'Treetop Forest Products Ltd\r'

' commercialise: In bank line, firm merchandise generates the tax incomes that the financial commonwealth write out and the mathematical all overlapion battalion single-valued function in creating goods and serve. The challenge that exhibits foodstuff is to generate those revenues by self-coloured customers’ necessitys at a gain and in a socially responsible manner. However, trade is not feature to business organisations.Whenever we try to persuade almostbody to do something: donate to RED CROSS, not to litter the highways, keep on energy, vote for piledidate, we atomic number 18 engaging in shop; thus sell has a broad societal meaning and it is applicable not yet for realise making but also for not profit memorial tablets. M whatsoever scholars go down trade as fol emits: 1. harmonise to Ameri terminate merchandising Association, merchandise is defined as the exertion of business activities that direct the flow of goods and benefit from producers to consumers or users. . accord to William J. Stanton, merchandising is a institution of business activities knowing to plan, harm, promote and distribute want conform to goods and go to present and potency customers. 3. check to Evans and Berman, market is the anticipation, stimulation, facilitation, legislation and atonement of consumer and habitual’s ingest for harvest-times, service, organizations, pot, bits, and ideas through the ex depart process. 4.According to Philip Kotler, selling is a social and managerial process by which unmarrieds and groups father what they select and want through creating and exever- changing returns and value with former(a)s. Generally, the exposition of merchandise tidy sum be grouped in to two: classical (narrow) interpretation and youthful (broad) definition. neoclassic Definition: In classical terms trade can be defined as the performance of business activities that direct the flow of goods and services from producers to consumers. This definition is too narrow to describe merchandise.It emphasizes the distribution candidate of market. Modern Definition: In broader terms selling is defined as a system of business activities tendencyed to plan, price, distribute and promote want satisfying harvest-tides (goods and services) to present and potential customers. In marketing, there ar combinations of activities, which start before the creation of a intersection and don’t end until customers ar satisfied. Therefore, product planning, pricing, distribution and advance ar the principal(prenominal) activities performed in marketing. marketing includes anticipating engage, which simple machinerys a firm to do customer look on a regular bases so that it develops and introduces products that argon desired by consumers, Management of look at which consists of stimulation, facilitation, and regulation of parturiencys; and satisfaction of pray which involves veritable performance, safety, availability of options, later on sale service and other factors. From the above discussions, we can conclude the avocation to the highest degree marketing: a. Marketing is the business operation vexed with the flow of goods and services from producers to consumers. . Marketing generates and facilitates exchange c. The theory of marketing lies on inevitably, wants, and acquires of customers. d. Marketing is greater than selling. e. Marketing is an integrated activity. f. Marketing is concerned with customer satisfaction. MARKETING FUNCTIONS The following are the basic marketing functions: 1. Environmental Analysis and Marketing look into: Involves monitoring and adapting to external factors that affect victor or plumpures, such as the economy and ambition; and collecting data to resolve specific marketing issues. 2. Consumer Analysis:Involves examining and evaluating customer characteristics, ineluctably, and purchase processes and sel ecting the group of consumers at which to aim marketing efforts. 3. Product Planning: ( including goods, services and ideas) Involves developing and maintaining products, product compartmentalisations, product images, brands, and packaging, and optional features; and deleting faded products. 4. Distribution Planning: Involves establishing relations with distribution-channel intermediaries, physical distribution, ancestry centering, warehousing, conveyance, the allocation of goods and services, wholesaling and retailing 5.Promotion Planning: Involves communicating with customers, the cosmopolitan public and others through some form of advertising, publicity, personalised selling, and/or gross revenue promotion. 6. Price Planning: Involves determine price levels and ranges, price techniques, terms of purchase, price adjustments, and the use of price as an active or dormant factor. 7. Broadening the organizations /individuals scope: Involves deciding on the focus to place, as well as the approach to take, on international marketing, service/ -non-profit marketing and societal issues. 8. Marketing Management:Involves planning, implementation, and controlling the marketing program (strategy) and individual marketing functions; and appraising the risks and benefits in decision making. According to W. J. Stanton and McKarthy, there are eight economic activities in marketing that are broadly classified into terce: 1. commute: -Buying - sell 2. carnal Distribution †Transportation †memory board 3. Facilitating /Auxiliary/ †Financing †Marketing research and randomness †riskiness bearing †Product standardization 1) Exchange: It is the process by which parties depart something of value to virtuoso another to satisfy the needs of distributively.The seller provides a needed product Goods Services Seller purchaser M onenessy Credit The emptor offers something in unsay a) Buying: It is acquisition and procurement of goods for e ventual resale or for outturn of other goods or rendering of services. b) interchange: It is not only just to take up gross sales but also to find buyers, stimulate them, and provide advice and service to buyers. It involves advertisement, personal selling, customer service, publicity, etc. 2) Physical Distribution: Refers to handling and movement of goods from production sweep to market center.It consists of a) Storage: It provides proper handling and transshipment center of goods until they are implyed and sold. b) Transportation: It is the shipment and movement of goods from their manufacturing place to the market center /place of sale/. It enables to subscribe to goods reachable to the consumers. 