Product improvement concept. Characteristics of modern marketing concepts Consumer marketing concept examples of companies
Kotler identifies five main stages in the development of marketing theory, each of which represents an independent concept of marketing management in a company:
- Marketing Concept One: Operational Improvement
- The second marketing concept: product improvement
- Marketing Concept Three: Focus on Selling the Product
- Fourth Marketing Concept: Consumer Concept
- The Spotty Concept of Marketing: Socio-Ethical Marketing
The 5 marketing concepts presented by Kotler fully describe historical development marketing theories. Before considering a detailed description of each marketing concept, we suggest thinking about when and why marketing arose.
Brief historical background
Understanding the causes and prerequisites for the emergence of marketing helps to form the correct attitude towards this science. Marketing arose along with the birth of the market. The emergence of crafts, the emergence of demand for goods, and the development of trade relations led to the need for methods that stimulate trade, help to talk about the product and sell the product. Marketing has always been a science that helps to compare market needs with production capabilities.
There are many theories about where marketing first emerged. In fact, it does not matter whether it first appeared in Greece or Japan, what is important is the fact that marketing helped sellers understand the market and sell the product with maximum business benefit.
It is believed that marketing emerged as an independent concept and science in the 18th-19th centuries, during the heyday of industrial evolution, significant social changes, the development of mass production, transport infrastructure and the emergence of the first media.
Production Improvement Concept
The evolution of marketing begins with the concept of production improvement or the production concept of marketing. Product improvement is the oldest marketing concept, but it is still effective in markets with low level competition.
The production concept of marketing management believes that consumers will choose a product that meets two criteria: widespread availability in the market and attractive retail price. Accordingly, the market leader will be the manufacturer who manages to build mass distribution of its product, set the most attractive price for the product and at the same time remain in the black.
As we understand it, this marketing concept places emphasis on high productivity, product uniformity and low cost. Accordingly, the main functions of the marketing department at this stage of the evolution of the marketing concept are:
- productivity increase
- reduction of costs for production and distribution of the product (which is partly possible with maximum homogeneity of the product)
- per product
- ensuring maximum product distribution
Product improvement concept
The next stage in the development of marketing is the concept of product improvement or product marketing concept. This type marketing is absolutely ineffective in the absence of large-scale distribution and. The concept often leads to unnecessary improvements to the product, excessively increasing the cost of the product to the customer, and reducing demand for the product.
The product marketing management concept believes that consumers choose the highest quality product on the market that offers the best performance and efficiency. The concept is based on complete understanding of the consumer and absolute innovation, requiring high investments in R&D. The functions of the marketing department at this stage of evolution are: =
- detailed study of audience needs
- Creation
- constant study of new technologies and product improvement
Concentration on product sales
The third stage in the evolution of marketing is the transition to the sales concept of marketing. The concept of sales marketing is based on the technology of "hard selling" and arose during the period of glut in markets in the 1930s. This marketing concept does not take into account the long-term aspect of the company’s development, since the goal of “selling at any cost” leads to deliberate deception of the client and causes a refusal to re-purchase.
The essence of the sales theory of marketing is the following statement: the consumer will choose the product that will be sold to him best. This means that the main functions of the marketing department at this stage of development are:
- concentration on
- maximum incentive to trial product purchase
- programs to reduce inventory balances
Consumer concept
The fourth and most important stage in the development of marketing theory is the birth of the traditional marketing concept, often also called the marketing management concept. The concept of traditional marketing emerged in the 1950s and was the first customer-centric approach.
This marketing model is still used by many modern companies and consists of the following: the consumer will choose the product that best solves his product needs. This statement means that any company can ensure long-term success in the market if it can understand the key needs of customers and satisfy these needs better than anyone else. Functions of the marketing department at the client stage oriented approach become:
- concentration of efforts on studying consumer behavior, on understanding the real needs of the audience
- creating a higher value compared to competitors
- Creation
Social and ethical marketing concept
The most modern concept of marketing activity is the theory of social and ethical marketing or holistic marketing. The concept arose at the beginning of the 21st century with the growing popularization of the need to care for the environment, limited natural resources and the development of new standards of ethics and interaction in society. Core Entity social theory marketing:
- the consumer will choose a product that best solves his needs and at the same time improves the well-being of the entire society
- The company that becomes successful in the market is the one that understands the importance of close cooperation with all intermediaries involved in the development and sale of its product
Read more about modern theory marketing in the article: “Modern concept of social and ethical marketing”
Video lecture
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History of the development of marketing as a management system commercial activities is closely related to the stages of market development and guidelines in the market activities of firms. Based on the historical stages of marketing development, several conceptual approaches to its organization are distinguished.
