Functions and Environment of Marketing
Functions and Environment of Marketing
The term marketing derives from the Anglo-Saxon verb market, meaning to conduct.
some market transactions, namely buying and selling. Strictly regarding etymology, marketing would
define the act, the process of exchanges in the market space.
Starting from the reality that marketing represents a direct, efficient way of thinking and acting in
In the business world, there has been a strong focus on defining its mission and role, reflected through
the tasks and functions that are to be fulfilled. Thus, the role attributed to marketing through itself
the essence to take the form of the following general, common functions:
a) market research, consumer needs. This function makes necessary and possible
the obtaining by any enterprise of information regarding current or future markets
potential, to the overall consumption needs, to their motivation, to behavior
the consumer etc
b) The dynamic connection of the enterprise to the socio-economic environment. This function
reflects the relationship between the enterprise and the surrounding environment and accordingly, the whole
the activity of the enterprise must be reported, permanently connected, operationally, to the physiognomy and
the requirements of the environment are constantly changing.
d) Maximizing economic efficiency (of profit). This function defines the goal
the entrepreneur's activity in the market economy. Marketing supports organizations in
reaching their goal, encouraging entrepreneurs to get involved in the process of
estimation of the profitability of various market opportunities.
Through its theoretical-methodological content and area of application, marketing fits into the family
of economic sciences, as a natural result of their existence and development. Multidisciplinarity
marketing refers particularly to the instrumental or working level and the scientific level of
This field is in a continuous improvement. It is evident that marketing is in a continuous process of
evolution, becoming in the contemporary context of increasing complexity of business operations, an imperative
for entrepreneurs.
Chapter II
Against the backdrop of economic and social dynamism, the relationships between have evolved increasingly pronounced.
businesses and at the same time marketing theories. The area of promotion has expanded or increased.
the number of enterprises or developed service enterprises, a promotion took place
extensive but also an intensive one respectively the transition from a limited vision to a vision
integrators. The emergence of marketing is attributed to this century.
The MK specialization has occurred due to the development of the use of techniques and procedures.
MK, the differentiation of the fields of application of MK.
The marketing environment refers to the totality of factors and forces that escape
immediate control of the company and which influences the maintenance or development of the relationship
sales with profitable clients. Depending on the nature of the action of these factors and forces, two are distinguished
groups of components: the macroenvironment and the microenvironment of the firm.
This represents the set of variables, factors, and forces that are uncontrollable by the firm.
and which together constitute the general climate in which this activity takes place.
Socio-cultural environment:
Demographic environment: it is represented by the population and its structures. Through analysis
The trends in the population structure allow for the anticipation of consumer behavior.
on a certain market, as far as the large number of needs and desires of those
individuals are expressed by demographic traits such as: age, sex, status
civil, occupation, residence.
The final consumer environment: A consequence of changes in the geographical and in the
the cultural change in the attitudes and lifestyle of consumers. They have
It began to claim a wide diversity of products and, not least, small gifts.
from the stores they usually frequent.
The economic environment: conditions the total amount of money available in the market. It
represents the support for the purchasing power of clients, whether they are economic agents or
individual consumers.
Natural-technological environment:
Microenvironment of marketing
The micromedia of marketing includes those internal factors and external forces that
directly influences the company's activity and on which a
specific control. It consists of the external environment of the company (the company itself and its nature)
the external microenvironment of this (customers, competitors, suppliers, intermediaries,
organisms bearing interests
The external microenvironment of the company is made up of those factors and forces that
and the direct incident with the company's capacity to meet the needs and
consumer preferences.
Clients: The most important strength of a business is the continuous relationship with
the client. A great mistake would be made if those who sell would focus more.
they focus more on what they want to sell, rather than on what customers want
to buy.
