Literature Review Definition Of Marketing Marketing Essay

Literature Re tidy sum Definition Of pot Marketing demonstrateMarketing is managing profitable node descents, the twofold goal of merchandise is to win new guests by promising superior cheer and to keep and promote current guests by delivering satisf live up to (Armstrong Kotler, 2007 p. 5).People oft cadences think merchandising as selling and advertising, which is just a sm tout ensemble purpose of trade. The seller does a good job when he run intos superior node value, impairments, distri furtheres and promotes them efficaciously the yields leave sell very easily then. This tells that selling and advertising atomic number 18 just a part of trade as a market compound a set of merchandise tools that work together to play customer needs and reach customer relationships. (Armstrong Kotler, 2007 p. 5).Figure A innocent ride of the merchandising deal rise Armstrong G and Kotler P, (2007, p. 6). Marketing an introduction. eighth ed. Upper Saddle River Pearson Education.Marketing immingle check to Mohammed Rafiq and Pervaiz K. Ahmed (1995), the shape selling commingle was premiere commitd by Borden and that it was suggested to him by Cullitons (1948) description of a business executive as mixer ingredients. Borden did non define the merchandising mix it simply consisted of crucial elements of ingredients that make up a merchandise programme (Borden, 1965, p. 389). McCarthy (1964, p. 35) refined this further and delimit the merchandise mix as a combination of altogether of the factor ins at a marketing managers ascertain to satisfy the calculate market. Later McCarthy and Perreault (1987) together defined the marketing mix as the controllable variables that an g all everywherenment activity lowlife co-ordinate to satisfy its bulls eye market, which is widely accepted as the set of controllable marketing variables that the wet blends to produce the response it wants in the fanny market (Kotler and Armstrong, 198 9, p. 45). According to Jonathan common ivy (2008), marketing mix is a set of controllable marketing tools that an brass uses to produce the response it wants from its various train markets. Ronald E. Goldsmith (1999) stated that 4Ps was premier theorize by McCarthy (1975) as a pedagogical tool to attain the chief tasks of marketing managers. Marketing managers must develop a domineering plan to sell to the customers after selecting a commit market to make long-term relationships (Doyle, 1995). The marketing mix plan consists of 4Ps which consists of decisions about produce, built in bed, offshootion and footing (Goldsmith, 1999).According to Bennet (1997), the concept of marketing outlines a course for the memorial tablet using controllable variables in an environment where m all factors ar uncontrollable, defined as the external market. Kotler (1967) (cited by Bennet, 1997) broadened this classification into quadruplet adducely, customer, environmental, competi tive and marketing decision variables. Focussing on manufacturing industries, Borden (1964) identifies the four external forces on the organisation as con sumer debaseing behavior, trade demeanor, competitors position and behaviour and government regulations. Robins (1991) hypothe size of it four Cs which is an alternate mnemonic to the marketing mix formulated by McCarthy (1964). Four Cs be defined as clients who buys goods and operate in the market channelise, Competitors who provide the choice of alternative sources of supply, Capabilities and Comp some(prenominal) two of them refers to the organisation which has ability to satisfy customer needs. Gronroos (1984) proposes a concept of interactive marketing which was backed by Kotler (1991). This concept emphasizes the relationship amongst the employee and the customer and identifies it as the key factor in successful market making. Kotler (1991) debates that the employee-customer relationship is an grand factor in the success of the market-making make. Booms and Bitner (1981) added three additional factors to the marketing mix elements proposed by McCarthy (1964) namely nation, processes and physical evidence. This concept highlights that the model proposed by McCarthy (1964) might lead to too narrow focus on the native variables, and does non include some of the process variables which is a part of marketing planning system (Bennet, 1997, p. 151). Lings (1999) argues for proceedss industry 4Ps ar in nice and 7Ps marketing mix illustrates the importance of internal factors, as sell welkin is not a service based industry traditional 4Ps marketing mix is utilise to represent the external factors (cited by Khanh Kandampully, 2004). 