Table 1.1.
The concept of “production improvement” (until the early 30s)\r\nConditions for formation Demand exceeds supply, the market is not saturated, demand is quantitative, buyers compete with each other (one option is a seller’s monopoly).\r\nThe essence of the concept Any product will be in demand if it is affordable and widely represented on the market.\r\nFeatures of the concept The company's activities are focused only on production capabilities (not on the needs of society).\r\nManufacturer's goals Increasing sales volume.\r\nMethod of achieving Goals Reducing costs is achieved by increasing production and labor productivity.\r\nModern conditions of application Consumer goods, high-capacity market.\r\nDisadvantages The narrowness of the product range, against the backdrop of increasing labor productivity and production volumes, leads to saturation and oversaturation of the market. \r\nTable 1.2.
The concept of improving sales (until the early 50s)\r\nConditions of formation As a result of the crisis, companies were faced with a lack of demand for their goods. At the same time, even large companies did not have the resources to change the assortment.\r\nThe essence of the concept Any product can be sold if you make an effort to do so.\r\nFeatures of the concept Focus on intensifying sales efforts (which required significantly lower costs).\r \nManufacturer's goals Production of goods with subsequent sophisticated marketing.\r\nMethod of achieving the goal Aggressive methods of forcing a one-time purchase (psychological pressure, material interest - gifts, discounts), methods of targeting buyers for long-term purchases (discounts for regular customers). \r\nModern conditions of use Goods of passive demand (the buyer does not feel the need for a product until he learns about its advantages, an excess of goods in the absence of natural demand).\r\nDisadvantages The emergence of “immunity” of buyers to various methods intensive sales, market saturation with a narrow product range, slowdown or cessation of company growth.\r\nTable 1.3
The concept of product improvement (until the early 70s)\r\nConditions of formation Market saturation is accompanied by increased competition. At the same time, methods of competition (at the level of the company's sales efforts) lost their effectiveness.\r\n
\r\nFeatures of the concept The efforts of companies are aimed at product differentiation (improving product characteristics), for which firms have already accumulated enough resources.\r\nThe essence of the concept Any product can be sold on the market if it is of good quality.\r\nManufacturer’s goals Improving quality product, characteristics of the product that are valuable to the consumer.\r\nMethod of achieving the goal Achieved by technical developments(innovations) that make it possible to distinguish a product from competitors based on its quality characteristics.\r\nConditions of application Can be used in any type of market.\r\nDisadvantages High price of the product on the market (the manufacturer reimburses the costs of developing the product). In addition, the manufacturer is not able to adequately assess the threat from substitute products.\r\nTable 1.4.
Consumer concept (until the end of the 70s)\r\nConditions of formation Frequent failures in using the concept of improving the product (the new product was not in sufficient demand, and its sales did not cover the investments spent on development).\r\nThe essence of the concept The product will sold on the market if its production is preceded by a study of market conditions and needs.\r\nFeatures of the concept The attention of company management is aimed at meeting the real needs of the market.\r\nManufacturer's goals The desire to follow the structure of consumer demand in its activities.\r\nMethod achieving the goal Firms spend significant resources on studying demand and consumer preferences and strive to produce goods that are in demand by the market.\r\nModern conditions of application Can be applied in any type of markets.\r\nDisadvantages The desire of companies to focus on the immediate needs of the individual, which ultimately leads to a conflict with the ideas of long-term well-being of society.\r\nTable 1.5.
The concept of social and ethical marketing (80s)\r\nConditions of formation By the beginning of the 80s. economic development in post-industrial countries has reached a sufficient level for public consciousness to accept the ideas of public good.\r\nThe essence of the concept A quality product will be in demand if it meets non-economic social needs (environmental protection, product safety, etc. .).\r\n
\r\nFeatures of the concept During competition, companies focus on the usefulness/safety of their products for society.\r\nManufacturer's goals If production that satisfies a need causes negative processes in nature or otherwise harms society, then it must be modified or eliminated -divided.\r\nModern conditions of application Economically developed markets that have passed the stage of mass marketing orientation.\r\nDisadvantages Lack of solutions to a number of technological problems, causing, in particular, the high price of goods.\r\nThe constant development of marketing theory has led to understanding that marketing is a complex and complex system, when managing it, it is necessary to influence all its elements. The most advanced companies began to consider their activities as a set of production and commercial methods, including five main areas.