Suppliers: Delivery from other companies of the required raw materials, materials, energy,
technological equipment, workforce, financial resources, and information are provided by
to manufacturers and service providers who are called suppliers. Since suppliers
provides the things that companies need to run their own business, they
it must also take into account the risk coefficient it assumes in relation to each
supplier. Under certain circumstances, companies can be vulnerable to the power of suppliers.
Chapter IV
According to the sphere of confrontation between demand and supply, the company's market expresses the relationships that
There is a formation between the own offer, composed of one or more products (services) and the demand.
for this.
The market marketing approach uses a variety of criteria and instruments to establish it.
the concrete content and its main dimensions. In such an approach, more must be done
first distinction between the effective market and the potential market. In the first case, it is about
the market dimensions reached at a certain moment, respectively the actual market transactions
unfolded; it illustrates the extent to which the confrontation between demand and supply took place and which has
formalized in sales-purchase contracts. The potential market expresses the possible dimensions of
markets, the widest limits within which the confrontation of demand will take place.
offer; the potential market is realized with a certain probability, depending on the ratio in which
the formative factors will be identified at that time.
It should be noted the structure of the global market - within which the enterprise market occupies a
certain places have a uniquely complex character. Regardless of the complexity of its structure
the market represents a unified whole; although seemingly isolated and independent, the segments of
the market is nothing but interdependent parts of an organic whole
The market capacity can be expressed through several indicators, both in value terms.
both in physics.
The volume of the offer is an indicator typically used for situations where demand
it is greater than the supply, the number of suppliers operating in the market is narrower,
publications provide comprehensive information on production, etc.
The volume of requests expresses in a more appropriate way the effective capacity of the market;
It is indicated in all cases where the enterprise seeks to size its activity.
in relation to demand, the supply being higher than the demand.
Competition is an exceptionally important phenomenon for economic life, but also for social life.
because it represents the driving force that motivates both businesses and the existence of people.
The two main types of competition existing in classical literature are: perfect competition and competition
imperfect. Perfect competition occurs when the following conditions are simultaneously met:
perfect market transparency – assumes that the decisions of economic agents are made under conditions of
perfect information, the information being related to the quality and nature of the products and the price.
the perfect mobility of production factors - which means there are no technical, economic, or legal limits
in the path of their free and natural orientation towards the fields where they are used with the highest efficiency.
Real markets, effective ones, those found in competitive market economies are characteristic of them.
imperfect competition. imperfect competition presents the following forms: monopolistic competition, oligopoly,
monopoly, oligopsony, monopsony.
Monopoly is characterized by the existence of a single producer of a homogeneous good who faces a
infinite number of buyers existing in the market.
Monopolistic competition is one of the most widespread forms of imperfect competition, considering that...
if it succeeds in combining the attributes of monopoly, such as market power, with the attributes of competition
perfect and namely, the non-existence of superprofits.
Oligopoly is characterized by the existence of a small number of firms that produce similar goods or
differentiate, between them agreements can be established regarding price fixation.
CHAPTER VI
The conjuncture represents, ultimately, the market at a given moment or, in other words,
the conjuncture represents the expression of the different forms that the market takes in its evolution under
the action of the different components of the environment. It can also be said that the economic state
privacy within a certain period as an effect of the interaction between the elements
constitutive economic conjuncture..
The evolution of the situation over a certain period of time is the result of the joint action of factors.
This influences the market. Grouping the factors proves to be particularly useful in the analysis of the conjuncture.
markets based on their intensity and action over time. According to this criterion, they differ
the following categories of factors:
of duration
of cyclic action
seasonal factors
adventurer
MARKET STRATEGY
The formulation of the market strategy is the central point of marketing programming.
Market strategy is a key component of the overall strategy of the enterprise, and
the correct selection by the enterprise of the segments towards which it focuses its efforts
of marketing, to whom it addresses with the right product, which it offers in the most suitable place, at the price
suitable and accompanied by a corresponding promotion, aiming to achieve its objectives for a
certain period.
