Principles of Marketing Consumer Decision

Question: Discuss about thePrinciples of Marketingfor Consumer Decision. Answer: Introduction Based on this quote Marketing is too important to be left only to the marketing department... David Packard, the co-founder of Hewlett-Packard, the importance of marketing department is asserted to focus on the internal and external environments of the market and to include different players in the market who are affected by marketing decisions, and strategies as the company make them. Marketing is the companys way of communicating with consumers, suppliers, other stakeholders and third parties and its communication benefits the company by messages well delivered and increases the awareness of the products (Fejza and Asllani, 2013, p.326). Marketing decisions, plans and strategies involve all the departments in the sense that the decision to increase the value of products and their benefits to the customers require the involvement of the production or manufacturing sector to create quality and quantity. This is meant to ensure that the consumer needs, preferences in quality and quantity are met, thus marketing decisions and strategies are inclusive and participatory of all other departments so as to deliver on the companys marketing goals (Fejza and Asllani, 2013, p.326). The focus of this paper is to highlight the importance of marketing to the company and other stakeholders and how this applies to different organizations in their marketing decisions. The relationship between the organization and marketing decision is presented in the growth capacity of the company since, marketing functions of communication and delivery to the consumers involve the creation of relationships which is through long-term cultivation of trust between the consumer and the organization leading to consumer satisfaction, increase in profits and creation of new markets. The marketing strategies of place, price and promotion are key in the distribution plans for the organization and these spans across the manufacturing and supply chain departments to ensure that the companys marketing strategies are met. The proper coordination of different departments and stakeholders lead to achieving the organization's goals, objectives and the ability to remain competitive, profitable and stable in the long run. Marketing decisions affect the company, stakeholders, suppliers, customers among others who form part of the internal and external environment of the company (K im and Richarme, 2010, p. 3). Stockholders, Distributors and Society Marketing decisions affect the different players in the organization, and the stockholder is the financial investor in the business whereby marketing decisions leading to consumer satisfaction are beneficial with relation to the returns to the shareholder. The business is responsible for the revenue and expenditure, and thus the stockholders equity accounting and thus the marketing decisions affect the stockholders equity in relation to the profits and losses of the business. Marketing strategies which increase consumer value lead to increased profitability. Distributors are related to the supply chain and their responsibility in marketing is an increase in the value of products to the consumer through availability, and this affects the consumer and the society at large through awareness and product availability. The distributors are in charge of the supply chain with regards to raw materials and the finished products whereby there should be timely so as to add value to consumers who are the end users. (Lian, 2013, p. 35). Consumer Perspective The consumer is the primary target in marketing decisions and strategies. The consumer is the demands quality, quantity through the prices available in the market. The consumer behavior is important in marketing as it determines the tastes and preferences, the demands among other consumer related processes. The business utilizes consumer information in generating plans and strategies for marketing; the information is sued in the production decisions based on information on tastes and preferences. The distribution decisions are based on the consumer information which is sued in consumer segmentation and targeting, and thus the business uses the consumer perspective in marketing decisions. The consumer is responsible for feedback, consumer retention, and consumer demand, customization of goods and services to meet the needs of the consumer. The consumer relies on deliver of services and products by the organization which is a value creating relationship and the essence of marketing fro m the business perspective (Lian, 2013, p. 35). Business Perspective Business perspective is macro in nature as it focuses on the external environment and given the dynamic nature of global production, competition and the need for quality from the consumer, the business perspective has to account for the above before making marketing decisions. For the business marketing is not about awareness by the nature of relationship they develop with the consumer through value addition and communication to build sustainable relationships which are profitable in the long run (Lian, 2013, p. 35; Tsang-Sing Geng, 2002, p. 408) Illustration of Toyota Company Marketing Strategies Marketing decisions and strategies are based on the research of the internal and external environment of the business to determine the consumer behavior and patterns in purchasing. The information used to determine the purchasing decisions of Toyota Company which is an international manufacturer of all types of vehicles is important in analyzing the different needs and preferences of their consumers given the global market place and competition form companies such as Isuzu among others. The study of environmental factors in determining the purchasing decisions of consumers focuses on the external environment of business. External conditions which determine purchasing power and change in motor vehicle consumption include the economic development of regions. Developed