1. Marketing
plays an Important role in the success of any Business.
· Marketing is defined by the American Marketing Association as:
the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at large.
· A marketing concept is a strategy that companies and marketing agencies
that work for companies, design and implement in order to satisfy customer’s
needs, maximize profits, satisfy customer needs and beat the competitors or
outperform them.
· we can formulate a quick marketing concept definition and say that it
represents the philosophy behind the company’s efforts to fulfill its
customers’ needs thus creating benefits for both these two parties.
v
The five marketing concepts:
The five
marketing concepts are:
1.
Production concept
2.
Product
3.
Selling concept
4.
Marketing concept
1-production concept:
·
By the end of 1950 and beginning
of the industrial revolution the businesses and factories mainly focus on
production and that philosophy dominate the market at that time.
·
That philosophy depends on
cost concept, as in crease production mean decrease cost of products that
increase opportunities to sell.
·
During that period philosophy
were interested in production, manufacturing and efficiency issues.
·
Why that concept? As companies believed that the customers
mainly want the affordable and accessible products.
2-product concept:
·
By increase production rate,
companies start the competition era so anew concept appear by a new philosophy
that concept start focus on the customer.
·
Companies start to improve
their products regarding to discover customer need and how to differentiate their
products within that competition.
·
So, that concept was the first
step to word marketing practices.
3-Selling concept:
·
Selling concept is the bread
and butter of marketing efforts as it believe that people will not buy enough
of business products so businesses need to persuade them to do.
·
By that competition and all
that products, how to persuade customer to buy your products? that is selling
concept.
·
Mainly that philosophy focuses
on making actual sale of the products.
·
Regardless of the quality of product
or the need of the customer that concept focus on making sale.
4-Marketing concept:
·
Put the customer at the center
of the organization, all activities and strategy are directed to word consumer.
·
The practices of discover the
need, market research, customer purchase behavior start to take place at the
companies’ plan may be before production or after production to make a sales.
·
At that concept some questions
appear and need to answered:
I.
What do customers want?
II.
Can companies develop product
while consumer still need it?
III.
How companies keep their
consumers satisfied?
Ø At that concept companies’ response to consumer need and satisfy it,
that the core of that philosophy.
5- Societal marketing concept:
Ø The societal marketing concept goes one step further than the marketing
concept.
Ø Ex, if a company creates a car that uses less fuel but has more
pollution, this would merely increase customer satisfaction, but not societal
welfare. Companies who believe in the societal marketing philosophy direct
their marketing towards giving customer satisfaction and social welfare.
Ø With this last concept of marketing, companies receive long-term profit,
not only from the viewpoint of the consumer, but also of society.
Ø Societal marketing started in the ’60s and ’70s, but it became the most
important marketing concept in the 21st century, once global warming secured
its place at the table and forced companies to become very cautious with our
resources.
Ø The societal marketing concept is based on three interlinked
aspects:
I.
Society
and human welfare – in every action, product, service or innovation, the
company must put society first;
II.
Consumers
satisfaction – products and services should be created to satisfy customer’s
needs;
III.
Company
profits – by taking care of human welfare and providing comfort, your business
will make a profit and will maximize its wealth in the long run.
Ø Example for that concept,
example comes from Nestlé. The company is on a mission to make
farming and farmer’s life better. So, they will have resources to cultivate
quality cocoa that will be transformed into premium chocolate.
v After discuss marketing concept let us discuss relationship marketing
more clearly.
v Relationship marketing:
·
The Relationship Marketing
refers to the activities undertaken by companies to establish and maintain the
profitability and the long-term relationship with the customers.
Ø What the differences between traditional marketing and relationship
marketing?
·
relationship marketing focuses
on the long-term strategy of building a close relationship with customers,
transactional marketing focuses on increasing the number of individual sales.
·
Because traditional marketing
is primarily focused on acquiring new sales, it doesn’t dedicate as much time
to create a great customer experience. As such, traditional marketing can be
said to be the exact opposite of relationship marketing.
v Benefits of Relationship
Marketing:
I.