Marketing mix concept, 5P concept (originated in the 60s, became widespread in the 80s-90s)
Marketing activities are developing systematically in several directions.
Product, the company's product policy ( product marketing) - market-oriented development of a product range, their properties (quality), packaging, brand image, etc.
Price, company pricing policy (price marketing) - market-oriented development of the level and behavior of prices, price methods of sales promotion.
Promotion, product promotion (marketing communications) - a system of informing potential customers, creating a positive opinion about a product and a company through a variety of sales promotion methods (advertising, service, etc.). Place, place and time of sale, product distribution (sales marketing, distribution) - selection of optimal sales channels and resellers, organization of storage and transportation of goods.
People, sellers and buyers of goods (relationship marketing) - development of the company's personnel policy (selection and training of personnel focused on the client and the company's goals), generating potential clients. As a direction of marketing activity, it appeared relatively recently as an addition to the German school of marketing (4P).
More on topic 3. Marketing concepts:
- 10.2.2. Practical application of the marketing concept in achieving the main goals of the enterprise
- The most powerful concept in marketing is owning the word in the mind of the prospect.
- 4. Comparison of marketing concepts and their implementation in Russia until 2005
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There are five main marketing concepts on the basis of which commercial services of enterprises conduct their activities: improvement of production, improvement of goods, intensification of commercial efforts, “consumer” marketing, social and ethical marketing.
Historically, the concept of production improvement, or production, was the first to arise. It is based on the predisposition of consumers to widespread and affordable goods, which requires constant improvement of technology and production organization, increasing volumes and reducing production costs. At the same time, all attention is focused on internal production capabilities, which makes it possible to saturate the market with any product or service. This approach is quite justified when demand significantly exceeds supply or when the cost of producing a unit of goods is quite large and needs to be reduced through mass production of products. The connection between the manufacturer and the market is carried out in this case according to the scheme
The concept of production improvement was used by most enterprises of the former USSR. This was due to the fact that demand for almost all goods significantly exceeded supply and enterprises were forced to constantly increase production volumes. This approach did not always ensure that the real needs of the population were taken into account, but due to mass production it made it possible to produce relatively cheap goods. The collapse of the USSR, the transition to market relations, and the saturation of the market with “colonial” goods led to the fact that the products of many domestic manufacturers became uncompetitive, primarily due to high prices due to disruption of the mass production of individual products and their inconsistency with the requirements of the buyer.
When implementing the concept of improving production at a printing enterprise, this technique can be used. The same publication is produced in two versions: a gift edition with excellent printing and numerous illustrations, and a regular text version. Naturally, the prices of the publications will vary, but the total sales volume may significantly exceed that which would have been achieved if the publication had been produced in one version.
The concept of product improvement, or product improvement, assumes that consumers will favor products that are of the highest quality under moderate and affordable prices.
Based on this concept, the company's efforts are primarily focused on the continuous improvement of manufactured products. The vulnerability of the concept is that it is impossible to endlessly improve the same product. Almost every need can be satisfied with a new substitute product.
The concept of product improvement was used quite widely by enterprises in the printing industry in the recent past, when the so-called “scarce market” operated and it was believed that good book it will find its reader, it just needs to be published.
However, even today this concept is often used when publishing translated publications. When making a decision in this case, the main thing is that this book (regardless of the subject - fiction or scientific and technical) was in great demand in other countries.
The concept of intensifying commercial efforts, or the sales concept, was a natural result of the development of production and product concepts, which, paying maximum attention to increasing production and improving the product, practically did not engage in a thorough study and formation of the market. In such conditions, sooner or later, the problem of sales will definitely become aggravated, when the enterprise tries to sell already produced goods by all means and methods available to it. Consequently, in practice, the implementation of the sales concept is essentially associated with the imposition of a purchase. Moreover, the seller strives to conclude a deal at all costs, and satisfying the needs of buyers is a secondary point for him.
The concept of "consumer" marketing, or market, is that the condition for the success of an enterprise is to identify the needs and requirements in target markets and provide the desired customer satisfaction in ways that are more effective and more productive than those of competitors. The company integrates and coordinates its activities with the expectation of ensuring the interests of customers, making a profit precisely by creating and maintaining consumer demand.