countries record highest purchases in vehicles with the population patterns presenting the increase in disposable income which is utilized by the consumer in the purchase of luxury goods among others. The increase in glob alization and competitive market place has presented economies with opportunities for development, and thus the consumption of motor vehicles for all uses such as personal or family or commercial use increases the rate of economic development (Borah, 2013, p. 19). The environmental factors of purchasing power involve the use and changes in technology. Technology has been utilized to cause revolutions and innovations which are applicable in the dynamic marketplace. For instance, the development of fuel efficient and environmentally sensitive vehicles with regards to the global environmental agenda is a move by many vehicle manufacturers whose goals and strategies in marketing are to attract global purchases and customer retention. The global marketplace that Toyota ventures in is subject to political and regulatory requirements which can hinder consumer purchasing. For instance, the implication of taxation through customs in the import and export activities of some countries limits the affordability of Toyota products. The price is an important determinant of consumer purchasing decision, and thus tax additions and regulations are a hindrance to purchasing. The purchasing decisions are affected by the development of competition; the global mark et offers consumers with choices on the vehicles given the competition from other manufacturers such as Isuzu, Mercedes-Benz, and Honda among others. The Competition influences purchasing power through the availability of substitutes and choices in the market given different prices, the quality and product customization which meets the consumer needs and preferences. The investment in Toyota to meet consumer needs and preferences through product diversity which covers products such as cars, trucks, minivans, SUVs covers the product development and customization to meet individual needs of consumers (Alamgir, 2010, p. 146). The analysis of the internal systems highlights the organization determines the structure and systems laid in place in making the companys products superior in the market. The company itself has been established as an innovative leader and through proper management established a global brand. The formulation of objectives and policies has been based on the long-term success and sustainability of the company given the increase in competition. The presence of foundations and principles for Toyota is an influence to purchasing decisions on consumers through brands and assured quality. The profitability and sustainability objective by the company enables the understanding of markets and factors such price, quality and how they affect the company. The proper resource allocation strategy is important for the analysis of inputs and outputs and the overall effects it has on the company, and other stakeholders (Tsang-Sing Geng, 2002, p. 408). Value Addition Services to Customers Illustrations from Groupon.my Marketing activities are based on communication between the seller and the buyer and the various intermediaries involved in the transaction. Communication is a method of developing relationships which are key to generating value base services and products for the consumer. Partnering with the consumer through value addition is important in consumer preference and retention mechanisms. Groupon.my is fast growing information and technology related company whose focus is the provision of information to their customers on issues such as entertainment, food, health-related information among others. The location for this app is Malaysia which presents a potential market for both local and international consumers such as tourists in the provision of information. The value addition strategy is presented by the customer loyalty and retention techniques which have being captured through the offering of a wide range of services and information and thus wide clientele. Customer retention is base d on the feedback which presents the services of Groupon.my as unbeatable offers and discounted prices for their customers (Lian, 2013, p. 19). The activities of Groupon.my have ventured in the development of systems and processes which ensure proper customer service is delivered. Customer service team is responsible for customer queries and complaints and through the active participation of the team, there is assured response. The reliability of the customer service team is value addition proposition for the company given the nature of activities marketed. The preference for Groupon.my has increased in popularity through various offers for feedback and recommendation for their consumers thus increase in consumers. The utilization of e-commerce and technology has led to profitability for the company and increased its customers through the flow of information and quality of services which is value additional to the consumer (Lian, 2013, p. 19). Marketing Environment The marketing environment is an evaluation of the internal structures of the company and the external factors that influence the marketing decisions and strategies. The micro and macro environment of the business are important as they determine the success of marketing activities and plans. The focus is based on Coca-Cola which is an international company in the beverage industry. The operations of this company are international in the sense that, their production and marketing decisions are meant to attract global markets. The external environment is global given the different geographical locations and the differences in their consumer tastes and preferences. The macro environment covers factors such as the technological environment, which is current faced with innovations and inventions and are key in the change of processes and products. Technology aids in the promotional activities through increases the flow of information across audiences