What is Marketing? or Marketing for Dummies

Whenever I want to understand anything, I tell the person to explain me in a way that I know nothing about it, like you are telling to any layman. Same way, when I explain something to anyone, then I try to explain it in a way that listener knows nothing about it. So find below 'Marketing' definition in my own words which I think any layman could also understand it. It could also help those who have never read Marketing before and for those too, who have got admission in their BBA or MBA.

Advertising is not the whole Marketing:

First of all make it clear in your mind that advertising is not the whole marketing. It is part of it, though one of the most sexy part of Marketing but a single part. I'm gonna divide marketing in four categories, out of these four categories, one has more six parts and out of those six parts, one is advertising. I'll come it to later in below explanation.

Marketing Definition:

Marketing is a process in which an organization analyze need of a product, create a product, determine its price, make it available at targeted place and do promotion for it.

Marketing is all about these 4P's I've highlighted in above definition. I'll give a short explaination about them below.

Organization sells whether a product or service. I'm going to use 'product' word for my easiness, however it could be any service too. You can replace 'product' with 'service' if you wish to understand it that way.

In an overview concept:

Everything and every matter about the products of organization come under the umbrella of Marketing. Organization's face, its identity, its product, everything about it, is in Marketing.

If we divide organization in departments, then Management has to do decide the vision of the organization, mission, goals and further objectives. They would give overview of their desired destination so that every department work accordingly to reach there. Then they will keep check on it and manage that every department could make it possible. Managing all the resources of organization.

Human Resource department will hire the right person for right job. They will take care of the most important resource of the organization, which is human, which can be further explained as a talent, skills that is needed for organization. They take care for those talented people, keep them happy for organization, so they could show more efficiency and give most to the organization.

In a same way the other departments work for the same objective i.e. to benefit the organization.

What is Marketing? in little detail:

Now what I'm going to tell below is all about Marketing.

It starts from analyzing the need of a product. Firstly organization research for the need of product in a market, then create the product. Which type of product it should be? What will that product offer? if it is about eating than how it taste should be? everything about the product is the start.

After creating the product then it comes to analyze the price of the product. How much it cost? How much targeted audience can pay happily? There are several strategies of setting a price which one read while studying Marketing.

After setting it's price, we have to make that product in reach of our target audience (Target audience is that group of people, for whom that product is produced. For every product there could be different target market). We have to make available that product in right place where our target audience is.

After distribution it comes to Promotion which can be done in six ways:

1. Advertising: The most sexy part of promotion and it includes almost half of the budget of whole promotion, that's why it overcomes all other aspects of promotion. However nowadays due to lot of noise (lot of adds that it become hard to concentrate on one) organizations are shifting their budget from advertising to other tools of promotion. Advertising can be done through broadcast media (T.V., radio etc.) billboards or print media.
2. Direct Marketing: If you've got chance to visit any super market then you've often seen people of certain product, for instance, a soup company has their stall over there. On which they test you the sample and sell the products directly to customer from there.
3. The Internet and Interactive Media: Internet has become a very powerful tool nowadays. As the advancement come, people have started using internet more than any other media. T.V., radio and print media are one sided in which customer don't have any option to interact with them. On the other hand Internet is the medium in which customer is interacting with the organization. This has become a very good tool to bring customers close to their products.
4. Sales Promotion: Buy one get one free, Buy a jar of Ovaltine and get a Mug free, 10% off, 50% off and other signs like that are all part of sales promotion. In this organization give a incentive to customer to buy there product.
5. Publicity and Public relations: This is unpaid promotion. When any organization launch their new product, newspaper use to publish their news which become a publicity for them and their product is promoted. Sometimes newspapers or T.V. channels make documentary on any organization's procedure and get their interview which also came under Public relations.
6. Personal Selling: This is yet another important tool in promotion where organization send their sales person house to house to sell the item. If item is related to corporate sector then sales person goes to offices to promote their product. They show their product, do direct selling there, show advertisement, give sales promotion or convince people by any mean to buy the product.

Why Students Join Superior University?

Guest Post By: Shahrukh Siddique

Nowadays the atmosphere of gaining competitive advantage over the rivals through the sword of advertising has become very popular amongst educational institutions. Advertising strategies were thought to be useful only for the companies to get their products sold out but in terms of educational institutions….! It looks a bit hilarious. Whether we are walking on the roads, reading a newspaper or watching TV, and yes listening radio, we will come across many institutions taking part in this war but one name, which is leading in all is Superior University.

The University management is spending a lot on its advertisements. It might be not possible that they have left any media behind to promote it. By watching these advertisements thousands of students are joining Superior University. They tend to compare their bright future with the bright ads of the university. A larger percent of the students’ fee went into these advertisements.

If you have ever cross Ferozpur road there you will see a large hoarding of Superior University showing their new offer the “Split Degree Program” which is another net for trapping students. I hope everyone have read their catchphrase “The Fastest Growing Institute of Pakistan”. What comes into your mind after reading it? It deceives most of the people I mean another trap. Yes, it’s a “Fastest Growing Institute of Pakistan” but not in terms of quality of education but in terms of quantity of students they are admitting every year. According to a recent but rough estimate about 2 to 3 thousand of students have joined Superior University last year.

