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