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