Peter Drucker (1973) urged that the aim of marketing is to make selling superfluous. He continued saying that marketing should be able to know and understand the customer very well and create the product or service fits him and sells itself. The aim of this paper is to discuss the possibility that company only need marketing and put aside sale function in particular for new product development process. The discussion is divided into three part. First, it discusses marketing contribution on New Product Development (NPD). Next, the sales function role on NPD Process will be presented. Finally, the discussion lead to the decision whether or not selling is needed.

MARKETING CONTRIBUTION ON NEW PRODUCT DEVELOPMENT PROCESS
It has been widely recognized that cross-functional cooperation has important role for NPD success both theoretical (Griffin and Hauser, 1996) and in empirical studies (Troy, Hirunyawipada, and Paswan, 2008). These cooperation, including marketing function, might create product or service that meet customers demand. The…...

Similar Documents

Premium Essay

Nissan Motor Company, Ltd: Target Costing System

...manufacturing labor, and direct machining costs. (Cost Accounting. Page 519). Analyzing each cost element and eliminate the unnecessary value-added is one of the cost management goals in the target costing system. In order to have a competitive price, Nissan managers have to eliminate some value-added costs which are unnecessary and not so helpful for the automobile manufacturing and selling process. Target costing can shorten the product lives and save Nissan company time to do marketing and financial management. A good example in the Nissan case it that they eliminated the "five-door variant" because it is unnecessary. Last, target costing system helps Nissan build a cross-functional team. The design department, manufacturing department, sales department and management department work together to analyze the cost drivers and eliminate the unnecessary steps. This is very helpful to build a healthy organizational culture through team work and cross department projects. However, there are some weaknesses of the target costing system. Fist, every value-added cost has a reason to exist. It could be adding some function to the automobile, or it could be making the automobile look nicer, or it could be some marketing promotion. Eliminating unnecessary value-added costs is a tough task because sometimes it is hard to determine which value-added costs are unnecessary. Some value-added cost may be slightly helpful now, but they will add more value in the long run. It is really hard......

Words: 1544 - Pages: 7

Premium Essay

1. Define Marketing and Discuss How It Is More Than Just “Telling and Selling.”

...1. Define marketing and discuss how it is more than just “telling and selling.” Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. Hence, marketing is defined as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Today, marketing must be understood not in the old sense of making a sale—“telling and selling”—but in the new sense of satisfying customer needs. If the marketer understands consumer needs; develop products and services that provide superior customer value; and prices, distributes, and promotes them effectively, this goal will be achieved easily. The aim of marketing is to make selling unnecessary. Selling and advertising are only part of a larger marketing mix 2. The marketing process (p5) 3. 5 core customer and marketplace concepts • Customer Needs, Wants and Demands  needs: states of felt deprivation (physical, social, individual)  wants: form of human needs shaped by culture and personality  demands: wants backed by buying power • Market Offerings – combination of Products, Services and Experiences offered to a market to satisfy a need or a want. Marketing Myopia: The mistake of paying more attention to the specific products than to the benefits produced by them, e.g, a firm thinks that the......

Words: 426 - Pages: 2

Premium Essay

Marketing Notes

.... Principles of Marketing: 8/28/14 A. Marketing defined: is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return. 1. To be able to measure profitable customer relationships 2. Aim of marketing is to make selling unnecessary. B. Customer Relationships: C. Chapter one Terms: 1. Needs-states of felt deprivation. 2. Wants-the form human needs takes as they are shaped by environment and character. 3. Demands-human wants that are backed by buying power. 4. Market offerings-some combination of products, services information or experiences offer to a market to satisfy a need or want. 5. Marketing myopia-mistake of paying more attention to the specific product as co. offers than to the benefits and experiences produced by t these products. 6. Exchange-the act of obtaining a desired object from someone by offering something in return. D. Chapter one Terms Cont.: 1. Marketing management-the art and science of choosing target markets and building profitable relationships with them. 2. Production concept-the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency. 3. Product concept- 4. Selling concept 5. Marketing concept 6. Societal marketing concept E. Chapter one terms Cont. 1. Customer relationship management 2.......

