A Basis for Classification
Marketing is an individualized and highly creative process. Despite the availability of high-powered computers and sophisticated software capable of analyzing massive amounts of data, marketing is still more of an art rather than a science.
Each business must customize its marketing efforts in response to its environment and the exchange process. Consequently, no two marketing strategies are exactly the same.
This requirement of marketing to play slightly different roles, depending upon some set of situational criteria, has in turn provided the division of marketing into a number of different categories.
This is not to imply, however, that there are not general marketing principles that work in most businesses - there are. There is a right and wrong way to design a package. There are certain advertising strategies that tend to work more often than others.
Rather, it is being said that because of certain factors, a business's approach toward marketing and the ensuing strategy will require some modification from the basic plan.
A brief description of the approaches that affect marketing campaigns of different types of businesses is provided.
The approach to macromarketing is affected by the emphasis of study. Perspective and the receiver of consequences are factors that affect the approach to micromarketing.
Goods and service marketing are both affected by tangibility, standardization, storage, production and involvement.
Concerns for profits drive for-profit marketing. Nonprofit marketing is affected by tax status.
Factors such as the nature of product information and the process for purchasing and delivery affect mass marketing, direct marketing and Internet marketing.
Local marketing, regional marketing, national marketing, international marketing and global marketing are all affected by factors such as the proximity of customers, the geographic area, the extent of distribution and the variation commitment to different countries.
Consumer goods marketing is affected by the nature of the consumer. Business-to-business marketing is affected by the product function.
Macromarketing versus Micromarketing
The division of marketing into macromarketing and micromarketing is a fairly recent one. Initially, the division was a result of the controversy concerning the responsibility of marketing. Should marketing be limited to the success of the individual firm, or should marketing consider the economic welfare of a whole society? Accepting the later, or "macro", point of view dramatically changes the way marketing is carried out. In this light, every marketing decision must be evaluated with regard to how it might positively or negatively affect each person and institution operating in that society
In 1982, Bunt and Burnett surveyed the academic community in order to define more precisely the distinction between macro- and mircomarketing. Their findings suggest that the separation depends upon "what is being studied", "whether it is being viewed from the perspective of society or the firm", and "who receives the consequences of the activity".
Examples of macromarketing activities are studying the marketing systems of different nations, the consequences on society of certain marketing actions, and the impact of certain technologies on the marketing transaction.
The use of scanners in supermarkets and automatic teller machines in banking illustrates the impact of technology on the marketing transaction. Micromarketing examples include determining how Nikon Steel should segment its market and evaluating the success of the US "Just Say No" anti-drug campaign.
Service Marketing versus Goods Marketing
The distinction between services and goods products is not always clear-cut. In general, service products tend to be intangible, are often consumed as they are produced, are difficult to standardize because they require human labor, and may require the customer to participate in the creation of the service product.
Goods products tend to be just the opposite in terms of these criteria. Consequently, marketers of service products usually employ a marketing strategy quite different from that of goods marketers. For example, a local family physician creates tangibility by providing an environment: waiting and examination rooms, diplomas on the walls, that convinces patients that they are receiving good health care. Conversely, coffee producers create intangibility in order to appear different from competitors. This is done through colorful packaging and advertisements showing people who are successful because they start each day with a cup or two or ten of a particular brand of coffee.
For-Profit Marketing versus Nonprofit Marketing
As the terms connote, the difference between for-profit and nonprofit marketing is in their primary objective. For-profit marketers measure success in terms of profitability and their ability to pay dividends or pay back loans. Continued existence is contingent upon level of profits.
Nonprofit institutions exist to benefit a society, regardless of whether profits are achieved. Because of the implicit objectives assigned to nonprofits, they are subject to an entirely different additional set of laws, notably tax laws. While they are allowed to generate profits, they must use these monies in specific way in order to maintain their nonprofit status. There are several other factors that require adjustments to be made in the marketing strategies for nonprofits.
Mass marketing is distinguished from direct marketing in terms of the distance between the manufacturer and the ultimate user of the product. Mass marketing is characterized as having wide separation and indirect communication. A mass marketer has very little direct contact with its customers and must distribute its product through various retail outlets alongside its competitors. Communication is impersonal, as evidenced by its national television and print advertising campaigns, couponing, and point-of-purchase displays. The success of mass marketing is contingent on the probability that within the huge audience exposed to the marketing strategy there exist sufficient potential customers interested in the product to make the strategy worthwhile.
Direct marketing establishes a somewhat personal relationship with the customer by first allowing the customer to purchase the product directly from the manufacturer and then communicating with the customer on a first-name basis.
This type of marketing has experienced tremendous growth. Apparently, marketers have tired of the waste associated with mass marketing and customers want more personal attention. Also, modern mechanisms for collecting and processing accurate mailing lists have greatly increased the effectiveness of direct marketing. Catalogue companies, telecommunications companies, and direct mail companies are examples of direct marketers. A modified type of direct marketing is represented by companies that allow ordering of product by calling a toll-free number or mailing in an order card as part of an advertisement.
Although, officially, Internet marketing is a type of direct marketing, it evolved so quickly and demanded the attention of so many companies that it is now nearly a separate type of marketing in its own right. Essentially, Internet technology (which changes by the moment) has created a new way of doing business. In the Internet age, the way consumers evaluate and follow through on their purchase decisions has changed significantly. "Call now!" is no longer an effective pitch. Consumers have control over how, when, and where they shop on the Internet. The Internet has all but eliminated the urgency of satisfying the need when the opportunity is presented.
Log in to save your progress and obtain a certificate in Alison’s free Introduction to Marketing online course
Sign up to save your progress and obtain a certificate in Alison’s free Introduction to Marketing online course
Please enter you email address and we will mail you a link to reset your password.