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Selling vs Marketing

SELLING

1 Emphasis is on the product2 Company Manufactures the product first

3 Management is sales volume oriented

4 Planning is short-run-oriented in terms of todays products and markets5 Stresses needs of seller

6 Views business as a good producing process

7 Emphasis on staying with existing technology and reducing costs8 Different departments work as in a highly separate water tight compartments

9 Cost determines Price

10 Selling views customer as a last link in business

MARKETING

1 Emphasis on consumer needs wants

2 Company first determines customers needs and wants and then decides out how to deliver a

product to satisfy these wants3 Management is profit oriented4 Planning is long-run-oriented in todays products and terms of new products, tomorrows

markets and future growth

5 Stresses needs and wants of buyers6 Views business as consumer producing process satisfying process

7 Emphasis on innovation on every existing technology and reducing every sphere, on

providing better costs value to the customer by adopting a superior technology8 All departments of the business integrated manner, the sole purpose being generation ofconsumer satisfaction

9. Consumer determine price, price determines cost

10. Marketing views the customer last link in business as the very purpose of the business

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Marketing Plan:-(This is the Implementation)

A clear marketing plan is a blueprint that lays out the stepsa company must take in order to achieve itsmarketinggoals.

A marketing plan details what you will do to make the

strategy happen.It usually goes further than the strategy, including detailsuch as budgets and atimetable for implementation.Your marketing strategy may serve you well for a numberof years but thedetails, such as budgets for marketingactivities, of the marketing plan mayneed to be updated

every year.Your Marketing Strategy must :-Define your customer needsDefine the services you offerEstablish the size of your market

Establish your position in the marketin relation to your competitorsSet objectives and realistic time scalesIdentify how these objectives will be achieved

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Niche marketing can be defined as:

Where a business targets a smaller segment of a larger market, where customers have

specific needs and wants

Targeting a product or service at a niche segment has several advantages for a business(particularly a small business):

Less competition the firm is a big fish in a small pond Clear focus - target particular customers (often easier to find and reach too)

Builds up specialist skill and knowledge = market expertise

Can often charge a higher price customers are prepared to pay for expertise

Profit margins often higher Customers tend to be more loyal

The main disadvantages of marketing to a niche include:

Lack of economies of scale (these are lower unit costs that arise from operating at highproduction volumes)

Risk of over dependence on a single product or market

Likely to attract competition if successful Vulnerable to market changes all eggs in one basket

By contrast, mass marketing can be defined as:

Where a business sells into the largest part of the market, where there are many similar

products on offer

The key features of a mass market are as follows:

Customers form the majority in the market

Customer needs and wants are more general & less specific Associated with higher production output and capacity (economies of scale)

Success usually associated with low-cost operation, heavy promotion, widespread distribution

or market leading brands

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MARKETING SERVICES AND PRODUCT

5 differences between products and services

1. Products go to the customers through distribution channels. Customers come to theservice locations to avail them.

2. Customers like their products to be standardized. Customers like services to becustomized to their needs.

3. The quality that expect from a product is mostly embedded in the product itself at thetime of its manufacture and depends in turn on the quality of the materials used and thesetting of the machines. Both materials and machines, being inanimate, can bestandardized. On the other hand the quality that people expect from a service is quitedifferent : customization and variation is appreciated in service and this depends a lot onthe experience, skill and motivation of the service-giver on the spot.

4. The products are tangible and can be inspected / sampled before buying. Service on theother hand is experiential and sometimes based on a belief.

5. The product business is expanded by expanding the market reach and access to morecustomers. In services the constraint in increasing the business is also in creating goodservice providers through recruitment, induction, training and motivation.