MARKETING : The 

management process through which goods and services move

from concept to the customer. It includes the coordination of four elements called the 4 P's of
marketing:
(1) identification, selection and development of a product,
(2) determination of its price,
(3) selection of a distribution channel to reach the customer's place, and
(4) development and implementation of a promotional strategy.
For example, new Apple products are developed to include improved applications and systems,
are set at different prices depending on how much capability the customer desires, and are sold
in places where other Apple products are sold. In order to promote the device,
the company featured its debut at tech events and is highly advertised on the web and on
television.
Marketing is based on thinking about the business in terms of customer needs and
their satisfaction. Marketing differs from selling because (in the words of Harvard Business
School's retired professor of marketing Theodore C. Levitt) "Selling concerns itself with the
tricks and techniques of getting people to exchange their cash for your product. It is not
concerned with the values that the exchange is all about. And it does not, as marketing invariable
does, view the entire business process as consisting of a tightly integrated effort to
discover, create, arouse and satisfy customer needs." In other words, marketing has less to do
with getting customers to pay for your product as it does developing a demand for that product
and fulfilling the customer's needs.

Read more: http://www.businessdictionary.com/definition/marketing.html#ixzz3EHJmEaFB
Earlier approaches[edit]

The marketing orientation evolved from earlier orientations, namely, the production orientation, the
product orientation and the selling orientation.[2][3]

Western
Orientation Profit driver European Description
timeframe

A firm focusing on a production orientation specializes

in producing as much as possible of a given product or
service. Thus, this signifies a firm exploiting economies
Production until the of scale until the minimum efficient scale is reached. A
Production[3]
methods 1950s production orientation may be deployed when a high
demand for a product or service exists, coupled with a
good certainty that consumer tastes will not rapidly alter
(similar to the sales orientation).

A firm employing a product orientation is chiefly

concerned with the quality of its own product. A firm
[3]
Quality of the until the
Product would also assume that as long as its product was of a
product 1960s
high standard, people would buy and consume the
product.

A firm using a sales orientation focuses primarily on the

selling/promotion of a particular product, and not
determining new consumer desires as such.
Consequently, this entails simply selling an already
Selling 1950s and existing product, and using promotion techniques to
Selling[3] attain the highest sales possible.
methods 1960s

Such an orientation may suit scenarios in which a firm

holds dead stock, or otherwise sells a product that is in
high demand, with little likelihood of changes in
consumer tastes that would diminish demand.

Marketing[3] Needs and 1970s to the The 'Customer orientation' is perhaps the most
 common orientation used in contemporary marketing. It
involves a firm essentially basing its marketing plans
around the marketing concept, and thus supplying
products to suit new consumer tastes. As an example, a
firm would employ market research to gauge consumer
desires, use R&D (research and development) to
develop a product attuned to the revealed information,
and then utilize promotion techniques to ensure persons
wants of know the product exists. R&D companies often parallel
present day
customers customer orientation with R&D phases to ensure the
desired customer specifications are produced.
Customization Maximization (similar to profit
maximization in economics,) is the measurable
approach to more efficiently sustaining specific
customer needs, in effort to maximize the customization
of the product or service offered to the customer, by the
measure of data relating to responses, feedback, and
elasticity.

The holistic marketing concept looks at marketing as a

complex activity and acknowledges that everything
matters in marketing - and that a broad and integrated
perspective is necessary in developing, designing and
implementing marketing programs and activities. The
four components that characterize holistic marketing are
relationship marketing, internal marketing, integrated
Everything
marketing, and socially responsive marketing. Market
HolisticMarketing[4] matters in 21st century
segmentation and positioning have increased the
marketing
divergence of society, further segregating and
preventing a holistic population. Holistic Marketing
helps converge the segments in an approach to improve
the entire market through social responsibility and
convergence. Holistic marketing disengages the political
marketing activities of "divide and conquer", or market
segmentation.
Marketing research[edit]
Main article: Marketing research

Marketing research involves conducting research to support marketing activities, and the
statistical interpretation of data into information. This information is then used by managers to
plan marketing activities, gauge the nature of a firm's marketing environment and attain
information from suppliers. Marketing researchers use statistical methods such as quantitative
research, qualitative research, hypothesis tests, Chi-squared tests, linear
regression, correlations, frequency distributions, poisson distributions, binomial distributions,
etc. to interpret their findings and convert data into information. The marketing research process
spans a number of stages, including the definition of a problem, development of a research plan,
collection and interpretation of data and disseminating information formally in the form of a
report. The task of marketing research is to provide management with relevant, accurate, reliable,
valid, and current information.
A distinction should be made between marketing research and market research. Market research
pertains to research in a given market. As an example, a firm may conduct research in a target
market, after selecting a suitable market segment. In contrast, marketing research relates to all
research conducted within marketing. Thus, market research is a subset of marketing research.
Marketing environment[edit]
Main article: Marketing environment