4Ps makes the marketing easier cope for the managers in non service based industry the components of traditional marketing mix throne change a truehearteds competitive position (Gronroos, 1994). Even with the deficiencies, the 4Ps perch a staple of the mar keting mix (Kent and Brown, 2006).According to the Ameri stool Marketing Association (1985), marketing is the process of planning and executing the conception, determine, onward motion and dispersion of estimations, goods and services to urinate exchange and satisfy individual and organisational objectives. Kent (1986) states that the four Ps of the marketing mix as the holy quadruple of the marketing doctrine written in tablets of stone.According to Armstrong and Kotler (2007) marketing mix tools ar classified ad into four broad groups, called the four Ps of marketing harvest-tide, harm, place and promotion. In localize to deliver on its value proposition, the firm must branch constitute a need-satisfying market religious fling ( produce). It must decide how some(prenominal) it will charge for the offer ( hurt) and how it will make the offer usable to the target customers (place). It must communicate with target customers about the offers and persuade them of its me rits (promotion) (Armstrong and Kotler, 2007 p.53) baker Hart (2008, p 463) the logic of 4Ps is straight forward a provider needs harvest-times, needs to monetary value them, to promote them and distribute them to the place where the customer dope buy them.According to Dogra Ghuman (2008) some of the variables associated with 4Ps be value terms level, credit terms, price changes and discounts.Product features, packaging, quality and range.Promotion advertising, publicity, gross sales promotion and individualal selling. distinguish inventory, distribution transmit and number of intermediaries.Figure The four Ps of the marketing mixSource Armstrong G and Kotler P, (2007, p. 6). Marketing an introduction. eighth ed. Upper Saddle River Pearson Education.ProductAccording to Armstrong and Kotler (2007), product can be defined as the goods and services is a combination the club offers to the target market. Belohlavek (2008) argues that a product or service is the element which sa tisfies the clients needs. The product or service generates two types of relationships with the prospect a functional and a linking one. The returns of the product bears a relationship with its clears treasured both objectively and subjectively. The products use value is fundamental to the purchasing decision process in its occlusion stage (Belohlavek, 2008 p.15).For a competitive approach the comp each has to offer products that ar unique and meet customer needs, wants and values. Maintaining the product uniqueness is difficult for a company since the product can be matched by competitors. The company must often compete on price, distribution, or promotion in rank to compete unless the product is of sound quality (Rea Kerzner, 1997 p. 57).Product sorting waste (1993), product shape is defined as the number of contrastive products offered to the customers (cited by Felipe Scavarda, Reichhart, Hamacher, Holweg, 2010). According to Bils Klenow (2001) and Er MacCarthy (2006 ) product variety is a new maturation and a trend in many industry sectors worldwide (cited by Felipe Scavarda, Schaffer, Jose Scavarda, Reis Schleich, 2009). Product variety is an effective outline to sum up the market take as it enables the company to serve different kinds of customer segments and to satisfy the customer variety seeking behaviour (Tang, 2006). This involves different product features, packaging, or conduct of distribution (Felipe Scavarda, Schaffer, Jose Scavarda, Reis Schleich, 2009). Product variety strategy as a marketing strategy will outcome in sales growth, profits and concourse more(prenominal) specialised demands (Berry Cooper, 1999). Kim Chhajed (2000) argues that different kinds of product manufacturing results in a belittle in logistics performance or manufacturing performance. Lee Billington (1994) to a fault argues that product variety can result in high forecast errors and lead to profuse inventory for some products and shortages fo r separate products. If the product variety is to the optimum or to the seize level of variety, then product variety will result as economical efficient and will create positive marketing efforts (Lancaster, 1990).According to Pine (1993) and da Silveira (1998), product variety enables the ability to custom-make products to customer needs and has been identified in achieving competitive advantage over other retail merchants (cited by Felipe Scavarda, Reichhart, Hamacher, Holweg, 2010). As product variety gives a broader product line and can lead to increased profitability (Kekre and Srinivasan, 1990). Product variety gives rise to the need to consider different products of the individual product variants, as different end items that are fundamentally different do not feature the same variety level for the individual (MacDuffie et al., 1996 Koste and Malhotra, 1999). harmBelohlavek (2008) states that price is a conditioning element for acquire a product price only conditions a product but does not determine it, in accordance to the buyers income makes a monetary value of a given(p) service or goods, which makes them payable to the goods. expenditure is a factor which acts as a barrier which when reached in operational terms, thats when the last stage of purchasing action is reached. Price is an element which determines a priority relationship with the value and hazard creating access to the customer.Kasper et al. (2000, p. 627), determine is an heavy management tool to achieve the objectives of the organization. Similarly, Pellinen (2003, p.218) has suggested that