Marketing Theories Profile, Coursework Example

The Marketing mix theory implies to a theory of marketing that is applicable in marketing in consideration of pricing, placement, promotion, packaging and product. The basic marketing mix has undergone fundamental transformations that are attributed to the evolution in marketing. Consequently, with the marketing mix theory having originated at 4 Ps, this has developed to 7 Ps leading to an additional layer and even other theorists are making efforts to go further in this regard (Baker & Saren, 2010).

Business applicability of the theory

The marketing mix theory simply relates to a tool used by marketers as well as businesses in the determination of offerings that are associated with a brand or a product. The marketing mix theory is a 1960 creation of E. Jerome McCarthy and later with 4 Ps being the basic principle; the theory has been updated to incorporate 7 Ps (Baker & Saren, 2010). According to marketing mix theory, the first item involves the product which must meet the needs of the customer. The second item involves place that implies availability of the product to the target consumer ranging from High Street, the mail order more recent developments involving online shopping (Baker & Saren, 2010). The third item in the marketing mix theory involves the price. The product offered at the right place must be associated with the optimal value for the cash that the customer is supposed to give in exchange to the product. This however should not be conceived to mean that the cheapest products are what the customers want. Customers understand that superior products come with high prizes (Baker & Saren, 2010).  Promotion is the fourth item of the marketing mix theory and it entails personal selling, public relations, advertisements, sales promotion and the use of social media, and all should be directed to the right audience.

Exchange theory

The exchange theory involves the social exchanges with regard to economic status. According to the exchange theory, an intervention entails a voluntary exchange in available resources (Alcalay & Bell, 2000).  Individual people, groups as well as organization usually exchange some resources to gain some perceived benefits. The possible explanation can be based on a context of social marketing that involves buyers who participate being target audience members. The members must pay a specific price in terms of cash, effort or time at the time of purchasing the product. The costs that are allied to effort include social standing, inconvenience, comfort, mental tasks or physical tasks (Alcalay & Bell, 2000).  Identification of particular costs that members are willing to pay and the costs that they are willing to avoid is a crucial consideration. In exchange of the costs that the members are willing to pay, the campaign planner or the seller is obliged to offer tangible product or service in return. These may include kits for smoking cessation as an example of a product or nutritional counseling as an example of service (Alcalay & Bell, 2000).  The service may also come in the form of ideas like the health risks that are associated with high fat dieting.

Business applicability of the theory

It is important to design the best approach of enticing an individual in participating in the exchange. This is based on the competence in making the individual to have trust in the benefits of adoption of preventive behaviors as outweighing the cost that are associated with adoption or purchase (Alcalay & Bell, 2000). The implications of incentives are the benefits offered by intervention planners to the target audience so that they are enticed to adopt the behavior innovation. The exchange theory therefore persuade unequivocal acknowledgement of costs as well as benefits that are associated with the actions leading that are to be promoted in the course of a campaign and are associated with lowest level of cost and the maximum possible benefits.

Consumer behavior theory

The Consumer behavior theory is conventionally structured from a psychological point of view and the most common models that are associated with consumer behavior have incorporated the consumer behavior theory (Baker & Saren, 2010). Consumer behavior theory entails an explanation of the manner in which different clients purchase diverse products and services. This theory also gives a detailed explanation of income allocation by the consumers with regard to their purchasing of diverse commodities as well as the way in which the decisions of the customers to buy are influenced by the price. Additionally, the consumer behavior theory attempts to shed light on the ways of income allocation for buying an assortment of commodities by the consumer and the achievement of this objective can be attained through application of two other theories that tend to explain consumer behavior theory comprehensively. The two theories entail the utility theory along with indifference preference theory (Baker & Saren, 2010).

Business applicability of the theory

The basic assumption in consumer behavior theory relate to rational consumer, budget constraints and consumer preferences.

• Utility Theory of Demand

The Utility Theory of Demand gives an explanation to the consumer behavior in light of satisfaction derived by the consumer after making good use of a product. The most important issue in this theory is the benefits as well as satisfaction derived by the consumer and this satisfaction is measurable in terms of utils (Baker & Saren, 2010).

• Indifference Preference Theory

According to the Indifference Preference Theory, evaluating the behavior of the consumer is based on the preference of the consumer in a variety of goods as well as services based on their nature but not measurability of the level of satisfaction as is the case in utility theory (Baker & Saren, 2010).

