Valery Bondarenko - Marketing and Pricing Страница 2

Desire is the need to take concrete shape in accordance with the level of culture and personality of the individual. Sometimes it is called concretized need. For example, the total demand for food is transformed into a more private demand in the fruit, which, in turn, concretized results in the need, the desire to buy apples.

Demand is a desire, a specific need, backed by purchasing power. For given resource capabilities people satisfy their needs and desires through the purchase of goods that bring them the greatest benefit and satisfaction.

Product is all that can be offered on the market for the acquisition, use or consumption in order to meet specific needs.

Product is all that can satisfy any needs (physical goods, services, people, organizations, activities, ideas). In the literature on marketing the English term «product» is often translated as «goods». It is understood that the product manufactured by the manufacturer, with translational division by becoming a commodity market.

Exchange is the act of obtaining a desired product from someone by offering him something in return. Exchange is just one of the many ways means of which people get the desired product. Another way is hunting, gardening. This includes theft and begging.

The deal is trading between the two sides, including at least two subjects of interest and agreement on the terms, timing and months, those of its implementation. There are two types of transactions: cash transaction when goods are exchanged for money and barter transaction. The deal involves the performance of the following conditions: the presence of at least two products representing the interest for the mutual exchange, the agreed conditions, time and place of its commission.

The market in the marketing sense is a collection of existing or potential sellers and buyers of any products; it’s a place where deals are made. It is on the market the manufactured product and labor on it expended prove their social importance, acquire recognition among consumers. In modern society, the market does not necessarily have a physical location. To demonstrate the product, its advertising and getting the orders modern means of communication, without physical contact with customers are widely used. (In marketing, the market is the set of consumers of a particular product, they say, the market of metal, grain, etc. On the basis of this principle market segmentation is often carried).

3. The principles of marketing and its functions

There are the following marketing principles:

1. Careful consideration in deciding the needs, conditions and dynamics of demand and market conditions.

Adherence to this principle requires a good knowledge of the market situation and on the existing estimates of expected demand, activities of competitors in the market, the market behavior of consumers and of the ratio of the products of this company and its competitors.

2. Creating the conditions for maximum device production to market demand, the structure of demand based not on short-term gain and long-term perspective.

The modern concept of marketing is that all activities of the company (scientific, technical, manufacturing, marketing, etc.) were based on knowledge of consumer demand and changes in perspective.

3. To inform potential customers about the products and the impact on the organization of consumers using all available means, first of all advertising, in order to induce them to purchase exactly the product.

The marketing function

Formation of Trade Policy

– The development of the concept of commodity

– Formation of assortment;

– Taking into account the life cycle of the goods;

– Competitiveness;

– Creation of product attributes;

– Development of new products, etc.

Implementation of the marketing policy

– The definition of the concept of marketing;

– Select the channel distribution;

– Formation of distribution;

– Control of product distribution processes, etc

The organization of communication policy

– The organization of advertising;

– Public Relations;

– Personal selling;

– Sales promotion, etc.

Strategic management of branding

– Planning of marketing activities;

– The organization of the service brand-Thing;

– Control of execution, etc.

4. The structure of marketing complex

According to Kotler marketing complex is a collection of allowing controll marketing variables, the set of which the company uses in an effort to induce the desired reaction on the part of the title of the market.

The components of the marketing complex are:

• Trade policy.

Product is a set of «goods and services», which the company offers to the target market. Thus, a new painkiller could be a «commodity» in the form of a 50 white tablets in a white bottle with a cap that cannot close the children of, a three year shelf life, branded name «Aveline» and a money back guarantee in case of dissatisfaction with the buyer.

• Communication policy (sales promotion).

Methods of incentives are all sorts of activities of the company in order to spread information about the merits of the goods and to convince consumers to bathe in it. The company pays advertising, hires salespeople pushes the product with special events, organize its propaganda.

• Sales Policy.

Methods of distribution are all sorts of activities, through which product becomes available to target consumers. Thus, the firm chooses wholesalers and retailers, to convince them to pay for the goods more attention and care for the good of his computation, it looks the over-passes and provides efficient transport and storage.

• Pricing policy.

Price is amount of money that consumers have to pay for the obtaining of goods. The company offers retail and wholesale prices, favorable prices and discounts, sales on credit. The price should correspond the perceived value of the offer, otherwise buyers will acquires competitors’ products.

This structuring of the (complex) marketing fits into the concept of «4P», according to which in the marketing complex includes 4 elements, the name of the English language which begin with the letter «P»: product, promotion, place, price.

THEME 2. MARKETING RESEARCH

1. Marketing information system

In a well-functioning organizations marketing information is collected, analyzed and distributed as part of a marketing information system (MIS), which is part of the management information system of organization.

MIS concept originated in the United States, where it was put into implementation in the early ’70s, a few years after the development of the concept of an automated control system (ACS) in the case of individual-governmental organizations.

MIS is a collection (single set) of personnel, equipment, procedures, and methods for collecting, processing, analysis and distribution of the set time reliable information necessary for the preparation and making marketing decisions. It is sometimes said that the MIS is a way of thinking through solutions to find the necessary managers frames marketing information. It is recognized that the leaders and specialists of marketing are in need of specific information and the methods of its receipt. Thus, the MIS – is a conceptual system that helps to solve the problem of how marketing and objectives strategic planning.