For a clearer understanding of the essence of the concept of “consumer” marketing, it is advisable to compare it with the concept of intensifying commercial efforts. The two concepts are no doubt quite similar, but marketing solves a much broader range of problems.
Commercial sales efforts are about focusing on the needs of the seller, while marketing is about focusing on the needs of the buyer. Commercial sales efforts are concerned with the seller's needs to convert his product into cash, while marketing is concerned with satisfying the customer's needs through the product and the range of factors involved in the creation, delivery and ultimately consumption of that product.
It would not be an exaggeration to say that all the latest trends in development public consciousness in Russia, in the gradual understanding of the principles of the formation of a socially oriented market mechanism, are completely consonant with the social and ethical concept of marketing, which is characterized by the following most typical and mandatory requirements.
1. The main purpose of the enterprise must be to satisfy the reasonable, healthy needs of consumers in accordance with the humane interests of society.
2. The enterprise must be constantly searching for opportunities to create new products that better satisfy the needs of customers. It must be prepared to systematically introduce improvements to products in accordance with the interests of customers.
3. An enterprise must refuse to produce and sell goods that are contrary to the interests of consumers in general, and especially if they can cause harm to the consumer and society as a whole.
4. Consumers, relying on their own actions and public opinion, should support only those enterprises that expressly show concern for satisfying the normal healthy needs of the carriers of effective demand.
5. Consumers, caring about maintaining and improving the quality of life, will not buy goods from enterprises that use environmentally “unclean” technologies, even to produce goods that society needs.
6. The enterprise must create and implement such social and economic development programs that not only serve the interests of the enterprise itself and its workforce, but are also useful for social development region in which the enterprise operates.
Obviously, fulfilling these requirements is only possible if the enterprise is completely independent in economic terms, operates in a competitive market, and its management is based on humane, moral and ethical principles that allow overcoming collective egoism.
The social and ethical concept of marketing differs from the “ordinary” concept of marketing in that the goal of the first is to ensure the long-term well-being of not only an individual enterprise, but also society as a whole. Therefore, when marketing management at the enterprise level, it is necessary to take into account at least four points: the needs of the buyer (consumer); vital interests of the consumer; interests of the enterprise; interests of society.
The choice of a particular concept by an enterprise in the printing industry should be determined by the goals and objectives of its activities in the market in the coming period. It should be noted that each marketing concept has advantages and real conditions market can ensure success. Therefore, they cannot be opposed. Rather, on the contrary, to achieve success, you need to learn how to create combinations of these concepts to strengthen your position in the competition. The choice of concept is largely determined by the enterprise’s available resources (financial, labor and material).
In the history of marketing development, the following stages of its formation are known: production, sales, marketing and relationships (Table 1.2).
Table 1.2
Stages of marketing development
|
Marketing stage |
Exemplary temporal |
a brief description of |
|
Production |
This period is characterized by the fact that when designing and constructing products, the requirements of mass production were taken into account rather than the needs |
|
|
Production |
and consumer requests. Entrepreneurs believed that a good product would sell itself. The task of entrepreneurs was only to defeat competitors by reducing prices |
|
|
Until the 1950s |
This period is characterized by saturation of demand for basic consumer goods. Therefore, manufacturers began to spend more money on advertising and on training qualified sales staff so that they would more actively look for possible ways to sell their products |
|
|
Marketing |
Since the 1950s to present day |
At this stage, the saturation of demand led to the fact that in order to achieve the success of the enterprise, manufacturers began to find out what exactly consumers needed and satisfy their specific needs |
|
Relationships |
Since the 1990s to present day |
A feature of this stage is the desire of marketers to establish and maintain stable relationships, both with consumers and with suppliers. Potential competitors create joint ventures, trademarks are combined into one common product. In a word, the most unimaginable variations become possible, the common goal of which is to maintain and increase sales, to stay afloat in conditions of fierce competition |
Historical excursion
Production stage personified the conveyor line of G. Ford, which he used for the mass production of cars. The attitude towards marketing in those years is clearly reflected by his famous expression: “They (consumers) can have any color (of the car) they want as long as it remains black.”