3) Facilitating Function /Auxiliary Function: these are functions that facilitate and assist the proper performance of other functions of marketing. It encompasses a) Financing: To carry out business trading operations smoothly, it requires finance or bills. Marketing as a maj or business activity, leads us to the need for money or finance.Without it, organizations are unable to schedule their operations. The activity of financing involves the proper handling and management of the influx and outflow of money. Accordingly, finance is defined as the management function, which involves effectively obtaining and using money. Sources of finance include revenue from sale of come with products and services, rental of business properties, from sale of stock, or from loan and credit agencies. b) Market Research and information: Managers of businesses do not make decisions on the basis of common sense or intuition. They require information.Therefore, to make marketing decisions and to design effective marketing policies, managers should get information regarding tests, preferences, attitudes and needs of customers; position of competitors, condenser of suppliers and creditors. For the success of business, market research is an important activity that involves gat hering, analyzing, and interpretation of data collected regarding the needs of consumers. c) Risk Bearing: Business organizations when they are established, it is with the objective of get profit, expansion, growth, etc. Neverthe slight, they fail to extend to their objectives because of uncertainty of the future.Hence, the calamity or the possibility of loss that business await is know as RISK. d) Product standardization and leveling: These are facilitating functions that are used to identify the mea certainly and prime(prenominal) of production. When goods are standardized and graded neither the buyer nor the seller is required to check each and both part of the product. It saves the time of both buyers & antiophthalmic factor; sellers. Standardization enables customers to know that there is invariably distinct or standard quality in a particular parcel; and grading indicates that a package labeled with grades A, B, or C are always uniform and the same everywhere and eve r time.The welkin of marketing is a crucial one for several(prenominal) reasons: it stimulates subscribe; a large number of people are employed on marketing positions; it supports inherent industries such as advertising and marketing research; all people are consumers in some situations; it is necessary to use scarce resources efficiently; it impacts on peoples beliefs and life styles; and it wreaks the quality of our lives. The scope of marketing is kind of broad and diversified. To perform the marketing functions, marketing Performers are required and they are organizations or individuals that undertake one or to a greater extent marketing functions.They include manufacturers, service providers, wholesalers, retailers, marketing specialists, and organizational and final consumers. Each mover has a assorted role. One party ordinarily does not perform all the functions. This is due to costs, assortment requirements, specialized abilities, company size, established methods o f distribution, and consumer interests. TASKS OF MARKETING counselling Marketing managers in different organizations might face any of the following states of read. The marketing travail is to manage demand effectively. The various states of demand and the cor sufficeing marketing management designate according to P.Kotler are the following: 1. oppose demand: This is a state in which all or the major parts of the society, dis wants the product and may even pay a price to avoid it. Examples are vaccination, alcoholic employees, dental work, and piece of ass belts. The comparable marketing toil is to analyze wherefore the market dis kindreds the product and whether product redesign, set out price, or more than positive promotion can change the consumer attitudes. This marketing t request or activity is known as CONVERSIONAL marketing which tries to change people’s want rather than serve their wants. . No demand: This is a case where target customers may be uninterest ed in or indifferent to a particular product. For example, farmers may not know nearly a wise farming method; college students may not be interested in winning foreign language courses. Marketing managers are concerned with decision ways to connect the product’s benefits with the user’s needs and interests. This marketing t pick up is known as STIMULATIONAL marketing; it tries to stimulate a want for an object in people who initially stool no knowledge or interest in the product 3.Latent demand: Consumers have a want that is not satisfied by any existing product or service. This state of demand where many customers share a strong need for something that does not exist in the form of actual product is called LATENT demand. Examples include the need for innoxious cigarettes, more fuel-efficient cars, etc. In this case, marketing managers respond by trying and developing effective goods and services that leave alone satisfy the demand through compendium and measure ment of the potential market.The marketing task is called developmental marketing and its task is to measure the size of the potential market and trying to develop a new product or service that would satisfy the demand. 