Words: 254 - Pages: 2

Premium Essay

Business Management

...FUNDAMENTALS OF MARKETING Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and keep and grow current customers by delivering satisfaction. Marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Needs States of felt deprivation. Wants The form human needs take as they are shaped by culture and individual personality. Demands Human wants that are backed by buying power. Market offerings Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Marketing myopia The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. Exchange The act of obtaining a desired object from someone by offering something in return. Market The set of all actual and potential buyers of a product or service. Marketing management The art and science of choosing target markets and building profitable relationships with them. dividing the market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing). Five alternative concepts under which organizations design and carry out their marketing strategies: Production concept The idea that consumers will favour products that are......

Words: 987 - Pages: 4

Premium Essay

Unit 1 Business

...For this task I have to select one organisation, either McDonalds describe the methods used to make marketing decisions based on the behaviour of the customers, competitors and the market environment. research can be used to decide if some restaurant needs to be closed if satisfactory profit is not Marketing Research: Marketing research is aimed to help organisations make effective decisions by providing by providing information that can inform the decision making process Different Types of Marketing Research: There are two types of marketing research, they are: Primary Research- Carried out to find new information required for a marketing research project, which has never previously been collected. Secondary Research- Makes use of work already carried out by someone else for some other marketing project or other purpose. Examples of primary research: * Observation- Useful when a topic first needs to be explored, for example how children play with a new toy. There is no communication between the researcher and the people being observed. * Experimentation- Researchers use it to try to identify the impact of a change in something such as price or packaging format while keeping everything else the same. * Surveys- Use questionnaires to collect data by face-to-face interviews, using the post, email, telephone or internet. Used to obtain data about attitudes, awareness, motivations and lifestyle. Examples of secondary research: * News reports-......

Words: 940 - Pages: 4

Premium Essay

Britvicccc

...Marketing Assessment Outcome 1 & 2 Britvic Case Study Question 1 The three key characteristics of marketing concept are: * Customer Orientation – this means that the company is focused on the customers, they know what the customers want and expect and satisfy those wants and needs. By being customer focused Britvic make all their marketing decisions based on their customers’ wants and expectations and the customer is then fully satisfied. For example, Britvic focuses on their brand loyalty and therefore create new products and tastes with different contents to suit all their customers. This will increase brand loyalty and image, which is very important for any business. * Marketing Research – in marketing concept: knowing and understanding customer’s needs, wants and expectations is the most important thing. Marketing research can help and identify those on a regular basis to help improve customer satisfaction. This way Britvic knows what the customers want, who are they, what their expectations are, and what the best method of communication with them is. This helps Britvic know what products they need to improve, what new things they could come up with and when to launch. * Marketing Planning – this is a goal-oriented approach to marketing. The main goal of Britvic is to sell their products and satisfy their customers. This is the aim that Britvic has set for themselves. To get there they need definite policies to help them achieve that goal, this is to......

Words: 2574 - Pages: 11

Premium Essay

Unit19 P1 & P2

...Unit19 Customer relations in business Assignment: A1 Understanding marketing concepts used by businesses Introduction What is marketing concepts? Marketing concepts is when businesses use ideas and techniques to make their customers aware of their products or services and tempt them to buy. This relates to: * How buyers decide what they buy * What makes one products or service different from another * How different groups of customer can be targeted according to their needs. * The marketing mix – Considering the price, product, place and promotional activity (four P’s) that will attract customers. The following marketing concepts are: The AIDA (s) model of buying decision making Before you attempt to buy something, you go through a process and the process is: Stage 1 – Attention Before you buy a product or a service, you must be aware of it first. There are many ways of getting your attention to the business products and services and they’re advertising. Ways of advertising your business is newspapers, radio, T.V., leaflets, billboards and posters. Another way of getting you attention is by having store displays and striking packaging. Stage 2 – Information The next step is to find out if that particular item will meet your needs. In order to know this, you need to find more information and there’s various ways that you can get this and they could be by reading the label or packaging, asking your family or friends,......