Choosing a market strategy represents the result of selecting an option from within a broader set.
many variations, as a result of careful research of both the environment in which the enterprise operates
the activity, as well as its human, material, and financial resources. From this point of view, it follows that
The strategy of a business is influenced by the following factors:
- exogenous factors - that act on the enterprise in the form of environmental forces,
- endogenous factors - which bring together the internal forces of the enterprise.
MARKETING MIX
The promotion of the company's marketing policy involves initiating a series of practical actions.
and at the same time training efforts to achieve them. These practical actions are
operate as a coherent ensemble represented by the marketing mix. The mix of
marketing is a continuation of the market strategy, the enterprise after defining the objectives
strategies must develop detailed strategies regarding price, product, distribution and
communicate, these strategies being derived from the market strategy. Marketing mix
assumes the orientation of the company's marketing based on internal resources and conditions
the market, by combining into a coherent whole, in the form of programs, the elements
product, price, distribution, and communication policies.
- pricedefining the catalog price, level and structure, discounts, facilities, payment period,
lending conditions
PRODUCT POLICY
At the level of the global marketing policy of the enterprise, the product, respectively the policy
the product represents a central element. Once the product is defined, it appears
the necessity of appropriately defining the markets in which it will operate, otherwise
Next, the product-market pair is defined. Alongside the product and
on the market, the price represents, in practical activity, a third element that
supports the entire organization process - from a commercial perspective - of
enterprise.
• tangible, which can be perceived physically, directly measurable, such as: dimensions,
shape, color, weight, etc.
psychological, resulting from the satisfaction of possession or use, that correspond to needs
humane
those that contribute to achieving the estimated utility of the product and that satisfy it
on consumer
the "unwanted" products are generally unknown products that, even then
when they become known to the consumer, he does not express his intention to do so
acquire
From the perspective of strategies that adapt to the specific life cycle of each product, there
generally differentiates the following situations:
product innovation;
comparative advertising;
extensive distribution;
Product development
At this stage, prototypes or small quantities are obtained, laboratory tests are conducted, and other
technical assessments etc. Product development involves analysis:
potential clients;
• estimated costs and prices;
Product testing
Product launch
The market launch of the product represents the final stage of the development process.
the new product, a stage that actually crowns the efforts made by
enterprise in the previous stages. This stage involves the realization of a
adequate environments for the effective launch of the product, informing
the public regarding the new product, facilitating the product's entry into the market.
Brand
Summary
Product. A set of attributes or characteristics, tangible and intangible, that appear under a
easily recognizable form that the buyer accepts as satisfying their needs
goods or services.
The physical components of the product. It refers to the specific technical and physical properties.
of a product (weight, volume, lifespan, etc.).
•The corporate components of the product. They include elements that do not have a material structure.
direct: brand and name, instructions for use, price, services that accompany the product
(installation, warranty period, service, etc.).
• Communications regarding the product. Include all information transmitted to the buyer
potential: merchandising actions, point-of-sale promotion, advertising etc., with the aim of
facilitates the presentation of the product and encourages the purchasing decision.
• The product image. An immaterial, symbolic attribute that shows how the product represents it.
as a consumer, as well as the way in which they wish to be perceived by those around them.
• The generic product (basic). It actually represents the essence of the product and includes the main
advantages that the buyer identifies, in the form of personal needs that will be
satisfied with the respective product.
• The tangible product. It includes, in addition to the generic product: features, brand, style,
quality and packaging.
• The amplitude of the range. Measures the number of product lines being sold.
• Depth of range. Indicates the number of references (models or versions) that are offered through
the intermediary of each product line.
• The length of the range. It measures the total number of products that can be marketed, achieving as
the result of multiplying the amplitude of the range by the reference number of each.
• The product life cycle. A process that unfolds over time, starting with the launch and
reaching up to the product's exit from the market.
• New product. The product that, through its characteristics, differs from the products available on
market.
