Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service
on at a price.
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.
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.
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 satisfactiustomer orientation
Constructive criticism helps marketers adapt offerings to meet changing customer needs.
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 |
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.
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