The Relationship Marketing
ensures the long-term retention of the customer. When the company focuses on
increasing the customer satisfaction by providing exactly what the customer
wants, then the customer is likely to stay longer with the brand.
II.
The word of mouth plays a
crucial role in marketing the product or services. When the customer is
satisfied with the brand, he will definitely refer it to his family, friends,
peers and colleagues. This will ultimately lead to the increase in the revenue
and the customer base of the firm.
III.
Once the strong relationship
is formed with the customer, then even the rise in the price of a product due
to the change in the economic conditions, won’t have a much effect on customer
purchase. Thus, the relationship marketing helps in retaining the customer even
in the worst economic conditions.
IV.
When the customer shares a
healthy relationship and is happy with the brand, will readily give its
valuable feedback for the firm’s new product or service launched in the market.
V.
The companies can gain
the competitive edge over the other competitors by offering a more personal
touch to the customers. This can be achieved if the company is,
ü Honest and keep an open
line of communication
ü Maintains a proper
feedback channel
ü Provides an efficient
service support
ü Interacts with customers
online via social media.
ü Monitors the image of
the brand online and respond accordingly.
The relationship marketing is the main component of the Customer
Relationship Management that focuses on creating the loyalty and long-term
customer engagement with the brand rather than focusing on attaining the
short-term goal of customer acquisition and sales.
v How to Implement a
Relationship Marketing Strategy:
I.
Utilize Customer Data.
II.
Leverage Great CRM tools.
III.
Establish an Active
Customer-Facing Presence.
v Relationship Marketing
Strategy Ideas:
I.
Prioritize Customer Service in
Your Relationship Marketing Strategy.
II.
Promote Engagement Through
Content Marketing.
III.
Match Your Social Media
Approach to Your Audience.
IV.
Keep Email Marketing Top of
Mind for Greater Customer Retention.
V.
Implement a Loyalty Program.
VI.
Use Relationship Marketing to
Learn About Your Audience Through Surveys.
v
Relationship marketing is
defined as a marketing technique that focuses on building a human connection
between a brand and its customers, encouraging customer retention, loyalty and
satisfaction.
v Stages of relationship
marketing:
·
Attraction: The brand
and the consumer lock eye.
·
Connection: The brand
pulls it together, plays it cool and speaks to the consumer in a way that
pique's the consumer's interest. The consumer's heart skips a beat and they
want to learn more.
·
Dating: The brand
wants to get to know the consumer a little better, so it asks for the
consumer's information. It asks if it can reach out. If the consumer says no,
the brand has to go back to step 2 and re-establish a stronger connection
first. The consumer takes the brand more seriously as a potential partner, but
is still weighing out its options.
·
Relationship: The consumer
and the brand make it official! In this level of their relationship, there is
an equal give-and-take, but it must always be equal. If the consumer doesn't
want to give, then the brand shouldn't try and take. The brand should go back
to step 3 and continue to court the consumer until they're ready for something
more serious.
·
Marriage: The consumer
and the brand are in a life-long, committed relationship and they live happily
ever after...almost. Marriages are hard work and revolve around effective
communication – primarily listening. The brand must put in the work to achieve
eternal happiness with the consumer. The consumer will discover its pet peeves
with the brand (too many emails, not paying attention to their preferences, not
listening to their complaints). However, if the brand can take feedback and
improve for the better, this will be the most fruitful stage of a relationship.
Conclusion
·
Relationship marketing looking to create a profitable long term relation
with the customers which will give company answers about the product
performance, how to improve, how to increase loyalty and that reflect to the
company sales by take care of its customers.
·
Relationship marketing go far behind need it now give the customer
satisfaction and welfare and feel safe and feel happy.
·
Relationship marketing make a new shape of competition and anew strategy
in production it self as companies start to ask question related to customer
welfare and customer satisfaction and loyalty.
Relation
ship marketing is an open a new era of sales it self so it must be applied in
all marketing and sales management strategy.#Diary of shab2bes# AhmedAboelftooh#