Staying ahead of the consumer is an important part of a marketer's job. It is important to

understand the "marketing environment" in order to comprehend the consumers concerns,
motivations and to adjust the product according to the consumers needs. Marketers use the
process of marketing environmental scans, which continually acquires information on events
occurring outside the organization to identify trends, opportunities and threats to a business. The
six key elements of a marketing scan are the demographic forces, socio-cultural
forces, economic forces, regulatory forces, competitive forces, and technological forces.
Marketers must look at where the threats and opportunities stem from in the world around the
consumer to maintain a productive and profitable business.[11]
The market environment is a marketing term and refers to factors and forces that affect a firm's
ability to build and maintain successful relationships with customers. Three levels of the
environment are: Micro (internal) environment - forces within the company that affect its ability
to serve its customers. Meso environment – the industry in which a company operates and the
industry's market(s). Macro (national) environment - larger societal forces that affect the
microenvironment.[12]
Product (business)
From Wikipedia, the free encyclopedia

In marketing, a product is anything that can be offered to a market that might satisfy a want or
need.[1] In retailing, products are called merchandise. In manufacturing, products are bought
as raw materials and sold asfinished goods. Commodities are usually raw materials such as
metals and agricultural products, but a commodity can also be anything widely available in the
open market. In project management, products are the formal definition of the project
deliverables that make up or contribute to delivering the objectives of the project. In insurance,
the policies are considered products offered for sale by the insurance company that created the
contract.
In economics and commerce, products belong to a broader category of goods. The economic
meaning of product was first used by political economist Adam Smith.
A related concept is subproduct, a secondary but useful result of a production process.
Dangerous products, particularly physical ones, that cause injuries to consumers or bystanders
may be subject to product liability. Sometimes revered to a thing.

Product classification[edit]

A product can be classified as tangible or intangible. A tangible product is a physical object that

can be perceived by touch such as a building, vehicle, gadget, or clothing. An intangible product
is a product that can only be perceived indirectly such as an insurance policy.
Intangible Data Products can further be classified into Virtual Digital Goods ("VDG") that are
virtually located on a computer OS and accessible to users as conventional file types, such as
JPG and MP3 files, without requiring further application process or transformational work by
programmers, and as such the use may be subject to license and/or rights of digital transfer, and
Real Digital Goods ("RDG") that may exist within the presentational elements of a data program
independent of a conventional file type, commonly viewed as 3-D objects or a presentational
item subject to user control or virtual transfer within the same visual media program platform.
Open Source Code, GNU Linux, or even Android, may manipulate and/or convert base Virtual
Digital Goods ("VDG") into process-oriented Real Digital Goods ("RDG"), as part of an
application process or manufactured service that may be viewed on Personal Data Assistant
("PDA") or other hand-held tangible devices or OS computer.
A third type in this is services. Services can be broadly classified under intangible products
which can be durable or non durable.Services need high quality control, precision and
adaptability. The main factor about services as a type of product is that it will not be uniform and
will vary according to who is performing, where it is performed and on whom/what it is being
performed.
By use[edit]
In its online product catalog, retailer Sears, Roebuck and Company divides its products into
"departments", then presents products to potential shoppers according to (1) function or (2)
brand.[2] Each product has a Sears item-number and a manufacturer's model-number. Sears uses
the departments and product groupings with the intention of helping customers browse products
by function or brand within a traditional department-storestructure.[3]
By association[edit]
A product line is "a group of products that are closely related, either because they function in a
similar manner, are sold to the same customer groups, are marketed through the same types of
outlets, or fall within given price ranges."[4] Many businesses offer a range of product lines which
may be unique to a single organization or may be common across the business's industry. In
2002 the US Census compiled revenue figures for the finance and insurance industry by various
product lines such as "accident, health and medical insurance premiums" and "income from
secured consumer loans".[5] Within the insurance industry, product lines are indicated by the type
of risk coverage, such as auto insurance, commercial insurance and life insurance.[6]
National and international product classifications[edit]
Various classification systems for products have been developed for economic statistical
purposes. The NAFTA signatories are working on a system that classifies products called
NAPCS as a companion to North American Industry Classification System (NAICS).[7] The
European Union uses a "Classification of Products by Activity" among other product
classifications.[8] The United Nations also classifies products for international economic activity
reporting.[9]
The Aspinwall Classification System [10][11] classifies and rates products based on five variables:

1. Replacement rate (How frequently is the product repurchased?)

2. Gross margin (How much profit is obtained from each product?)

3. Buyer goal adjustment (How flexible are the buyers' purchasing habits with regard to this
product?)

4. Duration of product satisfaction (How long will the product produce benefits for the
user?)

5. Duration of buyer search behavior (How long will consumers shop for the product?)

The National Institute of Governmental Purchasing (NIGP)[12] developed a commodity and

services classification system for use by state and local governments, the NIGP Code.[13] The
NIGP Code is used by 33 states within the United States as well as thousands of cities, counties
and political subdivisions. The NIGP Code is a hierarchical schema consisting of a 3 digit class,
5 digit class-item, 7 digit class-item-group and an 11 digit class-item-group-detail.
[14]
 Applications of the NIGP Code include vendor registration, inventory item identification,
contract item management, spend analysis and strategic sourcing.

Product Model[edit]

A manufacturer usually provides an identifier for each particular type of product they make,
known as a model, model variant, or model number. For example, Dyson Ltd, a manufacturer
of appliances (mainly vacuum cleaners), requires customers to identify their model in the support
section of the website.[15] Brand and model can be used together to identify products in the
market. The model number is not necessarily the same as the manufacturer part number (MPN).
[16]

Because of the huge amount of similar products in the automotive industry, there is a special
kind of defining a car with options (marks, attributes), that represent the characteristics features
of the vehicle. A model of a car is defined by some basic options like body, engine, gear box and
axles. The variants of a model are built by some additional options like color, seats, wheels,
mirrors, trims, entertainment and assistant systems etc. Options, that exclude each other
(pairwise) build an option-family. That means, that you can choose only one option by each
family and you have to choose exactly one option. This kind of product definition fulfill the
requirements of an ideal Boolean Algebra and can be helpful to construct a product configurator.
[17]
 Sometimes, a set of options (car features) are combined to an automotive package and are
offered by a lower price. A consistent car definition is essential for the production planning and
control in the automotive industry, to generate a master production schedule,[18] which is the
fundamental for the enterprise resource planning.
In addition, a specific unit of a product is usually (and has to be) identified by a serial number,
which is necessary to distinguish products with the same product definition. In the case of
automotive products it's called the Vehicle Identification Number VIN, an international
standardized format.

Literature[edit]

 Herlyn, W.: PPS im Automobilbau - Produktionsprogrammplanung und -steuerung von

Fahrzeugen und Aggregaten. Hanser Verlag, München, 2012 - ISBN 978-3-446-41370-2
http://www.netmba.com/marketing/market/definition/

Market segmentation[edit]
Main article: Market segmentation
Market segmentation pertains to the division of a market of consumers into persons with similar
needs and wants. For instance, Kellogg's cereals, Frosties are marketed to children. Crunchy Nut
Cornflakes are marketed to adults. Both goods denote two products which are marketed to two
distinct groups of persons, both with similar needs, traits, and wants. In another example, Sun
Microsystems can use market segmentation to classify its clients according to their promptness
to adopt new products.[13]
Market segmentation allows for a better allocation of a firm's finite resources. A firm only
possesses a certain amount of resources. Accordingly, it must make choices (and incur the
related costs) in servicing specific groups of consumers. In this way, the diversified tastes of
contemporary Western consumers can be served better. With growing diversity in the tastes of
modern consumers, firms are taking note of the benefit of servicing a multiplicity of new
markets.
Market segmentation can be viewed as a key dynamic in interpreting and executing a logical
perspective of Strategic Marketing Planning. The manifestation of this process is considered by
many traditional thinkers to include the following;Segmenting, Targeting and Positioning.[14]
Types of market research[edit]
Market research, as a sub-set aspect of marketing activities, can be divided into the following
parts:


Primary research (also known as field research), which involves the conduction and
compilation of research for a specific purpose.[15]

Secondary research (also referred to as desk research), initially conducted for one
purpose, but often used to support another purpose or end goal.

