Core Concepts Of Marketing example essay topic

KL Travel PAPER 1: Investigate the concept and principles of marketing. The core concepts of marketing are a definition i.e. what do we actually mean by the term "marketing"? Growth i.e. how marketing has developed and the exchange process i.e. marketing conditions. Before one can implement a marketing strategy, it is important to understand the concept.

One of the earliest advocates of marketing Drucker, noted in 1954 that marketing was not a separate management function but was in fact the business as seen from the customers point of view. He argued that marketing was "the distinguishing, the unique feature of business" (Drucker, 1954). I believe that Kotler's ideas were not dissimilar, when in 1981 he argued that marketing was "The performance of business activities that direct the flow of goods and services from producers to consumers" (Kotler, 1981). My interpretation of Drucker is that he believed marketing was how the companies' product and image is perceived and what attracts consumers and makes its successful. The difference with Kotler's statement is that he believes it is the performance itself, although it could be argued that the performance has to be marketed initially in order for the customer to see it. I believe that although the attraction to a business is the marketing of it, the success of the business is the continued attraction of new customers and returning of old ones.

I think that Drucker (1954) was suggesting marketing is how the customer perceives the business. I consider that in order to attract business it is essential to portray a business in a better light than its competitors are. If the marketing is unique, it will stand out. However, for the business to be successful, the performance has to live up to the marketing in order to keep customers and attract new ones.

I interpret Kotler's (1981) explanation to be more about the performance living up to the marketing. If you look further than the definitions given above by Drucker (1954) and Kotler (1981), they both believe that marketing is about the image of the company as a whole, not the work of one department but the responsibility of everyone. The Chartered Institute of Marketing describes marketing as "The Management process for anticipating, identifying and satisfying customer needs profitably". This moves on from Drucker and Kotler to mention profit. My opinion of marketing is the need to go one stage further than the competitors, identify, meet and exceed customer needs, ensuring a larger profit, and maximum clientele. It is the desire to please the customer and surpass the competition, which is at the forefront of marketing today.

However, this has not always been the case. In the 1920's, marketing was very product orientated, with the only aim being to make a profit. The manufacturer used advertising as an instrument of persuasion. There were no scruples, only the desire to convince consumers to buy products. Campaigns used themes like self-improvement (see Appendix 1), popular culture (see Appendix 2), snob appeal (see Appendix 3) and sex appeal (see Appendix 4).

There is no problem in making your product look appealing but there were some very unscrupulous methods used which would be illegal today. In the 1950's, there was a post war boom. People began to rebuild their lives and careers, earning more money. As a result, there was more disposable income, a target for producers. Competition increased, giving rise to manufacturers improving their selling skills in order to promote their products (see Appendix 5). A lot of marketing took place on television at this time.

Nevertheless, I believe that this kind of marketing can lead to sellers misrepresenting their products in their eagerness to make a sale. As a result, customers may return unsatisfied if it is not what they really want. This is where the term delivery of value applies. Delivery of value is "selling goods that do not come back to people that do".

Both production and sales orientated marketing are inward looking, whereas marketing today is outward looking. Kotler said, "Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating genuine customer value". Philip Kotler web Accessed online 20.09. 2002.

Since the 1980's and 1990's manufacturers have been looking at what the consumers want and providing choices. It is not possible however to cater for every individual, therefore companies tend to group individuals together in the market. The market consists of actual or potential buyers and the seller offering goods or services to meet the requirements of the buyers. The product ranges are wider and the consumers have a large say in what they require. Internet advertising is beginning to grow, showing signs of following the trend of TV advertising in the 1950's, when it flourished. The third core concept of marketing is the exchange process.

An exchange is the act of obtaining goods or services by offering something in return. This exchange process takes place between buyer and seller. This is the heart of the marketing process. Henry Assael defines this process as "a dynamic process in which a seller requires payment to satisfy a buyer's need for a valued object or service". From the term payment, I consider, it implies a monetary cost whereas the glossary of marketing definitions, defines it as "all activities associated with receiving something from someone by giving something voluntarily in return. A library user gives time instead of money to borrow materials, but it is still an exchange.

Personally, I associate marketing with selling in so much as you are unlikely to get anything for free if it is worth something, other than acts of kindness. Theodore Levitt expressed it, "while selling focuses on the needs of the seller, marketing focuses on the needs of the buyer" (p 4). This statement, in my opinion, implies marketing is connected to buying and selling and therefore the exchange would involve money exchanging hands for goods or services, similar to the description of Henry Assael. I believe that in order for any business to be successful it must be marketed correctly. This also needs to be an ongoing task, as the needs of the consumer are ever changing. Today companies cannot afford to be inward looking or outward looking competitors will cease the market.

So how do these core concepts apply to the Travel and Tourism Industry, where sellers need to manipulate customers in to buying their products and services over their competitors? In the early part of the nineteenth century there were very limited or no choices available. Customers were given the holiday with the offer to buy or not. Modern Tourism evolved after the Second World War when the availability of work and paid holidays led to more disposable income.

Up until the late 1950's most holidays were taken in seaside resorts or holiday camps. As a result of aircraft being left redundant after the Second World War and advances in aircraft technology, air travel became a possibility for the masses rather than the elite. Entrepreneurs saw the opening for the first package holidays combining flights with low cost accommodation in Spain. At this time there had been no marketing at all, as no research had been done into the requirements of the customers. Consequently complaints began to appear concerning aircraft safety, hotel standards and foreign customs. Early marketers in overseas holidays were developed in order to research these areas and improve the package offered to customers, followed by changes to comply with the Trades Descriptions Act (1968).

In the latter part of the century, more and more choices were offered as research illustrated what the customers wanted. The demands for some areas exceeded the capacity and therefore the marketing of these areas became one of de marketing, to stabilise the demand. Companies also had to concentrate marketing on improving the levels of service offered to maintain their existing client base. The difference between Travel and Tourism and other high street shops, is that tourism is a perishable product. If a bed in a furniture store is not sold, it could still sell next week or next month, even if the price has to be reduced. A scheduled flight seat, however, is lost completely if not sold.

This is a major factor when marketing and considering sale prices. Staff also play an important role in the marketing of a company, as customers today expect a certain standard. In Travel and Tourism this can be difficult as several principals make-up the composite of the package holiday. In order to be successful, staff must be well trained and aware of the needs and expectations of the customer.

If this is combined with a good quality fair price package holiday, marketing the product is easier. Thank you for listening. Does anyone have any questions? (allow 5 minutes for Q & A).