Sales stage characterizes the example of the majority of Russian defense enterprises, which, during the conversion of military production during the perestroika period, began to produce consumer goods, often without analyzing whether the consumer would buy them and whether he needed high specifications goods.
Marketing stage reflects the example of the company Coca-Cola, the success of which is built on a clearly developed marketing strategy. Late 50's - early 60's. XX century The company's activities are characterized by an expansion of the product range. In 1958 appears Fanta, and in 1961 – Sprite. Currently, the world empire produces more than 200 types of drinks, of which Coca-Cola, Fanta And Sprite owns 80% of total sales.
The company constantly ensures that its products meet the tastes of consumers. Consumer preferences are carefully studied by experts, and the company's product range is constantly developing and expanding.
Relationship stage can be illustrated using the example of a company PepsiCo, which actively interacts with suppliers of potatoes and milk. PepsiCo one of the world's largest food and beverage producers plays an important positive role in promoting sustainable development practices Agriculture. For example, in Russia, a program to support potato suppliers has been launched since 1996. After the acquisition of Wimm-Bill-Dann, PepsiCo It has also become one of the country's largest industrial milk processors and, since 2006, has been implementing the Wimm-Bill-Dann support program for raw milk suppliers. Both programs are aimed at improving the quality of raw materials and increasing the productivity of suppliers.
Each stage of the evolution of marketing corresponds to certain management concepts of marketing activities that arise in different periods of economic development, as a response to social, economic and political changes that have occurred over the course of the century.
So, production stage corresponds production improvement concept, which is based on the assertion that consumers will buy goods that are widely available and affordable, therefore, the enterprise should focus its efforts on producing the maximum volume of goods. This concept is quite fruitful in a “seller's market” situation. The main characteristics of the concept of production improvement are presented in table. 1.3.
Table 1.3
Main characteristics of the production improvement concept
|
Characteristic |
Short description |
|
Formation conditions |
Demand for a product exceeds supply, i.e. in conditions of shortage of goods. Product costs can be significantly reduced |
|
Any product will be in demand if it is affordable and widely available on the market |
|
|
Features of the concept |
Focusing efforts on producing the maximum volume of goods and production efficiency |
|
Consumer goods. High Capacity Market |
|
|
Flaws |
They practically do not think about the consumer, the market is not studied. The limited product range against the backdrop of increasing labor productivity and production volumes leads to saturation and oversaturation of the product market |
|
Ford Motor Company, Pillsbury |
Sales stage goods correspond to two concepts. Initial stage sales corresponds product improvement concept, which assumes that consumers will be inclined to purchase goods that have high quality and moderate foam. The concept is characterized by the concentration of enterprises' efforts on the production of high-quality goods or services and their continuous improvement in an attempt to win customers by offering the best products in their category. The main characteristics of the product improvement concept are presented in table. 1.4.
Table 1.4
Characteristics of the Product Improvement Concept
|
Characteristic |
Short description |
|
Formation conditions |
|
|
Any product can be sold on the market if it has good quality and reasonable price |
|
|
Features of the concept |
Focusing on product functionality, quality, novelty and reputation |
|
Possibilities and conditions of use |
If there is a wide distribution of goods in any type of market |
|
Flaws |
|
|
This concept was followed by many enterprises and organizations in Russia and abroad, for example, Ford Motor Company, May Company and etc. |
The second half of the sales stage corresponds to concept of intensifying commercial efforts , which is based on the idea that consumers will not buy a manufacturer's goods in sufficient quantities unless the manufacturer makes significant sales and promotion efforts. The concept applies to passive goods and non-profit activities. Many businesses use this concept when they begin to experience sales difficulties. The purpose of their activity is the sale of manufactured goods, and not the production of products that the market needs.
The main characteristics of the concept of intensifying commercial efforts are presented in Table. 1.5.
The market created on the following concepts is called the “seller's market”, the purpose of which is to ensure the profitability of production, making a profit within a given time frame and within the limits of available resources.
The evolution of the market leads to the emergence of a “buyer’s market”, distinctive feature which is a buyer's guide.
Table 1.5
Characteristics of the concept of intensifying commercial efforts
|
Characteristic |
Short description |
|
Formation conditions |
|
|
Any product can be sold on the market if efforts are made in the field of sales and promotion |
|
|
Features of the concept |
|
|
Possibilities and conditions of use |
|
|
Flaws |
|
|
Volkswagen |
Corresponds to the marketing stage consumer (market) concept, which is based on identifying and satisfying consumer needs more effectively than competitors, resulting in a profit for the company.