By these definitions, an example of primary research would be market research conducted into
health foods, which is used solely to ascertain the needs/wants of the target market for health
foods. Secondary research in this case would be research pertaining to health foods, but used by
a firm wishing to develop an unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to information.
Nevertheless, while secondary research is relatively inexpensive, it often can become outdated
and outmoded, given that it is used for a purpose other than the one for which it was intended.
Primary research can also be broken down into quantitative research and qualitative research,
which, as the terms suggest, pertain to numerical and non-numerical research methods and
techniques, respectively. The appropriateness of each mode of research depends on whether data
can be quantified (quantitative research), or whether subjective, non-numeric or abstract
concepts are required to be studied (qualitative research).
There also exist additional modes of marketing research, which are:

 Exploratory research, pertaining to research that investigates an assumption.

 Descriptive research, which, as the term suggests, describes "what is".

 Predictive research, meaning research conducted to predict a future occurrence.

 Conclusive research, for the purpose of deriving a conclusion via a research process.
Marketing vs. Advertising: What's the Difference?

You will often find that many people confuse marketing with advertising or vice versa. While
both components are important they are very different. Knowing the difference and doing your
market research can put your company on the path to substantial growth.

Let's start off by reviewing the formal definitions of each and then I'll go into the explanation of
how marketing and advertising differ from one another:

Advertising: The paid, public, non-personal announcement of a persuasive message by an

identified sponsor; the non-personal presentation or promotion by a firm of its products to its
existing and potential customers.

Marketing: The systematic planning, implementation and control of a mix of business activities

intended to bring together buyers and sellers for the mutually advantageous exchange or transfer
of products.
After reading both of the definitions it is easy to understand how the difference can be confusing
to the point that people think of them as one-in-the same, so lets break it down a bit.

Advertising is a single component of the marketing process. It's the part that involves getting the
word out concerning your business, product, or the services you are offering. It involves the
process of developing strategies such as ad placement, frequency, etc. Advertising includes the
placement of an ad in such mediums as newspapers, direct mail, billboards, television, radio, and
of course the Internet. Advertising is the largest expense of most marketing plans, with public
relations following in a close second and market research not falling far behind.

The best way to distinguish between advertising and marketing is to think of marketing as a pie,
inside that pie you have slices of advertising, market research, media planning, public relations,
product pricing, distribution, customer support, sales strategy, and community involvement.
Advertising only equals one piece of the pie in the strategy. All of these elements must not only
work independently but they also must work together towards the bigger goal. Marketing is a
process that takes time and can involve hours of research for a marketing plan to be effective.
Think of marketing as everything that an organization does to facilitate an exchange between
company and consumer.
http://marketing.about.com/cs/advertising/a/marketvsad.htm
Advertising
From Wikipedia, the free encyclopedia

"Advertiser" redirects here. For other uses, see Advertiser (disambiguation).

"Adverts" redirects here. For the English punks band, see The Adverts.

For advertising in Wikipedia articles, see Wikipedia:Spam. For proposal on advertising about

Wikipedia, see Wikipedia:Advertisements.

Advertising in business[clarification needed] is a form of marketing communication used to encourage,

persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to
take or continue to take some action. Most commonly, the desired result is to drive consumer
behavior with respect to a commercial offering, although political and ideological advertising is also
common. This type of work belongs to a category called affective labor.
In Latin, ad vertere means "to turn toward".[1] The purpose of advertising may also be to reassure
employees or shareholders that a company is viable or successful. Advertising messages are
usually paid for by sponsors and viewed via various old media; including mass media such as
newspaper, magazines, television advertisement, radio advertisement, outdoor advertising or direct
mail; or new media such as blogs, websites or text messages.
Commercial advertisers often seek to generate increased consumption of
their products or services through "branding", which involves associating a product name or image
with certain qualities in the minds of consumers. Non-commercial advertisers who spend money to
advertise items other than a consumer product or service include political parties, interest groups,
religious organizations and governmental agencies. Nonprofit organizations may rely on free modes
of persuasion, such as a public service announcement (PSA).
Modern advertising was created with the innovative techniques introduced with tobacco
advertising in the 1920s, most significantly with the campaigns of Edward Bernays, which is often
considered the founder of modern, Madison Avenue advertising.[2][3][4]
In 2010, spending on advertising was estimated at $143 billion in the United States and $467 billion
worldwide[5]
Internationally, the largest ("big four") advertising conglomerates are Interpublic, Omnicom, Publicis,
and WPP.[6]