Fundamentals of Marketing: Process, Stages, and Role in Creating Customer Value

This article explores the fundamentals of marketing, including the process and stages of marketing, the role of the marketing mix, and how marketing creates value for customers. It uses the case of Costco, an American multinational retailing company, to illustrate these concepts. The article also discusses the impact of stakeholder engagement on marketing and introduces a tactical communication tool used by Costco.

Marketing
Fundamentals

Table of Contents
Table of Contents.............................................................................................................................1
INTRODUCTION...........................................................................................................................2
TASK 1A.........................................................................................................................................2
1.Process and stages of marketing including the role of the marketing mix...............................2
2. Role of marketing in creating value for customer :................................................................5
TASK B...........................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES..............................................................................................................................10
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INTRODUCTION
Marketing is the main activity which is used to run a business and increase organisational
profitability. Fundamental of management is considered as a process which is uses to manage the
all activities and marketing functions that can help to improve the organisational performance.
This is important for business to use all fundamental of marketing that can attracts customers and
increase the number of customers (Baines and et. al., 2017). To understand about fundamental of
marketing Costco company has been selected that is American multinational company operating
business by opening of many retail stores. This is retailing company that is selling different types
of products and services at retail cost. This report covers different topics such as process and
stages of marketing , role of marketing in creating value for customers and shareholders
engagement that has impacted on marketing activities. The second part covers reflection on
tactical communication tool that uses to generate awareness.
TASK 1A
1.Process and stages of marketing including the role of the marketing mix
Marketing is the main activity that uses by people or business concern in order to run a business
and increase the organisational productivity. It is the way through which a people can maintain
the good relationships and effectiveness that increases organisational performance. Marketing
process involves different phases from which to add value for the consumer and meet their
requirement. It is an opportunity to build demand and then satisfy the need of consumers. Costco
is retailing company that uses different marketing activities according to situation in order to run
a business and increase organisational profitability. Marketing is highly important for each
organisation as it identify the needs of people, current trend and produce that kind of products.
The manager of such organisation are using different types of marketing activities that can be use
to attracts people and deliver best quality of products. There are different stages which are used
in marketing process that are as defined :
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Illustration 1: Stages and processes of marketing. 2020
(Source: Stages and processes of marketing. 2020)
In the marketing process the first stage is mission as to increase the profitability and profitability
by selling the number of products and services. The vision statement of Costco is to be leader
organisation in retailing sector by delivering variety of products and services. In this organisation
manager and leader are focusing on needs and wants of customers and deliver kind of products.
To attain the vision and mission of such company is required to understand needs and fill them.
In context to next phase of marketing is situational analysis, in which internal and external
condition which has affected the organisation. In this stage, leaders and manager analysis the
situation of company and get a proper solution that can help to improve the business
productivity. It involves strength and weakness that are facing by company regarding internal
and external resources (Stages and processes of marketing. 2020). The main objectives of Costco
to expand the business in wide area and attracts customers to buy the products. Third stage of
marketing mix is strategy which is formulated by management in order to attract people and
increase the number of customers. In this, SWOT analysis is used by management to face the
situation and deal with them efficiently. The strength of such organisation is retailing products,
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brand image, expansion of business, developing new services, uses of marketing channels and
good relationship with customers. In context to weakness of it, having many competitors,
changing needs and lifestyle of people, lack of capital and utilisation of resources who has
affected the business negatively. Costco is taking opportunities by using new technology,
increasing product range, improving distribution channel, using resources properly and
delivering better quality of product at low prices. This helps to deal with changes and get
competitive advantages. Threats are changes in foreign exchange, instability of political system,
changes in climate that can reduce the sale of organisation (Chaffey and Ellis-Chadwick, 2019).
The another state is marketing mix that is combination of different factors such as products
which are providing by Costco, setting retaining prices and providing services at may stores
including UK. The promotional channel are you tube, newspapers, T.V., social media etc, in
process it uses online and offline process to distribute products, the physical evidence is structure
and logo that helps to recognise easily. Moreover, marketing manager, distribution employees,
finance department etc. are involved in marketing mix. The final marketing stage is execution
and supervision within which all systems, actions and others are implemented in proper fashion.
At this point Costco executives disclose all preparations to advertisers and other operating
departments in order to put strategies in practice. There, advertisers meet potential consumers in
order to educate them about the corporate goods and reassure them (Reid and Plank, 2016).
In macro environment, PESTLE analysis is used by Costco company that has affected the
business such as, in UK there is political stability and stable tax rates that support such business
to run effectively, in economic it mainly focuses on interest rate which are less than other
countries that help to take loan and increase their business performance. The social factor is
related to life style, changing need of people that are complement by management, new
technology and innovation is introduced by such organisation that helps to increase the business
activities. All laws and regulations are followed by company and provide satisfaction to
employees that support to run a business. on the other side, environment laws are also followed
such as reduction in carbon emission, reducing wastages etc. are followed in order to improve
business profitability. porter’s five forces model is used by chosen company that involves buying
power of buyer, buying power of suppliers, threat of substitutes, threat of new entrants and threat
of rivals. In context to Costco, there is high threat of competitors such as Tesco, Wal-Mart,
Morrison etc. that are creating competition. The threat of substitutes is moderate that helps to run
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a business and increase organisational profitability. The buying power of buyers is low as it sales
products at retail prices which help to increase the number of customers and deliver best quality
of products and services. The bargaining power of suppliers is low as there are many suppliers in
market who are selling the products at fixed priced that helps Costco to gain business
opportunities and maintain the good performance. And last, there is high threat of entrants