in different geographical locations. Fo r instance, the Coca-Cola Company has utilized the technological advancement in their global promotional awareness and product development abilities to increase their turnover in productivity and reach their customers globally (Kim and Richarme, 2010, p. 3). On micro analysis of the marketing environment, we focus on the ability to remain competitive for a company such as Coca-Cola. Given the international brand and the industry it has ventured in, Coca Cola faces competition from Pepsi.com. Competition is experienced through the product quality and price, whereby Coca-Cola has managed to maintain global competitive advantage and profitability in the long run given the quality nature of their products and product development ability through diversified products which meet the consumer needs and preferences of diet and health. The establishment of Coca-Cola as a beverage brand has ensured customer loyalty and retention across most markets in the world and despite the competition it faces, the company has remained profitable (Lian, 2013, p. 19). The evaluation of the demographics is important in establishing the marketing choices in terms of products, prices among other marketing related plans. Demographic evaluation of the population determines the target population for marketing their goods and services. Demographics present a clear picture of the income patterns of the consumers and thus their purchasing power. It also presents details on the age and gender differences of the population, and these demographic features are important in target and segmentation choices of the company. For instance, the Coca-Cola Company has a varied range of products which appeal to different age groups and health and diet groups of the population. The offering of different prices for different products presents the difference in consumer incomes and affordability for their global customers ("3.1 Factors That Influence Consumers Buying Behavior | Principles of Marketing," n.d.). The political environment is important to the determination of stability of economic systems and the safety of performing business related activities. The political class is responsible for the formulation of the peaceful business environment. The nature of political circle determines investment decisions of many companies. With reference to Coca-Cola Company and the international nature of its business activities, the volatile nature of certain geographical areas is a hindrance to business activities and thus affects production and marketing activities of the company (Kim and Richarme, 2010, p. 3). The company itself is a factor to consider in marketing decision making. The company which is an organization based on goals and objectives are responsible for marketing decisions and plans. Marketing requires the involvement of the management and resource allocation which in turn produces results for the marketing efforts by the company. Marketing requires reliability with regards to customer service and delivery systems, resource allocation for promotional activities and production of quality products. The Coca-Cola Company is reputable for marketing efforts which are consumer oriented and value adding to the consumers ("3.1 Factors That Influence Consumers Buying Behavior | Principles of Marketing," n.d.). Conclusion The marketing decisions and strategies require the involvement of the different departments of the company so as to ensure the quality of the products which is the consumer needs. Consumer behavior in marketing is important for determining purchasing patterns and other sustainable changes in the consumption behavior which in turn lead to a change in marketing strategies. The micro and macro environment of the business have effects on the value addition capacities of the business. The involvement of different stakeholders such as the suppliers in value addition and consumer satisfaction is an important consideration for marketers in their strategies and decisions. References Alamgir, Mohammed, Tasnuba Nassir, Mohammad Shamsuddoha, and Alexandru Nedelea. "Influence of Brand Name on Consumer Decision Making Process-An Empirical Study on Car Buyers." The Annals of The "?tefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration 10, no. 2 (December 2010), 142-154. https://seap.usv.ro/annals/ojs/index.php/annals/article/viewFile/295/302. Borah, Ranjan. "Factors Influencing Purchasing Decisions Towards Toyota Cars in Bangkapi District." PhD diss., Stamford International University , 2013. Fejza, Ejup, and Alban Asllani. "The Importance of Marketing in Helping Companies with their Growth Strategies: The Case of Food Industry in Kosovo." European Scientific Journal 9, no. 16 (June 2013), 326-336. https://eujournal.org/index.php/esj/article/view/1152/1168. Kim, Jin-Woo, and Michael Richarme. "Linking Marketing Activities to Shareholder Value: Philosophical and Methodological Issues." Journal of Management and Marketing Research, 2010, 1-10. https://www.aabri.com/manuscripts/09393.pdf. Lian, LilianY. "Defining Marketing and the Marketing Process." In Principles of Marketing, 3rded., 1-89. Malaysia: Wawasan Open University, 2013. Tsang-Sing Chan and Geng Cui (2002) ,"Consumer Beliefs and Attitudes Toward Marketing: an Emerging Market Perspective", in AP - Asia Pacific Advances in Consumer Research Volume 5, eds. Ramizwick and Tu Ping, Valdosta, GA : Association for Consumer Research, Pages: 406-412. "Toyota Global Site | Company." Toyota Motor Corporation Global Website. Accessed February13,2017. https://www.toyota-global.com/company/. "3.1 Factors That Influence Consumers Buying Behavior | Principles of Marketing." Open Textbooks | University of Minnesota Libraries University of Minnesota Libraries. Accessed February13,2017. https://open.lib.umn.edu/principlesmarketing/chapter/3-1-factors-that-influence-consumers-buying-behavior/. "How Groupon Malaysia Works?" All Klang Valley - KL Deals | Groupon. Accessed February13,2017. https://www.groupon.my/how-does-groupon-work.