Words: 1772 - Pages: 8

Free Essay

Developing Products and Promotion Strategy: Red Bull

...MK3UWA: New Product or Service Marketing Plan Introduction Red Bull Gives You Wings Being a market leader in the market of energy drinks and being in the mature stage of the their product life cycle, RedBull constantly comes up with new ideas and strategies to stay at the top of the consumer business among its competitors. By having a variety of types of drinks to cater to different segments of the market, RedBull has introduced various editions of the internationally-renowned energy drink to cater to different segments of the market, such as Red Bull Cola for teenagers, Red Bull Zero Calorie & SugarFree for the health conscious, and flavored Red Bull Cranberry, Lime and Blueberry to meet the wants of the consumers who seek variety. With the introduction of a new addition to the existing product line around the 2014 FIFA World Cup, a major sporting event and a worldwide phenomenon that is watched by millions around the globe at the stadium or at their local pubs or even on the television in their homes. Red Bull aims to increase brand awareness by associating the brand name to the event and increase market share by developing a unique selling point/product differentiation in order to obtain some of the competitors’ regular consumers. The introduction of this new product will not cannibalize the other products in the line as it caters to a completely different market with different lifestyles, thus another purpose of this marketing plan is to expand the number......

Words: 2083 - Pages: 9

Premium Essay

Ethical Fashion

...with fashion ethical issues 2.1.3.1 Introduction 2.1.4 Study the future prospect of fashion marketing 2.1.4.1 Introduction 3.0 Chapter 3 Introduction 3.1 Case study 4.0 Chapter 4 Conclusion 1.0 Chapter 1 Introduction Fashion is a general term for a trendy style, most commonly related to clothing, jewelry, shoes, accessories, make up, or furniture. Fashion is also something we deal with daily and changes constantly as time progresses. New fashion ideas can be influenced by music, movies, videos, books and other related (items and media connected to popular culture. Due to these changes and relationship with popular culture, fashion is a big business. The fashion industry is involved in the purchasing, selling and manufacturing of clothing. It solely focuses on generational fashion trends and to figure out consumer's liking in different segmentations. (pbs.org) The fashion industry is one of the major contributing sectors in the global economy; it had created various job opportunities for the people. Most noticeably, the industry has designed and manufactured clothing corresponding to trends and brands that have brought out a strong buying desire among shopaholics. In the 21st century, the fashion industry has been facing many existing problems. Most of these are issues surround ethical fashion. Some difficulties regarding ethical fashion are, selling cheap clothes in high street, prices of clothing not correspond with the material, and the......

Words: 3016 - Pages: 13

Premium Essay

Mcdonalds Enterprise Skills

...resources to ensure the business is successful. In addition to this, many skills are required which include taking risks when needed and exploiting opportunities. These enterprise skills contribute to the business achieving their aims and objective, which is critically important for them as a business. Self confidence and motivated management is key to Business managers and franchisees. As a business, McDonalds require highly motivated managers to achieve success. The McDonalds website also states they need to have good communication skills, and be a brilliant multi-tasker. http://www.mcdonalds.co.uk/content/dam/McDonaldsUK/People/Meet-our-people/mcd_prospectus.pdf A business manager works with a team of 80 and a business with an average turnover of £2 million. This indicates their significance of their role and highlights how good communication should be. McDonalds has a flat hierarchy which enables business managers to communicate well with their staff. They can offer efficient training to their staff which therefore helps the business run more smoothly. They also have to maintain motivation which will help their team work more efficiently which will maintain their customer base and generate profit. This will consequently contribute towards their aims and shareholder return. High levels of confidence is also required by franchisees and business managers. Franchisees have to control costs based on the McDonalds requirements. This can be difficult due to their may be......

Words: 1637 - Pages: 7

Free Essay

The Sports Guy

...decline of popularity of kid’s leagues was a large focus of the local sports scene. This makes up a large part of The Sports Guy’s sales and could potentially send the company into a loss if they are unable to cover business costs. | | * Marketing presence in local newspaper and local TV channel which we can assume increases brand recognition and customer loyalty. | * Employees are not the most skilled sales associates. Having good salespeople can really make a huge impact on Rocky’s profits. His current sales force may not be maximizing sales revenue. | | * Located in a growing area of town, busy road with strip malls containing other retailers in a busy neighborhood. High foot traffic allows for a higher chance of walk in business which is their profitable group. | * Inventory management is a huge issue for TSG and it is putting his business at risk with piling up inventory short term debts and interest expenses. | | | * Rocky has no business knowledge, his lack of understanding how a business runs is really hurting his store as he cannot analyze his own financial statements. | | Opportunities | Threats | External | * According to the information provided in the case, it seems as though Rocky has focused most of his attention towards the long term residents in the area. There are plenty of new younger families and new developments he should aim marketing efforts towards as there is a huge untapped market nearby. | * Sporting and......