Brand. The distinctive sign used by businesses to individualize and identify products.
the works and services of theirs that are identical or similar to those of other enterprises.
• Product strategy. The company's options regarding dimensions, structure, and dynamics
products that it produces or sells.
PRICE POLICY
The company's pricing policy can be fully utilized for the benefit of the company.
only under the conditions that it benefits from a prospective vision of evolution
target market, just as is the case with the other components of the mix of
marketing. In other words, even if it does not represent a variable entirely.
controllable, the price can still be the subject of a strategic orientation. Pricing policy
is closely connected to the market strategy and the other components of
marketing mix (product, distribution, and promotion policy).
PRICE STRATEGIES
The level and structure of the prices of the products offered by the enterprise represent the manner of expression
the conditions within the company (in other words, its potential) and the situation from
market level. The price formation mechanism experiences a wide variety of particular situations in
function of a whole series of economic factors. These generally reflect the specificity of each
economies, nature and intensity of competition among suppliers, degree of state involvement in
the market mechanism, and the needs of potential consumers (their number, degree of concentration and
organization, purchasing power, etc.
The enterprise can orient itself in setting the price level for its own products,
after: costs, demand (the value perceived by the consumer) and competition.
The orientation based on the cost of the price seems to be the most rational. It starts from the premise that the price
it must cover the costs completely and allow for a net profit.
The main criteria underlying the differentiation of pricing strategy variants are: the level,
diversity and mobility.
The price level, which often determines the penetration of products into consumption, can
it is considered the dominant criterion for choosing strategic options. Any mention of price concerns
First of all, its level and only then other characteristics of it or of
the corresponding product. The strategic options corresponding to this criterion are:
High price strategy. Among the main types of high prices that
the enterprise can utilize include: the prices for capitalizing on market advantage (or
skimming prices, brand prices, protective prices (umbrella
prices) or prices for exceptional performances (premium prices).
Moderate pricing strategy as the main form of price manifestation
psychological ("bait" or "magic").
The low price strategy allows for the use of various types of prices, such as prices
promotional prices, keep-out prices, prices of
penetration into a new market (penetration prices) etc.
Some authors structure the distribution process into three components more
more comprehensive than those mentioned above:
the chain of operational processes that the goods go through on their way from
producer to user (consumer).
The distribution channel represents an organized network of agents and institutions that
conduct activities aimed at linking producers and consumers or with
other words the journey of the product from the place of its obtaining to the place where it is
consume.
promotion policy
The communication policy includes all internal and external measures of the company that
acts on the knowledge, concepts, and attitudes of market participants towards
the performance of the enterprise.
The communication process can be built with the help of the following elements:
source (a person, a group, or an organization that wishes to convey a message to another person
or a group of people);
the message (the collection of words, images, and symbols transmitted by the source and intended for
the receptor)
coding (the transformation of the message by the source in a way that symbolically expresses the idea
on the concept that aims to reach the buyer)
the communication channel (the means by which the encoded message is supposed to reach the receiver - newspaper,
magazine, television, radio, street billboard, etc.
decoding (the interpretation by the receiver of the symbols transmitted by the source);
-the receptor (the one to whom the message is addressed and who may not coincide with the intended receptor)
source);
the response (the receptor's reactions after exposure to the message, respectively the consumer buys)
the product, changes its attitude towards it or stops buying it;
the noise or disturbances (interferences that can lead to an incorrect perception of the message).
The mechanism of promotional communication begins with the evaluation of the relevant internal and external situation.
from the perspective of the promotion policy, a SWOT analysis that sets the benchmarks
for promotional actions.
MARKETING PLANNING
The strategic plan defines the mission and the general objectives of the company. In each
The company, marketing helps to achieve overall strategic objectives. The role and
The marketing activities within an organization are shown in the figure below, which
summarize the marketing process in its entirety and the forces that influence strategies
of the company's marketing.
