A market-focused, or customer-focused, organization first determines what its potential customers desire, and then Cheap Hostel In London builds Cheap Hostel In London the product or service. Marketing theory and practice is justified in Cheap Hostel In London the belief that customers use a Cheap Hostel In London product or service because they have a need, or because it provides a perceived benefit.
Two major factors of marketing are the recruitment Cheap Hostel In London of new Cheap Hostel In London customers Cheap Hostel In London (acquisition) and the retention and Cheap Hostel London Youth expansion Cheap Hostel In London of relationships with existing customers (base management). Cheap Hostel In London Once a marketer has converted the prospective buyer, base management marketing takes over. The process for base management shifts the marketer to building a relationship, nurturing the links, enhancing the benefits Cheap Hostel In London that sold the buyer in the first place, and improving the product/service continuously to Cheap Hostel In London protect the business from competitive encroachments.
For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants and desires of the consumers or Shoppers in the target market. Trying Cheap Hostel In London to convince a market segment to buy something they don't want is extremely expensive and seldom successful. Marketers Cheap Hostel In London depend Cheap Hostel In London on insights from marketing research, both formal Cheap Hostel In London and informal, to determine what consumers want and what they are willing to pay for. Marketers hope that this Cheap Hostel In London process will give them a sustainable competitive advantage. Marketing management is the practical application of this process. The offer is also an important addition to the 4P's theory.
Within most organizations, the activities encompassed Cheap Hostel In London by the marketing function are Cheap Hostel In London led by a Vice President or Director of Marketing. A growing number of organizations, especially large US companies, have a Chief Marketing Officer position, reporting Cheap Hostel In London to the Chief Executive Officer.
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The American Marketing Association (AMA) states, �Marketing Cheap Hostel In London is Cheap Hostel In London the Cheap Hostel In London activity, set of institutions, and processes Cheap Hostel In London for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.".
Marketing methods are informed by many of the social sciences, Cheap Hostel In London particularly psychology, Cheap Hostel In London sociology, and economics. Anthropology is also a small, but growing influence. Market research underpins these activities. Through advertising, it is also related Cheap Hostel In London to many of the Cheap Hostel In London creative Cheap Hostel In London arts. Marketing is a wide and heavily interconnected subject with extensive publications. It is also an area of Cheap Hostel In London activity infamous for re-inventing itself and its vocabulary according to the times and the culture.
Many companies today Cheap Hostel In London have a Cheap Hostel In London customer focus (or customer orientation). This Cheap Hostel In London implies that the company focuses its activities and products on consumer demands. Generally Cheap Hostel In London there are three ways of Cheap Hostel In London doing this: the customer-driven approach, the Cheap Hostel In London sense of identifying market changes and Cheap Hostel In London the product innovation approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market Cheap Hostel In London offering, Cheap Hostel In London including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is Cheap Hostel In London that there is no point spending Cheap Hostel In London R&D funds developing products that people will not buy. History Cheap Hostel In London attests to many products that were commercial failures in Cheap Hostel In London spite of being technological Cheap Hostel In London breakthroughs.
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A formal approach to this customer-focused marketing is known as SIVA[3] (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus.
The SIVA Model provides a demand/customer centric version Cheap Hostel In London alternative to the well-known 4Ps supply side model (product, Cheap Hostel In London price, place, promotion) of Cheap Hostel In London marketing management.
In a product Cheap Hostel In London innovation approach, the company pursues product innovation, then Cheap Hostel In London tries to develop a market for the product. Product innovation drives the process and marketing research is conducted primarily to ensure that a profitable market segment(s) exists for the innovation. The rationale is that customers may not know what Cheap Hostel In London options will be available to them in Cheap Hostel In London the Cheap Hostel In London future so we should not expect them to tell us what they will buy in Cheap Hostel In London the future. However, marketers can Cheap Hostel In London aggressively over-pursue product innovation and try to overcapitalize on a niche. When pursuing a product innovation Cheap Hostel In London approach, marketers must ensure that they have a varied and multi-tiered approach to Cheap Hostel In London product innovation. It is claimed that if Thomas Edison depended on marketing research he would have produced larger candles rather than inventing light bulbs. Many firms, such as Cheap Hostel In London research and Cheap Hostel In London development focused companies, successfully Cheap Hostel In London focus on product innovation (Such as Nintendo who constantly change the way Video games are played). Many purists doubt whether this is really Cheap Hostel In London a form of marketing orientation at all, because of the ex post status of consumer research. Some even question whether it is marketing. |