Let me tell you about their internal management. There are lots of students to whom they have given the rank of Teachers’ Assistants but are actually teachers and teaching their juniors. Many MBA/ BBA students who haven’t yet completed their own degree and aren’t yet qualified are teaching juniors for their own program. If we made a rough observation then we can easily access that the number of the qualified faculty, they have hired is less then the number of students and their sections. The faculty, they have shown on their web is not sufficient with reference to the number of the students.

In my opinion advertisements are made by the manufacturing firms to promote their sales by adopting this rule the management of Superior University is promoting it as a product. They have put the future of students at a dilemma. They are spoiling their future. I will really appreciate the management of the University that they are true businessmen, who knew that today’s students especially youngsters are very prone towards advertisements and they are doing so. Every student have an aim to study abroad, to explore different environments, to study in the top universities etc etc. Through advertisement they are targeting the weak points of the students.

Their recent offer of Split Degree Program in which they are offering an opportunity to the students to complete their study partially in Superior University and partially in any of the famous Foreign University. First of all none of any student have applied yet for it. If any one has applied then after completing his program he will get the degree of Superior University, not of that Foreign University where he had completed rest of the studies. To about 80-90% students are awarded by the University’s own degree.

Once students get admit into the University they come to know about the real picture. If any student tried to leave the university, the management even teachers start using different techniques to stop him from leaving the university. They even threat the students if they wanted to leave it by disqualifying them or failing them in any of the subject. After that they hold some discussions and decide that if that student will not leave the University they will qualify him again. If by force any of students refuses their offers and didn't come under their pressure and leave the university. They didn’t give that student the original transcript letter on the official paper of the University. So once again the student has to trudge around them to get the original transcript letter.

They even don’t offer any proper discount policy for their old students. The fee discount is only given to those who have any strong reference. None of their student is at an influential post. They are comparing their system with the LUMS and LSE and also Cambridge University London and showing students sweet dreams.

You will be thinking of why I’m so against them. I’m not against them but their system. I’m sharing the experience of not only mine but lots of student who have left Superior University and who are still studying in it.

At last I only wanted to say that every student must think before taking any decision about its career. Each of us as a student takes admission in any educational institutions having certain dreams and aims in life. We pay huge fees and bear this burden only to make our future brightest; but what about these institutions, who in order to earn money and to raise their capital put the future of many on dilemma. I will also request to Government officials to give some consideration and take actions to have a control on the growing trend of advertisements among the educational institutions, which creates an illusion and betrays many students’ and thus spoils their future.

P.S:       Anyone having any kind of query about this article and needs any proof he or she can contact me.

University of South Asis - USA

University of South Asia is yet another institute which wants to provide every degree and any course within that degree. Although USA's main campus is literally a small building considering its offerings but they are determine to offer each and every possible degree. Who much they have succeeded in their "one in all" mission is a bit tragic story as non of their major programs like computer science and business administration got ant attention from job market. I have seen some of USA's brilliant Computer Programmers but that seems like their own skills and interest in CS, but it would be unjust if I don't give any credit to the institute so one can say that if you have good interest in CS then USA could help you by providing you some basic facilities but never expect to receive huge welcome by market in fact prepare yourself for " what you said where you have done your MCS, USA? what is that?". Same is the case with their Business department. 

USA is famous for its fun living style of study although its been administrated by an army man but students find it joyful to study at USA. This is a major reason why USA attracts students every year and get them enrolled anytime in the year, yes this is true this institute hardly got any admission criteria and the one they got is open for change at anytime. A friend of mine got admission even after their semester is started. 

USA's O&A level repute is good but i never met any of those students so i better no to discuss more else than their repute is good for O&A levels.

STUDENT TALK:          As I said above is that students likes studying at USA because if its tension free environment and students are satisfied with their studies because as a matter of fact its a very different class which is studying at USA some call them "High Class" some with other names but I haven't seen anyone who is serious about his or her studies. I find some students complaining about management behavior which is offcourse not for studies but other issues. I only got one comment which is some kind of studious that is " Management should hire some PhDs teachers".

FACILITIES:          USA got a very up-to-date computer lab in its small campus with lush green little lawns. Class rooms are air conditioned so that the labs and cafeteria. University got a small transport service which is run by rental buses. Cafeteria is although air conditioned but food quality is not up to standard. Campus is kept very clean and proper care is given on this matter which is quit good. So if I exclude the size of the campus then overall facilities are Average".

PROGRAMS:        I'll give you complete list of the programs offered by USA but right now I'm unable because university's official website is malfunctioned right now which is quit surprising for my. In the mean time check your luck at this Link.

WEBSITE:        Here is the link for official website of University of South Asia.