because there is require high investment and capital to establish super market that helps to run a
business ( Davis, 2017).
The another strategy is segmentation marketing that involves segmentation positioning
and targeting. In segmentation, management of Costco are focusing on geographical
segmentation that involves larger areas and number of locations by opening number of stores. In
targeting it focuses on all ages of people so it is providing variety of products and services. In
positioning, it focuses on maintaining the good position of market by delivering variety of goods
and services.
2. Role of marketing in creating value for customer :
Marketing is important factor and activity that is playing a vital role in creating value for
customers. This provide a message and information to people regarding new products, uses and
its cost that is relevant or reliable helps to maintain the good performance. In order to attain the
aspects Costco, is making many efforts to improve the organisational productivity and
profitability. Marketers are playing a role of research, analysing, making plans, implementer, and
communicator and presenting values to customers so decided goals and objectives can be
attained in effective time period. Social marketing is the process of informing and influencing
people by using different social channel such as face book, instagram, twitter and other social
activities which is used by management in order to deliver best quality of products at right
prices. This is an approach which is uses to develop activities with the aim of changing and
maintaining people behaviour. Costco is using social marketing practices that involves product,
price, place and promotional channel that uses to deliver good quality of products. Branding is
the marketing practices which involves design, term, symbols that are easily identifiable by
customers and ensure regarding the quality of products and services. With the help of brand,
customer can easily recognise their product brand and fill their demand by completing the needs
effectively. The advantages of branding customer recognition in which product are recognised by
management that helps to run a business. Customer royalty is increasing that helps to recognise
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regarding a product by combining the great product with engaging branding. Branding also helps
Costco to promote the new products and services by maximising the product range. If a business
have great level of branding then it can attracts new talent by using social media, web designing
and other sources that can help to influence people. The benefit of branding is give confidence
and appreciates people by selling the products and services. Costco is using branding strategy by
informing people and creating brand image through delivering best quality of product at retail
cost. These use a logo which is easily recognised by people and create a trust between them. On
the other side, Ansoff, matrix strategies are used by management for the purpose of providing
better quality of products. In this, four strategies are considered market penetration, product
development, market development and diversification. In penetration, management of Costco is
require to provide its existing products and services in existing market by reducing the cost and
lower cost provider company in competitive environment ( Hollensen, Kotler and Opresnik
2017). In product development, management should provide its existing product in new market
that can help to add new customers more. Product development strategy is related to introduce
of new product in existing market that can attracts customers and deliver best quality of services.
The next strategy is diversification in which chosen organisation is required to deliver best
quality of products in new market that can attracts customers in large number and improve the
organisational profitability. From the above, market development strategy is adopted by Costco
where it make strategies to enter in to new market and deliver products according so customers
can attracts and encouraged to buy the particular products. This helps to grow the business and
take competitive advantages. Moreover, such organisation is using relationship marketing that
helps to maintain the good relationship with customers and employees and increases
organisational performance (Shaw, S., 2016).
3. Stakeholder engagement and their impact on marketing:
Stakeholders are the important assets of company who have wider interest and benefits in
business activities. These are individuals who understand business activities and make decision
to invest the amounts in this organisation that helps to deliver best quality of products and
services. They spend amount in the consideration of taking high returns and improving business
performance. This involves an internal and external stakeholder that helps to run a business.
internal stakeholders are those who are working in entity whereas external stake are those
individuals who have invested amount outside of the organisation. In Costco, internal
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stakeholders are employees, managers, board of directors and investors. The external
shareholders are consumers, regulators and suppliers who helps to run a business by investing
the amounts. This organisation is communicating with stakeholders by emails, conference and
issuing prospectus that helps to provide information and run a business effectively. Thishas
impacted on business positively and increase business profitability (Rowles 2017).
TASK B
Tactical communication tool
Communication is the way of sharing ideas and thoughts between people that helps to
complete the work and attain the business goals. This is important for every organisation that
there should be an effective communication so people can feel free to share ideas and make
efforts to attain the business goals (Chaffey, and Smith2017).
Tactical communication tool
This not include the communication provided to tactical forces by the defence
communication. This is the system to non tactical military commands. This tool include phone
call after a service call is attended issue is resolved. Communication model is a Systematic
mechanism representations that help to visualize how relationships work. Models demonstrate
the cycle in diagrams and in symbolic fashion. By separating communication from complicated
to basic, they form basic perceptions on interaction, and hold the elements in order.
Integrated marketing communication – Integrated Marketing Communications (IMC) is a term in
which a organization carefully combines and manages the various forms of communication to
create a coherent and relevant message. It insures message continuity and mutual use of media
Promotion and promotion strategy
Sponsorship: This is the advertising aspect that Costco sells its products and services
easily ( Kietzmann and Pitt2016). Social media: Costco is selling its products and service by
using social media such as face book, Instagram, twitter, etc.
Sales promotion: This is another promotional strategy of such organisation which is
used to promote the products and retailing services (Öztaş 2015).
CONCLUSION
Marketing is the study about people behaviour, choice, taste and needs of people then
products are provided accordingly that increases profitability. This is important for organisation
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to focus on marketing and plans which should be implement by making proper strategies in order
to complete the task. All companies carry out various strategic activities in order to support and
distribute the products at their premises. The marketing mix elements are referred to as
commodity, persons, advertising, size, physical proof, location and entities that play a significant
role in promoting or selling the brand and its produced products. Engagement rates of partners
aids company managers in taking appropriate steps to incorporate comparative advantage
generating practices. Marketing practice typically involves broad ways of generating standards in
which consumers' full desires are enlivened. Via this, executives build communication plans to
complete the assignments on schedule.
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REFERENCES
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Online:
Stages and processes of marketing. 2020. [Online]. Available through:
<https://www.smartsheet.com/strategic-marketing-processes-and-planning>
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