pricing is one of the virtually central management tasks for a service company. It is alike the only element of the marketing mix that generates revenues for a firm, while all the others (e.g. new product introductions, promotions) are associated with be (Zeithaml et al., 2006) (cited by Indounas Avlonitis, 2009).Rea Kerzner (1997) argues that the easiest way to reach and compete with the competitor is to match the price with the competitor. Price is one of the most all important(predicate) criteria that customers use when choosing between competing brands (Huber et al., 2001 Ta and Har, 2000) (cited by Indounas Avlonitis, 2009).Price is the sum of money customers has to pay to acquire the product often customers buy the product negotiating the price for more accessibility, companies offer discounts to customers adjusting price to sustain the competitive spot (Armstrong Kotler, 2007 p. 52).Price DiscountAccording to Palazon Delgado (2009), Customers are price sensitive and they often look for price related selective information. Manning et al., (2003), they are vigilant about any information about price and other pricing information (Kukar-Kinney et al., 2007) they hand a lot of time thinking about prices of products, always evaluating nest egg offered and the convenience by the price discount. Customers with lower levels of price consciousness and value , they are most likely to be influenced by the magnitude of the discount (Alford Biswas, 2002) than the financial value of the discount really offered. (Babin et al., 2007) customers are engaged in seek for more devoted to the task of shopping to the extent that a crack price exists in another retention. Hardesty Bearden (2003) and Grewal et al., (1996) claims that when the promotional benefit is low, customers are not going to process information extensively about the promotion (price discount) as it has low pecuniary value. Similarly when the promotional benefit is high, customers are not sure about the product or the deal they are marvelous to process information extensively as there is less doubt about the product. Customers are predicted to analyse the deal moderately whether the benefit are high (Palazon Delgado, 2009). Hardesty Bearden (2003) and Grewal et al., (1996) states that if the promotional benefit is low or high the levels of information affect is low, but for moderate benefit levels information process is high. Chandrashekaran (2004) and Raghubir (2004) argue that high promotional benefits are always evaluated positively.According to Madan Suri (2001) there are different types of price promotions and short term price discounts have been apply by the retailers to create short term demand for their products (Monroe, 1990 p 369). Retailers can sell the products very fast without much expensive when they are offering immediate savings to the customers. Short term price discounts are easier to discharge and provide immediate price savings to the customers (Madan Suri, 2001). Discounts really increase the value to the customers and this happens at the intermediate levels of discounts and when the discounts are either very high or very low it decreases the value (Madan Suri, 2001).PromotionThe most common promotion is a sale (Levy Weitz, 2007 p 433). Promotion is one of the key Ps in the marketing mix (Dibb et al., 1994).The promotio n strategy is used in increasing sales by creating differences in resources which results in a firm being able to out put across a competitor in advertisement, purchase displays, trade shows and other promotional methods (Rea Kerzner, 1997 p. 58).* According to Jennifer Rowley (1998), the objectives of any promotional strategy will be drawn from an appropriate mixture of the following roles of promotion toincrease sales main(a)(prenominal)tain or ameliorate market sharecreate or improve brand recognitioncreate a approbative climate for future salesinform and educate the marketcreate a competitive advantage, relative to competitors products or market positionimprove promotional efficiency* According to Jennifer Rowley (1998), an appropriate promotional mix must be created in cabaret to meet the promotional objectives of any given promotion strategy. The promotional mix is the combination of different promotional channels that is used to communicate a promotional message. This wi ll involve an appropriate selection from the range of tools that are lendable for use as part of the promotional mix. The tools in the promotional mix includeAdvertising. Any remunerative form of non-personal presentation and promotion of ideas, goods or services by any identified sponsor. The pages of victor newsletters and magazines are common avenues for advertising information products. lay marketing. The use of mail, telephone or other non-personal contact tools to communicate with or solicit a response from specific customers and prospects. Mail shots and leaflets inserted in professional magazines are used to promote information products.Sales promotion. Short-term incentives to gain ground trial or purchase of a product or service, such as discounts for access to a database over a limited time period.Public relations and publicity. Programmes designed to promote and/or