The marketing concept reflects the enterprise's commitment to the theory of consumer sovereignty. Some firms believe that the result of consumer research should be not only the identification of real, but also the formation of potential needs that people do not think about, but the possibility of satisfying, which they enthusiastically respond to. In these cases, creative marketing is used.
The main characteristics of the consumer concept are presented in table. 1.6.
Table 1.6
Characteristics of the consumer concept
|
Characteristic |
Short description |
|
|
Formation conditions |
The saturation of demand has led to the fact that in the production of products and in order to make a profit, enterprises began to focus on meeting the needs and demands of consumers |
|
|
A product will be sold on the market if its production is preceded by a study of the needs and requirements of the target markets. The concept guides enterprises not just to sell goods, but to satisfy needs |
||
|
Features of the concept |
Focus on customer needs and demands, supported by integrated marketing efforts aimed at creating customer satisfaction in ways that are more effective and more productive than competitors |
|
|
Possibilities and conditions of use |
|
|
|
Flaws |
Orientation of enterprises to the needs of individual consumers, rather than society as a whole |
|
|
Procter & Gamble, General Electric, McDonald's Corporation and etc. |
||
The development of the consumer concept has led to the formation of its more modern manifestations. These are social and ethical marketing, enlightened marketing, green marketing, holistic marketing, etc.
F. Kotler summarizes modern development marketing technologies into the concept of the so-called “enlightened marketing”, which is based on the idea that marketing should support the optimal functioning of the enterprise in the long term, based on the following principles: consumer orientation, marketing of the value of the product, marketing with an awareness of its mission, social ethical (responsible) marketing.
Corresponds to the modern period of marketing concept of social and ethical marketing, which assumes that an enterprise must not only identify and satisfy the needs of target markets more effectively than competitors, but also maintain and strengthen the well-being of individual consumers and society as a whole. This concept requires a balanced linkage of three factors: enterprise profit, consumer needs and consideration of the interests of society. The main characteristics of the concept of social and ethical marketing are presented in table. 1.7.
Enterprises that take the concepts of consumer marketing and social and ethical marketing as the basis for their activities strive to offer the market not just a basic product, but a product with high consumer value.
Customer value can be represented as the difference between perceived benefits (product advantages, level of service, image, etc.) and perceived costs ( cash expenses, time and psychological costs).
Table 1.7
Characteristics of the concept of social and ethical marketing
|
Characteristic |
Short description |
|
Formation conditions |
The prerequisite for the concept was global crises (energy, environmental, technological, etc.), which gave rise to problems related to the protection environment, lack of resources, rapid population growth, etc. |
|
A product will be in demand if it is not only of high quality, but also meets safety and environmental requirements, and the enterprise does not harm the environment during its production |
|
|
Features of the concept |
Focus on the usefulness and safety of products for society |
|
Possibilities and conditions of use |
|
|
Flaws |
Lack of solutions to some technological and economic problems causing the high price of goods |
|
Wal-Mart Stores, Procter & Gamble, McDonald's Corporation, Lever Brothers, Monsanto Company and etc. |
The direction of an enterprise's marketing activities should be to increase perceived benefits and reduce perceived costs.
Relationship Marketing Concept is based on the fact that an enterprise should focus its activities on creating and expanding strong mutually beneficial relationships with consumers or other interested parties (suppliers, contact audiences, intermediaries, etc.). The result of this approach is to increase the likelihood of future transactions with the same consumers.
The main characteristics of the relationship marketing concept are presented in table. 1.8.
Table 1.8
Characteristics of the Relationship Marketing Concept
|
Criterion |
a brief description of |
|
Formation conditions |
|
|
Sales volume will increase by establishing and maintaining strong relationships with both consumers and other stakeholders (suppliers, intermediaries, contact audiences) |
|
|
Features of the concept |
Focus on long-term, evolving relationships between buyers and suppliers that add value to both parties |
|
Possibilities and conditions of use |
Economically developed markets that have passed the stage of mass marketing orientation |
|
Flaws |
|
|
Ryder System, Continental, Starbucks and etc. |
Relationship marketing is not only applied directly to individual consumers, it is also widely used in the marketplace. B2B. Enterprises no longer consider market participants their opponents, but, on the contrary, are looking for partners to establish mutually beneficial cooperation.
