Page 232 - (DK) The Business Book

230 INTRODUCTION

y definition, marketing Naturally there are dangers of the “marketing mix”—such as
is the field of management inherent in trying to predict the product or service itself, the
B devoted to selling. It is the the future using this type of places where it is sold, its price,
link between production and profit, forecasting. The marketer must and any promotional offers—can
providing the expertise for taking also be aware of changing tastes, be adjusted accordingly. Japanese
a product or service through the technology, politics, and economic camera company Konica Minolta,
most appropriate channels to find conditions, so that the business for example, uses specialized
the people most likely to buy it. can adapt quickly, avoiding what technology to monitor sales data,
To fulfil this goal, it is crucial to management scholar Theodore competitor activity, and market
become adept at understanding Levitt famously called “marketing trends in real time so that
the market. This means closely myopia.” For example, as consumers it can respond effectively.
studying the behavior and lifestyle have become increasingly reliant
of the customer so that a product on mobile phones and tablets, Marketing strategies
or service can be developed to be businesses with foresight have Arguably the product or service
irresistible in every way, from the developed mobile-commerce offered is the most critical
purpose, function, quality, and look channels and reaped the benefits. component of the marketing mix.
of it, to the speed at which it is In the quest to anticipate For most companies, each product
delivered, the places it is sold, its customer needs and wants, some or service in its product portfolio
price, and the level of customer of the most progressive companies has its own cycle of growth, and
service support offered. gather data and examine it on a can be managed to maximize profit
daily basis so that key elements by prioritizing the marketing
Knowing the customer spend. For example, for food group
That is the theory. In practice, Mars, its best-selling namesake
making your customers love you chocolate bar has been a long-
by always putting them first and standing source of profits, funding
fulfilling their needs and desires is the corporation’s expansion into
the biggest challenge of marketing. Marketing takes a day to other areas, such as ice cream
Collecting data about the purchase learn. Unfortunately it takes and pet food.
history of customers is a starting a lifetime to master. To help decisions about
point. Combined with analyzing Philip Kotler diversifying into such new markets,
any available demographic and companies can use a diagrammatic
US marketing expert (1931–)
lifestyle statistics, such data can be tool such as Ansoff’s Matrix, which
used to build a marketing model— plots existing and potential
essentially a mathematical formula products or services according
that indicates potential purchase to the risk factors involved. If a
rates for a given set of variables. business decides to develop and