protect a companys image, or those of its products, including product literature, exhibitions and arti cles about organisations products in professional or in-house newsletters. in-person selling. Face-to-face interactions with one or more prospective purchasers, for the purpose of making sales. This is common within the business-to-business marketing transactions in the information industry, where sales representatives, often also with a support function, are common.Sponsorship. Financial or external support of an event or person by an misrelated organisation or donor, such as is common in remark of the arts, sports and charities. Large organisations, such as major publishing groups like beating-reed instrument Elsevier, or software houses, such as Microsoft, may engage in sponsorship, but public sector organisations, in education and libraries, are more likely to be the recipient of sponsorship.PlaceAccording to Kai Li Hung Hung (2007), place is a marketing mix which describes whether the localization of function is accessible and transport is convenient, place comes out as a heterogeneous phenomenon which is created by the company at each place combining resources accessibility increases value to the customer. Kotler, et al., (2005) claims that place involves all activities of the company to make all products available to the customers.According to Mason Staude (2009), Place is the least changing marketing tactic. Distribution and availability are used in stabilising dimensions, communicating and creating a control as a link between supplier and customer, and reducing the probability to change suppliers, which actually stabilises the market. Backward and forward integration also reduce the uncertainty of retailer stocking the products, lowering the risks and stabilising the environment (Nilson, 1995).According to Boyle Proctor (2009), in the linguistic context of product sales, placement is actually distribution (Biech, 2003). In tender marketing, distribution can be defined as dissemination channels (NWPHO, 2006). understandably for dispersing chann els to be effective they must be accessible to the target market (Boyle Proctor, 2009).Store location and layoutThe location and atmosphere of a computer storage communicates information about the service and pricing to the customer. The physical characteristics play an important role in a customers mind (Levy Weitz, 2007 p 434). Store layout influences customer buying behaviour, stores can attract customers with their design and layout motivating them to make capricious sales or give them a pleasant shopping construe (Levy Weitz, 2007 p 491).According to Davies Rogers (1984), guy (1980), Jones Simmons (1987) and Birkin et al., (2002) site selection and sales call of retail stores are a important factor in retail management and retail geography (cited by Wood Browne, 2007). Store location is used in sales forecasting for retail stores and for determining the optimal location and sales of the store (Clarkson et al., 1996 Smith Sanchez, 2003). Superstores are one of the mai n formats through which food is sold increasing the money flow (IGD, 2005). The size of the stores is important and it is very expansive to open up a boastful store therefore accuracy in location planning is substantial (Wrigley, 1996). Retail stores are dependent on the routine purchases made and lawful weekly purchases this involves repeated car journeys from the customers homes, which requires space for parking near the store for easy access (Wood Browne, 2007). The location of a store affects the customer with sociological and geographical factors (Wrigley, 1998 Meyer Johnson, 1996 Rust Donthu, 1995) (cited by Beyon, Griffiths, Marshall, Expert Systems (2002). set strategyAccording to (Blythe, 2008 p 151), pricing a product is one of the most important issues for marketers it is significant not only to the profit that is to be made but also to the quantity of products which are to be sold. Pricing also touches on all the elements of the marketing mix, pricing is the indic ation to the stimulater of what a company expects in exchange for the products being offered. Profitability of the company depends on the pricing strategy (Doyle Stern, 2006 p 225).Price may become a proxy measure for product quality when buyers have difficulty in evaluating complex products (Cravens Piercy, 2006 p 316). Consumers are often confused in choosing a product price helps them choose a product. A strategic viewpoint on pricing decisions may create new market space and opportunities for the company (Cravens Piercy, 2006 p 317).Figure Steps in selecting a pricing strategySource (Cravens Piercy, 2006 p 321).A pricing strategy must be lucid with the retailers overall image ( attitude), sales, profit, and return on investment goals (Berman Evans, 2007 p 498). non-homogeneous roles of Pricing(Cravens Piercy, 2006 p 320) Pricing has few important roles in the marketing program of a company. Some of the roles areSignal to the buyerPrice is the easiest way to straightaway ly communicate with the customer. When comparing with other brands price is a visible difference to the customer. Price is also used in positioning the brand to show its quality or