Segmentation theory

The segmentation theory is also named ‘segmented markets theory’ and it relates to the idea that majority of the investors operate on the basis of some set preferences that guide them as to the length of maturities under which they are determined to invest. The segmentation theory suggests that the sellers along with the buyers at every length of maturity can never be substituted for one another without difficulty (Ellis & Jack, 2011). A critical offshoot associated with the segmentation theory involves the choice of the investor to make investments outside the preference terms and thus their choice for involving additional risk in the investment must be compensated which is commonly referred to as Preferred Habit Theory (Ellis & Jack, 2011).

Business applicability of the theory

The assumption in segmentation theory is that the behavior that is associated with the rates of interests in short term as well as long term basis is mutually exclusive (Ellis & Jack, 2011). This implies that, if one experiences some change, the other one may not experience a similar change either immediately or after some time and an analysis of both is completely independent. The segmentation theory matters as according to the suggestions made, it is hardly possible to predetermine the outcomes of the interest rates for future transactions on the basis of the interest rates of short time transactions. Additionally, the interest rates for long term transactions can only give an expression of the expectations of the market and may not reflect an occurrence of any definite outcome.

The segmentation theory is one of the vital theories that is closely allied to yield curve. The segmentation theory attempts to give an account the connection of yield that is attributed to a debt to the duration of its maturity. The segmentation theory also posits to explicate the justification of the prominence that is associated with the normal type of a yield curve relative to the rest of the yield curves. It also explains the placement of long term and the short term markets in two divergent categories and subsequently, the reasons behind shaping the curve on the basis of demand and supply of securities in the context of every one length of maturity.

Relationship marketing theory

Relationship marketing theory is commonly applicable in a relational approach to marketing. Relationship marketing implies to a particular approach to marketing that was initiated to address and respond to the types of marketing campaigns that puts more emphasis on the need to retain clients and uphold the highest echelons of satisfaction among the customers instead of merely focusing on the rather dominant sales transactions (Ellis & Jack, 2011). The relationship marketing is based on the communication coupled with acquisition of the needs of the customers entirely from the customers who already exists in an type of exchange that is mutually beneficial and engrossing the permission for contact from the client with the application of ‘opt-in’ system (Ellis & Jack, 2011). In consideration of satisfaction of the customer, the relative quality as well as price of products and services that hail from the organization coupled with the customer service is the conventional determinants of sales volumes as compared to the competitor organization. The target groups in relationship marketing theory are significantly large but communication accuracy coupled with entire relevancy to clients is usually maintained at relatively high levels as compared to the case where direct marketing approaches are applicable. However, Relationship marketing entails lower levels of potentials in the initiation of novel leads as compared to the use of direct marketing and viral marketing posses some limitation in as far as further clients acquisition is concerned (Ellis & Jack, 2011).

Business applicability of the theory

Retention of clients is a crucial principle behind relationship marketing theory that is achieved through application of various approaches as well as practices that ascertain repetition of trade from the clients who already exists with satisfaction of the clients also playing a crucial role to stay ahead of competitor organizations. Relationship marketing theory is a constructive approach to counterbalance the new clients together with the opportunities with the already existing clients so that the organization can leap the maximum possible profits (Ellis & Jack, 2011).

Service marketing theory

The service marketing theory is a theory that deals with the needs of relatively small business which are responsible for rendering services. These types of business can also embrace similar marketing approaches as applied by the types of business that deal in physical products (Ellis & Jack, 2011). The use of advertising is a good example in this regard as it functions well irrespective of what is to be marketed. However, services are usually intangible and thus their promotion may be complicated under some particular circumstances.

Business applicability of the theory

In this regard, the application of service marketing theory is a potential solution to business enterprises that aspire to use promotion techniques for selling their services. Majority of the limitations encountered in the marketing of services are attributed to the characteristics of these services such as intangibility, perishability, heterogeneity and inseparability. Addressing such challenges requires adoption of some strategies. In this regard, it is imperative that the needs of the customers are understood and the service expectations. The offering of the services must be tangibilized and diverse people coupled with issues of delivery must also be addressed (Ellis & Jack, 2011). Services are associated with distinctive features that make it difficult to evaluate the customers thus escalating the variability of inputs and outputs of operation and putting more emphasis on the significance of the time factor. The service marketing theory therefore explains an underlying paradigm that is associated with services marketing and explains the differences between services and good as playing a crucial role in this regard. The features that have been discussed above, heterogeneity, intangibility, inseparability as well as perishability which are associated with services is also used to explain the distinctiveness of marketing of services from products.