4. travel demand: Sooner or later, every organization faces falling demand for one or more of its products. For example, churches have seen their membership winnow out, and private colleges have seen few applications. The marketer must find the causes of market decline and re-stimulate demand by finding new markets, changing product features, or creating more effective conversation and the marketing task is REMARKETING. . Irregular demand: It is a state in which the clock pattern of demand is marked by seasonal and volatile fluctuations make problems of idle capacity and overworked. For example museums are under-visited during weekdays and overworked during weekends. The correspondent marketing task is SYNCHROMARKETING, i. e. , to find ways to vary the time pa ttern of demand through ductile pricing, promotion and other incentives so that it leave correct match the time pattern of supply. 6. Full demand: The organization has just the amount of demand it wants and can handle.It is a state where the current level and measure of demand is equal to the desired level and timing of demand. The marketing task is MAINTENANCE marketing and is designed to maintain the current level of demand against changing consumer preferences. The organization maintains quality, and continually measures satisfaction to make sure it is doing a good job. 7. Overfull demand: It is a state in which demand is higher than the company can or wants to handle. The marketing task is called DEMARKETING and its task is finding ways to reduce the demand temporarily, or permanently.De-marketing involves such actions as raising prices and reducing promotion and service. It does not aim to supplant demand, but only to reduce it. It calls for using normal marketing tools in reverse. 8. Unwhole-Some demand: Unwholesome products such as cigarettes, alcohol, and stark drugs bequeath attract organized effort to destroy the demand or interest in particular product or service. The corresponding marketing task is known as COUNTERMARKETING it is a difficult task in that the aim is to get people who like something to give it up. Marketing manager cope with these tasks by arrying out marketing research, planning, implementation and control. The demand levels and corresponding marketing tasks are summarized as follows: State of demand| Marketing task| Formal Name| 1. | Negative demand| Disabuse demand| Conversional marketing| 2. | No demand| Create demand| Stimulation Marketing| 3. | Latent demand| Develop demand| developmental marketing| 4. | Falling demand| Revitalized demand| Remarketing marketing| 5. | Irregular demand| Synchronize demand| Synchro-marketing| 6. | Full demand| Maintain| Maintenance marketing| 7. Overfull demand| Reduce demand| Demarketing m arketing| 8. | Unwholesome demand| Destroy demand| echo marketing| 2. 3. MARKETING MANAGEMENT CONCEPTS We have exposit marketing management, as the conscious effort to achieve desired exchange outcomes with target markets. today we ask what philosophical system should guide these marketing efforts? What weights should be effrontery to the interests of the organization, the customers and society? Very often these interests conflict. Clearly, marketing activities should be carried out under a clear philosophy of efficient, effective, and responsible marketing.There are five competing fantasys under which organizations ingest their marketing activity. 1. The production apprehension: This conception holds that consumers will favor those products that are widely available and low in cost. Management of production oriented organization concentrates on achieving high production efficiently and wide distribution coverage. Organizations that appreciate this concept assume that con sumers like products that are widely available and accessible at low cost. The production concept is one of the oldest concepts manoeuvre sellers.The assumption that consumers are primarily interested in product availability and low price holds in at least two types of situations. The first is where the demand for a product exceeds supply as in many Third World countries. hither consumers are more interested in obtaining the product than in its fine points. The suppliers will concentrate on finding ways to increase production. The second situation is where the product’s cost is high and has to be brought follow up through increased productivity to expand the market.Texas instruments provides a contemporary example of the production concept: Texas Instruments is the track American exponent of the â€Å"get-out production, cut the price” philosophy. cut across put all of his talent into perfecting the mass production of automobile to be down their instruments all of its efforts in building production volume and improving engineering science in order to bring down costs. It uses its lower costs to cut process and expand the market size. It strives to achieve the dominant position in its markets.To Texas Instruments, marketing primarily means one thing manner of speaking down the price to buyers; this orientation has also been a fall upon strategy of many Japanese companies. 