Words: 1828 - Pages: 8

Premium Essay

Flying Away

...“Think and act big and grow smaller, or think and act small and grow bigger (Herb Kelleher Quotes…).” Marketing is an important part to selling a brand. In 2012 the Social Media Agency, “Likeable Media,” named Southwest Airlines in their top five most likeable companies (Five Most Likeable…). Likeable Media commends the airline for its passion for their employees as well as their customers. This in turn creates a passionate staff that encourages Southwest’s brand and helps it to grow. Southwest has been around for thirty nine years and has used multiple marketing strategies to grow their company. Herb Kelleher and Rollin King founded Southwest Airlines in 1971, flying to San Antonio, Houston, and Dallas. The company pioneered many marketing strategies that are still used today. Southwest offered the frequent miles program is the mid 1980’s, the first airline to enact the program. Passengers were able to save up the amount of miles they flew to fly for free or a discounted ticket. Southwest was also the first to offer senior citizen discounts on airline tickets. By 1984, Southwest was ranked first in customer service for four years in a row. In 1987 the company bought out TranStar Airline, and also Morris Air in 1994. After twenty five years, the company was rated the fifth largest United States air carrier, flying over fifty million passengers a year (Southwest Airlines). Marketing is very competitive between airlines, and it is important to use product positioning to......

Words: 1723 - Pages: 7

Premium Essay

Marketing and Promotion

...quality will meet customer needs whilst remaining economically competitive. Improved service quality may increase economic competitiveness. This aim may be achieved by understanding and improving operational processes; identifying problems quickly and systematically; establishing valid and reliable service performance measures and measuring customer satisfaction and other performance outcomes. Illustrate the processes of inspection and assurance Quality Assurance: Quality assurance (QA) refers to the planned and systematic activities implemented in a quality system so that quality requirements for a product or service will be fulfilled. It is the systematic measurement, comparison with a standard, and monitoring of processes used to prevent errors. This can be contrasted with quality control, which is focused on process outputs. Two principles included in QA are: * Fit for purpose: The product should be suitable for its intended purpose. * Right first time: Mistakes should be eliminated. QA includes management of the quality of raw materials, assemblies, products, components, services related to production, management processes, production processes, and inspection processes. Quality control: Quality control (QC) is a process by which products are tested to uncover defects and the results are reported to management, who make the decision to allow or deny product release. It differs from quality assurance, which attempts to improve and stabilize production to......

Words: 2290 - Pages: 10

Free Essay

Intb 201

...to the various outlets worldwide, where the industry standard is about six-month. Being in the fashion industry, Zara not only aims to offer good quality merchandise, it also tries to provide good customer service by understanding what its customers want. Zara has developed a supply chain that enables the brand to provide fashionable clothing at affordable prices. A supply chain includes all activities and information flow within an organization, transformation of goods and services from the raw material stage to selling the finished products to the end user. One of Zara’s key advantage lies in its process that allows Zara to operate efficiently. Zara employs subcontractors for all sewing operations, which allow the company to stay focus on its core competencies - designing, distribution and retailing of its products. Zara also exploits advance technology and knowledge, by developing customized system to operate its distribution center and creating a hand-held device to manage its ordering system scheduling and inventory management from the different outlets. These strategies have allowed Zara to operate at minimal cost as staying focus, enable Zara to continuously improve on its system to operate even more efficiently. Moreover, technology used in the organization, a huge investment, has minimize the need for paper work and reduce the unnecessary interactions between parties along the supply chain. Being in the fashion industry, Zara also understand the efficiently......

Words: 882 - Pages: 4

Premium Essay

Marketing

...corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, and fruit. Mission Statement “McDonald’s vision is to be the world’s best quick service restaurant experience. Being the best means providing outstanding quality, services, cleanliness, and value, so that we make every customer in every restaurant smile.” Vision Statement “We will be the most efficient provider so that we can be the best value to the most people”. * Competition bases: 1. Speed 2. Affordable and nutritious foods 3. Fast, friendly and Accurate service 4. High quality product with low cost 5. Discount on purchased menu [lunch menu, breakfast menu, value menu, special day menu] 6. Nutrition: menu as Go-Active offered meals includes salad, bottled water, fresh fruit bags 7. Utilising technology to select any combination of menu items with nutritional analysis on their selections * * ------------------------------------------------- Review pricing policy and analyse pricing variables to......

Words: 2986 - Pages: 12