Social marketing theory

The social marketing theory gives an account of the approach of social marketing that posits to integrate as well as develop the concepts of marketing with supplementary approaches that influence the behaviors that are responsible for benefiting people along with the communities towards the achievement of the greater extents of social good (Ellis & Jack, 2011). The social marketing theory also integrates the best practices, partnership insight, research, audience as well as theory to acknowledge the supply of programs of social change that is segmented and sensitive in the sense of competition, thus considered as being equitable, effective, efficient as well as sustainable. Social marketing is commonly perceived as an application of standard approaches to commercial marketing for attainment of non-commercial objectives (Ellis & Jack, 2011). The basic premise behind social marketing is achievement of social good in contrast to commercial marketing that aspires for monetary gains although social gains cannot entirely be ruled out in commercial marketing. The social marketing theory therefore presents two distinctive parents namely the ‘social parent’ and the ‘marketing parent. The social parent entails approaches to social policy as well as social sciences while the marketing parent entails the approaches to commercial as well as public sector marketing.

Business applicability of the theory

The social marketing theory has been instrumental in the assessment and design in health interventions where it has been associated with great value as a framework to achieve this end (Ellis & Jack, 2011). Consequently, the social marketing theory has been applicable in campaigns involving health promotion programs resulting to considerable impact in this regard. Such campaigns entail sensitizing people on the benefits of prevention of HIV, diarrhea among young children, treatment and control of malaria, methods of water sanitation and the need for accessing basic services of healthcare.

Mass- market theory

The mass- market theory involves a theory in marketing that is applicable to fashion. In this regard, the mass- market theory maintains that the proliferation of fashion through diverse peer reference groups is associated with different fashion leaders for every group. Contrary to trickle-down effect that addresses innovation in fashion, the mass- market theory holds that, the trickling of fashion takes place across diverse social groups in contrast to the upper and lower classes. Innovations in the fashion industry must not necessary start from the upper class but can also be initiated at the lower class as well and spread in all directions in a manner referred to as trickle-across theory.

Business applicability of the theory

Mass marketing entails a strategy of market coverage that involves organizations ignoring the differences in market segment as well as appeal to the entire market in consideration of one strategy or offer. The notion entails spreading a message while targeting to reach the highest possible number of people (Niche Market, 2002). The most commonly used media in mass-market theory involves televisions, the radio and newspapers which are able reach as many people as possible as a broad audience thus enhancing the exposure of the good hence buying is done in huge volumes as a result.

The mass-market theory works in contrast to the niche marketing through focusing on huge volumes of sales at considerably low prices. The objective of mass-market theory is provision of products as well as services that appeals to the entire market while on the other hand, the target of a niche market is a specific market segment with products or services of considerably low or no competition in the market (Niche Market, 2002).

Partnership and alliance theory

The Partnership and alliance theory has been evident in situations whereby the approach to marketing in a business enterprise involves such arrangements as strategic partnerships, symbiotic type of marketing, horizontal integration as well as collaboration. With regard to the Partnership and alliance theory, integration plays a crucial role in the enhancement of the formation of the partnership and alliance theory coupled with assisting the partners in enhancing their partnerships in business.

Business applicability of the theory

The Partnership and alliance theory have been associated as a mechanism in business to facilitate responding to the forces of globalization, technology as well as changes in economic activities (Baker & Saren, 2010). Majority of global organizations have found it difficult to survive in isolation and thus opted for skills, capabilities as well as resources integration towards formation of strategic alliances and partnerships. This has been associated with a viable approach to achieve success through value creation logic.

References

Alcalay, R. & Bell, R., (2000). “Promoting Nutrition and Physical Activity Through Social Marketing”.

Baker, M. J.,& Saren, M., (2010). Marketing Theory: a Student Text. Los Angeles: SAGE

Ellis, N. & Jack, G., (2011). Marketing: a Critical Textbook. London: SAGE.

Niche Market. (2002). “Business: The ultimate resource. Cambridge, Mass: Perseus Publications