instead give direct competition with other brands (Cravens Piercy, 2006 p 320).Instrument of competitionAs the competitions between companies are high, Price is an element which can quickly attack competitiors. Price can also be used by a company to stay away from the competition if used strategically pricing strategy is always related to competition with other brands or companies (Cravens Piercy, 2006 p 320).up financial performanceUsing a pricing strategy wisely, companies can generate revenues by forecasting about a product or brand to increase the financial statement in the short term or in the long term in order to buy the farm the global competition (Cravens Piercy, 2006 p 320). pricing strategy has the biggest impact on the profit and loss statement of the company in the short run, Pricing is e ven more crucial in the long run the primary purpose of business strategy is to offer consumers enhanced value so that price can be raised considerably above costs (Doyle Stern, 2006 p 225).Marketing program considerationCompanies pay a price for marketing, in order to maintain or penetrate in to the market. Price strategy is also used for promoting products (Cravens Piercy, 2006 p 320).Consumer behaviourBlackwell, et al., (2006) defined consumer behaviour as the activities people undertake when obtaining, consuming and disposing of products and services. The activities are divided into three, they are obtaining, consuming and disposing (Blackwell, et al., 2006 p. 4).ObtainingAccording to Blackwell, et al., (2006 p. 4) it is the process of purchasing or getting a product. This process includes comparing with other similar products, alternative brands and searching for more information of the product before obtaining it. Analysts often study these purchases in order to improve the understanding of the market consumer buying behaviour is studied whether they are buying for themselves or as gifts, payment methods, and product transportation or delivery, how they get information about other alternative brands and how the brands influence the consumers product choices.ConsumingAccording to Blackwell, et al., (2006 p. 4), it is the process or activity of using a product by the customer to his/her needs. ground on the consumption of the products researchers can study the consumer decisions whether the product is bought to be consumed in the office or at home, or for entertainment purpose or for its functional purpose, do they consume the product or do they dispose it without using it even once. Based on the consumption these buying behaviours are studied in order to understand the needs of the customers.DisposingAccording to Blackwell, et al., (2006 p.4), it is the process of getting rid of the product after its use or its packaging. And how do they dispose the pr oduct stay or the packaging, whether the packaging is biodegradable. Analysts think in the ecological point of view for this process.Consumer buying behaviourAccording to McCall, et al., (2009), purchasing decisions happen on daily basis and the most important factor influencing these decisions is the price of the product. For buying any product, price is often the most silent feature (Nagle and Holden, 2002). This can be used as an advantage to increase the overall sales by offering discounts (promotions) to the price sensitive customers (Soman, 1998).According to Saha, et al., (2010), Consumer behaviour is the study of how individuals spend their available resources on consumption-related items. It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it (Schiffman and Kanuk, 1996). The main objective of marketing in the consumer buying behaviour context is to satisfy the needs and wants of the tar get customer. As a subject consumer behaviour also deals with the factors that affect the buying behaviour of a consumer. The study of consumer behaviour gives a clear idea that how consumer select, buy, use and dispose the product, service, experiences to please the needs and requirements (Kotler, 2003).Stimulus response model is the starting point of understanding consumer buying behaviour. The buyers characteristic and decision process leads to the purchase decision a consumers buying behaviour is influenced by 4ps, cultural, social and personal factors (Kotler, 2003).The role of marketing mix is also important in making the buying decision by any consumer. The marketing mix consists of everything the firm can do to influence the demand for the product. The many possibilities can be collected into four groups of variables known as the Four Ps that is product, price, place and promotion (Saha, et al., 2010).According to Mowat and Collins (2000), for successful development in busin ess, the company needs to understand and meet the consumer needs and expectations (Douglas, 1993 Knox and Theisen, 1981). Store layout plays (place) an important effect in consumer behaviour besides price and consumer expectation (Kotler, 1973 Eroglu and Machleit, 1990 Bitner, 1992 bread maker et al., 1993 Baker et al., 1994 Grewal and Baker, 1994 Simonson, 1999 Baker, et al., 2002) (cited by Vrechopoulos Atherinos, 2009).According to Solomon, et al., (2006), consumer purchase is a response to a problem and a customer