Marketing is the process of
communicating the value of a product or service to
customers, for the purpose of selling that product or service
History
The origins of the concept of marketing have their roots with the Italian economist
Giancarlo Pallavicini in 1959.
[1]
These roots are accompanied by the initial in-depth market research,
constituting the first instruments of what became the modern marketing,
resumed and developed at a later time by Philip Kotler. Giancarlo
Pallavicini introduces, the following definitions: Marketing is defined
as a social and managerial process designed to meet the needs and
requirements of consumers through the processes of creating and
exchanging products and values. It is the art and science of
identifying, creating and delivering value to meet the needs of a target
market, making a profit : delivery of satisfacti
on at a price.
ustomer orientation
Constructive criticism helps marketers adapt offerings to meet changing customer needs.
A firm in the
market economy survives by producing
goods that persons are willing and able to buy. Consequently, ascertaining
consumer demand is vital for a
firm's future viability and even existence as a
going concern.
Many companies today have a customer focus (or market orientation).
This 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 market change identification approach and
the product innovation approach.
[6]
In 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 the needs of
potential consumers. The starting point is always the consumer. The
rationale for this approach is that there is no reason to spend R&D
(research and development) funds developing products that people will
not buy. History attests to many products that were commercial failures
in spite of being technological breakthroughs.
[7]
A formal approach to this customer-focused marketing is known as
SIVA[8]
(Solution, Information, Value, Access). This system is basically the
four Ps renamed and reworded to provide a customer focus. The SIVA Model
provides a demand/customer-centric alternative to the well-known 4Ps
supply side model (product, price, placement, promotion) of marketing
management.
| Product |
→ |
Solution |
| Promotion |
→ |
Information |
| Price |
→ |
Value |
| Place (Distribution) |
→ |
Access |
If any of the 4Ps were problematic or were not in the marketing
factor of the business, the business could be in trouble and so other
companies may appear in the surroundings of the company, so the consumer
demand on its products will decrease. However, in recent years service
marketing has widened the domains to be considered, contributing to the
7P's of marketing in total. The other 3P's of service marketing are: process, physical environment and people.
Some consider there to be a fifth "P": positioning.
See Positioning (marketing).
Some qualifications or
caveats
for customer focus exist. They do not invalidate or contradict the
principle of customer focus; rather, they simply add extra dimensions of
awareness and caution to it.