Target consumers are at the center. The goal is to build strong connections and
profitable with these consumers. The company first identifies the total market, then divides it
in smaller segments, select the most promising segments and
focuses on serving and satisfying them. It designates the mix of
Marketing care includes the product, price, distribution, and promotion. To find the one
I will develop the appropriate marketing mix and put it into action, the company is committed to
analysis activities, marketing, planning, implementation, and control. Through these
activităţi, compania se adaptează actorilor şi forţelor din mediul de marketing.
Organizing the marketing effort
The company wants to create and implement the marketing mix that will achieve the most
align the objectives in the target markets. Organizing the marketing effort includes four functions: analysis,
planning, implementation, and control.
Marketing analysis. It starts with a comprehensive analysis of the company's situation. It is required
analyze the markets and the marketing environment to find attractive opportunities and to
avoid environmental threats. The strengths and weaknesses of the company must be analyzed as
possible marketing actions to determine the best possibilities.
Marketing planning. Marketing planning involves decisions about strategies.
marketing that will help the company and its overall strategic objectives. A detailed plan of
Marketing is necessary for every business, product, or brand.
A marketing strategy is the marketing logic through which a company hopes
to achieve their marketing objectives.
MARKETING PLAN
The marketing plan is the step-by-step guide on the path to business success. It constitutes
the means of implementing the chosen marketing strategy. It must be based on understanding
clear marketing objectives of the company, what the business aims to achieve
future. Such a plan helps you identify the specific actions of the marketing activity, to them
organize and coordinate them. Developing this plan requires you to assess what is happening on
market and what impact it has on the company's activity. The marketing plan is a document
written in which the direction the company will take is presented, the concrete activities that will give
the chosen direction, as well as the arguments on the basis of which this direction was opted for.
Clarifying and noting what exactly you want to achieve. This stage gives you some ideas on which
to reflect and questions to answer to allow you to clarify and specify the result
dorit.
b Evaluation of the desired result. In this phase, the importance of identifying profit will be highlighted.
turnover, elements with an important role in terms of approving the plan or obtaining
funding;
c Identification of the consequences that the marketing plan will have;
Establishing the target market;
The marketing plan is designed by the marketing department, using information from the others.
departments, oriented according to the specific objectives of the company and its mission, and includes the following
secţiuni: rezumatul, zona de activitate şi descrierea pieţei, auditul de marketing, concurenţa, analiza SWOT,
marketing objectives, marketing strategies, marketing program, marketing budget
the implementation of the marketing plan, its control and adaptation, as well as the annexes.
SWOT ANALYSIS
Analiza SWOT (acronim compus din (S) „strenghts” – puncte tari, (W) „weaknesses” –
weak points, (O) "opportunities" - opportunities and (T) "threats" - threats) aims to
highlight aspects related to the internal environment of the company and the external environment in which it operates
the activity.
The analysis of the internal environment reveals the company's strengths (advantages it possesses in
report with other companies in the sector or in the environment in which they operate) and the weaknesses (disadvantages that result
in comparison with the competition). The analysis of the external environment will provide information about opportunities (those
elements that can represent a positive influence on the company's activity) and about threats or risks
(those elements of the environment that can negatively influence activity). In this way, you will be able to try
maximizing your strengths, overcoming your weaknesses, taking advantage of
the favorable opportunities and to defend yourself against possible risks.
SWOT analysis answers the questions that will allow you to decide whether the company really and
your products will be able to fulfill the plan and also, what will be
the limitations within this process.
The strengths generated by the employed staff include the skills and experience of the employees.
cooperative working environment, staff training program, etc.
lack of flexibility;
some basic equipment used have a high degree of wear and require frequent current repairs
expensive;
used moral tools;
the low level of digitization of society;
the high degree of wear of the means of transport;
the use of special equipment in the manufacturing of products with a longer warranty period, thus
as part of the competition;
the absence of previous business relationships (for new businesses);
low level of sales;
the commercialization of less sought-after brands;