17. Marketing’s role in creating demand

Marketers must have a variety of skills, one in particular being the ability to stimulate demand for their company’s services and products. However, this is too limited a view of the tasks that marketers perform and the skills that they must have. Just as production and logistics professionals are responsible for supply management, marketers are responsible for demand management along with their other roles. Marketing managers seek to influence the level, timing, and composition of demand to meet the organizations objectives. Eight states of market demand are possible:

Full demand: Consumers buy all services or products brought to market.
Overfull demand: There are more consumers demanding the service or product than can be satisfied.
Irregular demand: Consumer purchases vary on a seasonal, monthly, weekly, daily or even hourly basis.
Declining demand: Consumers begin to buy the service or product less frequently or not at all.
Negative demand: Consumers dislike the service or product and may even pay a price to avoid it.
Nonexistent demand: Consumers may be unaware of or uninterested in the product or service.
Latent demand: Consumers may share a strong need that cannot be satisfied by an existing product or service.
Unwholesome demand: Consumers may be attracted to services or products that have undesirable social consequences.
In each case, marketers must identify the underlying cause(s) of the demand state and then determine a plan of action to shift the demand to a more desirable state.

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19. What is a Market?

Traditionally, a “market” was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over a particular product or product class (such as the housing market or the grain market). Five basic markets and their connecting flows are shown in below. Manufacturers go to resource markets (raw material markets, labor markets, money markets), buy resources and turn them into goods and services, and sell finished products to intermediaries, who sell them to consumers. Consumers sell their labor and receive money with which they pay for goods and services. The government collects tax revenues to buy goods from resource, manufacturer, and intermediary markets and uses these goods and services to provide public services. Each nation’s economy, and the global economy, consists of interacting sets of markets linked through exchange processes. Marketers view sellers as the industry and...

33. Product

Companies address customer needs by putting forth a value proposition, a set of benefits that satisfy those needs. The intangible value proposition is made physical by an offering, which can be a combination of products, services, information, and experiences. Product is anything capable of satisfying human wants. A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want. Thus, a product may be a physical good like a cereal, tennis racquet, or automobile; or a service such as an airline, bank, or insurance company. A product could also be a retail outlet like a department store, specialty store, or supermarket; a person such as a political figure, social media celebrity, entertainer, or professional athlete; an organization like a nonprofit, trade organization, or arts group; or a place including a city, state, or country; or even an idea like a political or social cause. We can define five levels of meaning fo...

08. Products and Services marketing together

The service-dominant logic suggests that the separation between products and services is not a clear one. The ‘servicisation’ of products refers to the relative importance of the service dimension in a given product offering. Thinking in marketing has moved from a strategy that conceives of either a product or a service to one which sees both product and service dimensions in any market offering. Many products have a service component and many services have product components. Take for example a physical product such as a car. We purchase a car, which provides the service of getting from one place to another. But the car comes with its own need for services such as insurance, finance, repairs and even a petrol station. The Swedish car manufacturer Volvo has built a service into its cars that alerts the driver if they are falling asleep. What a great service! Another example is a mobile phone provider such as Nokia. The company provides a product (m...

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