Porter’s Competitive Forces Model

It’s quite understandable to all of us that organization is affected by its surroundings and the environment in which it resides. Environment may include social and physical environment like financial resources, human resources, community, people etc. there is also a legal environment, some legal obligation organization have to comply with. Then how can we forget the competitors who are one of the most important external environmental factors. You can not compete with your competitors or external environmental factors unless you have a competitive edge over your competitors. Your success lies in the uniqueness of your organization.

        

So here keeping in context with above discussion I am going to explain you Michael Poter’s Competitive Forces Model. This model provides general view of firm’s competitors and its environment in comprehensive manner. Here are five competitive forces that shape the fate of the firm:

           

Traditional Competitors:

            You know when you are working in business environment there are number of competitors who are challenging you by devising new projects, imposing costs, providing extra services, attracting customers by different means and developing new brands. These factors can be competitive advantage as well. These are your traditional competitors who already exist with you in the business and compete with you.

            For instance, Pizza hut and Domino’s are competitors to each other. They will always try to acquire more market share. For this purpose they will use different strategies, they may introduce new flavor, open new outlet, more friendly services etc.

The one who will have competitive edge in any form will get the lead.

New Market Entrants:

            It’s a common practice that whenever there is an entry of new brand or store around us, we want to go there and test there products or services and if we like those then we try to use those regularly. So these new entrants are one more competition to already existing organizations in the industry. Well if you are a new market entrant, you can get easy entry to industry of like pizza, restaurant, retail etc. But if you want to enter in a complex industry like of silicon chip, airplanes etc your entry is not easy because it involves high level of expertise, knowledge and capital as well. So new entrants are also a threat or competition to existing organizations.

            As a new entrant you may several advantages like new machinery and equipments, fresh and young employees who may be more innovative, new brands and high motivations etc. so if you hold these advantages then you have chances of success in the industry. But to handle everything smartly is very important. Because if you are not careful and conscious then your strengths can be turned into your weaknesses. For instance you acquired a loan for latest equipments, this can be expensive for you, your young workforce may not be very experienced and you will be having little brand recognition. So your strategies must be devised keeping everything in view.

For instance newly opened Hardees is getting more and more customer attraction in Lahore.

Substitute Products and Services:

          

When we are unsatisfied from our current product or service, first thing comes to our mind is a substitute. So these substitutes are a big threat and competition to organizations.

          

For instance, CNG is the substitute of petrol; ethanol, vegetable oil, wind, solar, coal and hydro power are substitute of oil; Mobile phone is substitute of land line; fiber optic telephone lines are substitute of cable TV lines etc.

            

The more substitute products and services in your industry, the less you can control pricing and lower your profit margins.

Customers:

           

Customers are very powerful. Organizations try to retain their customers. Because it is very easy for a customer to switch to competitors product when they are well educated regarding industry. So organization needs to be smart enough to create such competitive strategies so they can retain their customers. In transparent market, customers are aware of pricing, costs, quality and value of product or services.

            

For instance, in used college book text market, students can contact multiple suppliers for that. And they can compare prices. So in this case students have power over firms.

Suppliers:

            

The market power of suppliers can have a significant impact on firm profits, especially when the firm cannot raise prices as fast as can suppliers. The more different suppliers a firm has, the greater control it can exercise over suppliers in term of price, quality and delivery schedules.

            

For instance, manufacturers of laptop PCs almost always have multiple competing suppliers of key components, such as key boards, hard drives, and display screens.

The Hawthorne Studies

The behavior of people at work holds important. A series of studies was conducted to learn the behavior at work providing different conditions for working. Prior to the human relations movement, Scientific Management dominated most approaches to managing employees. This study was conducted during 1920s and 1930s that provided new insight individual and group behavior. This series was conducted at Western electric Company. These studies were initiated by the engineers of Western Electric Company as a scientific management experiment to examine the various illumination levels on workers’ productivity. They designed an experiment in which there were two groups under observation, one control group and the other experimental group. The experimental group exposed to various intensities of light during working hours while control group was working under constant lighting conditions.

The results were quite unbelievable and shocking, as they were expecting that intensity of light will have direct relationship with productivity but results were quite surprising that with both increased and decreased intensity of light in experimental group, the productivity of both groups increased. Infact the productivity decrease was seen in the experimental group only when the light was made to moonlit night. So it was concluded that intensity of light does not have direct relation with productivity there is something else that is playing its role, but that “something” was still a question mark.

In 1927 western Electric engineers asked Harvard Professor Elton Mayo and his associates to join as consultants. They designed various experiments in the redesign of job, changes in workday and work lengths, introduction of rest periods and individual versus group wage plans. For example one experiment was designed to evaluate the group piecework incentive pay system on group productivity. The results came out were that incentives had less effect on productivity rather group pressure; acceptance and security were more evident features that effected the productivity. So they concluded that group standards and norms were the main things that affected the productivity of the workers.

These studies showed a new dimension to the management that is the role of human behavior in organization and its productivity. Mayo concluded that group influences significantly affect individual behavior that group standards establish individual worker output, and that money is less a factor in determining output than are group standards, attitudes and security. Workers’ behaviors are more important in increasing and decrease of productivity rather physical environments and tools.