Foreign experience
Starbucks monitors the tastes of its consumers, concluding alliances with other types of business. Back in the early 2000s. this coffee giant has struck a deal with Dreyer's Ice Cream to create five new varieties of coffee-flavored ice cream. After that Starbucks entered into an alliance with PepsiCo, to jointly develop a coffee drink Fra pp uccino, sold in bottles. Buyers can find products Starbucks in hotels Marriott, located at airports, in supermarkets Albertson's and in cafes in bookstores Barnes & Noble, and all this is the result of strategic alliances. These partnerships are currently bringing Starbucks additional $20 million in revenue per year.
The concept of holistic (holistic) marketing assumes that all components of the process are considered as a single whole, and not a collection of individual elements, i.e. it is based on the planning, development and implementation of marketing programs, processes and activities, taking into account their breadth and interdependence.
Holistic marketing includes four components: relationship marketing, integrated marketing, internal marketing and socially responsible marketing (Figure 1.2).
Foreign experience
German company - manufacturer of sports shoes Rita with the help of holistic marketing, it was able to return the leadership position to its brand, which was very popular in the 1970s. and has since been forgotten. The company uses several marketing approaches that, complementing each other, position Rita as a modern brand – a trendsetter. The company develops its products by targeting specific customer groups (snowboarders, motorsports enthusiasts, yoga enthusiasts, etc.) and using research conducted by its retailers.
Besides, Rita focuses on “couch athletes”: the two most popular models are Monstro, walking shoes with knobby soles that extend over five and toe, and Speed Cat, a simple $65 sneaker inspired by Formula 1 racers.
Through thoughtful promotion (partnership with BMW/Mini, design studio Terence Conran Design Shop and the Jamaican Olympic Team), the company promotes word of mouth or "viral marketing". For this purpose, advertising campaigns were also carried out in sushi restaurants during the FIFA World Cup in 2002. Clothes Rita worn by tennis player S. Williams; Products of this brand are shown in television shows and films. This approach yielded results: sales volume Rita has increased and continues to grow over the past ten years.
The main characteristics of the holistic marketing concept are presented in table. 1.9.
Table 1.9
Characteristics of the Holistic Marketing Concept
|
Criterion |
a brief description of |
|
Formation conditions |
|
|
A dynamic concept based on interactivity and electronic communication between companies, consumers and all stakeholders. It integrates the exploration, creation and delivery of value with the goal of building long-lasting, mutually beneficial relationships and shared prosperity for their key participants. |
|
|
Features of the concept |
It is characterized by integrity - all elements of interaction with the consumer are considered as a system, each component of which affects the efficiency of the entire process |
|
Possibilities and conditions of use |
Economically developed markets that have passed the stage of mass marketing orientation |
|
Flaws |
High marketing costs |
|
Rita |
The experience of using holistic marketing proves that combining efforts and action of all participants in the production and distribution chain in the same direction creates the highest value for consumers.
- In the USA and a number of developed countries. In Russia, marketing began to be used only in the early 1990s. URL: marketing.web-3.ru/definitions/history/
There are five main marketing concepts on the basis of which commercial services of enterprises conduct their activities: improvement of production, improvement of goods, intensification of commercial efforts, “consumer” marketing, social and ethical marketing.
Historically, the concept of production improvement, or production, was the first to arise. It is based on the predisposition of consumers to widespread and affordable goods, which requires constant improvement of technology and production organization, increasing volumes and reducing production costs. At the same time, all attention is focused on internal production capabilities, which makes it possible to saturate the market with any product or service. This approach is quite justified when demand significantly exceeds supply or when the cost of producing a unit of goods is quite large and needs to be reduced through mass production of products. The connection between the manufacturer and the market is carried out in this case according to the scheme
The concept of production improvement was used by most enterprises of the former USSR. This was due to the fact that demand for almost all goods significantly exceeded supply and enterprises were forced to constantly increase production volumes. This approach did not always ensure that the real needs of the population were taken into account, but due to mass production it made it possible to produce relatively cheap goods. The collapse of the USSR, the transition to market relations, and the saturation of the market with “colonial” goods led to the fact that the products of many domestic manufacturers became uncompetitive, primarily due to high prices due to disruption of the mass production of individual products and their inconsistency with the requirements of the buyer.
