Distribution system of a company

Marketing is the process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying exchange relationships in a dynamic environment. An exchange is the provision or transfer of goods, services or ideas in return for something of value.

There are four conditions must exist for an exchange to occur: two or more individuals, groups or organizations must participate, each party must have something of value desired by other, each party must be willing to give up what it has in order to receive the value held by the other, parties to the exchange must be able to communicate with each other to make their somethings of value available. In an exchange, products are traded either for other products or for financial resources such as cash, or credit. Products can be goods, services or ideas.

The marketing concept is a management philosophy prompting a business organization to try to satisfy customer's needs through a coordinated set of activities that also allows the organization to achieve its goals. Customer satisfaction is the marketing concept's major objective. The philosophy of the marketing concept emerged in the United States during the 1950's, after the production and sales eras. To make the marketing concept work, top management must accept it as an overall management philosophy. Implementing the marketing concept requires an efficient information system and sometimes restructuring the organization

Organizations that develop activities consistent with the marketing concept become market-oriented organizations, generating market information, coordination and communication of market information across departments. In creating a market-oriented organization there is important a synergy between the top management, marketing managers and non-marketing managers, also an open exchange of information and relationship, so building activities with customers are also important.

Marketing strategy involves selecting and analyzing a target market (the group of people whom the organization wants to reach) and creating and maintaining a marketing mix (product, distribution, promotion and price) to satisfy this market

Marketing strategy requires that managers focus on four tasks to achieve their objectives: marketing opportunity analysis, target market selection, marketing mix development and marketing management.

Marketing opportunities are circumstances that allow an organization to take action toward reaching a particular group of customers. Marketing opportunity analysis involves reviewing: internal factors (organizational objectives, financial resources, managerial skills, organizational strengths and weaknesses, cost structures), external factors (the competitive, economic, political, legal and regulatory, technological and socio-cultural forces of the marketing environment).

A target market is a group of persons for whom a firm creates and maintains a marketing mix that specifically fits their needs and preferences. The organization's management must designate which customer groups the firm is trying to serve and have some information about them. Identification and analysis of a target market provide a foundation for developing the marketing mix.

The four marketing mix variables are product, distribution, promotion and price. The product variable: is the aspect of the marketing mix dealing with researching consumers' wants and designing a product with the desired characteristics. The distribution variable - a marketing manager tries to make products available in quantities desired to as many customers as possible and keep the total costs of inventory, transportation and storage as low as possible. The promotion variable relates to activities used to inform one or more groups of people about an organization and its products. The price variable refers to establishing pricing policies and determining product prices.

Marketing management is a process of planning, organizing, implementing and controlling marketing activities to facilitate effective and efficient exchanges. Planning is a systematic process of assessing opportunities and resources, determining marketing objectives, developing a marketing strategy and developing plans for implementation and control. Organizing marketing activities refers to developing the marketing unit's