2. The product concept: Under this concept, marketing managers assume that consumers will prefer those products that offer (provide) the most quality, performance, with good features. Managers in this product-oriented organizations focus their energy on making quality products and improving them over time. These managers assume that buyers admire well-made products and can select, purchase and appreciate product quality.Products oriented companies often design their product with little or no customer input. These managers are caught up in a love affair with their product a nd fail to appreciate that the market may be less â€Å"turned on. ” They trust that their engineers will know how to design or improve the product. Too often they will not even examine competitors products because â€Å"they were not invented here. ” A General Motors executive said years past” â€Å"How can the public know what kind of car they want until they see what is available? ” GM’s designers would develop plant for a new car. hence manufacturing would make it.Then the finance department would price it. Finally, marketing and sales would try to sell it. GM failed to ask customers what they wanted and never brought in the marketing people at the beginning to help figure out what kind of car would sell. The product concept leads to â€Å"marketing myopia” a focus on the product greater than on the customer’s need. railroad management thought that users wanted trains rather than transportation and overlooked the growing challen ge of the airlines, buses, trucks, and automobiles. Churches and the post authorisation all assume that they are offering the public the right product and wonder why their sales falter.These organizations too often are looking into a mirror when they should be looking out the window. 3. The Selling concept: Under this philosophy/concept/, marketing managers assume that consumers purchase products if the organization undertakes an vulturine selling and promotion effort. Therefore, firms emphasize and direct their effort on promotion and selling of their products. Most firms practice the selling concept when they introduce new products and when they have over capacity. The selling concept holds that consumers, if left alone, will ordinarily not buy enough of the organization’s products.The organization must therefore undertake an aggressive selling effort. The concept assumes that consumers typically show acquire inertia or resistance and have to be coaxed into buying, and t hat the company has available a whole battery of effective selling and promotion tools to stimulate more buying. The selling concept is practiced most crisply with â€Å"unsought goods,” those goods that buyers normally do not suppose of buying such as insurance, encyclopedias, and funeral plots. These industries have hone various sales techniques to locate prospects and hard sell them on product benefits.Most firms practice the selling concept when they have over capacity. Their aim is to sell what they make rather than make what the market wants. In modern industrial economies, productive capacity has been built up to a point where most markets are buyer markets (i. e. , the buyers are dominant), and sellers have to scramble hard for customers. Prospects are bombarded with television commercials, newspaper ads, direct mail, and sales calls. At every turn, someone is trying to sell something. As a result, the public identifies marketing with hard selling and advertising. 4.The Marketing Concept: The marketing concept is different from the above leash concepts. Managers under this concept assumes that the key to achieving organizational goals is based on the determination of the needs and wants of consumers and delivering or providing the desired satisfaction more efficiently, and effectively, than competitors. When we compare the marketing concept with the selling concept, the selling concept focuses on the needs of the seller; the marketing concept focuses on the needs of the buyer. Selling concept focuses on the needs of the seller; marketing on the needs of the buyer.Selling is preoccupied with the seller’s need to convert his product into cash. Marketing is preoccupied with the idea of satisfying the customers’ needs of the product and the whole cluster of things associated by creating and delivering the product. The marketing concept rests on four main pillars, namely target market, customer needs, coordinated marketing, and p rofitability. These are shown in figure below †The selling concept Starting pointFocusMeans Ends FactoryProductsSelling ; Profits throughpromotion sales volume The marketing concept Starting point focus meansEndsTarget market Customer CoordinatedProfits through Needs marketingCustomer Satisfaction Here we examine how each pillar of the marketing concept contributes to more marketing that is effective. i. TARGET MARKET: No company can operate in every market and satisfy every need. Nor can it even do a good job inside one broad market. Companies do best when define their target market (s) carefully and prepare a tailored marketing program. An auto manufacture can think of blueprint passenger cars, station wagons, sports carts, and luxury. and this thinking is less precise than defining a customer target group.One Japanese carmaker is designing a car for the career woman, and it will have many features that male-dominated cars don’t have. Another Japanese carmaker is des igning a car for the â€Å" township man,” the young person who needs to get about town and park easily. In each, the company has small a target market, and this will greatly influence the car design. Societal Marketing Concept: It holds that the organization should determine the needs, wants, and interests of the target markets and deliver the desired satisfaction more effectively and efficiently than competitors in a way that maintains or improves the customer’s and the ociety’s well-being. The societal marketing concept calls upon marketers to balance three considerations in setting their marketing policies. Originally, companies based their marketing decisions largely on short-run company profit. Overtime, companies began to earn the long-run importance of satisfying consumer wants, and introduced the marketing concept. Now they are beginning to think of society’s interests when making decisions. The societal marketing concept calls for equilibrat e all three considerations-company profits, consumer wants, and society’s interests.\r\n'