When implementing the concept of improving production at a printing enterprise, this technique can be used. The same publication is produced in two versions: a gift edition with excellent printing and numerous illustrations, and a regular text version. Naturally, the prices of the publications will vary, but the total sales volume may significantly exceed that which would have been achieved if the publication had been produced in one version.
The concept of product improvement, or product improvement, assumes that consumers will favor products that are of the highest quality at reasonable and affordable prices.
Based on this concept, the company's efforts are primarily focused on the continuous improvement of manufactured products. The vulnerability of the concept is that it is impossible to endlessly improve the same product. Almost every need can be satisfied with a new substitute product.
The concept of product improvement was quite widely used by enterprises in the printing industry in the recent past, when the so-called “scarce market” operated and it was believed that a good book would find its reader on its own, it just had to be published.
However, even today this concept is often used when publishing translated publications. When making a decision in this case, the main thing is that this book (regardless of the subject - fiction or scientific and technical) was in great demand in other countries.
The concept of intensifying commercial efforts, or the sales concept, was a natural result of the development of production and product concepts, which, paying maximum attention to increasing production and improving the product, practically did not engage in a thorough study and formation of the market. In such conditions, sooner or later, the problem of sales will definitely become aggravated, when the enterprise tries to sell already produced goods by all means and methods available to it. Consequently, in practice, the implementation of the sales concept is essentially associated with the imposition of a purchase. Moreover, the seller strives to conclude a deal at all costs, and satisfying the needs of buyers is a secondary point for him.
The concept of "consumer" marketing, or market, is that the condition for the success of an enterprise is to identify the needs and requirements in target markets and provide the desired customer satisfaction in ways that are more effective and more productive than those of competitors. The company integrates and coordinates its activities with the expectation of ensuring the interests of customers, making a profit precisely by creating and maintaining consumer demand.
For a clearer understanding of the essence of the concept of “consumer” marketing, it is advisable to compare it with the concept of intensifying commercial efforts. The two concepts are no doubt quite similar, but marketing solves a much broader range of problems.
Commercial sales efforts are about focusing on the needs of the seller, while marketing is about focusing on the needs of the buyer. Commercial sales efforts are concerned with the seller's needs to convert his product into cash, while marketing is concerned with satisfying the customer's needs through the product and the range of factors involved in the creation, delivery and ultimately consumption of that product.
It would not be an exaggeration to say that all the latest trends in the development of public consciousness in Russia in the gradual understanding of the principles of the formation of a socially oriented market mechanism are completely consonant with the social and ethical concept of marketing, which is characterized by the following most typical and mandatory requirements.
1. The main purpose of the enterprise must be to satisfy the reasonable, healthy needs of consumers in accordance with the humane interests of society.
2. The enterprise must be constantly searching for opportunities to create new products that better satisfy the needs of customers. It must be prepared to systematically introduce improvements to products in accordance with the interests of customers.
3. An enterprise must refuse to produce and sell goods that are contrary to the interests of consumers in general, and especially if they can cause harm to the consumer and society as a whole.
4. Consumers, relying on their own actions and public opinion, should support only those enterprises that expressly show concern for satisfying the normal healthy needs of the carriers of effective demand.
5. Consumers, caring about maintaining and improving the quality of life, will not buy goods from enterprises that use environmentally “unclean” technologies, even to produce goods that society needs.
6. An enterprise must create and implement such social and economic development programs that not only serve the interests of the enterprise itself and its workforce, but are also useful for the social development of the region in which the enterprise operates.
Obviously, fulfilling these requirements is only possible if the enterprise is completely independent in economic terms, operates in a competitive market, and its management is based on humane, moral and ethical principles that allow overcoming collective egoism.
The social and ethical concept of marketing differs from the “ordinary” concept of marketing in that the goal of the first is to ensure the long-term well-being of not only an individual enterprise, but also society as a whole. Therefore, when marketing management at the enterprise level, it is necessary to take into account at least four points: the needs of the buyer (consumer); vital interests of the consumer; interests of the enterprise; interests of society.
The choice of a particular concept by an enterprise in the printing industry should be determined by the goals and objectives of its activities in the market in the coming period. It should be noted that each marketing concept has merits and can ensure success in real market conditions. Therefore, they cannot be opposed. Rather, on the contrary, to achieve success, you need to learn how to create combinations of these concepts to strengthen your position in the competition. The choice of concept is largely determined by the enterprise’s available resources (financial, labor and material).
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