The scheme of a marketing information system is as follows:

Marketing Information System

According to Philip Kotler, the four components that comprise the MIS are Internal Reports (Records) System, Marketing Research System, Marketing Intelligence System, and Marketing Decision Support System.

1.Internal Records: It records various data from different department of a company, which is regarded as a major source of information.

2.Marketing Intelligence System: It is a main source used by managers for gaining daily information of the external environment, hence assists the managers to react to the changing rapidly.

3.Marketing Research System: It is used to collect primary and secondary data, and displays the results in forms of reports.

4.Marketing Decision Support System: Compared to the supply of the data by the three previous systems, it focuses more on processing the data.

MIS transforms data from internal and external sources into information necessary for managers and professionals’ marketing services. MIS distributes information to managers and specialists of marketing services, taking appropriate decisions. In addition, ISI, interacting with other automated systems in the enterprise, delivers the right information managers of other services enterprises. Internal information contains data on orders for products, sales, shipment of goods, the level of reserves, the payment of shipped products. Data from external sources are obtained on the basis of market intelligence and market research.

Marketing intelligence is a constant effort to collect the current information about changing marketing environment necessary for the development and adjustment of marketing plans. While inside information focuses on the results obtained, maketing intelligence explores what might happen in the environment.

The sources of the current external information can be of different nature, for her collection formal and informal procedures are used. Such information is obtained through the study of books, magazines, trade publications, reports of competing firms, as a result of conversations with customers, suppliers, distributors and other external to the organization of parties, which should be effectively motivated on the collection and provision of the necessary information; based on conversations with other managers and employees, for example, employees of marketing services of the organization, through industrial and commercial espionage (although in many foreign books written about the ethical issues of marketing research).

Primary information is generated in the process of data collection methods to address a specific problem. It is necessary when secondary data are insufficient in terms of their completeness and values.

Secondary information is the data obtained from the accounting and statistical reporting, special publications, directories, i.e. information collected for another purpose.

2. The essence of marketing research

Market research presupposes the collection and analysis of data on specific marketing situations with which the company has faced in the market. Such activities are carried out periodically, rather than continuously, as soon as certain problems on the basis of the use of special methods for collecting and processing the data collected.

Depending on the nature and purpose of market research three relevant areas are identified (exploratory, descriptive and casual). Any such direction includes certain methods of collecting and analyzing marketing information.

Exploratory research is a marketing research conducted to gather preliminary information needed for a better definition of the problems and put forward suggestions (hypotheses), in which implementation of marketing activities, as well as clarifying the terminology and setting priorities among the tasks of research is expected.

Descriptive research is a marketing research aimed to describe marketing problems, situations, markets, for example, the demographic situation, consumers’ attitudes toward the company’s products.

Causal research is a market research conducted to test hypotheses about cause-and-effect relationships.

Under the experimental research is meant collecting primary data by selecting the same type of groups surveyed, the issuance of different tasks, monitor the factors that affect the results and comparison of the differences in group responses.

Marketing research process includes the following steps and procedures:

1. Defining the problem and research purposes.

1.1. Determining the need for market research.

1.2. Problem definition and formulation of marketing research purposes.

2. The development of the research plan.

2.1. The choice of methods of marketing research.

2.2. Determining the type of information required and the sources of its receipt.

2.3. Determination of methods of collecting the necessary data.

2.4. Development of a questionnaire to collect data.

2.5. Development of sampling plan and determination of sample size.

3. The implementation of the research plan.

3.1. Data collection.

3.2. The analysis of the data.

4. Interpretation of the results and bring them to the leadership (preparation and presentation of the final report).

3. Market research

Marketing research involves, as a rule, all the elements of the outer and internal business environment of a business entity. However, very often all sorts of circumstances hamper the comprehensive study of marketing, but there are a number of positions, which in any situation should be transparent to the manufacturer. Among them, first of all, can be distinguished: market demand, capacity and market share, especially of consumer preferences and market segments for consumer goods and industrial goods. In this regard, we will try to consider them in details.

When an organization or company decides for itself the choice of the target segment, target market, it is based, first of all, on market demand.

Market demand is the total amount of sales in a particular market and particular brand product for a certain period of time.

Market demand can be classified on the basis of the dependence of demand and marketing efforts:

primary or unstimulated demand is the total demand for all brands, under which a particular product is sold in a particular market without use with any marketing efforts;

market potential is the maximum amount seeking by the market demand at the approach of marketing costs in the industry, productivity certain product, to a value at which its further growth does not lead to an increase in demand for the product. The magnitude of this type of demand has significant impact environmental factors marketing organization or company;

current market demand is sales volume of a particular product for a certain period of time under certain environmental conditions, and at a certain level of use of marketing tools.

In determining the amount consumed, sold goods in a particular period of time of production one must consider this situation not only with terms of consumer behavior, but also the point of view of the manufacturer. In the latter case, often use the term «the real size of the market,» or simply «the capacitance of the market», which is defined the potential annual sales of a certain kind of product at a certain price level.

Speaking directly about the method of determining the capacity of the market, you should immediately call attention to the fact that this measure can be carried out on the basis of statistical information on the volume of production and sales in a particular period of time, taking into account the share of imported from abroad and exported abroad goods of this type.