goes through a series of step in order to make a purchase. These steps can be described as (1) problem recognition (2) information search (3) military rating of alternatives and (4) product choice. After the decision is made, the quality of that decision affects the finals steps in the process, when the learning occurs based on how well the choice worked out. The learning process influences the likelihood that the same choice will be made adjoining time the need for a similar decision occurs (Solomon et al, 2007 p.258).Brin (2004, p 85) argues that it is important to understand the characteristics of the consumers and their buying decision process in order to target them with the most appropriate and effective marketing methods, the management needs to understand and study this decision process on what particular product or service the consumers choose from the brand they select, from which outlet they buy, what kind of product and the heart and soul spent. It is useful to understand what influences the consumer (Brin, 2004 p 85). Some of the influences in buying roles in the consumer buying process are (Brin, 2004 p 85)The initiator the very first person who thinks about buying a productThe influencer the person who influences other consumers in taking the final step of the buying decisionThe decider the person who takes the final decisionThe buyer the person who actually buys a productThe user the customer.There are different types of consu mer buying behaviour, and the type of consumer buying behaviour changes according to the type of buying decisions. The main influence is the brands available to the consumer and the personal attachment towards the decision which influences the consumer to become a loyalty customer (Phillips, et al., 1994 p 85). Involvement can be a major factor in decision making consumers often tend to develop a form of emotional attachments to products and most people would be familiar with the notion of having fallen in love with a product, even when the product is all unreasonable though the purchase may not have an important practical outcome for the consumer the consumers future behaviour does not always come about (Blythe, 2005 p 53, 54).Low involvement, low price, low risk higher(prenominal) involvement,High price, high riskFew differences between brandsBrand loyal recap purchasingInfluenced by priceAnd sales promotionaloffersBuying process is relatively quick because of the limited diffe rencesSignificant differences between brandsBrand break but limited information gatheringInformation gathering and processing is important. Purchase decision is importantFigure Four types of buying behaviourSource Phillips, et al., (1994 p 85) (Adapted from Assael, 1985 Kotler, 1988).According to Kapoor Kulshrestha (2009), Products convey different meanings to different people and this differing forms an attachment towards the products. According to Zaichkowsky (1985), attachment means the interest, the enthusiasm, the emotional level explicit by the consumer regarding a product (cited by Steichen Terrien, 2009). The meaning of the product depends on the nature of the consumers rather than the nature of the products (Martin, 1998 Rochberg-Halton, 1981).The consumer plays a role in his or her choices (Steichen Terrien, 2009) the decisions are principally based on personal perception followed by the cues sent by the environment with personal interpretation (Fishbein and Ajzen, 1 975 Fazio, 1985). These choices have different attributes, and some of them are very salient the choice of salient attributes also depends on the personal characteristics of the consumer (Steichen Terrien, 2009).Based on Uncles and Ellis (1989) the interplay of costs and benefits affects the retailers in making huge gross margins, many retailers are establishing their own labels as a part of retailing today. This allows the retailer selling products under their own name to differentiate their products and stock, from other retailers. Also, allowing them to have a full control over product price, quality and stocks (cited by Rothe Lamont, 1973 McGoldrick, 1984 Simmons Meredith, 1984). This will actually generate higher gross margins. For competitive edge over other stores and brands, retailers hope to build a relationship with the customer by lowering price and offering consumers better value for money without narrowing the product range (Simmons Meredith, 1984).Customer relation ship strategyRelationships can obtain competitive advantage (Kanter, 1994 Kay, 1995 Huxham, 1996 stone and Mason, 1997) (cited by Donaldson O Toole, 2002). Customer relationship strategy is based on mutual trust with the customers creating long term relationships many researches conclude that customer relationship strategy has increased the profit margin for many firms (based on Lawrence, 2002). Long-time customers are less costly to serve and smooth running of relationships are inexpensive and less resource intensive (Lawrence, 2002). Long term relationships benefit both the buyers and suppliers (Szmigin, 1998). For the strategy to be effective, the component elements should be inter-related. When there is a strong synergy between the component elements the strategy will be eff