Marketing Functions at different levels of Development
Rahul's Noteblog
Notes on Marketing Management
Marketing Functions at different levels of Development
What is Marketing?
Marketing is the process of transferring goods and services from the producer to the consumer.
The end consumer (ie., the market segment) is continuously in need of products in order to satisfy his/her personal demands. Marketing involves the marketing mix (ie., the four Ps) which are: product, price, promotion, place. Here, product = goods or services; price = cash value of the product; promotion = advertising the product; place = point of physical distribution of the product.
Marketing strategy is directing these four Ps toward the consumer or marketing segment. The following diagram gives an overall view of the four Ps in action. The first step in formalizing a marketing strategy is to determine the type of product to be launched. The rest of the planning is done in terms of the four Ps of marketing strategy.
Marketing Strategy:
This is followed by the process of Market Segmentation:
Market Segmentation:
Here, we zoom in and focus on the specific type of consumer (eg., children) and formulate our marketing strategy. Here are the four Ps in detail:
4Ps of Marketing Strategy:
a. Product:
Here we focus on the product and how the product is packaged. For example, if the product is a toy for children younger than 5 years old, the toy must be brightly colored and must be safe for a child to use.
b. Promotion:
Here, we identify the marketing medium to be used - magazines, internet, radio, television, etc.
c. Physical Distribution:
This focuses on the place of distribution of the product. For example, a children's toy may be sold over the internet or distributed in large departmental stores.
d. Pricing:
Product pricing is a complicated issue. The product price has to be high enough to attract the upper class, and low enough to attract the middle and lower class as potential consumers.
Marketing at different levels of development:
| Level: | Orientation: | Function: | Type of Country: |
| Subsistence | N/A | Barter Exchange of goods Central market Rare trading forms |
Underdeveloped country |
| Transition | Self-reliance | Specialized market Cottage industry Limited entrepreneurial activity Labor intensive firms |
Underdeveloped country |
| Mass production | Local market | Transitional specialized industry Separation of marketing and production Limited marketing |
Developed country |
| Commercialization | Regional, national, and international markets | Specialized production and marketing Mass production and distribution |
Developed country |
Additional Readings:
1. Functions and Elements of Growth in Marketing Management
2. Marketing Organization and Functions of a Marketing Manager
3. Functions and Essentials of New Project Planning
4. Types and Various Stages of Market Studies
5. Naming Products and Name Testing Research
6. Planning of Advertizing Budgets
7. Basic Steps of Test Market Studies
8. Trade through Selected Agencies
9. Price and Motivation of Marketing
10. Marketing Functions at different levels of Development
11. Elements of a Marketing Mix
12. Advantages and Disadvantages of Branding
13. Packaging and Sales Promotion
14. New Product Development Strategy
15. Screening a New Product
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