Marketing Industry in Egypt
Overview:
This report aims at giving a brief picture about the “Marketing” Industry in Egypt, the different practices used by the companies, and the changes that are happening in the industry throughout time; with a special focus on the IT marketing. First an overview of “marketing” in general will be given to introduce the basic concepts, various types of marketing tools and channels that are commonly used, and the different agencies working in the marketing fields starting form specific agencies such as marketing research agencies to a more comprehensive agencies which can conduct a marketing plan and its implementation from A to Z. The report will then focus on the trends in Egypt, who things are done,
…show more content…
There are several channels of distribution available for the firms to use, the typical channel involves the manufacturer, the wholesaler, the retailer and finally the consumer
In the case of services three other elements are added (making them 7ps) process: the operations involved in delivering the service People: the frontline and back office staff involved in service delivery and management physical evidence: materials, décor, and settings used by organizations to make the service experience more concrete
Evolution:
The Marketing concepts have evolved a lot since the early ages with different orientations in different stages worldwide. The major focus of the Companies in earlier times were on the production technique thus being able to achieve economies of scale, but it had to be coupled with high demand for the product or service in addition to some certainty that the taste of the customers won’t change rapidly, this was called the “Production orientation”. The production orientation went on until the 50’s, until the suppliers figured out that if their product is of high quality then the consumers would buy and consume it, this was called “product orientation”. During those times “Sales Orientation” also occurred in which the focus of the companies was on maximizing the sales of an already existing product through promotion techniques without taking into consideration the needs
Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.
As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.
Another component of an effective marketing plan is a distribution channel analysis. The path a product or service takes to reach the end consumer is referred to as a distribution channel, which can include wholesalers, retailers, distributors and the internet (Distribution Channel, 2013). A distribution channel analysis aids in the creation of a distribution strategy which will convey the company’s plan regarding the distribution of its products, determining whether to use a push or a pull strategy, and how that strategy fits the product, the target market, and overall marketing
This essay will start to explore and define the meaning of customer orientation in depth. The marketing concept and the marketing mix will help discover after what it means to be a customer focused firm. This will occur through the scrutiny of the term in respect to product, price, place and promotion.
This task I am going explain the process of distributing goods through different channels from the manufacturer to the customers. The term distribution means the process of delivering, storing and selling goods, so that they can be used by customers. (Source- Intermediate Retail and Distribution, Delivering is about what types of transport which are used to carrying and delivering goods, the types of transport is going to be Rail, Road, Air, Water for example rivers, ocean cargo and canals and People. Storing is about where the goods are going to come from and where they are going to be stored. Selling is going to be where you are going to sell the goods
Ever since companies began manufacturing their products in large quantities, they have needed to convince consumers to buy the product. Before WWI, most consumers were happy to purchase a manufactured product because it was cheaper and convenient. However, as more companies began offering more and more goods, businesses needed to stand out from the crowd in order to make a sale. Over time, Marketing has changed and evolved to become an integrated function of many companies today.
Marketing channels are very important to both the manufacturer and the consumer. These channels are the way the manufacture releases their product to the consumer for purchasing. Manufactures can choose either a direct channel which is the means of selling customers or accepting orders from them. A sales force calls on customers and prospects to present information on products and persuade them to place orders. Retailer channel is the channel that manufacturers sell their goods directly to large retailers such as Amazon which then sell onto the final consumers. wholesaler channel typically buys and stores large quantities of several producers’ goods and then
Hi Loan! I also agree with Frank's contention that marketing no longer promotes conformity, but rather promotes “never ending self-fulfillment” and “constantly updated individualism”. Today, people usually want to see and have a new thing even though they already had it. They don't want to be stick with the same thing, and they want to be different than before. Thus, the elements that have helped the business successful in the past are no longer appropriate to help businesses continue to grow successfully in new market conditions. For example, some of famous brand such as H&M, Adidas, or Nike has a distinct way to promote their products. It will attract the eye of the customers because it is unique and strange. Also, it show that these company
Our product is mainly sold through an indirect channel . We ship it to our wholesaler by train, who distributes it to our
To put the company's products to consumers can be sold through public distribution channels, direct channels, indirect channels.
There are many possible distribution channels. All begin at the manufacturer and end at the customer. For example;
This is another common business orientation. It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the selling company’s products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically show buying inertia or resistance and must be coaxed into buying. It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate more buying. Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants.
The concept of marketing has evolved over time. Whilst in today’s business world “the customer is king”. In the past this was not the case, some businesses put factors other than the customer first. Product focused companies define themselves by their products. For example Kodak originally defined its self as being in the photo processing business. This definition impact the culture of the company in a way that hamstrings thinking and creates impediments for action. When the shift to digital cam Kodak resisted this because of the impact on its “products photo processing”.
Businesses can develop new products based on either a marketing orientated approach or a product orientated approach. According to Jaworski and Kohli (1993), marketing orientation is ‘the organization-wide generation of market intelligence pertaining to current and
on sales volume, and they can sell to wholesalers as well as retailers. In B2B